REG-Royal Dutch Shell: Shell to halt Carmon Creek in situ project <Origin Href="QuoteRef">RDSa.L</Origin>

ShellAnnouncement

27/10/2015 21:20

Shell to halt Carmon Creek in situ project

The Hague - 27 October 2015. Royal Dutch Shell plc ("Shell") today announces
that the company will not continue construction of the 80,000 barrel per day
Carmon Creek thermal in situ project located in Alberta, Canada.

Shell originally sanctioned the project in October 2013 and announced in March
2015 that the project would be re-phased to take advantage of the market
downturn to optimise design and retender certain contracts.  After careful
review of the potential design options, updated costs, and the company's
capital priorities, Shell's view is that the project does not rank in its
portfolio at this time.  This decision reflects current uncertainties,
including the lack of infrastructure to move Canadian crude oil to global
commodity markets.  

"We are making changes to Shell's portfolio mix by reviewing our longer-term
upstream options world-wide, and managing affordability and exposure in the
current world of lower oil prices. This is forcing tough choices at Shell,"
said Chief Executive Officer, Ben van Beurden.

Shell will retain the Carmon Creek leases and preserve some equipment while
continuing to study the options for this asset.  The company expects to take
net impairment, contract provision, and redundancy and restructuring charges of
some $2 billion as a result of this decision with the third quarter 2015
results, which will be included as an identified item.  The project SEC Proved
Reserves estimated at 418 million barrels bitumen at end 2014 will be de-booked
and the project estimated recoverable petroleum resources will be classified as
Contingent Resources. Carmon Creek is 100% Shell owned.

Ends

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including in our 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 www.sec.gov.



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