Shell enters preliminary agreement with BPZ Energy Inc. to explore for oil and gas

26/06/2008

Shell Exploration Company (West) B.V. (Shell) and BPZ Energy Inc. have signed a preliminary agreement to jointly explore for oil and gas in northern Peru.

The agreement calls for Shell to fund a three-phase exploration programme in exchange for a 50% interest in parts of three BPZ blocks in northern Peru. Under the agreement, Shell will evaluate progress at the end of each exploration phase and decide whether to proceed to the next one. The agreement covers BPZ blocks XIX and XXIII and parts of block Z-1. BPZ retains 100% rights for the parts of block Z-1 where there are existing discoveries. Under the agreement Shell has the possibility to buy into these areas at a later stage.

The agreement complements Shell’s ongoing strategy of expanding its upstream oil and gas activities.

David Lawrence, Executive Vice President Exploration, Shell International Exploration and Production, said: “This agreement makes the most of the strengths of our companies. We bring complementary technical skills, gas marketing expertise and capital to combine with BPZ’s knowledge of these northern Peru blocks. I am delighted that Shell is once again involved in Peru’s upstream industry”.

Shell and BPZ Energy Inc. have begun negotiating a definitive agreement which is subject to board and government approval.

Houston based BPZ Energy is an oil and gas exploration and production company which has exclusive license contracts for oil and gas exploration and production covering approximately 2.4 million acres in four properties in northwest Peru. It also owns a minority working interest in a producing property in southwest Ecuador. The Company’s website at www.bpzenergy.com - opens in a new window provides additional information about the Company’s plans, including photographs and other information with respect to its operations.

Shell Exploration Company (West) B.V. (Shell) is a wholly owned indirect affiliate of Royal Dutch Shell plc. Royal Dutch Shell plc is incorporated in England and Wales, has its headquarters in The Hague and is listed on the London, Amsterdam and New York stock exchanges. Shell companies have operations in more than 110 countries and territories, with businesses including: oil and gas exploration; production and marketing of liquefied natural gas and gas to liquids; marketing and shipping of oil products and chemicals; and renewable energy projects including wind, solar and biofuels. www.shell.com/aboutshell

Shell