Expanding LNG leadership, purchasing Repsol positions

ROYAL DUTCH SHELL PLC - Expanding LNG leadership, purchasing Repsol positions

PR Newswire

London, February 26

Shell continues to expand its LNG leadership with the purchase of new positionsfrom Repsol S.A.

The Hague, 26 February 2013. Royal Dutch Shell plc ("Shell") continues toexpand its industry leadership in Liquefied Natural Gas ("LNG"), today agreeingto acquire part of Repsol S.A's ("Repsol") LNG portfolio outside of NorthAmerica, including supply positions in Peru and Trinidad & Tobago, for a cashconsideration of $4.4 billion. Shell will also assume and consolidate balancesheet liabilities predominantly reflecting leases for LNG ship charters ofcurrently $1.8 billion. The balance sheet impacts are subject to finalassessment prior to completion of the transaction.

"Shell's world-wide LNG supply position and customer base means we are uniquelypositioned to add value to Repsol's LNG portfolio, including through Shell'strading capabilities," said Chief Executive Officer Peter Voser. "By optimisingthe combined portfolios we will increase our ability to bring LNG to areas thatneed it the most, adding value for Shell, our partners and our customers."

The acquisition will add a new dynamic to Shell's portfolio, namely LNGcapacity in the West Atlantic from Atlantic LNG in Trinidad & Tobago, and inthe East Pacific from Peru LNG. These additions will complement Shell'sexisting LNG capacity in Africa, Asia, Australia, the Middle East and Russia.The acquisition should add some 7.2 million tonnes per annum (mtpa) of LNGvolumes through long-term off-take agreements, including some 4 mtpa of equityLNG plant capacity.

Shell expects to add value to this portfolio by optimizing the new LNG flows inour world-wide customer base. Subject to successful completion, the newportfolio is expected to immediately provide additional cash flow to Shell,with limited on-going capital expenditure requirements.

The transaction, which has an effective date of 1 October 2012, is expected toclose in the second half of 2013 or early 2014, subject to regulatory approvalsand other conditions precedent.

Additional information:

Shell has agreed to acquire from several Repsol subsidiaries which own key LNGbusinesses of Repsol. Upon completion, after securing regulatory approvals andmeeting other conditions precedent, the transaction will add:

a. Net 4.2 mtpa equity LNG plant capacity comprising:

* ALNG trains 1-4 14.6 mtpa capacity, on a 100% basis (20-25% equity per

train); operated by Atlantic LNG Company of Trinidad and Tobago

* Peru LNG 4.45 mtpa capacity, on a 100% basis (acquisition: 20% equity; 100%

offtake); operated by Peru LNG Company

* BBE power plant in Spain (25%, 800MW); operated by Bahía de Bizkaia

Electricidad S.L.

* A fleet of LNG carriers, comprising both long term and short term time

charters.

b. A material LNG marketing and trading operation, with 7.2 mtpa of LNG

volumes through long-term off-take agreements.

c. As part of this agreement, Shell has committed to supply around 0.1 mtpa of

LNG to Repsol's Canaport LNG terminal in Canada over a period of 10 years.

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Cautionary note

The companies in which Royal Dutch Shell plc directly and indirectly ownsinvestments are separate entities. In this announcement "Shell", "Shell Group"and "Royal Dutch Shell" are sometimes used for convenience where references aremade to Royal Dutch Shell plc and its subsidiaries in general. Likewise, thewords "we", "us" and "our" are also used to refer to subsidiaries in general orto those who work for them. These expressions are also used where no usefulpurpose is served by identifying the particular company or companies."Subsidiaries", "Shell subsidiaries" and "Shell companies" as used in thisannouncement refer to companies in which Shell either directly or indirectlyhas control, by having either a majority of the voting rights or the right toexercise a controlling influence. The companies in which Shell has significantinfluence 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 announcement, associates and jointlycontrolled entities are also referred to as "equity-accounted investments". Theterm "Shell interest" is used for convenience to indicate the direct and/orindirect (for example, through our 23 per cent shareholding in WoodsidePetroleum Ltd.) ownership interest held by Shell in a venture, partnership orcompany, after exclusion of all third-party interest.

This announcement contains forward looking statements concerning the financialcondition, results of operations and businesses of Shell and the Shell Group.All statements other than statements of historical fact are, or may be deemedto be, forward-looking statements. Forward-looking statements are statements offuture expectations that are based on management's current expectations andassumptions and involve known and unknown risks and uncertainties that couldcause actual results, performance or events to differ materially from thoseexpressed or implied in these statements. Forward-looking statements include,among other things, statements concerning the potential exposure of Shell andthe Shell Group to market risks and statements expressing management'sexpectations, beliefs, estimates, forecasts, projections and assumptions. Theseforward looking statements are identified by their use of terms and phrasessuch as "anticipate", "believe", "could", "estimate", "expect", "goals","intend", "may", "objectives", "outlook", "plan", "probably", "project","risks", "seek", "should", "target", "will" and similar terms and phrases.There are a number of factors that could affect the future operations of Shelland the Shell Group and could cause those results to differ materially fromthose expressed in the forward looking statements included in thisannouncement, including (without limitation): (a) price fluctuations in crudeoil and natural gas; (b) changes in demand for Shell's products; (c) currencyfluctuations; (d) drilling and production results; (e) reserves estimates; (f)loss of market share and industry competition; (g) environmental and physicalrisks; (h) risks associated with the identification of suitable potentialacquisition properties and targets, and successful negotiation and completionof such transactions; (i) the risk of doing business in developing countriesand countries subject to international sanctions; (j) legislative, fiscal andregulatory developments including regulatory measures addressing climatechange; (k) economic and financial market conditions in various countries andregions; (l) political risks, including the risks of expropriation andrenegotiation of the terms of contracts with governmental entities, delays oradvancements in the approval of projects and delays in the reimbursement forshared costs; and (m) changes in trading conditions. All forward lookingstatements contained in this announcement are expressly qualified in theirentirety 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 Shell's 20-Ffor the year ended 31 December 2011 (available at www.shell.com/investor andwww.sec.gov ). These factors also should be considered by the reader. Eachforward looking statement speaks only as of the date of this announcement, 26February 2013. Neither Shell nor any of its subsidiaries nor the Shell Groupundertake any obligation to publicly update or revise any forward lookingstatement 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 thisannouncement.