Shell delivers first gas from Barracuda Project

PORT-OF-SPAIN, Trinidad, July 22, 2021 /PRNewswire/ -- Shell Trinidad and Tobago (through BG International, a subsidiary of Royal Dutch Shell plc) today announces that production has started on Block 5C in the East Coast Marine Area (ECMA) in Trinidad and Tobago. This marks a significant milestone in the delivery of gas both domestically and internationally through Atlantic LNG.

"Today's announcement strengthens the resilience and competitiveness of Shell's position in Trinidad and Tobago," said Maarten Wetselaar, Director of Integrated Gas, Renewable and Energy Solutions. "This is a key growth opportunity that supports our long-term strategy in the country as well as our global LNG growth ambitions."

Block 5C, known as Project Barracuda, is a backfill project with approximately 25,000 barrels of oil equivalent per day (boe/d) (140 mmscf/d) of sustained near-term gas production with peak production expected to be approximately 40,000 boe/d (220 mmscf/d).  It is Shell's first greenfield project in the country and one of its largest in Trinidad and Tobago since the BG Group acquisition.

"We are immensely proud of our people and the remarkable work it took to achieve this milestone, particularly given that drilling began in May 2020 during the COVID-19 pandemic," said Eugene Okpere, Shell's Senior VP and Country Chair. "Our execution strategy had to be completely overhauled to deliver our business plan, all while working remotely. It required tremendous resilience, adaptability and commitment."

The ECMA is one of the most prolific gas-producing areas in Trinidad and Tobago. As part of Shell's development strategy, the company has sought ways to access the significant volumes that exist in the ECMA and to bring them online.

Notes to editors

• First gas at Barracuda was reached on July 18, 2021, and the estimated production for Barracuda represents 100% total gross figures.
• The Barracuda project comprises two subsea wells (both 100% Shell owned), one in the Endeavour field and the other in the Bounty field. Both are tied back to Shell's Dolphin platform.
• These are two of the deepest development wells in Trinidad and Tobago; Endeavour was drilled to a depth of 20,000 feet (6,096 metres) while Bounty was drilled to a depth of 16,000 feet (4,877 metres).
• Shell now looks forward to the delivery of the four-well development project in Block 22 and NCMA 4, known as the Colibri project. This is a joint venture with Heritage Petroleum Company Limited. First gas from Colibri is expected in 2022.
• Shell is a major shareholder in Atlantic LNG, a significant global producer of LNG. Our equity in the Atlantic plant ranges from 46% to 57.5% in each of the four trains at the facility.
• Shell announced Final Investment Decision for Project Barracuda in January 2020.

Cautionary note

The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate legal entities. In this announcement "Shell", "Shell Group" and "Group" 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 Royal Dutch Shell plc and its subsidiaries in general or to those who work for them. These terms are also used where no useful purpose is served by identifying the particular entity or entities. "Subsidiaries", "Shell subsidiaries" and "Shell companies" as used in this announcement refer to entities over which Royal Dutch Shell plc either directly or indirectly has control. Entities and unincorporated arrangements over which Shell has joint control are generally referred to as "joint ventures" and "joint operations", respectively. Entities over which Shell has significant influence but neither control nor joint control are referred to as "associates". The term "Shell interest" is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in an entity or unincorporated joint arrangement, after exclusion of all third-party interest.

This announcement contains the following forward-looking Non-GAAP measure: Adjusted Earnings. We are unable to provide a reconciliation of these forward-looking Non-GAAP measures to the most comparable GAAP financial measures because certain information needed to reconcile the above Non-GAAP measure to the most comparable GAAP financial measure is dependent on future events some which are outside the control of the company, such as oil and gas prices, interest rates and exchange rates. Moreover, estimating such GAAP measures with the required precision necessary to provide a meaningful reconciliation is extremely difficult and could not be accomplished without unreasonable effort. Non-GAAP measures in respect of future periods which cannot be reconciled to the most comparable GAAP financial measure are calculated in a manner which is consistent with the accounting policies applied in Royal Dutch Shell plc's consolidated financial statements.

This announcement contains forward-looking statements (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995) 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 "aim", "ambition", "anticipate", "believe", "could", "estimate", "expect", "goals", "intend", "may", "objectives", "outlook", "plan", "probably", "project", "risks", "schedule", "seek", "should", "target", "will" 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 announcement, 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 regulatory measures addressing climate change; (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; (m) risks associated with the impact of pandemics, such as the COVID-19 (coronavirus) outbreak; and (n) changes in trading conditions. No assurance is provided that future dividend payments will match or exceed previous dividend payments. All forward-looking statements contained in this announcement 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 risk factors that may affect future results are contained in Royal Dutch Shell's Form 20-F for the year ended December 31, 2020 (available at www.shell.com/investors and www.sec.gov). These risk factors also expressly qualify all forward-looking statements contained in this announcement and should be considered by the reader. Each forward-looking statement speaks only as of the date of this announcement, July 22, 2021. Neither Royal Dutch Shell plc 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 announcement.

LEI number of Royal Dutch Shell plc: 21380068P1DRHMJ8KU70

SOURCE Shell Trinidad and Tobago (through BG International)