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Integration key to successful petrochemicals growth platforms in Middle East

With abundant natural resources, the Middle East will play a pivotal role in the future development of the global petrochemicals industry.

To build successful platforms for growth, new investments are best targeted towards integration with upstream oil and gas production, and existing oil refining and petrochemical production centres.

Speaking on October 14th at Petchem Arabia 09 in Abu Dhabi, Aslam Moola, Business Development Manager, Shell Chemicals, said that countries across the region are increasingly encouraging a transition of petrochemicals from an export-focused industry to one that extends its product slate into value-added specialty products for domestic manufacturing markets.

By providing materials essential for the development of these other industrial sectors - ranging from automotive, appliances, and construction to metals and consumer products - petrochemicals can serve as an engine for broader economic, industrial and social development across the region, Mr Moola noted.

Looking at existing plants, ongoing projects and potential opportunities for petrochemicals expansion projects across the Middle East, the Shell Chemicals executive underlined the advantages (available with integrated investments) in terms of cost, feedstock flexibility and security, and product slate. He also talked about the value added contribution of both process technology and manufacturing optimisation technology.

Offering examples from Shell’s global manufacturing centres, Mr Moola showed how integration is delivering what the energy group calls “oil chemicals advantage” in new investments such as Shell Eastern Petrochemicals Complex in Singapore and established plants in Europe and North America. Illustrating the project and production optimisation work of Shell Global Solutions, he also showed how excellence in project implementation, and production and energy management can increase the value and performance of manufacturing plants.

Mr Moola continued: “The Shell Group has a long history in the Middle East, underlined by the scale of energy and petrochemical assets in which we have invested. From a chemicals perspective, not only is there an abundance of natural resources to support petrochemicals growth, there is also strong government commitment to expanding this sector as a foundation stone for broader economic, industrial and social development.

“We also see opportunities where our technologies can support the economic and industrial goals of MRHs, which include developing downstream and specialty chemicals sectors such as polyurethanes. Shell understands the increasingly important role the Middle East is playing in global petrochemicals and we are certainly keen to extend our partnerships in the region.”

For further information, please contact:

Wang Yean-Sung (Ms)
Telephone: +65 6384 8667
Email: yean-sung.wang@shell.com 

Notes to Editors

Shell companies have their own separate identities but we may sometimes use "Shell", "Group, "we" or "us" when we refer to Shell companies in general or where no useful purpose is served by identifying any particular Shell company.

Shell Chemicals collectively refers to the companies of the Shell Group engaged in the chemicals business. Shell chemicals companies manufacture and deliver petrochemical building blocks and polyolefins to industrial customers. These products are widely used in plastics, coatings and detergents.

Disclaimer Statement

This 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. Also included as a forward looking statement is our disclosure of reserves, proved oil and gas reserves, proven mining reserves, organic reserves, net reserves and resources. 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 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 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 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, 2007 (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 December 9, 2008. 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 press release.

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