Shell and QinetiQ to Deploy Game-Changing Fiber-Optic Sensing System

By Qinetiq, PRNE
Sunday, July 11, 2010

Tests Show Promise of Improved Oil and Gas Recovery at Lower Cost

FARNBOROUGH, England and HOUSTON, July 12, 2010 - Shell (NYSE: RDSA) and QinetiQ (FTSE: QQ.L) today announced a
collaboration to exploit QinetiQ's OptaSense(R) fiber-optic Distributed
Acoustic Sensing (DAS) systems to optimise the development of oil and gas
fields. The technology will bring about the ability to use standard telecom
fiber-optic cable to detect, discriminate and locate acoustic events during
wellbore operations far beyond what is currently available. This will allow
improvements in design and execution that can enhance recoveries and lower
costs.

The collaboration agreement is a culmination of 18 months of working
together on the technology through several successful field trials in Canada.
Shell intends to deploy this optical sensing system - based on QinetiQ's
existing OptaSense(R) DAS technology - initially in onshore field development
and exploration. Allowing interference-free operation, OptaSense(R) should
overcome some of the challenges faced by conventional systems. The technology
has the potential to deliver significant value in the near term, and, because
of its wide potential application area, it will also enable longer-term
improvements to the management of asset s across the life cycle, from
exploration to operations. It will be most beneficial to businesses with a
heavy investment in hydraulic fracturing of unconventional gas reservoirs and
those with a focus on in-well and reservoir surveillance.

"Shell staff were the first to recognize the potential breakthrough
innovation of applying QinetiQ's DAS technology currently used for onshore
pipeline monitoring during the first field trial in February 2009," said
Jeroen Regtien, Vice President, Hydrocarbon Recovery R&D at Shell. "This is
another demonstration of how Shell seeks to deliver integrated technology
solutions based on proprietary and third-party technologies quickly and
efficiently. Given that most of this technology is in existence today in the
defence and security industries, we anticipate a relatively low development
risk and expect to deploy the first system soon."

"The application of OptaSense to wellbore monitoring is another game
changer in our industry. QinetiQ is pleased to have secured the confidence of
Shell, a technology and business leader, to collaborate on this important
development," says Magnus McEwen-King, Managing Director of QinetiQ's
OptaSense business, the entity that developed the DAS system for application
in the oil and gas industry. "Oil and gas are getting harder and more
expensive to find and extract. Enabling our clients to access real-time,
enhanced information from the reservoir will improve well completion and
performance. Superior data will help realise the full potential of both Shell
and QinetiQ's acoustic expertise, real-time processing and imaging
technology."

As part of this Joint Development Agreement, QinetiQ and Shell staff will
work in several laboratories in the UK, the Netherlands and the US as well as
performing field tests in Canada and the US before rolling out the technology
in a commercial setting.

Notes for Editors:

Royal Dutch Shell plc

Royal Dutch Shell plc is incorporated in England and Wales, has its
headquarters in The Hague and is listed on the London, Amsterdam, and New
York
stock exchanges. Shell companies have operations in more than 100
countries with businesses including oil and gas exploration and production;
production and marketing of Liquefied Natural Gas and Gas to Liquids;
manufacturing, marketing and shipping of oil products and chemicals and
renewable energy projects including wind and solar power. For further
information, visit www.shell.com.

QinetiQ

A FTSE250 company, QinetiQ uses its domain knowledge to provide technical
advice to customers in the global aerospace, defence and security markets.
QinetiQ's unique position enables it to be a trusted partner to government
organisations, predominantly in the UK and the US, including defence
departments, intelligence services and security agencies. QinetiQ employs
over 13,000 people across the Group and in the year to 31 March 2010,
QinetiQ's revenue was GBP1,6bn. Leo Quinn was appointed Chief Executive
Officer in November 2009. For information about OptaSense please go to
www.OptaSense.com.

Enquiries, Jaryl Strong, Media Relations Manager, Projects & Technology, Shell Oil Company, +1-713-241-3488, jaryl.strong at shell.com, Claire Scotter, External Communications Manager, QinetiQ press office, +44(0)1252-39-3500 / 4627, clscotter at qinetiq.com

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