Changchun, September 1, 2005: Jilin Guangzheng Mineral Development Company Limited (Jilin Guangzheng) and Shell China Jilin Energy Holding Company Limited with Shell (China) Limited (Shell) today signed an agreement to establish a cooperative joint venture to explore and develop oil shale resources in Jilin Province. The agreement will be subject to approval by the Chinese Government. The new joint venture company, the Jilin Shell Oil Shale Development Company Limited (Jilin Shell), will be 61% owned by Shell and 39% by Jilin Guangzheng. China’s Vice Minister of Commerce Wei Jianguo, Vice Chairman of the State Northeast Leading Office Song Xiaowu, Vice Minister of Land and Resources Wang Min, Party Secretary of Jilin Province Wang Yunkun, Governor of Jilin Province Wang Min, and Stephen Mut, Executive Vice President of Shell Unconventional Resources Energy, witnessed the event in Changchun. Signing the agreement were the Chairman of Jilin Guangzheng, Guo Wenxiu, and the Executive Chairman of Shell Companies in China, Lim Haw Kuang. Under the agreement, the joint venture will carry out an exploration programme to test the presence of commercially viable oil shale deposits and will then conduct a field demonstration using Shell’s oil shale in-situ conversion process, which is currently in the process of development. The long-term objective of the joint venture is to develop the oil shale resources for the commercial production of clean high quality transportation fuels and other energy products. Guo Wenxiu, Chairman of Jilin Guangzheng, said: "We are pleased to partner Shell to explore the possibilities of harnessing the oil shale deposits in Jilin Province. We are very grateful to both the central and Jilin provincial governments for their continuous guidance and support. We believe oil shale has the potential to be another source of energy to help fuel China's fast growing economy. We have confidence in the Shell technology and its way of developing the resource responsibly and we hope to get the project into commercial operation as soon as we possibly can." Lim Haw Kuang, Executive Chairman of Shell Companies in China, said: “We are delighted to sign this agreement and establish the Jilin Shell venture. Jilin has large deposits of oil shale. This project is intended to apply Shell’s proprietary oil shale in-situ conversion process and could be an important step in diversifying China's energy portfolio by developing oil shale in an economically viable and environmentally responsible manner. We are proud to be part of the project to explore the potential to develop Jilin’s oil shale resources and make a contribution to China’s energy security and economic development.” Enquiries: Jilin Guangzheng Mineral Development Company Limited Li Guodong Tel: +86 0431-8546548 Shell Companies in China External Affairs Nick Wood Tel: +86 10 65054501 ext. 2020
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