Proved reserve recategorisation after internal review

    Royal Dutch Petroleum Company
&
The "Shell" Transport and Trading Company p.l.c.

Proved reserve recategorisation following internal review: No material effect
on financial statements.

The Royal Dutch/Shell Group of Companies (`Shell') announced today that,
following internal reviews, some proved hydrocarbon reserves will be
recategorised. The total non recurring recategorisation, relative to the proved
reserves as stated at December 31st 2002, represents 3.9 billion barrels of oil
equivalent (`boe') of proved reserves, or 20% of proved reserves at that date.
Over 90% of the total change is a reduction in the proved undeveloped category;
the balance is a reduction in the proved developed category.

There is no material effect on financial statements for any year up to and
including 2003. The recategorisation of proved reserves does not materially
change the estimated total volume of hydrocarbons in place, nor the volumes
that are expected ultimately to be recovered. It is anticipated that most of
these reserves will be re-booked in the proved category over time as field
developments mature.

Of the recategorisation two thirds (2.7 billion barrels) relates to crude oil
and natural gas liquids, and one third (1.2 billion boe or 7.2 trillion
standard cubic feet ) to natural gas.

The recategorisation itself is not expected to have a material impact on
hydrocarbon production in the near term. As advised in March 2003 and October
2003, the production profile for 2003 - 2005 is expected to be broadly flat. As
of December 31st 2002, proved reserves were equivalent to 13.3 years of
production.

The FAS69 standardised measure of discounted future cashflows associated with
the proved reserves will be impacted. The estimated 10% reduction in the
standardised measure is significantly less than the 20% change to proved
reserves, as the majority of the recategorisation relates to proved undeveloped
reserves and to relatively low margin producing areas.

Further analysis is ongoing to determine the extent to which the
recategorisation will impact on prior year reported proved reserves and the
results will be disclosed.

The figures quoted above do not include any amounts that will be added to
reserves as the result of normal operations in 2003. On a preliminary basis,
ignoring the effect of the adjustment noted in this release, the reserve
replacement ratio for 2003 is expected to be in the range 70-90%, representing
the net addition of between 1.0 and 1.3 billion boe. The final figures for 2003
reserve replacement will be disclosed on February 5th 2004.

Several factors identified by Shell's own reviews led to the recategorisation.
During Q4 2003, a number of in depth reserve studies were completed, which
prompted a broad review of its previously booked reserves against current
proved reserves standards.

Reserves affected were mainly booked in the period 1996 to 2002. A significant
proportion of the recategorisation relates to the current status of project
maturity. The recategorisation brings the global reserve base up to a common
standard of definition, consistent with the globalisation of processes within
the new Exploration & Production business model.

A number of countries are affected by the change, with the largest impact in
Nigeria and Australia. The majority of the overall recategorisation will be
reported under `Other Eastern Hemisphere'.

A teleconference with investors and media will be held at 9.15 a.m. GMT Friday
January 9th 2004 to discuss the contents of this release. The call will be
audio webcast and can be accessed via www.shell.com/investor. The call will be
hosted by Simon Henry, Head of Group Investor Relations, Mary Jo Jacobi, Vice
President of Group External Affairs and John Darley, Exploration and Production
Technical Director.

Ends

Footnote

5,800 million cubic feet of natural gas = 1 million barrels of oil equivalent.

All references to proved reserves exclude oil sands.

Figures quoted in this document are unaudited.

Standardised measure of future cashflows

United States accounting principles require the disclosure of a standardised
measure of discounted future cashflows, relating to proved oil and gas reserves
quantities and based on prices and costs at the end of each year, currently
enacted tax rates and a 10% annual discount factor. The information so
calculated does not provide a reliable measure of future cashflows from proved
reserves, nor does it permit a realistic comparison to be made of one entity
with another because the assumptions used cannot reflect the varying
circumstances within each entity.

Disclaimer statement

This document contains forward-looking statements that are subject to risk
factors associated with the oil, gas, power, chemicals and renewables
businesses. It is believed that the expectations reflected in these statements
are reasonable, but may be affected by a variety of variables which could cause
actual results or trends to differ materially, including, but not limited to:
price fluctuations, actual demand, currency fluctuations, drilling and
production results, reserve estimates, loss of market, industry competition,
environmental risks, physical risks, legislative, fiscal and regulatory
developments, economic and financial market conditions in various countries and
regions, political risks, project delay or advancement, approvals and cost
estimates.

Cautionary Note to US Investors:

The United States Securities and Exchange Commission permits oil and gas
companies, in their filings with the SEC, to disclose only proved reserves that
a company has demonstrated by actual production or conclusive formation tests
to be economically and legally producible under existing economic and operating
conditions.

For information please contact:

Investor Relations

Simon Henry [phone]

Gerard Paulides [phone]

Bart van der Steenstraten [phone]

Harold Hatchett [phone]

Media Relations

Andy Corrigan [phone]

Simon Buerk [phone]

Herman Kievits [phone]



END