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Key projects update

Cardamom

(Shell interest 100%; Shell operated)
The Cardamom reservoirs lie below the Auger TLP in the deep waters of the Gulf of Mexico. Shell discovered the Cardamom reservoirs in 2010 using advanced seismic technology that was able to produce improved sub-salt images versus traditional seismic methods. The field is expected to produce a peak of 50 thousand boe/d through wells connected to the existing Auger platform. Drilling operations and infrastructure modifications are continuing as planned. Cardamom is expected to begin producing in late 2014.

Carmon Creek

(Shell interest 100%; Shell operated)
The Carmon Creek Project, which began construction in 2013, is an in situ heavy oil project that will produce approximately 80,000 barrels per day of bitumen using enhanced oil recovery methods. The project, located in northern Alberta, Canada, will inject steam underground via wells to recover bitumen from Shell’s Peace River heavy oil leases, and will be built in two phases of 40,000 barrels per day. Each phase will have a central processing facility to generate steam and separate the produced fluids into oil, water and gas. The produced water will be treated and recycled for steam generation. Production from the first phase of Carmon Creek (40,000 barrels per day) is expected to begin in 2017, with peak annual production expected in 2019.

Gumusut-Kakap

(Shell interest 33%; Shell operated)
Gumusut-Kakap is Shell’s first deep-water development in Malaysia. The field will be developed using 19 subsea wells with oil exported via a pipeline to the new Sabah oil and gas terminal in Kimanis, Sabah. Natural gas produced along with the oil will be re-injected into the reservoir to help improve recovery. The production system is expected to have a peak production of 135,000 b/d. Development drilling began in January 2008, and we began early production in November 2012 by connecting two wells to the Kikeh production facility, which is operated by Murphy Sabah Oil, ahead of completing the floating production system.

Prelude FLNG

(Shell interest 67.5%; Shell operated)
In 2011, Shell took a final investment decision to move ahead with building its first floating liquefied natural gas (FLNG) facility. The floating production, processing and storage facility will be moored over the Prelude gas field, located more than 200 kilometres offshore Western Australia, where it will produce, liquefy and store gas for shipment. Ocean-going LNG carriers will load the liquefied natural gas, as well as other liquid by-products, direct from the FLNG facility, for delivery to market. The Prelude FLNG facility is estimated to be the largest floating vessel in the world, measuring 488 metres by 74 metres with a total production capacity of 3.6 mtpa of LNG, 1.3 mtpa of condensate and 0.4 mtpa of LPG. Prelude is the first deployment of Shell’s FLNG technology and is expected to operate in the field for around 25 years. In October 2012, the first steel was cut for the hull and just over a year later the FLNG hull was floated out of the dry dock at the Samsung Heavy Industries yard in Geoje, South Korea, where the rest of the project is currently under construction.

Schiehallion

(Shell interest 55%)
The Schiehallion field is located in blocks 204 and 205, approximately 175 kilometres west of the Shetland Islands, off the Scottish north coast. The Schiehallion Redevelopment project will extend the field’s expected life by replacing the existing floating production, storage and offloading unit (FPSO) with a newly built one. The new FPSO will be capable of exporting as much as 130 thousand boe/d and store in excess of 900 thousand boe. The final investment decision for the project was announced in 2011. In 2013, we increased our stake in the non-operated field to 55%. The additional equity offers Shell access to substantial additional resources and redevelopment potential in the UK.