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Press Release

Mars Platform Production to Resume Ahead of Schedule

20/04/2006

Dedicated team accomplishes "industry-firsts" to bring largest producing platform affected by Hurricane Katrina online by end of May

Shell Exploration & Production Company (Shell) is ahead of schedule to restart production from its Mars Tension Leg Platform (TLP).  To signal resumption, Shell began to notify the appropriate Gulf of Mexico mid-stream transportation, marketing businesses and downstream customers to secure sales for initial, post-Katrina, oil and gas production.  Mars is the largest producing platform in the Gulf of Mexico that was affected by Hurricane Katrina, representing about 5 percent of current Gulf of Mexico daily production.
 
“Reviving this vital energy source for America prior to the peak summer driving season would not have been possible without the tremendous work of the Shell team,” said Marvin Odum, Executive Vice President and head of Shell Exploration & Production in North and South America.  “The Mars platform recovery and deepwater pipeline repairs were among the most technologically complex operations in the world, and our people were up to the task, completing the work safely and ahead of schedule.”

Based on progress to date, Shell expects that construction activity necessary for initial production at Mars will be complete by the end of April.  A brief re-commissioning and start-up process will follow, and partial production is expected to resume in the second half of May.  Mars production is expected to be restored to pre-Katrina rates by the end of June. 

By the end of 2005, Shell had repaired all of its hurricane-damaged facilities except Cognac and Mars, restoring over 75 percent of its total pre-Katrina production rate. 

The Mars TLP and wells survived the extreme Katrina weather conditions, but the platform drilling rig and some major elements of the topsides production equipment were heavily damaged.  In restoring the Mars TLP and its Pipelines, Shell accomplished unprecedented repairs in the oil and gas industry:

  • Three months of preparation, planning and work on-site led to the successful lift of the damaged, 1,000-ton, Mars platform rig in two pieces from its awkward toppled position on the platform deck.  The damaged sections of the rig were transported to shore for repairs.
  • The rig was removed without damaging the important High Pressure Gas treatment vessel that was under the rig, an accomplishment that helped to shorten the recovery time at Mars.
  • Experienced engineers, construction specialists, technicians and other support staff accomplished an industry-first deepwater pipeline project, successfully repairing the Mars oil and gas export pipelines in 2,700 feet of water using underwater robotics to execute tasks normally performed by divers in shallow waters.  The oil and natural gas export lines were damaged as a result of a drifting semi-submersible deepwater drilling rig that dragged an anchor across the lines during the storm.  The 18-inch oil line and 14-inch gas line have both been repaired, and integrity testing has been successfully completed.  Both lines are commissioned and ready for service once Mars production resumes.
     
     In addition, the Mars flexjoint (the pipeline connection to the TLP) repairs, scheduled prior to the 2005 hurricane season but delayed due to loop currents, were completed during the Mars recovery effort. 
  • To accommodate the living quarters and deck area needed to perform the varied work tasks, Prosafe Offshore's Safe Scandinavia accommodation semi-submersible journeyed from the North Sea to the Gulf of Mexico for the first time.  The six-story vessel with lodging for over 500 people successfully deployed the Shell supplied Deepwater mooring system in record water depth for this vessel. 

“Many of the talented individuals who have restored this important asset were dealing with their own personal recovery, yet they never wavered in their commitment to help Shell restore its operations and increase our country’s energy production,” added Odum.  “I am proud of the Shell team and all the staffs from Louisiana, the Gulf Coast Region and around the world that rallied to provide the resources to accomplish this goal.”
   
Shell operates the Mars platform with a 71.5 percent working interest; BP has the remaining working interest.

Shell Oil Company, including its consolidated companies and its share in equity companies, is one of America’s leading oil and natural gas producers, natural gas marketers, gasoline marketers and petrochemical manufacturers. Shell, a leading oil and gas producer in the deepwater Gulf of Mexico, is a recognized pioneer in oil and gas exploration and production technology.  Shell Oil Company is an affiliate of The Shell Group, which operates in over 140 countries and territories employing more than 112,000 people.

INQUIRIES:
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Shell Media Line

+1 (713) 241-4544

Notes to Editors:
High-resolution photos and broadcast-quality video of the Mars Platform are available for download.  Images show post-hurricane Katrina damage, recovery work and views of the platform today.   For assistance, please contact the Shell Media Line at 713-241-4544.


Disclaimer statement:
This announcement contains forward-looking statements, that are subject to risk factors associated with the oil, gas, power, chemicals and renewables business. It is believed that the expectations reflected in these statements are reasonable, but may be affected by a variety of variables which could cause actual results, trends or reserves replacement to differ materially, including, but not limited to: price fluctuations, actual demand, currency fluctuations, drilling and production results, reserve estimates, loss of market, industry competition, environmental risks, physical risks, risks associated with the identification of suitable potential acquisition properties and targets and the successful negotiation and consummation of transactions, the risk of doing business in developing countries, legislative, fiscal and regulatory developments including potential litigation and regulatory effects arising from recategorisation of reserves, economic and financial market conditions in various countries and regions, political risks, project delay or advancement, approvals and cost estimates.

Please refer to the Annual Report on Form 20-F for the year ended December 31, 2004 (as amended) for a description of certain important factors, risks and uncertainties that may affect the Shell Group's businesses.  Neither Royal Dutch Shell plc nor any member of the Shell Group undertakes any obligation to publicly update or revise any of these forward-looking statements, whether to reflect new information, future events or other information.

Cautionary Note to US Investors: 
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 presentation, such as "expected producible resources" and "amount of reserves we expect to produce", that the SEC's guidelines strictly prohibit us from including in filings with the SEC.