Gazprom Enters Sakhalin II Project

THE HAGUE, April 18/PRNewswire-FirstCall/ --     The shareholders of Sakhalin
Energy Investment Company Ltd. (Sakhalin Energy), operator of the Sakhalin II
project, today signed a Sale and Purchase Agreement with OAO Gazprom (Gazprom)
to trigger the transfer of shares in Sakhalin Energy.

    This transaction implements a protocol signed on December 21, 2006 in
Moscow. Under its terms Gazprom acquires a 50% plus one share stake in
Sakhalin Energy for $7.45 billion in cash. The other three shareholders,
Royal Dutch Shell plc (Shell)(NYSE:RDS.A, NYSE: RDS.B), Mitsui & Co. Ltd
(Mitsui) and Mitsubishi Corporation (Mitsubishi), each dilute their stakes
by 50%, to receive a proportionate share of the purchase price.

    Gazprom will now hold 50% plus one share, Shell 27.5%, Mitsui 12.5%, and
Mitsubishi 10%.

    With LNG capacity effectively sold, Sakhalin II is moving to firmly
establish its position on the global energy map as a reliable new energy
source for customers. Through the Area of Mutual Interest (AMI) arrangement
with Gazprom, the prospects for expansion of Sakhalin II through further LNG
processing trains are enhanced.

    In addition, the Ministry of Natural Resources of the Russian Federation
has announced its approval of the revised Environmental Action Plan (EAP).

    Gazprom Deputy Chairman Alexander Medvedev said, "Gazprom's entry into
Sakhalin II is a powerful impetus for implementation of this large scale
development in the area of energy export to Asia Pacific and North America.
In turn, it will facilitate the company's strategy of phased entry into the
global LNG market."

    Shell's Executive Director, Exploration and Production, Malcolm Brinded
said: "Gazprom's entry into the Sakhalin Project is warmly welcomed. Combined
with the government acceptance of the Environmental Action Plan, this is
another important step for Sakhalin II. The AMI should create additional
growth opportunities for the partners in the future."

    Mitsui's Executive Director and Executive Vice President, Hiroshi Tada
said: "Mitsui is pleased to welcome Gazprom to the Sakhalin II team. With the
entry of Gazprom as Sakhalin Energy major shareholder, we are confident that
in cooperation with the Russian Government, can bring this first Russian
frontier LNG project to completion, as scheduled, for delivery of LNG to out
customers in Japan, Korea and the United States. The milestone achieved today
will no doubt contribute to further strengthening of the relationship between
Russia and Japan, and will pave the way towards future development in
Sakhalin region."

    Mitsubishi's Senior Executive Vice President, Hisanori Yoshimura said:
"Mitsubishi welcomes Gazprom into the Sakhalin II Project as a majority
shareholder. I trust that this new combination of shareholders is the best
team to accomplish timely start-up of LNG delivery to important customers in
Japan, Korea, and North American West Coast. This is an important step
towards Sakhalin Energy becoming the key LNG supplier for Asia Pacific
market."

    Notes for Editors:

    Sakhalin is a new world-class oil and gas province, with estimated
resources of some 45 billion barrels of oil equivalent (boe). Sakhalin II is
the largest integrated oil and gas export project in the world, with total
resources of some 4 billion boe.

    Sakhalin II today has production capacity of 80,000 boe per day during
the production season. The subsequent phase of the development will take the
total project capacity to 395,000 boe per day, including 9.6 million tonnes
per year of LNG production.

    The second phase of the project is over 80% complete. More than 17,000
workers are currently employed in the construction of the project, of which
around 70% are Russian nationals. The planned LNG production has been sold
under contract to customers across the Asia-Pacific region.

    Sakhalin II includes the following elements:

    - Offshore production facilities including the Molikpaq platform (Piltun
Astokh-A), the new Piltun Astokh-B and Lunskoye-A platforms and some 300 km
of offshore pipelines;

    - An onshore processing facility to take the gas and crude oil from both
fields;

    - Onshore oil and gas pipelines to the south of the island;

    - An oil export facility capable of year-round operation;

    - The first LNG plant and associated export facilities built in Russia;

    - Island infrastructure upgrades, such as roads, bridges, rail, port,
airport, and medical facility upgrades.

    Shell, Mitsui and Mitsubishi have entered into an Area of Mutual Interest
arrangement with Gazprom that gives Sakhalin Energy and its shareholders
priority for expansion, growth and new business opportunities in the wider
Sakhalin area. This includes the purchase of third party gas and the bidding
for, and acquisition of, certain blocks in the area.

   The revised Environmental Action Plan (EAP) was prepared by Sakhalin
Energy with input from shareholders and Gazprom and submitted to Ministry of
Natural Resources in March 2007. The revised document includes Sakhalin
Energy's measures to enhance contractor management for environmental impact
during the onshore pipeline construction. The revised plan sets out detailed
action points, action parties and close-out dates.

    The Sakhalin II EAP goes beyond the practical aim of merely addressing
non-compliances during the pipeline construction. It also provides targets
and action points for conservation of biodiversity of Sakhalin Island,
including fish stocks and rare flora and fauna species.

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a) the Registration Statement on Form F-3 of Royal Dutch Shell plc and Shell
International Finance B.V. (Registration Numbers 333-126726 and
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b) the Registration Statements on Forms S-8 of Royal Dutch Shell plc
(Registration Numbers 333-126715 and 333-141397).