Shell Singapore: Meeting Asia's Growing Demand for Petrochemicals

THE HAGUE, The Netherlands, May 4, 2010 - Shell's (NYSE: RDS.A)(NYSE: RDS.B) largest integrated refinery and
petrochemicals complex is now fully online. The multi-billion dollar project
in Singapore boosts the supply of raw materials for many everyday products
and uses ultra-efficient Shell technology.

The site is already supplying products to Asian growth markets and to
manufacturers in Singapore. It is a cornerstone of Shell's strategy to focus
on growth and profitable downstream markets.

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"Demand for petrochemicals is growing at around 4-5% per year in Asia,"
says Iain Lo, Shell Chemicals Vice President for New Business Development &
Ventures. "So being in Singapore positions us very well to capture that
growth."

Output from the site includes mono-ethylene glycol (MEG), the raw
material needed to make everything from plastic packaging to polyester
clothing. It has the capacity to meet nearly 6% of Asia's demand for this raw
material, or enough to make almost 7 billion polyester shirts a year.

The Shell Eastern Petrochemicals Complex (SEPC) investment project -
building new chemicals plants and upgrading a refinery - was a huge
engineering feat that involved more than 15,000 people from more than 20
countries at the peak of construction. It took a crane with the biggest
capacity ever used in Singapore to lower steel reactors - at around 1,400
tonnes each is as heavy as seven jumbo jets - into the heart of the new MEG
plant which produces the raw material essential to make polyester and
packaging.

Most efficient production

The MEG plant uses the new award-winning technology developed by Shell,
called OMEGA (Only MEG Advantage). It is a fully catalytic process for the
conversion of ethylene into MEG instead of a conventional thermal process and
produces more MEG per tonne of ethylene than any other technology in the
industry. This process saves shipping and storage costs as it creates
virtually none of the other raw materials that come from thermal conversion.
It also consumes about one-fifth less steam and generates about 30% less
waste water.

Capital costs for the new MEG plant are considerably less than for a
conventional MEG plant with the same capacity.

In addition, the refinery and petrochemicals plant uses nearly 100%
wastewater, treated and recycled by Singapore's national water company. Water
is used for cooling and in the reactions to turn raw material into valuable
products.

Squeezing the most out of every barrel of oil

The complex is designed to perform well through the economic cycle. The
refinery is integrated with the chemicals plant on Bukom Island off the coast
of Singapore and linked up by a series of pipelines to chemicals plants on
Jurong Island. They share the same infrastructure.

The refinery can handle a wide range of crude oil, which it processes
into different fuels and petrochemicals raw materials. It pumps some of these
materials to the new ethylene cracker built next to it for further
processing. The cracker converts these into other products, including
ethylene, propylene and benzene. Pipelines on the seabed - each 4.5
kilometres (2.8 miles) long - connect the cracker to the new MEG plant and
other customers on Jurong Island. Ethylene can be cooled down to a liquid for
export from a new jetty or stored in a cryogenic terminal.

The refinery and cracker can handle a wide range of raw materials
selected to take advantage of fluctuations in market conditions and supply,
squeezing the most value out of every barrel of oil.

The cracker, for example, can process heavier, lower cost raw materials
from the refinery, thanks to proprietary Shell technology. This gives it a
competitive advantage over crackers that process more costly raw materials.
It increases the margins between the cost of raw materials and the sale of
the high-value petrochemicals that it makes.

"We can maximise our margins depending on feedstock prices," says Huck
Poh, General Manager of the Pulau Bukom Manufacturing Site. "We can direct
chemicals streams to the product that gives the biggest bang for the buck."

Second mega-petrochemicals project

The refinery on Bukom Island off the coast of Singapore processes over
500,000 barrels of crude oil a day, enough to fill 3.9 million cars.

The cracker was built within the existing refinery while it was still
pumping out its products. It started up in March 2010 and has the capacity to
produce 800,000 tonnes a year of ethylene, a colourless gas used to make many
products from polyethylene packaging to detergents; 450,000 tonnes of
propylene, used in car parts, insulation and synthetic rubber; and 230,000
tonnes of benzene, a base chemical needed to make styrene and computer
casings. A unit to extract butadiene - used, for example, to make rubber - is
currently starting up.

The MEG plant started up in November 2009 and has the capacity to produce
750,000 tonnes of MEG a year.

The SEPC investment is a 100% Shell project and its largest chemicals
investment to date. It is Shell's second mega-petrochemicals project after
the Nanhai joint venture with CNOOC that started up five years ago, and is
the latest step in its strategy to concentrate the global downstream business
into fewer, larger markets. Shell has been in Singapore since 1891.

Cautionary Note

The companies in which Royal Dutch Shell plc directly and
indirectly owns investments are separate entities. In this press release
"Shell", "Shell group" and "Royal Dutch Shell" are sometimes used for
convenience where references are made to Royal Dutch Shell plc and its
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and "Shell companies" as used in this press 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
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companies in which Shell has joint control are referred to as "jointly
controlled entities". In this press 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 34% shareholding in Woodside
Petroleum Ltd.) ownership interest held by Shell in a venture, partnership or
company, after exclusion of all third-party interest.

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More information

For more information, interview requests or photography, please contact
International, UK, European press: Wendel Broere or David Williams
+31-70-377-3600 The Netherlands: +31-70-377-8750, Singapore: Yam-Chew Oh,
+65-6384-8943

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For more information, interview requests or photography, please contact International, UK, European press: Wendel Broere or David Williams, +31-70-377-3600. The Netherlands: +31-70-377-8750, Singapore: Yam-Chew Oh, +65-6384-8943