Shell Malaysia Signs New Exploration Contract

The SK319 PSC will see Shell undertake an initial 3 year exploration program to comprehensively explore an area totalling 2727 square kilometres within block SK319 in Central Luconia, offshore Sarawak. Sarawak Shell Berhad is the operator and will partner PETRONAS Carigali with a 50:50 participating equity split.

The new PSC forms part of Shell’s Low Cost Exploration & Development (LCD) focus that will allow the company to carry out a multi-well exploration campaign to further explore and de-risk the mature carbonate pinnacle play in Central Luconia.

Iain Lo, Shell Malaysia Chairman and Managing Director of Sarawak Shell Berhad commented, “The successful execution of this new PSC and Joint Operating Agreement (JOA) marks another important milestone for Shell in Malaysia after the signing of the SK318 and 2B exploration contracts for offshore Sarawak earlier this year. This is the third operated exploration PSC that Shell Malaysia has signed in 2012 and adds to Shell’s growing exploration position in Malaysia."

As production sharing contract operator to PETRONAS, Shell is the largest gas producer in Malaysia, accounting for 60% of Malaysia’s gas production. Ninety percent of the gas produced is earmarked for the PETRONAS LNG complex in Bintulu.

ENQUIRIES:

Norhayati Sulaiman-Adzhar, Media Relations (Malaysia)

N.Sulaiman@shell.com

Tel : +603 2091 3795

ABOUT SHELL MALAYSIA EXPLORATION & PRODUCTION

Operating as production sharing contractors to PETRONAS, Shell Malaysia’s exploration and production companies  are  engaged  in the exploration for and efficient development and extraction of crude oil and natural gas from offshore Sarawak and Sabah, with onshore operations and offices in Miri, Kota Kinabalu, Labuan, Bintulu and Kuala Lumpur. Shell also builds and operates the infrastructure needed to deliver hydrocarbons to market.

The pioneer of Malaysia's exploration and production sector, Shell drilled Malaysia’s first commercial oil well in Miri, Sarawak in 1910. The company’s upstream base is still located in Miri after a century of operations.

DEFINITIONS & CAUTIONARY NOTE:

Resources: Our use of the term “resources” in this announcement includes quantities of oil and gas not yet classified as Securities and Exchange Commission of the United States ("SEC") proved oil and gas reserves or SEC proven mining reserves.  Resources are consistent with the Society of Petroleum Engineers 2P and 2C definitions.

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