First oil from phase 2 BC-10

SHELL PRODUCES FIRST OIL FROM PHASE 2 OF PARQUE DAS CONCHAS, OFFSHORE BRAZIL October 2, 2013 - THE HAGUE - Shell and its partners have begun production fromthe second development phase of the Parque das Conchas (BC-10) project, locatedoff Brazil's south-east coast. The BC-10 project (Shell share 50%, Petrobras35%, ONGC 15%) is comprised of several subsea fields which are tied back to afloating production, storage and offloading (FPSO) vessel, named the EspíritoSanto. In 2009 the first phase of the project began production, when the Abalone andOstra fields were connected, along with the Argonauta B-West reservoir. Thepeak production of the first phase was more than 90,000 barrels of oilequivalent (boe) in 2010, and is currently producing some 35,000 boe per day.Phase 2 connected a fourth reservoir to the vessel, the Argonauta O-North. Atits peak, Phase 2 is expected to produce approximately 35,000 boe per day. "Boosting production at BC-10 with the completion of phase two is another greatexample of our successful project development, delivery and executioncapabilities," said John Hollowell, Executive Vice President for Deep Water,Shell Upstream Americas. "It is a great day for Shell in Brazil." Building on what was already a successful proving ground for technologyinnovation, a 4-D Life of Field Seismic monitoring system was installed as partof Phase 2 subsea development. This technology, consisting of a network ofseismic sensors installed throughout the field on the seabed, allows us to moreeffectively and efficiently monitor the reservoir. This is the deepestinstallation of its kind on a full-field scale in the world (approximately1800m or 6000 feet). Expecting to maximize the production life of BC-10 even further, Shell and itspartners recently announced in July the decision to move forward with theproject's third development phase, which will include the installation ofsubsea-infrastructure at the Massa and Argonauta O-South reservoirs. Onceonline, Phase 3 of the BC-10 project is expected to reach a peak production of28,000 boe. # # # BC-10Phased Development Outline Phase 1: Began production in 2009 from Abalone, Ostra and Argonauta (ArgonautaB-West reservoir) fields. Phase 2: Began production in October 2013 from Argonauta O-North fieldreservoir. Phase 3: In July 2013, Shell and partners decide to move forward withdevelopment of the Massa and Argonauta O-South reservoirs. Inquiries: Media:Shell US Media Relations +1 713 241 4544Shell International Media Relations +44 (0) 20 7934 5550 Shell Brazil Media Relations +55 21 3984 7413 Investor Relations: North America +1 713 241 1042International + 31 (0) 70 377 4540 Editors Notes: * Shell is currently operating two FPSOs in Brazil's offshore - the Espírito Santo at Parque das Conchas and the Fluminense at the Bijupirá/Salema fields. * Images are available on our Flickr feed 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. 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