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Shell floating LNG technology chosen by joint venture for Greater Sunrise project

Shell’s Floating Liquefied Natural Gas (FLNG) technology has been selected as the Sunrise Joint Venture’s preferred option for developing the Greater Sunrise gas fields in the Timor Sea.

Subject to final detailed agreements, government approvals and a final investment decision Shell will operate the FLNG facility and manage the design and build phases of the FLNG project for the Sunrise Joint Venture participants.

The Sunrise project would be the second deployment of Shell’s proprietary FLNG design, following Shell’s Prelude FLNG development in the Browse basin, offshore Western Australia. The Sunrise FLNG facility would produce around 4.0 million tonnes per annum of LNG as well as condensate.

“Sunrise is a significant resource, but is remote and technically challenging, so Shell’s FLNG technology provides the best technical and commercial development option,” said Ann Pickard, Executive Vice President Upstream International Australia.

In selecting Shell’s FLNG technology, the Sunrise Joint Venture has undertaken a rigorous technical and commercial evaluation drawing on Shell’s extensive research and development of FLNG technologies. 

As part of the Sunrise Joint Venture Shell will work with Woodside and the governments of Timor-Leste and Australia to advance the Sunrise FLNG development, which would bring significant long term economic benefits to both countries. 

The Sunrise Joint Venture participants comprise Shell (26.6%) Woodside (33.4%), ConocoPhillips (30%) and Osaka Gas (10%).

Enquiries

Media:
International, UK, European Press +31 70 377 3600
John Dagostino,  +61 404 061 836

Investor relations:
The Hague: Tjerk Huysinga, Tjerk.Huysinga@shell.com,+31 70377 3996/+44 207934 3856
New York: Harold Hatchett, Harold.Hatchett@shell.com, +1 212 218 3112

Note to editors

Shell in Australia
Shell has been operating in Australia since 1901 and employs around 2,500 people. It has a one-sixth interest in the North West Shelf Venture, operates Shell’s Prelude FLNG project offshore north west Australia, and holds equity interests in other developments including the Gorgon Joint Venture (which recently took FID), and the Sunrise and Browse Joint Ventures. Shell is also active in the coal seam gas industry in Australia, developing a LNG project in Gladstone, Queensland and is currently seeking to acquire Arrow Energy in conjunction with PetroChina (subject to corporate and regulatory approvals).

Shell is a global, integrated energy company with operations in more than 100 countries and territories, with businesses including: oil and gas exploration; production and marketing of liquefied natural gas and gas to liquids; marketing and shipping of oil products and chemicals; and renewable energy projects including biofuels.

Shell FLNG
The dimensions of Shell’s FLNG facility are approximately 480 by 75 metres. When fully ballasted, the FLNG facility weighs around 600,000 tonnes.

Shell’s FLNG solution means the facility can be re-deployed to another gas field once production at one gas field is complete, and its standardised “design one, build many” approach allows repeatability gains to be captured during design and construction phases. It is suitable for more distant offshore fields, remains on station during harsh ocean conditions such as cyclones, and can process a wide range of gas compositions.

Greater Sunrise
Greater Sunrise includes the two fields of Sunrise and Troubadour and is located some 450 km north west of Darwin and 150 km south of Timor-Leste.

The fields are unitised and administered jointly by Australia and Timor-Leste through a suite of international agreements, including the Timor Sea Treaty, Certain Maritime Arrangements in the Timor Sea and the International Unitisation Agreement.

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Cautionary Note
The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate entities. In this press release “Shell”, “Shell group” and “Royal Dutch Shell” are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to subsidiaries in general or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as used in this press release refer to companies in which Royal Dutch Shell either directly or indirectly has control, by having either a majority of the voting rights or the right to exercise a controlling influence. The companies in which Shell has significant influence but not control are referred to as “associated companies” or “associates” and companies in which Shell has joint control are referred to as “jointly controlled entities”. In this press release, associates and jointly controlled entities are also referred to as “equity-accounted investments”. The term “Shell interest” is used for convenience to indicate the direct and/or indirect (for example, through our 34% shareholding in Woodside Petroleum Ltd.) ownership interest held by Shell in a venture, partnership or company, after exclusion of all third-party interest.
 
This press release contains forward-looking statements concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’, ‘‘intend’’, ‘‘may’’, ‘‘plan’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘probably’’, ‘‘project’’, ‘‘will’’, ‘‘seek’’, ‘‘target’’, ‘‘risks’’, ‘‘goals’’, ‘‘should’’ and similar terms and phrases. There are a number of factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this press release, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for the Group’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserve estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including potential litigation and regulatory effects arising from recategorisation of reserves; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions.
 
All forward-looking statements contained in this press release are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional factors that may affect future results are contained in Royal Dutch Shell’s 20-F for the year ended December 31, 2009 (available at www.shell.com/investor and www.sec.gov). These factors also should be considered by the reader.  Each forward-looking statement speaks only as of the date of this press release - 29 April 2010. Neither Royal Dutch Shell nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this statement.

The United States Securities and Exchange Commission (SEC) permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions.  We use certain terms in this document that SEC's guidelines strictly prohibit us from including in filings with the SEC.  U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website www.sec.gov. You can also obtain these forms from the SEC by calling 1-800-SEC-0330.