Qatar Petroleum and Shell sign a Letter of Intent for the Development of a World-Scale Petrochemical Complex

March 1, 2005

Qatar Petroleum (QP) and Shell Chemicals Limited (Shell) today signed in Doha a Letter of Intent (LOI) for the development of a world-scale ethane based cracker and derivatives complex in Ras Laffan Industrial City, Qatar.

The agreement was signed on behalf of Qatar Petroleum by His Excellency Abdullah Bin Hamad Al-Attiyah, Second Deputy Premier and Minister of Energy and Industry of Qatar and Linda Cook, Executive Director Royal Dutch/Shell Group of Companies during the 5th Doha Conference on Natural Gas. Also present at the signing were a number of senior executives of Qatar Petroleum and the Royal Dutch/Shell Group.

H.E. Al-Attiyah commented, "the signing of the LOI marks an important milestone for Qatar in its efforts to diversify its economic base and further monetise its considerable hydrocarbon resources. This is the realisation of the directives of His Highness, the Emir, Sheikh Hamad Bin Khalifa Al Thani who has a vision to place Qatar among the leading petrochemical producers in the world. The project clearly provides Qatar with another viable alternative to optimise the use of the country's natural gas resources."

H.E. Al-Attiyah also stated: "We are pleased to have Shell, one of the leaders in this field, enter the petrochemical industry in Qatar, and to witness our relationship take another important step forward. This project represents an alignment of interests and objectives between the two parties and we are confident in its success."

Through this agreement, QP and Shell will define the technical and commercial aspects of the petrochemical complex and determine the derivatives scope. The complex will produce cost competitive petrochemicals products to be marketed into primarily Asian growth markets, with a start-up date early in the next decade. This project strengthens Shell's commitment to building a strong partnership with Qatar to deliver large-scale projects.

Linda Cook commented, "Shell is very pleased to partner with QP on the development of this world-scale ethane cracker project. The signing of this LOI is indeed an important milestone and marks the further development of the strong partnership between QP and Shell, building on the Pearl GTL project and the recently announced QatarGas 4 project. This project clearly combines the strengths of both QP and Shell in the petrochemical industry and represents the basis for delivering long-term value to both Qatar and Shell."

Qatar Petroleum and Shell sign a Heads of Agreement for the development of Qatargas 4, a large-scale LNG project

February 28, 2005

Qatar Petroleum (QP) and The Royal Dutch/Shell Group of Companies (Shell) signed today in Doha a Heads of Agreement (HOA) for the development of a large-scale Liquefied Natural Gas (LNG) project located in Ras Laffan City, Qatar. The project is called Qatargas 4.

The agreement was signed on behalf of Qatar Petroleum by His Excellency Abdullah bin Hamad Al-Attiyah, Second Deputy Premier and Minister of Energy and Industry of Qatar and by Jeroen van der Veer, Chief Executive of The Royal Dutch/Shell Group of Companies. Also present at the signing were Faisal Bin Mohammed Al Suwaidi, Vice Chairman and Chief Executive Officer of Qatargas, and Linda Cook, Executive Director Gas & Power, The Royal Dutch/Shell Group of Companies.

The Qatargas 4 project comprises the integrated development of upstream gas production facilities to produce 1.4 bcf/d of gas and substantial quantities of associated liquids from Qatar's North Field, a single LNG train yielding approximately 7.8 million tons per annum of LNG for a period of 25 years, and shipping of the LNG to the intended markets in North America and Europe. Qatargas 4 is a joint venture between Qatar Petroleum and Shell with a 70% and 30% equity interest respectively. LNG deliveries are expected to commence around 2010-2012.

"Qatar's goal to be the world's leader in LNG production is further secured through the development of large-scale projects such as this," said H.E. Al Attiyah. "We are very pleased to see Shell enter the LNG industry in Qatar and further contribute to the diversification of LNG markets, and we look forward to the successful delivery of this project," H.E. Al Attiyah added.

Jeroen van der Veer said: "This signing of the Qatargas 4 HoA today further demonstrates the strong partnership that Shell is building with Qatar to deliver ambitious projects such as this and the Pearl GTL project which is progressing well. These projects are fully aligned with Shell's strategy of 'more upstream and profitable downstream' through the development of integrated natural gas projects. The Qatargas 4 project will combine Shell's global leadership in LNG with Qatar's vision to become the world's largest LNG supplier. Upon completion, Qatargas 4 will broaden Shell's LNG supply portfolio to include projects in seven countries, and will provide additional supplies for the growing LNG markets in North America and Europe."