How To Cap A Well

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1 READY TO RESPOND SHELL SUBSEA WELL CAPPING CAPABILITIES

2 2 Ready to Respond PREVENT IN THE FIRST PLACE, BUT BE READY TO RECOVER Safety is top priority for Shell. We continually develop our people, procedures and equipment further in order to keep our wells operations safe. Safe wells operations demand highly competent people, strict safety procedures and rigorous design, construction and maintenance standards for all equipment. Shell applies a multi-layered well control system designed to minimise risks, so if any one system or device fails it should not lead to a loss of containment. As much as we do to prevent such emergency situations from arising, we also continue our work on secondary (cap and contain) well control tools and techniques to shutoff subsea wells safely and quickly after an uncontrolled release of hydrocarbons. KEEP WITHIN CONTROL LIMITS REDUCE LIKELIHOOD CONTROL & BARRIERS INCIDENT RESPONSE & RECOVERY MITIGATE CONSEQUENCES PLAN FOR RECOVERY - RE-INSTATE Technical and HSE Standards & Procedures Equipment testing, certification Competent Staff Blowout Contingency Plan Oil Spill Response Plan Cap and Contain Equipment Contractor Requirements Right Safety Case Two Barrier Policy Relief Well Plan Technical Expertise Emergency Response Team Incident Prevention and Response: Shell applies a bow-tie model approach to managing loss of containment. This approach puts in place preventative (left-side) and recovery measures (right-side) to deal with a loss of containment.

3 Shell Subsea Well Capping Capabilities 3 GLOBAL WELL CAPPING CAPABILITIES Shell s subsea wells around the globe are designed to be capped and the external flow controlled, through either shutting in the well or flowing the well to a containment system. Shell either owns or has ready access to the equipment required to cap its subsea wells around the world. The geographical spread of the systems ensures readiness for deployment within days wherever we operate. Global coverage - capping stacks available to Shell Norway: 15k Aberdeen: 10k Alaska (local use only): 10k Houston: 2 x 15k and 1 x 10k Brazil: 15k South Africa: 10k Singapore: 15k Singapore: 10k MWCC (Marine Well Containment Company) OSRL (Oil Spill Response Limited) Shell-owned assets The 10k OSRL system The 15k OSRL system

4 4 Ready to Respond INDUSTRY COLLABORATION Marine Well Containment Company Shell, together with ExxonMobil, Chevron and ConocoPhillips, formed the Marine Well Containment Project to improve the industry s capability and preparedness to cap and contain a blowout in the Gulf of Mexico. The Marine Well Containment Company (MWCC) was formed to deploy the systems. MWCC has an interim well cap and containment response system available that provides cap and shut-in as well as cap and flow response capabilities in the event of a well control incident in deepwater Gulf of Mexico or other potential drilling sites in US waters. In a cap and flow configuration, the system can collect up to 60,000 barrels a day of oil from a leaking well in 8,000 feet of water. The MWCC system is dedicated for use in US deepwater operations. Three caps are currently available for US Deepwater usage through MWCC: 2 x 15,000 psi and 1 x 10,000 psi. The expanded cap and flow system delivered in 2014 is able to capture up to 100,000 barrels a day of oil in 10,000 feet of water. MWCC capping stack. Initial cap and contain response system that is available from MWCC.

5 Shell Subsea Well Capping Capabilities 5 Subsea Well Response Project and OSRL The Subsea Well Response Project (SWRP) is a nonprofit initiative of approximately 20 major oil and gas companies to design an internationally deployable capping and stack-based response system. Available are four capping stacks, two subsea response toolkits and a dispersant stockpile. Containment capability becomes available in SWRP has contracted Oil Spill Response Limited (OSRL) to own and maintain the capping stacks in ready condition for use by any member of the Project. Capping equipment is designed for a variety of conditions and is deployable up to 3000 meters, available for industry use through OSRL and transportable by sea and/ or air. Two valve-based 10,000 psi capping systems are stored in Singapore and South Africa. All of this equipment is available for call-out in an emergency. The SWRP focuses on subsea wells up to 10,000 feet of water depth and has developed a capping system that is able to seal the well head, stop the flow of hydrocarbons, and contain the well shut-in pressure. It can allow well kill operations when combined with a spool equipped with side outlets to kill, choke or divert the hydrocarbons. Additionally, the team has designed hardware for the subsea injection of dispersant. The project was established on the recommendation of the International Association of Oil & Gas Producers (OGP). The SWRP project team is in Stavanger, Norway. Two ram-based 15,000 psi capping systems are stored in Brazil and Norway. Also at these locations are airfreightable subsea toolkits containing tools to assist in site assessment, debris removal, BOP intervention and dispersant application. The Australian Marine Oil Spill Center maintains a similar toolkit for use in Shell Australia and regional partners and can supplement the OSRL equipment. The OSRL containment system can be assembled in 1, 2 or up to 3 containment legs depending on hydrocarbon outflow from a well (example deployment of 1 leg pictured).

6 6 Ready to Respond SHELL WELL CAPPING SYSTEMS Modular Shell-owned well capping systems are available to cover Shell s global portfolio of subsea wells primarily as backups to consortium systems. Shell owns three capping systems. One is stored and maintained in Aberdeen (UK) and is readily available for emergency deployment via air freight to Shell operations worldwide. Once on location, it can be deployed via wire or drill pipe from a rig or a service vessel. The capping system is designed with a 10,000 psi working pressure for use in water depths up to 10,000 feet. A second Shell-owned capping system has a similar design and a 15,000 psi working pressure for use on wells that require this higher pressure rating. It also provides more logistics flexibility for global deployment when combined with the 10,000 psi capping system. This second Shell-owned capping system is stored and maintained in Singapore. Prepared for the Arctic In Alaska, Shell has a well capping system that is stored for deployment in the Arctic and ready to respond to potential subsea well control events. The system is designed to deal with Arctic conditions including the logistics of a remote location. These Shell-owned capping systems complement the MWCC and OSRL systems available to Shell and add to global capability in the unlikely event that primary and secondary well control measures fail to control a well. Currently in development are a 20,000 psi rated cap and a 400 degree Fahrenheit rated cap to meet future well needs. A video on YouTube explains the deployment and functionality of Shell capping systems: Shell capping stack

7 Shell Subsea Well Capping Capabilities 7 Upper Module Weight: 11 metric tons Lower Module Weight: 11 metric tons Connector Module: 12.5 metric tons Weight Vetco 10K ExF H4 = lbs Weight Cameron 10K HC = lbs

8 CAUTIONARY NOTE This publication contains forward-looking statements concerning the financial condition, results of operations and businesses of Royal Dutch Shell plc. 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 forwardlooking statements included in this publication, 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. Readers should not place undue reliance on forward-looking statements. Each forward-looking statement speaks only as of the date of this publication, January 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 publication. Published January 2015 For further information visit shell.com/safety Design and layout by GMP Rijswijk Shell Global Solutions International B.V.

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