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Shell sells Nigeria assets to consortium led by local companies

The Shell Petroleum Development Company of Nigeria Limited (SPDC) today agreed to transfer its interest in three production licences and related equipment in the Niger Delta to a consortium led by two Nigerian companies.

“This sale of assets supports the Nigerian government’s goal of expanding opportunities for local energy companies”, said Mutiu Sunmonu, Managing Director SPDC. “We have been in Nigeria for more than 50 years and remain committed to doing business here. This transaction should be seen in the context of  Shell’s active portfolio management of its assets and interests across the world.”

The agreement covers Shell’s 30% interest in oil mining leases 4, 38 and 41 covering approximately 2,650 square kilometres in the north western Niger Delta. The buyer is Seplat Petroleum  Company Limited, a  Nigerian company jointly held by two Nigerian firms, Platform Petroleum Limited and Shebah Petroleum Development Company Ltd, along with Maurel & Prom of France. The agreement is subject to the approval of the Federal Government of Nigeria and the national oil company, the Nigerian National Petroleum Corporation (NNPC).

SPDC is the operator of the joint venture between NNPC (55%), Shell (30%), Total E&P Nigeria Limited (10%), and Nigeria Agip Oil Company (5%). Total E&P Nigeria Ltd and Nigeria Agip Oil Company will also transfer their interest in the three oil mining leases.

The area includes about 30 wells with a production capacity of approximately 50,000 barrels of oil equivalent per day. The wells also produce natural gas for domestic and industrial use. Crude production is currently shut down awaiting completion of repairs to an export pipeline damaged in late 2008.

Royal Dutch Shell plc is a leading global energy company whose subsidiaries employ 102,000 people and operate in more than 100 countries and territories. Shell engages in the exploration and production of oil and natural gas, the refining and marketing of transportation fuels and other oil products, the production of chemicals and the development of renewable energy. For more information, see www.shell.com/aboutshell .

Enquiries

Media Contacts:
International
Shell Media Relations +31 70 377 3600

Nigeria
Tony Okonedo  +234 80 703 63092
Precious Okolobo  +234 80 703 65019
Caroline Wittgen  +234 80 703 65471


Shell Investor Relations:
The Hague
Tjerk Huysinga  +31 70 377 3996 / +44 207 934 3856

New York
Harold Hatchett:  +1 212 218 3112


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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.