Shell has acquired Ivanhoe Energy’s interest in the Zitong block and becomes a project partner

The two parties have also signed a Zitong PSC Amendment Agreement with China National Petroleum Corporation (CNPC) and Mitsubishi Gas Chemical Company Inc. (MGC) to acknowledge the transfer of interest.

Shell confirmed that the deal has been approved by the Chinese government.

The Zitong tight gas block is an area of 1,001 square kilometres, and lies 20 kilometres to the north of the Jinqiu block in the Sichuan basin in China’s Sichuan province. Shell has 90% of participating interests and MGC 10% during the exploration and development phases. Shell is the operator. The 30-year Zitong PSC expires in 2032.

Lim Haw Kuang, Executive Chairman of Shell Companies in China, said: “We are very happy about this new development with our cooperation with CNPC on the gas front. This is another good step forward for our gas development business in China and we look forward to continued success in operating gas development projects in China.”

Notes to editors

Illustration map of the Zitong block

Shell upstream activities in China

Approximately 20 new wells will be completed in 2012. Most of these new wells will be in Sichuan province where Shell works with PetroChina on the Fushun-Yongchuan shale gas block, and Jinqiu and Zitong tight gas blocks.

Jinqiu

Shell operates the Jinqiu tight gas block in the Sichuan basin under a 30-year PSC with PetroChina (Shell interest 49%) which expires in 2040. The Jinqiu project is in appraisal period and operating with 5 rigs. Shell is undertaking trial production that will determine commercial viability of the project.

Fushun-Yongchuan

Also in Sichuan, Shell and PetroChina are assessing shale gas opportunities in the Fushun-Yongchuan block. Commercial production will depend on the results of the appraisal evaluation and other factors.

Changbei and New Changbei

In Shaanxi province, Shell operates the Changbei tight-gas field under a PSC with PetroChina, producing 3.3bcm per annum to supply for Beijing and other eastern areas of China.

Shell and CNPC signed a PSC amendment for a new development phase for the Changbei gas field to evaluate and develop untapped area and formation that covered by the PSC, and further develop the already producing main reservoir. This additional development project could increase the current production plateau of 320mmscf/d. The PSC amendment has been approved by the Chinese government.

Yinggehai

Shell has entered into two oil and gas PSCs with CNOOC Limited for two Yinggehai blocks off China’s Hainan Island. These PSCs have obtained Chinese government approval, marking Shell’s return to offshore oil and gas development in China. Shell holds a 100% working interest during the exploration phase, which will be reduced to 49% in any potential development phase, with CNOOC as majority partner.

North Shilou

Shell and PetroChina are assessing opportunities in coal bed methane in the Ordos Basin, where Shell has an agreement to evaluate resources in North Shilou.

Hangzhou City Ring

Shell is also a partner in the Hangzhou city ring joint venture that develops, operates and manages a high-pressure natural gas pipeline system.

Shell downstream activities in China

Shell has 15 joint ventures and 9 wholly-owned companies. These various Shell ventures cover about 860 retail fuel stations, 7 lubricant blending plants, 10 bitumen plants, and the Nanhai Petrochemicals complex. Shell’s joint ventures are also operating 240 contract management retail sites.

Media inquiries:

Chen Xiaoni

Spokesperson, Shell Companies in China

Tel: +86 10 65054501 ext 2878

Email: xiaoni.chen@shell.com

Cautionary note

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 www.shell.com/investor and 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, 19 December 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.