Shell Oil Company
One Shell Plaza
P0. Box 2463 Houston, Texas 77252-2463
March 24, 1997

Carolyn Erbele
Berkeley, CA 94702

Dear Carolyn Erbele:

This will acknowledge receipt of your recent correspondence addressed to Mr. Carroll regarding Nigeria and Peru. He has asked me to respond.

First, we must point out that Shell Oil Company, a U.S. corporation, has no operations in either Nigeria or Peru, nor does it set policy for or control the Royal Dutch/Shell owned companies operating in those countries.

Attempts to link Nigeria and Peru are misleading and disingenuous. Additionally, many of the reports received here in the U.S. regarding various events and activities in each of these countries are distorted, misleading or erroneous.

Shell Prospecting and Development B.V., Peru (SPDP), the Royal Dutch/Shell group company evaluating the potential for natural gas production in Peru, has publicly committed to undertaking any operations in Peru in a manner which is open, transparent, fully consultative and a model for future activities. It has committed to respecting the rights and protecting the health of the indigenous people and to setting the highest environmental standards for operation.

The situation in Nigeria is entirely different. It is one that has evolved over the past fifty years. Social, cultural, political and economic issues facing Nigeria are complex and intertwined. To expect the Shell Petroleum Development Company of Nigeria (SPDC) to resolve these issues is unrealistic. Nevertheless, SPDC believes that it is a positive presence in Nigeria.

We are forwarding your comments to Shell International Petroleum Company in London which deals directly with the Royal Dutch/Shell Group companies operating in Nigeria and Peru. They will communicate directly with you.

Thank you for writing to us.

Sincerely,

W. K. Jacobs Manager, External Affairs Corporate & CEO Support