Shell Finalizes Deal to Sell Thai Shell Shares to PTTEP

Shell Petroleum N.V. and PTT Exploration and Production (Public) Co., Ltd. (PTTEP) announced the signing of the Share Purchase Agreement for the sale of Shell's shares in Thai Shell Exploration and Production Co., Ltd to PTTEP & PTTEP Offshore Investment Company Limited. After formalizing the transfer of shares, PTTEP will become the new owner of Thai Shell Exploration and Production Co., Ltd. (TSEP).

Mr. Dominique Gardy, Chief Executive Officer of Shell Exploration and Production Asia Pacific, said "Shell is proud to have been in E&P operations in Thailand for almost 25 years. We have produced over 150 million barrels of crude oil from the onshore S1 concession block, significantly contributing to Thailand's economy and improving the livelihood of local communities through crude oil imports substitution and royalty and tax payments as well as through sustainable community development programs."

"The decision to divest TSEP was indeed a difficult one for Shell. Although Thai Shell's concessions are still profitable, they do not offer the materiality or the intrinsic growth opportunity that are required to fit Shell's global aspiration."

"Shell is still actively pursuing opportunities in Thailand and the sale of TSEP shares does not preclude our effort to pursue growth opportunities in the Gulf of Thailand and adjacent areas."

"Having worked with PTTEP as joint venture partner for over the past 18 years, we strongly believe that the change of ownership of TSEP to PTTEP will continue to benefit the assets, the country, the community and Thai Shell staff, in a sustainable way."

"For our past successes, we would like to express our sincere appreciation to the continued cooperation and support from PTTEP, our joint venture partner, our suppliers and contractors, government authorities particularly the Department of Mineral Fuels and the Ministry of Energy, the local communities and authorities, and last but not least our staff."

Mr. Tiraphot Vajrabhya, Shell Thailand Chairman commented, "This change will not affect other Shell's businesses in Thailand. Shell has been in Thailand for 111 years and we are proud to be in the forefront in supplying quality products and providing customer service to the Thai market. Shell Thailand will continue to have strong commitment to Thailand through our various businesses, from oil refining to distribution and marketing of petroleum and petrochemical products as well as consumer services. We are also determined to look for more growth opportunities in Thailand through both existing and new businesses.

"We are happy that Thai Shell ownership has been transferred to PTTEP, with whom we have been working with as Joint Venture partner of the S1 concession for over 18 years. As 2004 is the auspicious year of the Celebration of Her Majesty Queen Sirikit's 6th Cycle Birthday (72nd Birthday), Shell is pleased to see a Thai company acquire the operatorship of the Sirikit oilfield."

Thai Shell Exploration and Production Co., Ltd. is the country's biggest onshore oil producer from its S1 concession in Kamphaengphet, Phitsanulok and Sukhothai provinces. Currently, the average production level is 19,000 barrels of crude oil per day, 55 million cubic feet per day of natural gas associated with the crude oil and 300 tonnes per day of LPG. Thai Shell also operates Nang Nuan oilfield in the B6/27 concession offshore Chumphon and Suratthani provinces in the Gulf of Thailand, but the production from this offshore oilfield has suspended since August 1997.