Shell Cites Slow Production Ramp Up After Ike, Still At 32,000 BOEPD

As of September 25, several Shell operated assets in the GOM are still shut-in for hurricane repairs, maintenance or waiting on downstream infrastructure repairs. Shell operated GOM assets produce peak rates of about 500,000 barrels of oil equivalent per day (boe/d), Total Gross (TG) but have mostly been shut in since Saturday, August 30th in preparation for Hurricane Gustav. Production ramp up is occurring slowly and is currently at 32,000 boe/d TG.

Shell Net GOM peak production (our interest in both Shell operated and non-operated production) runs in the 350,000 boe/day range and is currently at about 39,000 boe/d.

As noted earlier, Shell accelerated scheduled maintenance on the Mars, Ursa, and West Delta 143 assets and expects them to be back on line by the end of next week. Other Shell operated assets expected to be back on line by end of next week are Brutus and South Timbalier 301.

By the middle of the following week, the Auger and Enchilada assets are expected to be back on line.

Shell is back to pre-hurricane offshore staffing levels with about 1,270 personnel manning its facilities.


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