Shell Adds Deep-Water Production in the Gulf of Mexico with PowerNap

HOUSTON,March 29,2022 -- Shell Offshore Inc. (Shell),a subsidiary of Shell plc,today announces the start of production at PowerNap,a subsea development in the U.S. Gulf of Mexico with an estimated peak production of 20,000 barrels of oil equivalent per day (boe/d). PowerNap is a tie-back to the Shell-operated Olympus production hub in the prolific Mars Corridor.

"Shell has been producing in the Mars Corridor for more than 25 years,and we continue to find ways to unlock even more value there," said Zoe Yujnovich,Shell Upstream Director. "PowerNap strengthens a core Upstream position that is critical to achieving our Powering Progress strategy and ensuring we can supply the stable,secure energy resources the world needs today and in the future."

Shell is the leading deep-water operator in the U.S. Gulf of Mexico,where our production is among the lowest greenhouse gas (GHG) intensity in the world for producing oil. Our global deep-water portfolio represents two core positions in our Upstream business with prolific basins in the US and Brazil,along with an exciting frontier exploration portfolio in Mexico,Suriname,Argentina and West Africa. Shell designs and operates its deep-water projects to be competitive and economically resilient,and since 2015,has reduced unit development costs by 50% and unit operating costs by 40%.

Notes to editors

Shell discovered PowerNap in 2014.

100% developed by Shell,it is located in the south-central Mississippi Canyon area approximately 240 kilometres (~150 miles) from New Orleans in about 1,280 metres (~4,200 feet) of water.

PowerNap is a subsea tie-back to the Shell operated Olympus TLP,with three production wells produced through a single insulated 19-mile flowline and high-pressure gas lift capability.

Shell operates Olympus with a 71.5% working interest,with BP controlling the remaining 28.5%.

PowerNap production will be transported to market on the Mars pipeline,which is operated by Shell Pipeline Company LP and co-owned by Shell Midstream Partners,L.P. (71.5%) and BP Midstream Partners LP (28.5%).

PowerNap is expected to produce up to 20,000 barrels of oil equivalent per day (boe/d) at peak rates.

The reference to our U.S. Gulf of Mexico production being among the lowest GHG intensity in the world is a comparison among other IOGP oil- and gas-producing members.

For more details on Shell's Powering Progress strategy,please visit www.shell.com/poweringprogress.

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