Shell to Construct World's First Oil Sands Carbon Capture and Storage (CCS) Project

Calgary, Alberta (ots/PRNewswire) -

Shell today announced that it will go ahead with the first carbon
capture and storage (CCS) project for an oil sands operation in
Canada. The Quest project will be built on behalf of the Athabasca
Oil Sands Project joint venture owners (Shell, Chevron and Marathon
Oil[1]) and with support from the Governments of Canada and Alberta.

To view the Multimedia News Release, please click:

http://multivu.prnewswire.com/mnr/prne/shell-first-oil-sands-css-
project/56586

CCS is critical to meeting the huge projected increase in global
energy demand while reducing carbon dioxide (CO2) emissions,
explained Peter Voser, Chief Executive Officer of Royal Dutch Shell
plc. "If you want to achieve climate change goals, CCS has to be part
of the solution. We are helping to advance CCS technology on a number
of fronts around the world, but Quest will be our flagship project."

Alberta's oil sands are a secure, reliable source of energy and
an economic engine which drives employment, training and business
development across Canada and beyond. "We will need all sources of
energy to meet world demand in the coming decades," Voser noted.
"Lower CO2 energy sources will grow, but even by 2050 at least 65 per
cent of our energy will still come from fossil fuels. So CCS will be
important to manage climate impacts."

The Athabasca Oil Sands project produces bitumen, which is piped
to Shell's Scotford Upgrader near Edmonton, Alberta. From late 2015,
Quest will capture and store deep underground more than one million
tonnes a year of CO2 produced in bitumen processing. Quest will
reduce direct emissions from the Scotford Upgrader by up to 35 per
cent - the equivalent of taking 175,000 North American cars off the
road annually.

"Quest is another example of how we are using technology and
innovation to improve the environmental performance of our oil sands
operations," said Shell Executive Vice President of Heavy Oil, John
Abbott. "The opportunity Quest provides to reduce emissions from our
upgrading activities is an important achievement in itself, but the
project's technical and strategic value reaches beyond the emissions
it will capture."

"Quest is important because it is a fully integrated project that
will demonstrate existing capture, transportation, injection and
storage technologies working together for the safe and permanent
storage of CO2. The knowledge it provides will help to enable much
wider and more cost-effective application of CCS through the energy
industry and other sectors in years to come."

Both the Canadian federal and Albertan provincial governments
have identified CCS as an important technology in their strategies to
reduce CO2 emissions. The Alberta government will invest $745 million
in Quest from a $2-billion fund to support CCS, while the Government
of Canada will invest $120 million through its Clean Energy Fund.

"We will continue to invest in innovative clean energy
technologies such as the Shell Quest project to help support
high-quality jobs and responsible development of Canada's energy
resources," said the Honourable Joe Oliver, Minister of Natural
Resources. "Carbon capture and storage has the potential to help us
balance our need for energy with our need to protect the
environment."

"Today's announcement reaffirms Alberta's position as a global
leader in carbon capture and storage," said Energy Minister Ken
Hughes. "Technologies like CCS will play an instrumental role in
helping to lower greenhouse gas intensity from the oil sands and
demonstrate to the world Alberta's commitment to responsible energy
development."

The International Energy Agency (IEA) calls CCS "a crucial part
of worldwide efforts to limit global warming" and estimates that it
could deliver about one-fifth of necessary worldwide reductions in
greenhouse gases by 2050. Shell is also working with governments and
experts to help the development of CCS in other countries, including
projects in Norway and Australia.

Quest is the world's first commercial-scale CCS project to tackle
carbon emissions in the oil sands, and the first CCS project in which
Shell will hold majority ownership and act as designer, builder and
operator. It will also form the core of Shell's CCS research
programme and help develop Shell's CO2 capture technology.

Shell has received the necessary federal and provincial
regulatory approvals for Quest. Construction has begun and will
employ an average of about 400 skilled trades workers over roughly 30
months, peaking at about 700.

More about Quest:

The Quest CCS project will capture more than one million tonnes
per year of CO2 from the Scotford Upgrader located near Edmonton,
Alberta and transport it up by an 80 km underground pipeline to a
storage site north of the Scotford site. Here, it will inject it more
than two kilometres underground into a porous rock formation called
the Basal Cambrian Sands (BCS), which is located beneath layers of
impermeable rock. Sophisticated monitoring technologies will ensure
the CO2 is permanently stored. In 2011, Quest received the world's
first certificate of fitness for its storage development plan from
Det Norske Veritas (DNV), an international risk management firm. DNV
assembled a panel of seven CCS experts from academia and research
institutions to perform the review over a two-week period.

To improve efficiency, up to 50 per cent of project work will be
done offsite at a construction yard yet to be selected. Shell will
use third-party construction facilities in Edmonton, helping the
continuing development of key construction capacity in the province.
Large pre-assembled modules will then be delivered to the Shell site
for installation.

News Release Disclaimer and Cautionary Note - 2012

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
Shell's products; (c) currency fluctuations; (d) drilling and
production results; (e) reserves 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 ). These factors also should be considered by the
reader. Each forward-looking statement speaks only as of the date of
this release, September 5, 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.

We use certain terms in this release, such as discovery
potential, that the United States Securities and Exchange Commission
(SEC) 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. You can also obtain these forms from the SEC by
calling 1-800-SEC-0330.

1. The Athabasca Oil Sands Project, with 255,000 barrels per day
of mining and upgrading capacity, is a joint venture among Shell
Canada Energy (60 per cent), Chevron Canada Limited (20 per cent) and
Marathon Oil Canada Corporation (20 per cent).

Enquiries:
Shell Canada Media Relations: media-desk@shell.com or +1-877-850-5023. Please
provide both your e-mail and phone number as some queries will only be answered via
e-mail.
Shell Investor Relations Europe: +31(0)70-377-3996
Shell Investor Relations United States: +1-713-241-2069
Shell International Media Relations: +44(0)207-934-5550

Video:
http://multivu.prnewswire.com/mnr/prne/shell-first-oil-sands-css-project/56586

ots Originaltext: Royal dutch shell plc
Im Internet recherchierbar: http://www.presseportal.de