Recommended Cash and Share Offer for BG Group plc by Royal Dutch Shell plc

Shell’s recommended cash and share offer for BG Group plc
Publication of circular and prospectus
Video message Shell CEO Ben van Beurden

Hello, I am Ben van Beurden, the CEO of Royal Dutch Shell.

We have filed the prospectus today for the recommended combination with BG, which will be followed by a shareholder vote in a few weeks time.

The Board has recommended this transaction.

This is an important moment for Shell.

Our industry has entered what could be a prolonged oil price downturn.

We are confident that the financial strength of the group will be further improved by this transaction, enhancing free cash flow and capacity for dividends and investment for shareholders.

The result will be a more competitive and stronger company for both sets of shareholders in today's volatile oil price world.

Together with BG, we will accelerate the delivery of our strategy, particularly in deep water and LNG.

This creates a strong platform to refocus the company, to become more competitive, more resilient to oil price volatility, and enhance our returns to shareholders.

At the same time, Shell is pulling all levers to manage through the difficult current oil price downturn.

This means lower operating costs and capital spending in 2015, and lower again in 2016.

This is to improve Shell's cash cover of capex, interest and dividends in any reasonably expected oil price despite the downturn  and is all part of our plans to create a simpler and more competitive Shell.

Overall, these are challenging times for the industry, and we are  responding with urgency and determination, but also with a great sense  of excitement for the future.

Thank you.