Regulatory Story
Go to market news section View chart   Print
Royal Dutch Shell PLC  -  RDSA   

First oil from phase 2 BC-10

Released 11:59 02-Oct-2013

First oil from phase 2 BC-10


October 2, 2013 - THE HAGUE - Shell and its partners have begun production from
the second development phase of the Parque das Conchas (BC-10) project, located
off Brazil's south-east coast. The BC-10 project (Shell share 50%, Petrobras
35%, ONGC 15%) is comprised of several subsea fields which are tied back to a
floating production, storage and offloading (FPSO) vessel, named the Espírito

In 2009 the first phase of the project began production, when the Abalone and
Ostra fields were connected, along with the Argonauta B-West reservoir. The
peak production of the first phase was more than 90,000 barrels of oil
equivalent (boe) in 2010, and is currently producing some 35,000 boe per day.
Phase 2 connected a fourth reservoir to the vessel, the Argonauta O-North. At
its peak, Phase 2 is expected to produce approximately 35,000 boe per day.

"Boosting production at BC-10 with the completion of phase two is another great
example of our successful project development, delivery and execution
capabilities," said John Hollowell, Executive Vice President for Deep Water,
Shell Upstream Americas. "It is a great day for Shell in Brazil."

Building on what was already a successful proving ground for technology
innovation, a 4-D Life of Field Seismic monitoring system was installed as part
of Phase 2 subsea development. This technology, consisting of a network of
seismic sensors installed throughout the field on the seabed, allows us to more
effectively and efficiently monitor the reservoir. This is the deepest
installation of its kind on a full-field scale in the world (approximately
1800m or 6000 feet).

Expecting to maximize the production life of BC-10 even further, Shell and its
partners recently announced in July the decision to move forward with the
project's third development phase, which will include the installation of
subsea-infrastructure at the Massa and Argonauta O-South reservoirs. Once
online, Phase 3 of the BC-10 project is expected to reach a peak production of
28,000 boe.

                                     # # #                                     

BC-10Phased Development Outline

Phase 1: Began production in 2009 from Abalone, Ostra and Argonauta (Argonauta
B-West reservoir) fields.

Phase 2: Began production in October 2013 from Argonauta O-North field

Phase 3: In July 2013, Shell and partners decide to move forward with
development of the Massa and Argonauta O-South reservoirs.


Shell US Media Relations +1 713 241 4544
Shell International Media Relations +44 (0) 20 7934 5550

Shell Brazil Media Relations +55 21 3984 7413

Investor Relations:

North America +1 713 241 1042
International + 31 (0) 70 377 4540

Editors Notes:

  * Shell is currently operating two FPSOs in Brazil's offshore - the Espírito
    Santo at Parque das Conchas and the Fluminense at the Bijupirá/Salema
  * Images are available on our Flickr feed
Cautionary Note

The companies in which Royal Dutch Shell plc directly and indirectly owns
investments are separate entities. In this announcement "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
announcement refer to companies over which Royal Dutch Shell plc  either
directly or indirectly has control. Companies over which Shell has joint
control are generally referred to "joint ventures" and companies over which
Shell has significant influence but neither control nor joint control are
referred to as "associates". In this announcement, joint ventures and
associates may also be 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 announcement 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'',
``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; and (m) changes in
trading conditions. 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 20-F for the year
ended December 31, 2012 (available at ).
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,
October 2, 2013. 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

We may have used certain terms, such as resources, in this announcement that
United States Securities and Exchange Commission (SEC) strictly prohibits us
from 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 You can also obtain these forms from the SEC by
calling 1-800-SEC-0330.


London Stock Exchange plc is not responsible for and does not check content on this Website. Website users are responsible for checking content. Any news item (including any prospectus) which is addressed solely to the persons and countries specified therein should not be relied upon other than by such persons and/or outside the specified countries. Terms and conditions, including restrictions on use and distribution apply.


First oil from phase 2 BC-10 - RNS