The HOA will see staged work activities and new investments from Shell and its joint venture partner PETRONAS Carigali Sdn Bhd (PCSB), to extend the life and increase the recovery factor of the Baram Delta (BDO) and North Sabah fields.

The improvement in the recovery efficiency of the oil fields may result in an additional 90 to 100 kboe/d of oil production and extend the field life to beyond 2040.

Peter Voser, Shell’s CEO, said: “This new agreement confirms Shell’s commitment to continue investing in Malaysia and its position as a heartland for Shell. The agreement also provides an opportunity to work together with PETRONAS on building local knowledge and capabilities in enhanced oil recovery.”

Shell Malaysia Chairman Anuar Taib added, “This development will positively impact Malaysia’s oil reserves and benefit the country as a whole, adding further value to the country’s upstream oil and gas industry. Shell, as a long term partner in Malaysia’s progress, is pleased to be able to continue contributing towards the national aspiration to become a high-income economy.”

The new agreement will build upon the existing BDO and North Sabah production sharing contracts, located offshore Sarawak and Sabah, respectively.

- End -

Notes to editors:

 PETRONAS Carigali holds a 60 percent equity interest in the BDO production sharing contract (expiry 2018) and is operator while Shell holds the remaining 40 percent interest. The North Sabah PSC (expiry 2019) is Shell operated with each company holding an equal 50 percent equity interest.

The projected increase in the average recovery factor in the BDO and North Sabah fields will see a rise from 36% to 50%, adding significant value to the upstream industry in Malaysia sustainably over the coming decades. The technology employed in the North Sabah fields could potentially lead to the first field-scale offshore Chemical EOR in the world. To date, Shell has participating interests in 14 PSCs in various offshore blocks in Sarawak and Sabah.

Peter Voser, Chief Executive Officer for Royal Dutch Shell PLC signed the agreement on behalf of Shell companies, witnessed by Malcolm Brinded, Executive Director, Upstream International, Royal Dutch Shell PLC. Dato’ Shamsul Azhar Abbas, President & CEO signed for PETRONAS;

Dato’ Wee Yiaw Hin, the Executive Vice President for Exploration and Production signed for Petronas Carigali; while Ramlan Abdul Malek, the Vice President, Exploration and Production Business, PETRONAS and Nooruddin Abdullah, Head of Legal for Exploration and Production were witness.

Also in attendance were Anuar Taib, Chairman Shell Malaysia and Managing Director of Shell’s upstream companies in Malaysia and Michiel Kool, Executive Vice President for Shell Upstream International, Asia Pacific.

Photo caption:

PETRONAS and Shell Sign Heads of Agreement for New Enhanced Oil Recovery Production Sharing Contracts

(seated, L-R): Dato’ Wee Yiaw Hin, Dato’ Shamsul Azhar Abbas, Peter Voser and Malcolm Brinded

(standing, L-R): Nooruddin Abdullah, Michiel Kool, Anuar Taib and Ramlan Abdul Malek

Enquiries:

Shell Malaysia Media Relations

Peing Tajang: tel: +6 03 2091 2161, email: peing.tajang@shell.com

Stephanie Khoo: tel: +6 03 2091 2115, email: stephanie.khoo@shell.com

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 24% 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