9th Sep 2005 07:31
Shell Provides Update on Operational Impact of Hurricane KatrinaUpstream Operations:Production is now flowing and ramping up from all Shell-operated assets in theWestern Gulf of Mexico (GoM) that were shut in because of Hurricane Katrina.Production has resumed at Auger, Brutus, Bullwinkle, Cougar, Enchilada, NorthPadre Island and West Cameron 565. In the Eastern GoM, our Fairway asset andYellowhammer Gas Processing Plant near Mobile Bay are operating normally.Shell's net GoM production from Shell-operated and outside-operated fields forthe first half of 2005 averaged around 450,000 barrels of oil equivelent perday (kboe/d). Currently, Shell's net GoM production has returned toapproximately 160 kboe/d. Significant efforts continue as we make acomprehensive assessment of our hurricane-impacted assets (Mars, Ursa, Cognac,and West Delta 143) as well as of pipelines and other related onshoreprocessing/handling facilities that transport and receive our production.Pending full assessment and evaluation of infrastructure and assets, it isexpected that about 60% of total production will be restored to pre-hurricanelevels within Q4, 2005. The situation with respect to the remaining production,mainly from the Mars and Ursa area, Mensa, and Cognac, is still being assessed,but production from these facilities may not be feasible during the fourthquarter, depending on options available for recovery.Downstream Operations:RefineriesShell and Motiva operate 7 refineries in the US with overall crude throughputof approximately 1 million barrels per day (bbl/d). Two Motiva refineries,Motiva Convent and Motiva Norco, representing about 27% of Shell's US refiningcapacity (net) were impacted by Hurricane Katrina. These refineries normallysupply retail and other customers mainly in the PADD III Gulf Coast area.The Motiva Convent refinery has completed repairs and initiated its restartsequence. It is expected that the refinery will be brought back towards fullproduction over several days. Full production rates are expected to be achievedby the end of next week. The Motiva Convent refinery has a capacity of 235thousand bbl/d of crude throughput (Shell share 50% = 117.5 thousand bbl/d).Repair work continues at the Motiva Norco refinery and restart of operationscould begin the middle of next week. The Motiva Norco plant has a capacity of220 thousand bbl/d of crude throughput (110 thousand bbl/d = Shell share 50%).Other Gulf Coast Shell refineries in Deer Park (334 thousand bbl/d = Shellshare 50%) and Port Arthur (275 thousand bbl/d = Shell share 50%) are notaffected.ChemicalsShell Chemical LP is continuing to make progress in restoring operations. TheGeismar, Louisiana chemicals plant is operating at 60 % of its capacity,limited by offsite logistics issues. Geismar (Shell share 100%) produces firstline derivative products. Full capacity is expected as logistics becomeavailable.The Mobile facility in Alabama is in its final start-up phase. Mobile (Shellshare 100%) produces base chemical feedstocks and fuels.Norco (Shell share 100%) produces base chemicals and other products. Moredefinitive information on start-up dates will be available in the coming daysas start-up plans are developed jointly with the refinery.Terminals and RetailTerminal operations are nearly up and running across the affected area.Movement of product into our retail stations continues to be a significantchallenge.Work is in progress assessing the full impact of the storm on our network, andgreat efforts are being made to keep product flowing. Motiva has taken specificactions to help control prices in the affected areas and is also taking strictmeasures against price gouging by any of our branded locationsThe Hague, September 9, 2005MediaUK/USA/International:Stuart Bruseth +44 20 7934 6238Andy Corrigan +44 20 7934 5963Simon Buerk +44 20 7934 3453Bianca Ruakere +44 20 7934 4323Lisa Givert +44 20 7934 2914Susan Shannon +44 20 7934 3277Bernadette Cunnane +44 20 7934 2713Netherlands:Henk Bonder +31 70 377 8750Institutional InvestorsUK:Gerard Paulides +44 20 7934 6287Europe:Bart van der Steenstraten +31 70 377 3996USA:Harold Hatchett +1 212 218 3112This press release contains forward-looking statements that are subject to riskfactors associated with the oil and gas business. It is believed that theexpectations reflected in these statements are reasonable, but may be affectedby a variety of variables which could cause actual results, trends or reservesreplacement to differ materially, including, but not limited to: pricefluctuations, actual demand, currency fluctuations, drilling and productionresults, reserve estimates, loss of market, industry competition, environmentalrisks, physical risks, the successful negotiation and consummation oftransactions, the risk of doing business in certain countries, legislative,fiscal and regulatory developments including potential litigation andregulatory effects, economic and financial market conditions in variouscountries and regions, political risks, project delay or advancement, approvalsand cost estimates.Please refer to the Annual Report on Form 20-F/A (amendment no. 1) for the yearended December 31, 2004 for a description of certain important factors, risksand uncertainties that may affect the Companies' businesses. Neither of theCompanies undertake any obligation to publicly update or revise any of theseforward-looking statements, whether to reflect new information, future eventsor otherwise.Cautionary Note to US Investors:The United States Securities and Exchange Commission (`SEC') permits oil andgas companies, in their filings with the SEC, to disclose only proved reservesthat a company has demonstrated by actual production or conclusive formationtests to be economically and legally producible under existing economic andoperating conditions. We use the term "recoverable resource" in this releasethat the SEC's guidelines strictly prohibit us from including in filings withthe SEC.Carel van Bylandtlaan 30, PO Box 162, 2501 AN The Hague, The Netherlands ENDROYAL DUTCH SHELL PLCRelated Shares:
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