2014

Shell to Increase Participation in the Beryl Area Fields in the North Sea

THE HAGUE, the Netherlands, October 25, 2012 /PRNewswire/ --

Shell announced today the signing of an agreement with Hess Corporation to acquire its interests in the Beryl area fields and the Scottish Area Gas Evacuation System ("SAGE"), for US$ 525 million.  

The Beryl Area includes 12 fields located on the UK Continental Shelf. The fields are operated by Apache and with the acquisition Shell's interest in the different fields will increase by a range of between 9-65% depending on the field.

The Beryl cluster has a far longer anticipated lifetime than originally thought and may produce for a further two decades. The acquisition should help to enhance the performance and economic potential from key Shell North Sea operated and non-operated assets, lifting Shell's production in the Beryl area fields from currently 9 thousand boe/d to 24 thousand boe/d. Shell intends to invest in these assets to substantially extend the production life, for potentially a further 20 years

Notes to Editors

  1. Shell and Hess Corporation signed an agreement on May 29, 2012 to acquire Hess's 15.67% interest in the BP operated Schiehallion field.  The sale which completed on 28 September 2012 brings Shell's equity in Schiehallion to 49%"
  2. In 2010 we increased our interest in the Clair field from 18% to 28%.  Clair lies west of Shetland and is operated by BP.  
  3. Shell is a leading operator in the UK sector of the North Sea and intends to maintain this position. Offshore, Shell has interests in more than 50 fields, operates more than 30 platform installations, 30 subsea installations and one production (FPSO) vessel. Onshore, we operate three gas plants; the St. Fergus Gas Terminal and Fife NGL Plant (with Braefoot Bay marine terminal) in Scotland, and Bacton in the east of England. Shell operates a significant number of its interests in the UK Continental Shelf (UKCS) on behalf of a 50:50 joint venture with ExxonMobil. The Shell share of UK oil and gas production is about 8% (140 kboe/d in 2011). Almost half of this is gas. This is almost 4% of total Shell Group production.
  4. The increase in Shell share of fields is as follows: Beryl, Nevis Central, Nevis North, Nevis Far North, Nevis South Cormorant, Loirston, Ness and Ness South from 23% to 45%.  Nevis South from 14.8% to 52.2%. On Nevis West Beryl from 0% to 65.5%.  On Buckland from 14.4% to 28.5%, and from 15.9% to 25% on Skene.

Cautionary Note

The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate entities. In this release "Shell", "Shell group" and "Royal Dutch Shell" are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words "we", "us" and "our" are also used to refer to subsidiaries in general or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies. '‘Subsidiaries'’, "Shell subsidiaries" and "Shell companies" as used in this release refer to companies in which Royal Dutch Shell either directly or indirectly has control, by having either a majority of the voting rights or the right to exercise a controlling influence. The companies in which Shell has significant influence 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 release, associates and jointly controlled entities are also referred to as "equity-accounted investments". The term "Shell interest" is used for convenience to indicate the direct and/or indirect (for example, through our 23% shareholding in Woodside Petroleum Ltd.) ownership interest held by Shell in a venture, partnership or company, after exclusion of all third-party interest.

This release contains forward-looking statements concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management's current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements expressing management's expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as '‘anticipate'’, '‘believe'’, '‘could'’, '‘estimate'’, '‘expect'’, '‘intend'’, '‘may'’, '‘plan'’, '‘objectives'’, '‘outlook'’, '‘probably'’, '‘project'’, '‘will'’, '‘seek'’, '‘target'’, '‘risks'’, '‘goals'’, '‘should'’ and similar terms and phrases. There are a number of factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this release, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for the Shell's products; (c) currency fluctuations; (d) drilling and production results; (e) reserve estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including potential litigation and regulatory measures as a result of climate changes; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions. All forward-looking statements contained in this release are expressly qualified in their entirety 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 Royal Dutch Shell's 20-F for the year ended 31 December, 2011 (available at http://www.shell.com/investor and http://www.sec.gov). These factors also should be considered by the reader. Each forward-looking statement speaks only as of the date of this release, October 25, 2012. Neither Royal Dutch Shell nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement 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 this release. There can be no assurance that dividend payments will match or exceed those set out in this release in the future, or that they will be made at all.

The United States Securities and Exchange Commission (SEC) permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions.  We use certain terms in this release, such as resources and oil in place, that SEC's guidelines strictly prohibit us from including in filings with the SEC.  U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website http://www.sec.gov. You can also obtain these forms from the SEC by calling 1-800-SEC-0330.

Enquiries

Shell Investor Relations

Europe - Tjerk Huysinga: +31-70-377-3996

United States - Ken Lawrence: +1-713-241-2069

Shell Media Relations

USA: +1-713-241-4544

International, UK, European Press: +44-207-934-5550

SOURCE Royal Dutch Shell plc



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