Shell announces pause in Alaska drilling programme

ROYAL DUTCH SHELL PLC - Shell announces pause in Alaska drilling programme

PR Newswire

London, February 27

Shell announces pause in Alaska drilling programme

The Hague, February 27, 2013: Royal Dutch Shell plc ("Shell") today announcedit will pause its exploration drilling activity for 2013 in Alaska's Beaufortand Chukchi Seas to prepare equipment and plans for a resumption of activity ata later stage.

"We've made progress in Alaska, but this is a long-term programme that we arepursuing in a safe and measured way," said Marvin Odum, Director, UpstreamAmericas. "Our decision to pause in 2013 will give us time to ensure thereadiness of all our equipment and people following the drilling season in2012."

Alaska holds important energy resources. At the same time, securing access tothose resources requires special expertise, technology and an in depthunderstanding of the environmental and societal sensitivities unique to theregion. Shell is one of the leaders in an industry move into offshore Arcticexploration. The company continues to use its extensive experience in Arcticand sub-Arctic environments to prepare for safe activities in Alaska.

Alaska remains an area with high potential for Shell over the long term, andthe company is committed to drill there again in the future. If explorationproves successful, resources there would take years to develop.

Shell completed top-hole drilling on two wells in 2012 in the Beaufort andChukchi Seas, marking the industry's return to offshore drilling in the AlaskanArctic after more than a decade. This drilling was completed safely, with noserious injuries or environmental impact. After the drilling season ended,however, one of Shell's drilling rigs, the Kulluk, was damaged in a maritimeincident related to strong weather conditions. The Kulluk and the seconddrilling rig, the Noble Discoverer, will be towed to locations in Asia formaintenance and repairs.

"Shell remains committed to building an Arctic exploration program thatprovides confidence to stakeholders and regulators, and meets the highstandards the company applies to its operations around the world," said Odum."We continue to believe that a measured and responsible pace, especially in theexploration phase, fits best in this remote area."

Notes for Editors

Royal Dutch Shell plc ("Shell") is a leading oil and gas exploration player,with upstream activities in over 50 countries world-wide. Exploration and dealsin conventional basins and resources plays added 12 billion barrels of oilequivalent (boe) resources for Shell in 2010-2012.

Shell has ambitious exploration plans worldwide. Exploration drilling activitywill step up in 2013-14. Shell expects to drill over 40 high-potential wells in18 conventional basins, and test 10 key resources plays for tight gas andliquids-rich shales. Plans for 2013 call for a $7 billion exploration andappraisal programme spanning both early production opportunities andlonger-term development plays.

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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, 27February 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.