Royal Dutch Shell Alaska Drilling Update
THE HAGUE, The Netherlands, September 17, 2012/PRNewswire-FirstCall/ --
Royal Dutch Shell ("Shell") (NYSE: RDS.A) (NYSE: RDS.B) is engaged in a
multi-year drilling programme to explore for new oil & gas resources in
high-potential blocks in offshore Alaska. Important progress has been made with
this programme, with two drill ships, more than twenty support vessels, an
approved capping stack, and other redundant oil spill response equipment already
in position. Shell continues to demonstrate the strength and extent of its
Arctic preparations.
Over the last several days, Shell has successfully completed a series of tests
of the first-ever Arctic Containment System. However, during a final test, the
containment dome aboard the Arctic Challenger barge was damaged. It is clear
that some days will be required to repair and fully assess dome readiness. We
are disappointed that the dome has not yet met our stringent acceptance
standards; but, as we have said all along, we will not conduct any operation
until we are satisfied that we are fully prepared to do it safely.
The time required to repair the dome, along with steps we have taken to protect
local whaling operations and to ensure the safety of operations from ice floe
movement, have led us to revise our plans for the 2012-2013 exploration program.
In order to lay a strong foundation for operations in 2013, we will forgo
drilling into hydrocarbon zones this year. Instead, we will begin as many wells,
known as 'top holes,' as time remaining in this season allows. The top portion
of the wells drilled in the days and weeks ahead will be safely capped and
temporarily abandoned this year, in accordance with regulatory requirements. We
look forward to the final receipt of our drilling permits for the multi-year
exploration program upon the successful testing and deployment of the Arctic
Containment System.
These capabilities have, most recently, been evident in Shell's ice management
operations as it successfully moved one of its drill ships and support vessels
safely out of the path of approaching sea ice. That drill ship, the Noble
Discoverer, is expected to resume its position and drilling operations over the
'Burger A' prospect in the days ahead.
Also, in the coming days, Shell is expected to begin exploratory drilling in the
Beaufort Sea. These operations will follow the conclusion of the fall whale hunt
and the anticipated receipt of a top hole drilling permit.
We have tested and assembled drill ships and support vessels, trained personnel,
and acquired numerous final approved plans and permits. This exploration program
remains critically important to America's energy needs, to the economy and jobs
in Alaska, and to Shell.
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 - opens in new window
[http://www.shell.com/home/ExternalLink?SourcesiteId=investor&URL=http%3A%2F%2Fwww.sec.gov%2F
] ). These factors also should be considered by the reader. Each forward-looking
statement speaks only as of the date of this release, September 17, 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 - opens
in new window
[http://www.shell.com/home/ExternalLink?SourcesiteId=investor&URL=http%3A%2F%2Fwww.sec.gov%2F
] . You can also obtain these forms from the SEC by calling 1-800-SEC-0330.


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Source: Royal Dutch Shell plc