slide - Shell

ROYAL DUTCH SHELL PLC 

STRATEGY UPDATE 

MARCH 16, 2010

ROYAL DUTCH SHELL PLC 2010 STRATEGY UPDATE ANALYST SPEECH MARCH 16 th 2010 

Page 2 of 78 

PETER VOSER 

CHIEF EXECUTIVE OFFICER 

SIMON HENRY 

CHIEF FINANCIAL OFFICER


CONTENTS 

SLIDE: OPENING SLIDE ................................................................................................ 

................................ 

............................................................. 5 

SLIDE: PETER VOSER ................................ 

................................................................................................ 

................................................................. 6 

SLIDE: DEFINITIONS AND CAUTIONARY NOTE ................................................................ 

........................................................... 7 

SLIDE: SHELL FINANCIAL PERFORMANCE AND PRIORITIES ................................................................ 

........................................ 8 

SLIDE: OIL & REFINING OUTLOOK ................................................................................................ 

........................................... 10 

SLIDE: NATURAL GAS OUTLOOK ................................................................................................ 

................................ 

............................................. 13 

SLIDE: REJUVENATING THE PORTFOLIO: 2004+ ................................................................ 

...................................................... 15 

SLIDE: STRATEGY & CAPITAL ALLOCATION................................................................ 

ALLOCATION 

.............................................................. 17 

SLIDE: STRATEGY TIMELINE ................................ 

................................................................................................ 

.................................................... 18 

SLIDE: PERFORMANCE FOCUS 2009-2010+ 2009 ................................................................ 

............................................................. 19 

SLIDE: HSSE PRIORITY ................................ 

................................................................................................ 

............................................................. 20 

SLIDE: 2009-10 COST FOCUS ................................ 

................................................................................................ 

.................................................. 21 

SLIDE: COST FOCUS IN ACTION ................................ 

................................................................................................ 

............................................... 22 

SLIDE: OPERATING PERFORMANCE ................................................................................................ 

........................................ 24 

SLIDE: PERFORMANCE RFORMANCE FOCUS: DELIVERY OF NEW PROJECTS ................................ 

................................................................. 25 

SLIDE: DOWNSTREAM PROFITABILITY ................................................................................................ 

.................................... 26 

SLIDE: STRENGTHENING DOWNSTREAM ................................................................ 

................................................................ 28 

SLIDE: REDUCING REFINING EXPOSURE ................................................................................................ 

.................................. 29 

SLIDE: MORE CONCENTRATED MARKETING POSITIONS ................................................................ 

.......................................... 30 

SLIDE: UPGRADE CHEMICALS ASSETS EXAMPLE US GULF ................................................................ 

....................................... 31 

SLIDE: GROWTH DELIVERY ................................ 

................................................................................................ 

..................................................... 32 

SLIDE: CONVERTING RESOURCES TO PRODUCTION ................................................................ 

................................................ 33 

SLIDE: GROWING SEC PROVED RESERVES POSITION ................................................................ 

............................................... 34 

SLIDE: DELIVERING ON NEW PROJECTS ................................................................................................ 

.................................. 36 

SLIDE: ATHABASCA OIL SANDS PHASE 1 EXPANSION ................................................................ 

.............................................. 37 

SLIDE: PROJECT PROGRESS IN QATAR: GTL + LNG ................................................................ 

................................................... 38 

SLIDE: LEADERSHIP ERSHIP IN GLOBAL LNG................................................................................................ 

LNG 

........................................ 39 

SLIDE: GROWING UPSTREAM PROFITABILITY + PRODUCTION................................ 

PRODUCTION................................................................. 

40 

SLIDE: NEW GROWTH DOWNSTREAM MANUFACTURING ................................................................ 

...................................... 41 

SLIDE: NEW GROWTH DOWNSTREAM MARKETING ................................................................ 

................................................ 42 

Page 3 of 78


SLIDE:MATURING NEXT GENERATION PROJECT OPTIONS ................................................................ 

....................................... 43 

SLIDE: GROWTH LANDSCAPE................................ 

................................................................................................ 

.................................................. 44 

SLIDE: 2009 EXPLORATION & APPRAISAL SUCCESS ................................................................ 

................................................. 46 

SLIDE: DEEP WATER GULF OF MEXI MEXICO ................................................................................................ 

................................... 47 

SLIDE: AUSTRALIA GAS: 2009 DRILLING SUCCESS ................................................................ 

................................................... 48 

SLIDE: AUSTRALIA UNDERPINS NEXT TRANCHE OF SHELL LNG GROWTH ................................ 

................................................ 49 

SLIDE: NORTH AMERICA TIGHT GAS: PORTFOLIO BUILD-UP................................................................ 

BUILD 

.................................... 50 

SLIDE: NORTH NORTH AMERICA AMERICA TIGHT TIGHT GAS: GAS: GROWTH POTENTIAL POTENTIAL & COST PERFORMANCE PERFORMANCE ............................... 52 

SLIDE: NORTH AMERICA HEAVY OIL POTENTIAL ................................................................ 

..................................................... 53 

SLIDE: PROGRESS WITH NEW IRAQ OPPORTUNITIES ................................................................ 

.............................................. 55 

SLIDE: BIOFUELS: SHELL AND COSAN POTENTIAL ................................................................ 

................................................... 56 

SLIDE: NEW PORTFOLIO OPTIONS FOR POST-2014 POST GROWTH................................................................ 

.................................. 58 

SLIDE: SIMON HENRY ................................ 

................................................................................................ 

............................................................. 60 

SLIDE: FIVE YEAR PERFORMANCE TRACK RECORD ................................................................ 

.................................................. 61 

SLIDE: CONVERTING INVESTMENT INTO CASH FLOW 2009 2009-12 ................................................................ ................................ 

62 

SLIDE INVESTMENT AND BALANCE SHEET ................................................................ 

.............................................................. 64 

SLIDE: EXPLORATION & DEVELOPMENT PLANS ................................................................ 

...................................................... 67 

SLIDE UPSTREAM PSTREAM REGIONAL OUTLOOK ................................................................................................ 

.................................. 68 

SLIDE: FINANCIAL FRAMEWORK ................................................................................................ 

................................ 

............................................. 71 

SLIDE: PETER VOSER ................................ 

................................................................................................ 

............................................................... 72 

SLIDE: STRATEGY TIMELINE ................................ 

................................................................................................ 

.................................................... 73 

SLIDE: SUMMARY ................................ 

................................................................................................................................ 

................................... 74 

SLIDE: Q&A ................................ 

................................................................................................................................ 

............................................ 75 

APPENDIX CHARTS ................................ 

................................................................................................ 

................................................................. 76 

Page 4 of 78


SLIDE: OPENING SLIDE 


STRATEGY UPDATE 

LONDON 

MARCH 16, 2010 

INVESTOR PRESENTATION 

1 Copyright of Royal Dutch Shell plc 16/03/2010 

Page 5 of 78


SLIDE: PETER VOSER 


PETER VOSER 

CHIEF EXECUTIVE OFFICER 


1. Ladies and gentlemen welcome welcome to the Royal Dutch 

Dutch 

Shell annual strategy update… update 

2. …and nd especially especially thank thank you you to to those those who who have 

travelled so far. far 

3. Simon imon and I will will take take you you through through where where we we are are in 

in 

Shell, and where we want to be. Then Then we we will will both both be 

joined by Malcolm, Marvin, Mark Mark and and Matthias Matthias to take 

your questions. 

Page 6 of 78


SLIDE: DEFINITIONS AND CAUTIONARY NOTE 

DEFINITIONS AND CAUTIONARY NOTE 

Reserves: : Our use of the term “reserves” in this presentation means SEC proved oil and gas reserves for all 2009 data, and includes bboth 

SEC proved oil and gas reserves and SEC proven mining 

reserves for 2007 and 2008 data. 

Resources: : Our use of the term “resources” in this presentation includes quantities of oil and gas not yet classified as SEC proved ooil 

and gas reserves or SEC proven mining reserves. Resources are 

consistent with the Society of Petroleum Engineers 2P and 2C definitions. 

Organic: : Our use of the term Organic includes SEC proved oil and gas reserves and SEC proven mining reserves (for 2007 and 2008) exc excluding changes resulting from acquisitions, divestments and 

year-end pricing impact. 

To facilitate a better understanding of underlying business performance, the financial results are also presented on an estim estimated current cost of supplies (CCS) basis as applied for the Oil Products and 

Chemicals segment earnings. Earnings on an estimated current cost of supplies basis provides useful information concerning tthe 

effect of changes in the cost of supplies on Royal Dutch Shell’s results 

of operations and is a measure to manage the performance of the Oil Products and Chemicals segments but is not a measure of ffinancial 

performance under IFRS. 

The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate entities. In this presenta presentation “Shell”, “Shell group” and “Royal Dutch Shell” are sometimes used for 

convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words “we”, “us “us” and “our” are also used to refer to subsidiaries in general or to those 

who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell 

companies” as used in this presentation refer to companies in which Royal Dutch Shell either directly or indirectly has control, by having either a majority of the vvoting 

rights or the right to exercise a 

controlling influence. The companies in which Shell has significant influence but not control are referred to as “associated companies” or “associates” and companies in which Shell has joint control 

are referred to as “jointly controlled entities”. In this presentation, associates and jointly controlled entities are also referred to as “equity “equity-accounted investments”. The term “Shell interest” is used for 

convenience to indicate the direct and/or indirect (for example, through our 34% shareholding in Woodside Petroleum Ltd.) own ownership interest held by Shell in a venture, partnership or company, 

after exclusion of all third-party interest. 

This presentation contains forward-looking looking statements concerning the financial condition, results of operations and businesses oof 

Royal Dutch Shell. All statements other than statements of historical 

fact are, or may be deemed to be, forward-looking statements. Forward-looking looking statements are statements of future expectations tthat 

are based on management’s current expectations and 

assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to ddiffer 

materially from those expressed or implied in these statements. 

Forward-looking looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to mar market risks and statements expressing management’s expectations, 

beliefs, estimates, forecasts, projections and assumptions. These forward-looking looking statements are identified by their use of term terms and phrases such as ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, 

‘‘expect’’, ‘‘intend’’, ‘‘may’’, ‘‘plan’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘probably’’, ‘‘project’’, ‘‘will’’, ‘‘seek’’, ‘‘targ ‘‘target’’, ‘‘risks’’, ‘‘goals’’, ‘‘should’’ and similar terms and phrases. There are a number of 

factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this 

presentation, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for the Shell’s products; (c) currency fluctuations; (d) drilling and production 

results; (e) reserve estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition 

properties and targets, and successful negotiation and completion of such transactions; ( (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) 

legislative, fiscal and regulatory developments including potential litigation and regulatory measures as a result of climate changes; (k) economic and financial market conditions in various countries 

and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with gover governmental entities, delays or advancements in the approval of projects and delays 

in the reimbursement for shared costs; and (m) changes in trading conditions. All forward forward-looking statements contained in this presentation are expressly qualified in their entirety by the cautionary 

statements contained or referred to in this section. Readers should not place undue reliance on forward forward-looking statements. Additional factors that may affect future results are contained in Royal 

Dutch Shell’s 20-F for the year ended 31 December, 2009 (available at www.shell.com/investor and www.sec.gov ). These factors also should be considered by the reader. Each forward-looking 

statement speaks only as of the date of this presentation, 16 March 2010. Neither Royal Dutch Shell nor any of its subsidiaries undertake any obligation to publicly update or revise an any forwardlooking 

statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking 

statements contained in this presentation. There can be no assurance that dividend payments will match or exceed those set out in this presentation in the future, or th that they will be made at all. 

The United States Securities and Exchange Commission (SEC) permits oil and gas companies, in their filings with the SEC, to ddisclose 

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 cond conditions. We use certain terms in this presentation, such as resources and 

oil in place, that SEC's guidelines strictly prohibit us from including in filings with the SEC. U.S. Investors are urged to consider clos closely the disclosure in our Form 20-F, File No 1-32575, available on 

the SEC website www.sec.gov. You can also obtain these forms from the SEC by calling 11-800-SEC-0330. 


4. Firstly, please take a moment to look at the the disclaimer 

statement. 

5. We’ll cover quite a lot in this presentation, but before before I 

get into the details let me say that my priorities are all 

around profitable growth and a more competitive 

performance from Shell. 

6. We have plans in place to reduce cos costs ts and sell down 

non-core core positions. 

7. Growth to 2012 will drive a substantial step-up step in cash 

flow...around ...around 50% higher in a $60 per barrel oil price 

world, and at least 80% more in a $80 per barrel oil 

price world. 

8. All this is underpinned by a new wave of project start- 

ups in Qatar, North America and Asia-Pacific. Pacific. 

Page 7 of 78


9. And beyond beyond that, that, we we have an upstream portfolio that 

can grow to at least 2020 and some interesting 

downstream opportunities 

opportunities. 

10. We have come a long way, but there is much 

more to do at t Shell, and I am very energized around 

that. 

SLIDE: SHELL FINANCIAL PERFORMANCE AND 

PRIORITIES 

FINANCIAL PERFORMANCE AND PRIORITIES 

EARNINGS 

$ Bln 

35 

30 

25 

20 

15 

10 

5 

0 

-5 

UPSTREAM 

DOWNSTREAM 

CURRENT COST OF SUPPLY REPORTED EARNINGS 


Page 8 of 78 

2005 2006 2007 2008 

CORPORATE 

DIVESTMENTS/OTHER 

2009 

PRIORITIES 

COMPETITIVE PERFORMANCE 

PROFITABLE GROWTH 

SHARPER DELIVERY


11. Let me me start with the financial performance. 

Earnings have have averaged over $20 billion per year over 

the last last five years, but fell sharply in 2009 2009 due due to to the 

recession, despite Shell's self self-help help programmes and 

$2 billion of cost savings. 

12. Although oil oil companies companies have been cushioned cushioned 

from the downturn by OPEC's actions, , Shell has been 

disadvantaged recently, due to higher higher exposure exposure to 

to 

refining and natural gas, where margins are hard- hard 

wired to the economy. 

13. We don’t rely on a recovery in the macro 

environment. 

14. It is what it is. 

15. So we are sharpening up. 

16. Let me set out the priorities for everyone in Shell. 

17. We have a talented workforce workforce at at Shell Shell with with a very 

good intellectual horsepower and drive, and strong 

business acumen. 

18. But when when I I became became CEO CEO in in the the middle middle of last 

year, I did think that the organisation of the company 

was working against us. 

19. Shell had become too complicated, and a slower 

than I’d like, and working on too many areas reas and 

options. 

20. So we we started started to change change that that with with the 

the 

reorganization last last year, year, which which I I called called Transition 

Transition 

2009. That That reorganization reorganization is now complete, complete, but we 

don’t stand still here. 

Page 9 of 78


21. Shareholders are investing in Shell Shell for for profitable 

growth… 

22. …and so o are we. w 

23. This is all about about cash cash flow flow from operations, 

operations, 

investment in new projects, and cash returns to 

to 

shareholders. 

24. …and I want to to see sharper sharper delivery delivery of of our 

our 

strategy, and an a even more commercial focus in 

everything that we do. 

25. Let me me make some comments about the oil & gas 

outlook 

SLIDE: OIL & REFINING OUTLOOK 

OIL & REFINING OUTLOOK 

CRUDE OIL SUPPLY 

Global oil production million boe/d 

120 

80 

40 

0 

1990 2000 2007 2020 2030 

SOURCE: IEA 

REFINING CAPACITY 

Million bbl/d 

15 

10 

5 

0 


26. Firstly on oil markets. 

Page 10 of 78 

Currently producing 

fields 

Crude oil to be 

developed or found 

Unconventional oil 

NGLs 

2000 2002 2004 2006 2008 2010 E 

SPARE REFINING CAPACITY 

GLOBAL REFINING 

MARGINS (RHS) 

SHELL ANALYSIS 

$/bbl 

8 

6 

4 

2 

0 

� Robust oil demand expected for medium 

term 

� Natural field decline drives sustained 

industry upstream investment 

� Oil expected to trade in $50-$90/bbl 

range 

� Refining industry excess capacity


27. Looking at the the short term. The The International 

International 

Energy Agency Agency expects 1.6 million barrel barrels barrel per day of 

oil demand growth in 2010, after a decline in 2009. 

28. This is an improvement, but oil market 

fundamentals do remain weak in the short-term. short 

29. With OPEC spare spare capacity around 6 6 million 

barrels per day day, OPEC will likely be managing against 

the downside again this year. 

30. Looking into the medium term, the oil oil market 

picture is more positi positive, ve, with demand growth driven by 

the non-OECD, OECD, and natural field field declines declines. declines 

31. By 2020, the world world will will need need about about 40 40 million 

million 

barrels per day of new oil production on stream, from 

fields that haven’t been developed yet. 

32. To give you some perspective, 40 40 millio million millio barrels 

per day is equivalent to about 4 times Saudi Arabia, or 

or 

10 UK and Norway North Seas. 

33. These are not new observations. But it is a huge 

challenge for for the the industry, and and an opportunity for 

Shell. 

34. You can have a a big debate about oil prices. For 

us, it is about long term trends, and we we expect oil price 

averages typically in the $50-$90 $50 per barrel range…of 

course with short short-term term peaks and troughs. 

35. Demand emand erosion comes in at the top end, and 

replacement cost supports support the bottom end. 

36. We screen all Shel Shell’s oil projects inside this 

range. 

Page 11 of 78


37. Now, on refining. 

38. This is an industry industry that that normally normally moves moves on 5 to 7 

7 

year cycles. 

39. We saw about 2 million barrels per day of new 

refining capacity capacity in in the the market market in in 2009, at a time when 

demand is under pressure. The result is the weakest 

refining environment for over 20 years. 

40. It remains to be seen how quickly industry refining 

margins will recover, and and we we continue continue to reduce 

Shell’s refining portfolio. 

41. Turning to natural gas gas. 

Page 12 of 78


SLIDE: NATURAL GAS OUTLOOK 

NATURAL GAS OUTLOOK 

NATURAL GAS DEMAND GROWTH 

BCM 

3,000 

2,500 

2,000 

1990 2000 

SOURCE: IEA 

NATURAL GAS ADVANTAGE: EXAMPLE CCGT 

� Abundant global gas resources ~250 years 

reserves at current production 

� CCGT: gas-fired fired power compared to coal: 

CCGT: COMBINED CYCLE GAS TURBINE 


42. Short-term, term, wwe 

e are seeing pressure on natural 

gas margins from weak demand globally from the 

recession, and a 220% 

% increase in worldwide industry 

LNG capacity in 2009 2009-10. 

43. However, we believe that the medium-term 

medium 

outlook for natural gas does remain positive and this is 

a strong growth theme for Shell. 

44. From a customer perspective, which is is mostly 

mostly 

the electrical electrical power power generators, gas gas has a a scale, and 

a cost advantage over over other types of of fuel, with with low 

emissions. 

Page 13 of 78 

• 40% more energy efficient 

• 50-70% less CO2 

2010E 

• CCS retrofit at similar cost per MWh 

• Better complements with wind power 

SHELL GAS CAPABILITIES 

ATTRACTIVE ECONOMICS FOR ELECTRICITY PRODUCERS 

$/MW hour 

Solar Thermal 

Wind 

Nuclear 

Coal 

CCGT 

SOURCE: SHELL ANALYSIS BASED ON EU DATA 

GALLINA LNG SHIP 

GALLINA LNG SHIP - SINGAPORE 

0 50 100 150 200 

CAPITAL COST 

LONG-RUN MARGINAL COST


45. For long distance gas, such as supply into North 

Asia and Europe, Europe, we expect that industry will continue 

continue 

to prefer long term contracts contracts rather rather than spot, spot, to 

to 

guarantee security of supply from capital intensive gas 

projects. 

46. Spot markets are attractive in self-supplying supplying 

markets and during recessions, but these are a not 

deep markets, and you can have substantial price 

price 

spikes in the up up-cycle, cycle, which is not good news for 

customers. 

47. For U.S. gas prices, we expect prices typically in 

a $4 - $8 range range, with shorter-term term highs and lows. We 

plan our North American gas pro projects jects within this 

range. 

48. So those those are are some some comments on on the the macro. 

Positive on on medium term term oil oil & & gas gas markets, strong 

strong 

cyclicality in downstream, and downside risks across 

the board in the 2010 recession. 

49. Turning to strategy. 

Page 14 of 78


SLIDE: REJUVENATING THE PORTFOLIO: PORTFOLI : 2004+ 

REJUVENATING THE PORTFOLIO: 

2004+ 

Nigeria T6 

Corrib 

Kashagan 

Phase 1 

Delaware City 

refinery 

Angola Block 18 

NWS T4 

Nanhai 

2004 2005 

2006 2007 


50. Shell has has come come a a long long way in the last last 5 years. 

years. 

51. We have seen large swings swings in in oil prices, but we 

we 

have kept a steady course with strategy to to create long 

term shareholder value value with with an an organic organic growth growth plan. 

52. Returns eturns to shareholders were more than $70 

billion. 

53. Total capital investment in the last five years was 

$140 billion, on, which was 90% higher than the prior five 

year period. 

54. We have corrected for the the underinvestment in the 

the 

past, launching new projects in in upstream and 

and 

downstream. 

Page 15 of 78 

Gbaran 

Harweel Ubie Ph 1 

Afam Gas Bonga NW 

Changbei NWS T5/Angel 

Bakersfield 

refinery 

Intergen 

Gasunie 

Salym 

Bonga Main 

Nigeria T4 

Qalhat LNG 

Pearl GTL BC-10 

QatarGas 4 Perdido 

Gumusut 

AOSP Expansion 1 

Ursa Princess Singapore 

Waterflood Chemicals 

Port Arthur 

North Rankin B 

Retail JVs 

Turkey/ 

Ukraine 

Erha Main 

Nigeria T5 

2008 

Gorgon LNG 

Caesar Tonga 

LA refinery 

Shell Canada 

Minorities 

RAG 

Duvernay 

Skarv/Idun 

Arrow assets 

French refineries 

NOGAT 

Nigeria ABO 

Sakhalin dilution 

BEB 

Nigeria T6 NWS T5/Angel 

Ormen Lange 

Changbei 

Deimos 

Afam Gas 

Ursa Princess 

Waterflood 

BC-10 

Sakhalin 

Final 

Investment 

Decisions 

Acquisitions 

(Disposals) 

2009 

Start-ups


55. At the same time, we have refreshed the portfolio 

with $16 billion billion of of selective selective acquisitions in 

undeveloped d upstream and growth growth downstream 

positions, and sold $ $30 billion of non-core core assets assets. 

56. We rebuilt our project delivery capabilities - new 

people and new training… 

57. ….and .and we improved our longer term options, with 

a step up in exploration spending and and R&D 

R&D 

investment. 

58. I think today Shell is an industry leader in 

technology and innovation. 

59. So good good progress. But where are we going from 

here? 

60. Let me summarize it it. 

Page 16 of 78


SLIDE: STRATEGY & CAPITAL ALLOCATION 

STRATEGY & CAPITAL ALLOCATION 

Upstream 

� Profitable growth; price upside 

� >80% of total capital spending 

� Sustained exploration investment 

Downstream 

� Stable capital employed 

� Fewer refineries; upgrade chemicals assets 

� More concentrated marketing positions 

Financial outlook 

� Generating surplus cashflow through cycle 

� Investing for growth; competitive payout 

� Substantial cashflow growth 


61. Upstream, we stick to the strategy strategy of of growth 

investment, with a strong focus on exploration. exploration 

62. Downstream, I expect stable capital employed, an 

improvement in the manufacturing portfolio, and more 

focus in marketing. 

63. On the financial inancial side, and and Simon Simon will give you all 

the details details later, later, I I want Shell Shell to to be positioned to make 

growth investments and to generate surplus cash flow 

after capital investment and dividends across the 

cycle. 

64. Turning to timeline. 

Page 17 of 78 

CAPITAL EMPLOYED 

$ Bln 

200 

150 

100 

Technology – People – Operating Performance 

50 

0 

2009 2012 

UPSTREAM 

DOWNSTREAM 

100% 

75% 

50% 

25% 

0% 

2009 2012 

EUROPE AMERICAS 

ASIA PACIFIC OTHERS


SLIDE: STRATEGY TIMELINE 

STRATEGY TIMELINE 

REJUVENATING PORTFOLIO: 

UPSTREAM & DOWNSTREAM 

2004 2008 


65. I look at our strategy as a set set of different time 

layers. 

66. In n the near term it is all about raising our game on 

the performance side…sharper 

side…sha 

delivery…profitability…competitiveness 

delivery…profitability…competitiveness… … 

67. ….then delivering on the growth projects that we 

have launched in the last five years…this is growth to 

2014… 

68. …and working on new options for the next next wave 

of investment, that can grow the cash flow flow after after 2014. 

Page 18 of 78 

PERFORMANCE 

FOCUS 

MATURING NEXT GENERATION 

PROJECT OPTIONS 

NEW WAVE OF 

PRODUCTION 

GROWTH 

2012 2015+


SLIDE: PERFORMANCE FOCUS F 2009-2010+ 2010+ 


69. So now now I I look at at the nearer term in in more more detail… 

detail 

70. … performance focus. 

71. Firstly on safety. 

Page 19 of 78 


PERFORMANCE FOCUS 

2009-10+


SLIDE: HSSE PRIORITY 

HSSE PRIORITY 

SUSTAINABLE DEVELOPMENT 


72. Both personal personal and and process safety are embedded 

in the strategy, and the remuneration structure for 

staff. 

73. We have made progress on safety safety aand 

on other 

performance measures in 2009. 

74. Our ur flaring continued its dow downward nward trend, with 

over 10% reduction compare compared to 2008… 

75. …and we had a lower number of operational 

spills. 

76. However, we still had fatalities last year, year, and and we 

have to make further improvements here. 

Page 20 of 78 

Project 

profitability 

Environment Technology 

Social 

Safety 

‘GOAL ZERO’ ON SAFETY 

Injuries - TRCF per million working hours 

4 

3 

2 

1 

'99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 

Employees and contractors per million working hours; Shell operated facilities 

� Focus on personal and process safety 

� Industry leader in Sustainable Development


77. The reorganization last year year has put put more more of of our our 

staff into nto front line sustainable development development activities, 

activities, 

rather than than head head office, office, and I hope to see the benefits 

of that in the future. 

78. Turning to costs… 

SLIDE: 2009-10 10 COST FOCUS 

2009-10 10 COST FOCUS 

TOP DOWN REORGANIZATION IMPLEMENTED 

Previous structure……. ……new new top level 

structure 1 1st July 2009 

E&P 

GAS & POWER 

OIL SANDS 

OIL PRODUCTS 

CHEMICALS 


79. We reorganized the company last year, in a 

programme called ‘Transition 2009’, 2009’ , and we 

announced that that 5,000 employees will leave Shell Shell. Shell 

80. These changes, combined with other initiatives, 

have reduced underlying costs by over $2 $2 billion in 

in 

2009. 

81. Cost reduction and performance are now 

embedded in Shell, and we will push this programme 

forward in in 2010, with more focus and more urgency. 

Page 21 of 78 

UPSTREAM 

INTERNATIONAL 

UPSTREAM AMERICAS 

DOWNSTREAM 

PROJECTS & 

TECHNOLOGY 

COST DELIVERY & TARGETS 

2009 Achievements 

Faster decisions and implementation 

Clear accountabilities 

Competitive focus 

� Transition 2009 programme complete � 

� 5,000 staff reduction � 

� $2 billion underlying cost savings � 

Continuing momentum 

� $1 billion cost savings potential 2010 

� 2,000 staff reduction 2010-11


82. Some 2,000 2,000 staff will will leave leave the company in 2010 

2010- 

11, mostly mostly from corporate functions functions and and Downstream. 

Downstream. 

83. For 2010, I expect cost savings of of at at least least $1 

$1 

billion. 

84. I look at costs very closely. But equally 

importantly, rtantly, these changes are all about improving the 

the 

efficiency of our organisation. 

85. This means making decisions and and implement 

implement 

strategy more quickly…having clear 

accountabilities…and a more competitive focus by 


86. This will be a powerful platform for ffuture 

uture 

performance, and let me give you some some examples… 

examples… 

SLIDE: COST FOCUS IN ACTION 

COST FOCUS IN ACTION 

EXAMPLE: CONTRACTING & PROCUREMENT EXAMPLE: CORPORATE FUNCTIONS 

Deepwater Rig rate - $ 000/day 

480 

440 

400 

2009 2010 2011 2012 

SHELL COMPETITORS 

� Global market: $26 billion, 185 rigs 

� Shell market share: ~5%; 10-11 rigs 

� Global procurement strategy 

� ~10% below competition to end 2012 


Page 22 of 78 

SHARED SERVICE CENTRES 

Increasing role of “off-shoring” 

� 6,700 staff in shared service centres 

(+20% from 2008) 

Downsizing of traditional locations


87. Last year we saw opportunities to lock lock in rigs, at at a 

time when the market was loose. 

88. We increased our our bargaining power power by looking at 

our world-wide wide rig requirements. 

requirements 

89. We have locked in in deep water rigs rigs to to the end end of 

of 

2012, some some 10% below where we think major 

competitors are are positioned, implying a competitive 

cost advantage of $100 $ million per year. 

90. Looking at our own costs. In In a company the the size 

size 

of ours, we have around 25,000 staff involved in 

support activities such as Finance, HHuman 

uman Resources 

and IT. 

91. Most of these people are in our traditional 

centres, like Western Europe and and the US, which are 

high cost, cost, and and not not always the best markets markets for 

recruitment. 

92. We have set up a network of 6 shared service 

centres to handle the bulk of these support activities, 

with around 7,000 staff established established in these sites. 

93. I expect our headcount to continue to fall in 

in 

traditional centres as this off off-shoring shoring continues. 

Page 23 of 78


SLIDE: OPERATING PE PERFORMANCE 

100% 

95% 

90% 

95% 

90% 

94. Turning to operations. 

95. You can see the track record, which which is good. 

96. We are putting a lot of focus on areas like 

reducing unplanned downtime, and and being being as as efficient 

efficient 

as possible when we take assets off-line off line for planned 

maintenance. 

97. The impro improvement vement in reliability of our upstream 

facilities for example, have increased Shell’s 

production by over 20,000 barrels per day in the last 

few years... 

98. …squeezing queezing more and and more out out of Shell’s Shell’s assets, assets 

whilst ensuring we maintain asset integrity. 

Page 24 of 78 

OPERATING PERFORMANCE 

OIL & GAS PRODUCTION RELIABILITY 

2006 2007 2008 2009 

DOWNSTREAM AVAILABILITY 

% of EDC 

Chemicals 

2005 2006 2007 


Refining 

2008 2009 

LNG RELIABILITY 

100% 

95% 

90% 

2006 2007 2008 2009 

DOWNSTREAM API PROCESS SAFETY INCIDENTS 

# of safety incidents 

80 

60 

40 

20 

0 

2006 2007 2008 2009


SLIDE: PERFORMANCE ERFORMANCE FOCUS: DELIVERY OF NEW 

PROJECTS 

PERFORMANCE FOCUS: DELIVERY OF NEW PROJECTS 

Kboe/d 

99. We have had good success with with starting up 

complex projects, projects, and you can see the two examples 

here – Sakhalin in in Russia Russia and and Ormen Ormen Lange Lange in 

in 

Norway, which are both huge projects …some 

…some 

400,000 barrels per day for each. 

100. This is an important theme for Shell when you 

look at the number of projects that we we have coming coming on 

on 

stream in the next few years, and the new P&T 

organisation will have a big role to play in that. 

101. Turning to Downstream performance. 

performance 

Page 25 of 78 

ORMEN LANGE RAMP-UP 

400 

200 

0 

Q4 07 Q4 08 

SUCCESSFUL SAKHALIN START-UP 

Kboe/d 

400 

200 

0 


Planned 

production 

Planned 

production 

Q4 09 

Q1 09 Q2 09 Q3 09 Q4 09 

PRODUCTION PLAN 

Ormen Lange onshore gas processing plant 

Lunskoye Platform


SLIDE: DOWNSTREAM PROFITABILITY 

25% 

20% 

15% 

10% 

5% 

0% 

102. This his is a business where we have historically 

historically 

invested not not only in large integrated positions positions in in key 

key 

markets, but also in in smaller assets assets in in a long list of 

countries. 

103. So we we are are taking taking action action here, refocusing refocusing this 

portfolio into the best do downstream wnstream integrated 

positions. 

Page 26 of 78 

DOWNSTREAM PROFITABILITY 

LONG-TERM TERM RETURNS ENHANCEMENT STEEP DOWNTURN IN 2009 

ROACE 

1990 1994 1997 2000 2003 2006 2009 

DOWNSTREAM ROACE (annual) 

DOWNSTREAM ROACE (5 year average) 


CCS Earnings - $ Bln 

Portfolio actions create long term uplift 

Managing Refining & Chemicals cycles 

Cushion from lower volatility earnings in Marketing 

10 

8 

6 

4 

2 

0 

-2 

-4 

2003 2004 2005 2006 2007 2008 2009 

REFINING 

CHEMICALS 

CURRENT COST OF SUPPLY REPORTED EARNINGS 

MARKETING & TRADING 

DIVESTMENT & OTHERS 

GLOBAL INDUSTRY REFINING MARGIN (RHS) 

$/Bbl 

10 

8 

6 

4 

2 

0 

-2 

-4


104. Downstream has delivered around $20 $20 billion billion of 

of 

cash flow after cap capital investment over the last five 

years, so this is an important business for Shell in its 

own right, ight, and as a source of cash for upstream 

growth and retur returns to shareholders. 

105. This is a highly cyclical segment and restructuring 

it is a long game. 

106. You can see the improvements we have have made made in 

in 

long-term average returns here here. 

Page 27 of 78


SLIDE: STRENGTHENING DOWNSTREAM 

STRENGTHENING DOWNSTREAM 

Indonesia entry Tongyi acquisition 

Differentiated 

fuels Turkey JV 

China 

Nanhai 

Shared 

service 

centres 

2006 


107. We are focusing on three areas in 

Downstream...t 

Downstream...taking aking out cost....selling down non non-core 

assets....and investing on a very targeted basis for the 

best growth opportunities. 

108. I think over the next 22-3 

3 years, you will see quite 

a change in our manufacturing portfolio, with with exits 

from some sites, and start-up start up of new refinery and 

chemicals capacity. 

109. On the marketing side, we will will be pulling back 

back 

from some countries, countries, and and growing growing in in others… others 

110. …and nd we have important cost programmes 

underway. 

111. Let me give you more details. 

Page 28 of 78 

Disposal 

LA refinery 

US wholesale 

Disposal 

French 

refineries 

Offshoring Global procurement 

Indirect marketing 

models 

Singapore 

COSAN 

Chemicals 

JV 

Port Arthur 

expansion 

Greece 

exit 

2009 

Montreal 

closure 

Marketing reduction 

European & NZ refineries 

Further headcount reduction 

Waste elimination/organisational 

efficiencies 

2012 

Selective 

growth 

Portfolio 

action 

Cost


SLIDE: REDUCING REFINING REFI EXPOSURE 

REDUCING REFINING EXPOSURE 

ONGOING REFINING PORTFOLIO REDUCTION INCREASING SCALE AND COMPLEXITY 

Shell refining capacity – Kbbl/d 

5,000 

4,000 

3,000 

2,000 

1,000 

0 


112. Firstly on refining. 

113. We continue to work on improving our our refinery 

refinery 

position, with asset sales, and new investment to 

to 

upgrade our most advantaged sites. 

114. We have sold some 18% of our refining capacity 

since 2002. 

115. Today, we are in talks with counterparties oon 

o 

divestments in New Zealand and Europe, for some 

some 

15% of Shell’s refining capacity... 

116. ....and let’s see where we go with that in 2010 2010. 

Page 29 of 78 

2002-09 

-18% 

2002 2006 2009 

2009-12 

-15% 

2012 

EUROPE & AFRICA AMERICAS ASIA PACIFIC 

Kbbl/d Nelson index 

Reducing refining capacity 

Investing in scale and higher refinery complexity 

Value driven disposals strategy 

250 

200 

150 

100 

2002 2006 2009 2012 

AVERAGE REFINERY SIZE REFINERY COMPLEXITY (RHS) 

10 

9 

8 

7


SLIDE: MORE CONCENTRATED MARKETING 

POSITIONS 

MORE CONCENTRATED MARKETING POSITIONS 

MARKETING PORTFOLIO 

100% 

75% 

50% 

25% 

0% 

Retail 

# sites 


117. Turning to marketing. Shell is is active active in in more than 

than 

100 countries in downs downstream tream marketing. 

118. For me, this portfolio is is too too scattered, and not 

focused enough on profitability and growth. 

119. By focussing on fewer markets and leveraging 

brands, , we can simplify the business and improve 

profitability. 

120. We are leaving retail markets where 

we have 

small networks and and low low volumes. volumes. In In some some markets, markets, for 

for 

example in the US, we have moved to a a wholesale 

supply model model behind Shell branded sites, sites, which 

improve profitability. 

Page 30 of 78 

'09 '12 '09 '12 '09 '12 

Lubricants 

# markets 

DIRECT INDIRECT 

Aviation 

Fuels 

# markets 

'09 '12 

Bulk 

Fuels 

# markets 

EXITS 

SIMPLIFYING BUSINESS & MAINTAINING EARNINGS 

Example: Retail 

100% 

75% 

50% 

25% 

DIRECT & INDIRECT MARKETS EXITS 

Focus on scale and growth potential 

Ongoing concentration of marketing footprint 

0% 

% Markets % Earnings


121. In other markets we will keep a brand presence 

presence 

through Trademark Licence Agreements or through 

agreements with other distributors. 

SLIDE: UPGRADE CHEMICALS CHEMI ASSETS EXAMPLE US 

GULF 

UPGRADE CHEMICALS ASSETS 

EXAMPLE US GULF 

GAS FEEDSTOCK ADVANTAGE 

Gas ($/MMBTU) 

25 

20 

15 

10 

5 

0 

2000 2003 2006 

GAS CRUDE 

US GULF COAST CHEMICALS FEEDSLATE 

100% 

75% 

50% 

25% 

0% 


122. Chemicals is is a a further further area area where where we we can 

can 

improve in Downstream 

Downstream. 

123. Gulf Coast chemicals assets have have been been a 

a 

particular challenge for Shell, Shell, where we were 

configured to to use use liquids liquids feedstock feedstock in the plants, 

plants, 

rather than than gas, gas, which which has has been been cheaper. 

124. We are mitigating our exposure to liquid feed 

stocks, and increasing our feedstock flexibility. 

Page 31 of 78 

2007 2009 

GAS 

LIQUIDS 

Crude ($/bbl) 

150 

2009 

2010 

100 

50 

0 

FIXED COST REDUCTION 

Norco & Deer Park Fixed Costs (indexed to 2007) 

2007 2008 2009 

� Reconfigure assets to improve gas / liquids 

feedstock flexibility 

� Reducing fixed costs


125. In some cases, we choose to shut down down some 

units and furnace furnaces, s, reconfiguring the assets to handle 

more gas based feedstock feedstock. 

126. So I I think think we we have have made made a a good good start start on 

on 

performance focus, and there is more to to come here. 

SLIDE: GROWTH DELIVERY DELIVE 

127. Now I turn to the second layer layer of our strategy, 

strategy, 

which is growth delivery delivery. 

128. This covers both both upstream upstream and and downstream 

downstream 

themes and I will take these together. 

Page 32 of 78 


GROWTH DELIVERY 

21 Copyright of Royal Dutch Shell plc 16/03/2010


SLIDE: CONVERTING RESOURCES TO PRODUCTION 

PRODUCTIO 

CONVERTING RESOURCES TO PRODUCTION 

Bln Boe resources 

30 

20 

10 

0 

Longer-term upside Longer Longer-term upside 

CONCEPT 

SELECTION 

DESIGN 

UNDER 

CONSTRUCTION 

ON 

STREAM 

2008 


129. Let me start on upstream. 

130. We have a large oil and gas resource base in 

Shell. The chart here is a sub-set sub set of the total 

resources position. 

131. …its where I want to put the focus in the next ten 

years or so…. commercialization of these 

barrels….turning exploration and technology success 

into production and cash flow. 

132. We have some 9 billion bbarrels 

arrels of oil equivalent of 

resources on stream, with a further further 11 billion barrels b of 

oil equivalent under construction, with construction 

times typically around 3-5 years. 

Page 33 of 78 

Exploration: 

Australia Gas 

N. America Tight Gas 

Gulf of Mexico 

Prelude 

Pearls (CMOC) 

Gorgon 

NA Gas 

Caesar/Tonga 

Sakhalin 

BC-10 

CONCEPT 

SELECTION 

DESIGN 

UNDER 

CONSTRUCTION 

ON 

STREAM 

2009 

Strong portfolio of projects under 

construction 

� > 11 billion Boe resources 

Maintaining momentum for mediumterm 

� Design + concept selection > 8 billion Boe 

resources


133. These are the barrels that will drive drive growth growth to 

to 

2012-14. 14. Beyond that, that, we we have a a further 8 billion 

barrels in the design and concept selection stage, 

which will underpin the portfolio portfolio in the middle middle of of this 

decade. 

SLIDE: GROWING SEC PROVED RESERVES 

POSITION 

GROWING SEC PROVED RESERVES POSITION 

134. 2009 proved reserves replacement was 288% . 

135. For 2009, the reserves figures reflect the changes 

to SEC guidelines, and you will find all the details in 

the Annual Annual Report, which was published today. 

Page 34 of 78 

2007-09 RESERVES ADDITIONS 

Canada 

RESERVES REPLACEMENT 

ORGANIC 

USA 

Norway 

Netherlands 

Nigeria 

MAJOR RESERVES ADDITIONS 

ORGANIC INCL. PRICE EFFECTS 

Pearl 

1 Reserves attributable to Royal Dutch Shell shareholders 

2 Based on year end prices for 2007 and 2008, and based on 12-month month average price for 2009 

3 Excludes acquisitions, divestments and year-end price impact 

Slide shows 2007 & 2008 reserves including proven minable oil sands; 2009 reserves additions exclude the 997 million boe of previously booked proven minable oil sands 


Russia 

Kazakhstan 

China 

Qatargas 4 

Malaysia 

Australia 

2007-09 2009 

162% 266% 

164% 288% 

2009 RESERVES PERFORMANCE 

� 2009 RRR 288% 

� Reserves life at end 2009 ~ 12 years 

2007-09 RESERVES AVG. PERFORMANCE 

� Organic 3 additions ~ 1.9 billion boe 

� Production ~ 1.2 billion boe 

� Organic reserves replacement 162% 

NET RESERVES 1,2 

BILLION BOE 2007 2008 2009 

ORGANIC RESERVES ADDITIONS 1.5 1.1 3.2 

PRODUCTION 1.2 1.2 1.2 

NET RESERVES 11.9 11.9 14.1


136. Reserves life life is is now now 12 years, years, which which is around 

average for our sector. 

137. I think you should look at at long trends on reserves 

reserves 

figures, because in any one one year, year, the numbers are a 

snapshot. 

138. If you look at the last 3 years, we have have averaged 

over 164% organic reserves replacement. This is a 

positive performance... 

139. …and we have established some good 

momentum here. 

Page 35 of 78


SLIDE: DELIVERING ING ON NEW PROJECTS 

DELIVERING ON NEW PROJECTS 

KEY POST-FID PROJECTS 


140. We are making good progress with new projects. 

141. I think this is one of the most competitive 

portfolios of projects under construction in our industry 

today. 

142. In 2010-11 11 there will be 12 upstream start start-ups, 

which will add around 600,000 barrels of oil equivalent 

per day in the 2012 2012-13 timeframe. 

143. Let me me update you briefly on the largest of these 

new projects. 

Page 36 of 78 

Gjoa 

AOSP-1 Corrib 

Sakhalin II 

NA 

Tight gas 

Schoonebeek 

Port Arthur 

Iraq 

Kashagan Ph 1 

SAS 

Perdido Caesar 

Tonga 

Qatargas 4 Pearl GTL 

Singapore Chemicals 

Gbaran 

Ubie Ph 1 

Bonga 

NW 

BC-10 

Harweel 

Gumusut-Kakap 

Qarn Alam 

Amal Steam 


Gorgon 

Pluto 

T1-3 

(Woodside) 

OIL & GAS 

INTEGRATED GAS 

REFINING & CHEMICALS 

START-UP UP DATE 0 

2009 

2010-11 11 

2012+ 

SHELL DIRECT AND INDIRECT POSITION VIA SHELL’S 34% SHAREHOLDING IN WOODSIDE 

IMPACT OF KEY START-UPS 

Kboe/d 

1,500 

1,200 

900 

600 

300 

2009 2010-2011 2012-2013 2014+ 

ENTITLEMENT 

‘08-’09 START UPS ‘12-’13 START UPS 

‘10-’11 START UPS ’14 + START UPS 

ENTITLEMENT SHOWN AT $70/BBL


SLIDE: ATHABASCA OIL SANDS PHASE 1 

EXPANSION 

ATHABASCA OIL SANDS PHASE 1 EXPANSION 

AOSP CASH OPERATING COSTS 

$/bbl 

50 

40 

30 

20 

10 

0 

AOSP net cash flows - $ Bln (Shell) 

0.32.5 

2 

0.0 0 0 

$ 70/BBL OIL PRICE 


144. In Canada, Shell is the operator of of the AOSP AOSP oil 

sands mining project. 

145. We e are a middle-ranking middle ranking oil sands player – NOT 

the largest in the industry, which is not the impression 

I get when I read the newspapers newspapers sometimes. 

sometimes. 

146. This project has has gone gone well, well, coming coming on on stream stream end 

end 

2002 and reaching pay pay-back back within 5 years. 

147. The first mine expansion, which was launched launched in 

2006, is being commissioned for start up shortly. 

148. The Scotford upgrader ex expansion pansion will come on 

line in 2011, and at that stage, we will see see the full 

ramp up of the expansion project. 

Page 37 of 78 

2005 2006 2007 2008 

FIXED COSTS 

GAS COSTS 

PRODUCTION AND PROFITABILITY 

1 

-1 

Base project 

start up 

Competitors 

Expansion 1 

start up 

2009 

Kbbl/d 

-2 

-0.3 -2.5 

2000 2002 2004 2006 2008 2010 2012 2012 2014 2014 

CASH FROM OPERATIONS 

PRODUCTION (RHS) 

CAPITAL INVESTMENT 

200 

100 

MINING CAPACITY - INDUSTRY 

Kbbl/d oil sands mining capacity 

400 

300 

200 

100 

0 

Suncor 

CNRL 

Exxon 

Mobil 

Syncrude consortium distributed to ownership 

� Base project on stream since 2003 

� Payback in 5 years 

� AOSP Expansion 1 

Shell 

COS 

• Jackpine mine commissioning underway 

• Upgrader expansion on line 2011 

• Debottlenecking and synergy opportunities 

Chevron 

2009 2015 

Marathon 

Conoco 

Nexen


149. Once nce this expansion is on stream, we we will will look look for 

operating synergies and debottlenecking opportunit opportunities 

opportunit 

in the portfolio portfolio. 

SLIDE: PROJECT PROGRESS IN QATAR: : GTL + LNG 

PROJECT PROGRESS IN QATAR: GTL + LNG 

QATAR CAPITAL EXPENDITURE 

% of total capital expenditure 

100% 

-3 

-6 

50% 

3 

0 

0% 

2005 2006 2007 2008 2009 

PRODUCTION & PROFITABILITY 

Shell Qatar cash flow (Pearl + Qatargas 4) - $ Bln Production – Kboe/d 

6 

600 

2005 2010 2015 2020 2025 

$ 70/BBL OIL PRICE 


150. Turning to Qatar. We have have two two large large projects 

projects 

under construction there - Pearl gas-to-liquids liquids and 

Qatargas 4 LNG. 

151. There is a huge amount of activity there, and 

and 

some of you may have visi visited ted these projects at the 

end of last year. 

152. Two boilers on the Pearl Gas-to-Liquids Gas Liquids have 

been fired up earlier this month - the first step in a 

complex start-up 

up schedule that has been planned in 

detail by by a a team team of of 800 800 operators and technicians. 

Page 38 of 78 

CASH FLOW 

PRODUCTION (RHS) 

Pearl + QG4 

Major construction 

complete end 2010 

2010 2011 

2030 

400 

200 

0 

-200 

-400 

-600 

PEARL GTL: RAMP-UP 2011 

Offshore production Kboe/d 

300 

200 

100 

0 

Major 

construction 

complete 

end 2010 

1st feedgas: 

processing 

unit start-up 

Shell revenue 

and production 

entitlement from 

first GTL 

2010 2011 

OFFSHORE GAS 

GTL train 2 

GTL train 1 start-up 

start-up 

2012 

Volumes at 100% basis 

PEARL GTL – FIRST MAJOR EQUIPMENT STARTED-UP 

First steam from boilers


153. No change nge to guidance here. Major Major construction 

construction 

at both Pearl GTL and Qatargas 4 is is scheduled scheduled to be 

completed by by the the end of of 2010, 2010, with with production production ramp 

rampup 

throughout 2011. 

154. Budgets are are on track, track, with with Shell’s Shell’s share share of 

spending around $18-$19 $18 $19 billion of development cost 

for Pearl and $2 billion for Qatargas 4. 

155. On today’s basis these two two projects projects alone alone would 

would 

represent over 10% of our world world-wide wide production. production 

SLIDE: LEADERSHIP IN GLOBAL LNG 

LEADERSHIP IN GLOBAL LNG 

QATARGAS 4 

Courtesy of Qatargas 

� 26 trains in operation 

� 5 trains under construction; 7.6 mtpa for Shell 

� Shell ventures supplied >30% of global LNG 

volumes in 2009 


156. Qatargas 4 is one of 5 new LNG trains that Shell 

has under construction worl worldwide. 

157. Our new LNG capacity under construction will 

add some 7.66 

million tonnes per year to our LNG 

portfolio. 

Page 39 of 78 

SHELL’S GLOBAL LNG PORTFOLIO 

30 

20 

10 

0 

LNG - CONSTRUCTION 

LNG - OPERATION 

Year end mtpa 

Shell Exxon BP Total Chevron BG 

2009 2015 

PROJECTS IN OPERATION OR UNDER CONSTRUCTION 

QG-4 

Gorgon 

Sakhalin 

Pluto 

(Woodside) 

REGAS POSITION - CONSTRUCTION 

GRAND ANIVA 

REGAS POSITION - OPERATION


158. These projects..Qatar…Gorgon and others in 

in 

Australia…will be part of Shell’s continued LNG 

industry leadership position into into the the middle middle of the 

the 

decade ecade at least. 

SLIDE: GROWING UPSTREAM PROFITABILITY + 

PRODUCTION 

GROWING UPSTREAM PROFITABILITY + PRODUCTION 

ADDING TO UPSTREAM UNIT CASH FLOWS 

$/Boe 

40 

20 

0 

2009 2012 2009+ start ups: 2012 

OIL & GAS PRODUCTION GROWTH impact 

Kboe/d 

4,000 

3,000 

2,000 

1,000 

ENTITLEMENT: 

$60/BBL 

$80/BBL 

PRODUCTION AT $70/BBL 


159. When you put all this together, we expect expect to to see 

strong growth in upstream in the the next next few years. 

years. 

160. I look for financial growth here, not not simply simply a game 

game 

of chasing barrels. 

161. We have inves invested ted for profitability profitability and oil & gas 

price upside. 

162. You can see that cash flow per barrel, which which is 

is 

already competitive competitive in our our sector, will will increase in the 

coming years. 

Page 40 of 78 

2009 2010 2012 

OIL & GAS 

2014 

CONVERTING RESOURCES TO PRODUCTION 

Continuing to high-grade grade portfolio through new investments + disposals 

100% 

75% 

50% 

25% 

0% 

Resources Production Resources Production 

ON STREAM 2009 

UNDER 

HEAVY OIL & EOR LNG 

CONSTRUCTION 

SOUR 

DEEPWATER 

GTL TRADITIONAL TIGHT GAS


163. Production volumes should average 3.5 million 

barrels per day in 2012, with a ramp-up ramp in n 2011. 

164. For 2014, I expect further further production growth, growth, with 

with 

the final final outcome outcome driven driven by by shorter term term investment 

investment 

choices, license extensions and and potentially potentially some 

some 

asset sales. 

SLIDE: NEW GROWTH DOWNSTREA 

DOWNSTREAM 

MANUFACTURING 

NEW GROWTH: DOWNSTREAM MANUFACTURING 


165. Turning briefly to to downstream downstream growth growth. growth 

166. On the manufacturing side, side, let let me me update you 

you 

that we are are making making good good progress progress with new new chemicals 

capacity acity in Singapore. 

167. The new MEG plant came on line there at the end 

of 2009, for any chemists out there, that’s mono- 

ethylene-glycol. glycol. 

Page 41 of 78 

PORT ARTHUR REFINERY EXPANSION +325 Kb/d to create 600 Kb/d site 

2012 start-up up 

SINGAPORE CHEMICALS 

750 ktpa MEG 

800 ktpa ethylene cracker 

2009-10 start-up up


168. The ethylene cracker will start up shortly. 

169. On the refining side, construction continues continues at 

Port Arthur, which is a large refinery expansion project project 

on the Gulf Coast. Coast 

SLIDE: NEW GROWTH DOWNSTREAM MARKETING 

NEW GROWTH: DOWNSTREAM MARKETING 

GLOBAL LUBRICANTS MARKET SHARE 

% 

13 

11 

9 

7 

SOURCE: KLINE 

GLOBAL BRAND PREFERENCE 

% 

20 

10 

0 

Shell 

SOURCE: GLOBAL BRAND TRACKER 


170. We continue with growth investments in 

marketing. 

171. For examp example le our global market share in lubricants 

remains high, and we see strong growth and margin 

potential in synthetic lubes. Pearl GTL lubricants 

products will be the next tranche of of growth here. 

172. In Retail, etail, we e launched a new product product last year 

called FuelSave, which can deliver fuel savings of 

over 2% to our customers, and we we will continue continue to roll 

roll 

that out in new countries in 2010. 

Page 42 of 78 

'02 '03 '04 '05 '06 

Competitors (Majors) 

Q4 2008 Q4 2009 

SHELL 

EXXON MOBIL 

BP 

'07 '08 

SYNTHETIC LUBES GROWTH 

Global Lubricants demand growth (MT) Unit Margin $/bbl 

3.8 4.8 

35.5 35.1 

2008 2012 

Synthetics 

Main 

grade 

DIFFERENTIATED FUELS GROWTH 

Shell Retail Margin by Key Product Category 

100% 

75% 

50% 

25% 

0% 

Differentiated fuels 

2006 2009 

Main grade Synthetic 

MAIN GRADE FUELS NON FUELS PRODUCTS 

DIFFERENTIATED FUELS


173. So those those are are some some comments on on growth growth delivery 

delivery 

for the the next next few years, and you can see we have 

some exciting projects underway. 

SLIDE:MATURING LIDE:MATURING NEXT GGENERATION 

PROJECT 

OPTIONS 


174. Now, before I hand you over over to Simon on on the 

financial side, let me update you on where we are with 

options for long term investment. investment 

Page 43 of 78 



PROJECT OPTIONS


SLIDE: : GROWTH LANDSCAPE 

GROWTH LANDSCAPE 

CHANGING LANDSCAPE 

Increased oil price outlook 

Traditional basin decline 

Resources access 

Nigeria challenges 

Slower pace and higher cost 

in Caspian + Alberta 

Greenhouse gas regulation 

+ fuels mandates 


175. Firstly on the landscape. 

176. The oil & gas industr industry y has seen some substantial 

changes in the last several years. 

177. Customers and governments have concerns over 

long term security of supply and emissions. emissions 

178. Industry replacement costs have increased due to 

project complexity and the tight supply chain chain… 

179. …and in n some areas, industry pace has been 

been 

slower than than expected due to local politics. 

politics. 

180. All of of this this contributes contributes to to increased oil prices prices and 

higher volatility, and makes medium term growth more 

difficult for our industry. 

Page 44 of 78 

SHELL RESPONSE FOR MEDIUM TERM 

Positioning for price upside 

Exploration step-up 

Tight gas and CBM 

Monetize Australia gas 

Iraq access + potential 

Biofuels production + CCS 

options 

Strategy set in 2004 to manage price + access challenges 

Built-in in portfolio flexibility to manage changing landscape


181. When we set the upstream strategy in 200 2004-2005, 

we did anticipate many of these trends. 

182. This is a rather rather uncertain world, and I don’t think 

that any company can really predict its upstream 

growth rate more than five five years years in in the future. 

future. 

183. That said, I am pleased pleased that we we have a a larger set 

set 

of options ons and choices in the Shell portfolio, portfolio, and and this 

this 

does allow us to compensate for unforeseen unforeseen setbacks. 

setbacks. 

184. This is is a a very very different position position for for the the company 

compared to where we were were a few years ago. 

185. Let me me show you some examples of our longer 

term growth opp opportunities. 

Page 45 of 78


SLIDE: 2009 EXPLORATION & APPRAISAL SUCCESS 

2009 EXPLORATION & APPRAISAL SUCCESS 

West Canada 

Gulf of Mexico 


186. Firstly on exploration. exploration 

187. We spend some $3 billion billion per year on exploration 

activities, and I am pleased with the the 2009 2009 results. 

188. Exploration added added 2.4 2.4 billion billion barrels of resources 

last year, and we are averaging over 1.5 billion barrels 

per year, compared to about 1.1 billion barrels of 

production. 

189. The main areas of performance were the US US Gulf 

of Mexico, Australia, and North America tight gas. 

Page 46 of 78 

2009 exploration adds 2.4 Bln Boe 

5-year exploration average >1.5 Bln Boe Boe/ year 

5 year average finding costs $2-3/ 3/boe 

RESOURCE ADDITIONS 

Bln Boe 

2.5 

2 

1.5 

1 

0.5 

0 

OIL GAS 

Carnarvon Basin 

2009 ACREAGE ACCESS 

DISCOVERY 

APPRAISAL 

SUCCESS 

'01 '02 '03 '04 '05 '06 '07 '08 '09


SLIDE: DEEP WATER GULF OF MEXICO M 

DEEPWATER GULF OF MEXICO 


190. 2009 was one of our best years in the Gulf of 

Mexico for some time. 

191. I would highlight the new new Vito discovery, discovery, which 

which 

has over 200 million barrels of resources, and 

continued exploration exploration success in the Mars Basin, at 

West Boreas and South Deimos Deimos. 

192. We have also done some ca careful reful appraisal work 

at the Lower Tertiary Stones discovery, with with three 

wells now drilled. 

193. The oil in place numbers there are huge…up to 5 

billion barrels, and we are looking into into an an early 

early 

production system to to assess the the potential potential. 

194. Turning to Australia Australia. 

Page 47 of 78 

W. Boreas, S. Deimos 

• Shell 100% (operator) 

• >150 million boe resources 

Vito 

• >200 million boe resources 

• ~100 kboe/d potential 


Perdido Spar 

• On-stream 2010 

• Industry first from Lower Tertiary 

sands in deepwater 

• ~100 kboe/d, Shell 35% 

(operator) 

Auger TLP 

• Cardamom Deep 

discovery & appraisal 



NEW HUB 

Caesar/Tonga 

Caesar/ 

Tonga 

• ~50 kboe/d 

• 2009 FID 

• Shell 22.5% 

EXISTING PRODUCTION HUB 

SHELL LEASEHOLD 

>150,000 boe/d new potential for Shell 

Mars B 

• Feasibility study for TLP, Shell 72% 

(operator) 


Stones 

• 2-5 bln bbls oil in place; complex 

reservoir 

• Assessing early production options 

• ~80 kboe/d full development potential 

• Shell 35% (operator)


SLIDE: AUSTRALIA GAS GAS: 2009 DRILLING SUCCESS SUCCES 

AUSTRALIA GAS: 2009 DRILLING SUCCESS 

BUILDING A STRONG INTEGRATED GAS PORTFOLIO 

Browse 

Concerto, Prelude 

� FLNG concept in FEED 

� > 1 Tcf addition to >2 Tcf Prelude discovery 

� Shell 100% 


195. Australia is key growth growth region region for Shell 


196. We have focused on drilling in Shell operated 

acreage around Prelude, to firm firm up up our our floating LNG 

plans there. there. The 2009 Concerto discovery, combined 

with Prelude, take takes s total resources to over 3 TCF. 

197. In addition, Chevron-led Chevron led drilling has proved up 

more gas around Gorgon, that increases the the chances 

for new new LNG LNG trains trains there, there, beyond the three that are 

under construction today. 

Page 48 of 78 

2009 DISCOVERY 

0 

200 KM 

Libra/ Crux 

2009 APPRAISAL SUCCESS 

Kentish Knock 

� Gas discovery 

� Development options under review 

� Shell 50 % 

PRE - 2009 SUCCESS 

Achilles, Satyr, and YellowGlen 

� Potential resources for Gorgon Train 

T4+ 

� Shell 25% 

SHELL LEASEHOLD 

� 5 new discoveries + 1 appraisal success 2009: +3 Tcf 

� 10 material discoveries since 2004; 9 Tcf with


SLIDE: AUSTRALIA UNDERPINS NEXT TRANCHE OF 

SHELL HELL LNG GROWTH 

AUSTRALIA UNDERPINS NEXT TRANCHE OF 

SHELL LNG GROWTH 

SHELL GLOBAL LNG CAPACITY GROWTH 

Mtpa 

40 

30 

20 

10 

0 


198. Globally, we have some some 18 million tonnes per 

year of LNG capacity on stream today, today, and and that will 

grow by 40% to 26 million tonnes by by 2015. 

2015. 

199. We have the potential to grow to around around 35 

million tonnes per annum by 2020, with Australia 

Australia 

being the main driver of that. 

200. The key pre pre-FID options here include Floating 

LNG for our Prelude field as a well as non-operated 

positions such as Sunrise and Browse Browse. 

201. The forecast here excludes any new Nigeria LNG, 

where the the timings are uncertain, and it exclud excludes exclud Curtis 

Island LNG in Australia, where we have recently made 

a proposal to acquire Arrow Energy Limited Limited. 

Page 49 of 78 

QG4 

Gorgon 

Pluto 

(Woodside) 

2009 2010-15 

Prelude 

Others 

~2020 

ONSTREAM CONSTRUCTION DESIGN OPTIONS 

Pluto (Woodside) 

Gorgon 

Curtis Island 

North 

West 

Shelf 

Browse 

� 7.6 mpta new LNG capacity 2009 2009-15 (~40%) 

� ~10 mtpa medium term LNG options 

� ~1.4 bcf/d /d (~240 Kboe/d) new production potential 

Greater Sunrise 

Prelude 

NEW HUB EXISTING PRODUCTION HUB


202. We will update on the impact of that that transaction transaction at 

a later stage. 

SLIDE: NORTH AMERICA TIGHT GAS: PORTFOLIO 

BUILD-UP 

NORTH AMERICA TIGHT GAS: PORTFOLIO BUILD BUILD-UP 

TIGHT GAS PORTFOLIO 


203. Turning to North America tight gas….and we 

have made very good progress progress here in in 2009. 

2009. 

204. We have built up a large acreage portfolio in this 

this 

region, and we are drilling appraisals on these new 

positions, which in turn turn drives drives production. 

production. 

Page 50 of 78 

West Canada 

Pinedale 

South Texas 

Haynesville JV 

PRODUCTION GROWTH 

Kboe/d 

21 Tcfe (3.7 bln boe) resources position; 8 Tcfe resources added with 2009 drilling 

Since 2001: $9.5 billion E&A + acquisition spend, ($0.45/ ($0.45/mscfe or


205. Today, we have material positions in two of the th 

most prospective plays; Haynesville Haynesville in in Texas- Texas 

Lousiana and the Montney Shale in in Canada. This 

adds to our other position positions in South Texas, Pinedale 

and Canada. 

206. We increased our our resource base by by 8 8 TCF T in 

2009 by drilling rilling acreage in the Haynesville and 

Montney tney Shale Shale. 

207. Shell’s total North America tight gas resource 

base now stands at 21 TTCF 

equivalent or 3.7 billion 

barrels arrels of oil equivalent equivalent. 

208. All ll this has been put put together together with with a a series series of 

of 

farm ins, joint ventures and small acquisitions, acquisitions, at a 

a 

competitive cos cost of forty five cents per thousand cubic 

feet. 

209. Our production increased increased by by over over 60% 60% in in 2009, 

2009, 

with more to come. 

Page 51 of 78


SLIDE: NORTH AMERICA TIGHT GAS: GROWTH 

POTENTIAL & COST PERFORMANCE 

NORTH AMERICA TIGHT GAS 

GROWTH POTENTIAL & COST PERFORMANCE 

SPEND OVERVIEW 

$ Bln 

8 

6 

4 

2 

0 

2004-05 2006-07 2008 2009 2010 2020 

EXPLORATION 

& APPRAISAL 

DEVELOPMENT ACQUISITION 

REDUCING DEVELOPMENT COSTS 

Drilling/Completion costs - $ Mln 

20 

15 

10 

5 

0 

1H 092H 09 2008 1H 09 2H 09 2007 2008 1H 092H 09 2008 1H 092H 09 

HAYNESVILLE GROUNDBIRCH PINEDALE 


Page 52 of 78 

COMPLETION 

DRILLING 

Potential 

DEEP BASIN 

PRODUCTION & POTENTIAL 

Kboe/d 

500 

400 

300 

200 

100 

0 

2004-05 2006-07 2008 2009 2010-11 ~2020 

ON STREAM UNDER CONSTRUCTION OPTIONS 

� Potential for ~400 kboe/d in 2020 

� 2010 -2020 : resources can support $2-4 

bln/year 

� Growth potential > 250 Kboe/d for Shell 

� $4-6/mmbtu breakeven; further cost 

opportunities 

� Drilling performance reduces costs 

210. We have the resources potential to to more more than 

double our our tight tight gas production by 2020, to over 

400,000 barrels oil equivalent per day. 

211. This is an extremely extremely flexible portfolio, portfolio, and and you can 

move the spending levels up or down, down, depending on 

near term m gas prices and and rig rates, and spending 

choices elsewhere in the company. 

212. Economics are attractive in a $4 - $6 gas price 

range. As we continue with the appraisal and 

development programme programme in tight tight gas, we are seeing 

sharp improvements in drilling costs and reduced 

drilling times. This improves the econ economics omics of these 

developments, and and I I think think there is is more more to to come 

there. 

Bcf/d 

3 

2 

1 

0


213. So those are some exploration-driven 

exploration driven 

examples…Gulf of Mexico..Australia…tight gas. 

gas. 

214. Now let me move to development 

development-led led activities 

and options. 

215. The first of these is in Canada heavy oil oil. 

SLIDE: NORTH AMERICA HEAVY OIL POTENTIAL 

NORTH AMERICA HEAVY OIL POTENTIAL 

PORTFOLIO 

Peace River 

Colorado 


216. We will have about 180,000 180 barrels per day of 

heavy oil production from Canada, when the AOSP 

AOSP 

expansion project has ramped up, which starts this 

year. 

217. After that, that, we will look look at at debottlenecking debottlenecking options 

at the mines, ines, and work on the in in-situ situ plays in 

Alberta…and you you can see the potential at the chart. 

Page 53 of 78 

Athabasca 

OIL SANDS MINING 

Cold Lake 

MINING 

IN SITU OIL 

OIL SHALE 

PRODUCTION CAPACITY AND POTENTIAL 

Kboe/d 

Options can drive ~90 Kboe/d new production for Shell ~ 2020 

400 

200 

0 

AOSP + 

In Situ 

2008-09 

AOSP -1 

2010-11 

AOSP Debottlenecking 

ONSTREAM CONSTRUCTION OPTIONS 

Carmon 

Creek 

AOSP 

Expansions 

~2020+ 

INSITU RECOVERY


218. The debottlenecking stages should add some 

20,000 - 30,000 barrels per per day day at at a a time for for a few 

few 

billion dollars each. 

219. We are also looking into CCS – carbon capture 

and storage – for AOSP, in a project called Quest, 

which could capture and store some 1 million tonnes 

of CO2 per year. 

220. Longer term, term, there is further growth potential potential for 

for 

Shell in the in--situ 

situ plays, and in mining expansions. 

221. However, we took a pause from launching new 

projects in in Alberta Alberta in 2008, due to industry cost 

inflation and changes in the tax regime there. there. This all 

all 

made us more cautious on the pace pace for Shell in this 

area, although there is clearly good long- long-term 

potential. 

222. Turning to Iraq. 

Page 54 of 78


SLIDE: PROGRESS WITH NEW IRAQ OPPORTUNITIES 

PROGRESS WITH NEW IRAQ OPPORTUNITIES 

MAJNOON DEGASSING STATION 

0 100 KM 

* $70/BBL OIL PRICE; MAJNOON + WEST QURNA 


223. We have interests in two giant oil fields fields in Iraq, 

following the licensing rounds in 2009. 

224. At Majnoon, we are building up our team to take 

production to the First Commercial Production level level of 

175,000 barrels per day. That’s when Shell would start 

to see cost recovery recovery, , and we hope to be there in 2012. 

225. Beyond FCP, there is potential to reach 1.8 

million barrels per per day at at Majnoon, and and similar similar levels 

at the non-operated operated West Qurna. 

226. Fiscal terms are designed to deliver quick pay 

back to the the IOCs for for investment, which which is an 

appropriate risk risk sharing mechanism mechanism in Iraq. 

Page 55 of 78 

West Qurna-1 

(Shell 15%) 

Majnoon 

(Shell 45%) 

BASRA 

MAJNOON DEVELOPMENT 

� Current production ~45,000 Boe/d 

� Oil in place > 38 billion Boe 

� Leveraging existing infrastructure 

MAJNOON OUTLOOK 

� Potential for ~1.8 mln Boe/d production in ~2017 

� Targeting 175,000 Boe/d 2012 “First Commercial 

Production“ (FCP) 

� Cost recovery begins at FCP 

� Risk management: matching capital employed with 

early pay-back 

� Short (months) lag between cost and cost recovery 

0 

100 KM 

OIL & GASPotential 

for >150 Kboe Kboe/d Shell entitlement production* in 2014+


SLIDE: BIOFUELS: SHELL AND COSAN POTENTIAL 

PO 

BIOFUELS: SHELL AND COSAN POTENTIAL 

� Retail and aviation 

� World’s largest biofuels 

distributor 

� Advanced biofuels 

technology: IOGEN and 

Codexis 


227. My final example of our longer longer-term term options is in 

biofuels. 

228. Shell spends more than $3 $ billion per year to 

purchase biofuels for oil products mandates, as set 

out by host governments. 

229. We are negotiating a joint venture with Cosan 

here, and Cosan Cosan is an industry industry leader leader in the the area. 

Together, there will be synergies in the combined 

Brazil downstream portfolios overall, and growth 

potential in biofuels. 

230. Near-term, term, this will will be all about Cosan’s biofuels 

biofuels 

production and Shell’s marketing capabilities capabilities in Brazil, 

with biofuels export export opportunities opportunities in the longer longer-term. 

longer 

Page 56 of 78 

PROPOSED SHELL COSAN JV 

(50/50) 

� Leading position in Brazil fuel 

distribution: ~4,500 stations 

� Fully integrated leader in the biofuel 

sector 

� Growth potential in sustainable 

biofuels 

� Advanced biofuels technology in 

Brazil and USA/Canada 

Ethanol fuel in Shell’s retail network 

Automated sugarcane harvesting 

Asset combination + $1.6 Bln cash contribution from Shell 

JV “oil production” 35 Kboe/d + growth potential 

� ~1,600 retail stations in Brazil 

� Leading producer of sugar and 

sugarcane ethanol (~2 billion 

litres) 

� 21 plants and 2 under 

construction


231. We also plan to put some of our advanced 

biofuels technology into this JV, with future future growth 

potential. 

232. Actually, just just a few few days days ago, ago, we announced that 

the fuel fuel we supply to Ferrari’s Ferrari’s team for for the 2010 

Formula 1 season season, contains cellulosic ethanol. 

233. This is an advanced advanced biofuel made made from straw straw by 

by 

our partner tner Iogen, Iogen using non-food food wheat straw and 

advanced conversion processes. 

234. This will be the first first time time an advanced biofuel has 

been used used in in the the race fuel by Ferrari in Formula 1. 

235. Let’s see how they go with that. 

236. So, some some good opportunities for the longer tterm. 

t 

237. Let me summarise. 

Page 57 of 78


SLIDE: NEW PORTFOLIO OPTIONS FOR POST POST-2014 

GROWTH 

NEW PORTFOLIO OPTIONS FOR POST POST- 2014 GROWTH 

RESOURCES OPTIONS >8 BILLION BOE 

Bln boe 

8 

6 

4 

2 

0 

In design and concept selection 


238. We have projects in our pre-FID pre FID portfolio that can 

support further further growth growth to to 2020...and the growth rate is 

is 

really an outcome of the pace of investment. 

239. We are maturing these and other options, and we 

will launch launch new projects according according to to portfolio fit ... 

... 

240. ...the profitability of the projects... 

241. ... and affordability affordability, , which is of course partly 

linked to the the development of oil oil prices prices and 

and 

downstream margins. 

242. Net spending will be in the $25-$27 $27 billion range, 

with the precise budgets driven by the the timing of the 

the 

investment decisions. 

Page 58 of 78 

Resources 

HEAVY OIL & EOR 

SOUR 

TIGHT GAS 

LNG 

DEEPWATER 

TRADITIONAL 

TIGHT GAS – N. AMERICA PRELUDE - AUSTRALIA 

SUBSTANTIAL PRE-FID OPTIONS TO ~2020 

� >8 billion boe resources 

� ~35 new projects 

� Studies on further options + new exploration 

� Portfolio can support growth to ~2020 

Long-term growth and investment 

� Options to flex annual spending with macro 

� $25-$27 Bln/year net capex to drive growth outcomes 

Investment decisions driven by 

� Portfolio fit 

� Affordability 

� Profitability


243. The macro environment will also have have an an impact 

on spending, so with higher higher oil & gas prices, we 

expect cost inflation, but at the the same time the 

economics ics of short term projects do improve, and our 

overall affordability increases. 

244. We have deliberately built built in capital flexibility into 

the portfolio, portfolio, so we can flex the spending on a shorter- shorter 

term basis. 

245. So, an an exciting portfolio portfolio under construction construction today, 

and a great set of new choices for for the the medium medium-term. 

246. With that, I hand you over to Simon for more 

detail on the financial side. 

Page 59 of 78


SLIDE: SIMON HENRY 


247. Thanks Peter. 

248. Let me me make some comments on Shell’s financial 

strategy. 

249. I know that there has been quit quite e a bit of 

discussion in the market on the outlook for our 

financial framework, and especially especially around around sources 

and uses of cash, so I’m going to try try to address address some 

of those questions here. 

Page 60 of 78 


FINANCIAL FRAMEWORK 

SIMON HENRY 

CHIEF FINANCIAL OFFICER


SLIDE: FIVE YEAR PERFORMANCE TRACK RECORD 

FIVE YEAR PERFORMANCE TRACK RECORD 

CASH FLOW GENERATION 

$ Bln 

25 

15 

5 

-5 

-15 

-25 

* CASH FLOW FROM OPERATIONS MINUS CASH FLOW FROM INVESTING ACTIV ACTIVITIES 


250. Firstly, let’s look aat 

t the track record...and record... you can 

see the cash cash flow performance and and capital capital allocation 

allocation 

here. 

251. As you know, the macro environment is the single 

most significant driver on our cash flows. 

252. Cash flow from operations was just over $160 

billion in the last five years, when oil prices averaged 

$75 per barrel. 

253. Over that period, ttotal 

otal capital investment was 

$140 billion, billion, with with over $70 billion billion returned to 

shareholders. . 

254. These are large outflows, and we are re careful to 

maintain a conservative balance sheet, with gearing gearing at 

end-09 09 of 15.5%. 

Page 61 of 78 

2005 2006 2007 2008 

FREE CASH FLOW * 

2009 

$/bbl 

90 

70 

50 

INVESTMENTS AND RETURNS TO SHAREHOLDERS 

$ Bln 

50 

40 

30 

20 

10 

0 

2005 2006 2007 2008 2009 

OIL PRICE (RHS) NET CAPITAL INVESTMENT SHARE BUY BACKS 

DIVIDENDS


255. 2009 was was a a more more difficult difficult year year for for cash 

cash 

management, due in a a large large part part to the the recession. 

recession. 

256. But it’s it’s important important to to note note that that we we maintained maintained our 

growth spending strategy into this downturn. downturn 

257. This is because we can afford to deliver on thi this 

growth plan, and we believe that this is the best way 

to create shareholder value. 

SLIDE: CONVERTING INVESTMEN 

INVESTMENT T INTO CASH FLOW 

2009-12 

CONVERTING INVESTMENT TO CASHFLOW: 2009 2009-12 

CAPITAL UNDER CONSTRUCTION 

$ Bln 

50 

40 

30 

20 

10 

0 

2007 2008 2009 2010 

UPSTREAM DOWNSTREAM 

NEW CASH FLOW GENERATION 

$ Bln 

15 

5 

-5 

-15 

-25 

2007 2008 2009 2010 2011 2012 

PROJECT CAPEX PROJECT CASH FLOWS 

POST-FID KEY PROJECTS AND 2009 START-UPS; UPS; INCLUDES GTL, OIL SANDS UPGRADER, LNG 

LIQUEFACTION, REFINING, CHEMICALS; FORECAST AT $70/BBL OIL PRICE 


258. Our ambitious investment programme has 

resulted in a build build-up of non-productive productive capital on the 

balance sheet. We cu currently rrently have about 25% of our 

$173 billion billion capital capital employed employed in this capital capital under 

construction….or capital unemployed category. 

Page 62 of 78 

2011 

Roll-over of capex to cashflow 2009-12 

Group cashflow outlook 2009-2012 

� 2009 CFFO $24 billion (ex working capital) 

� Increase of ~50% in $60/bbl scenario 

� Increase of >80% in $80/bbl scenario 

2012 ASSUMES NORMALIZED DOWNSTREAM AND NATURAL GAS ENVIRONMENT


259. This position will change in 2010-11, 2010 11, as capital 

under construction construction reaches reaches a a peak and then then declines 

declines 

as new projects come on sstream. 

260. The trend is down, although there there could be some 

uplift in the 2011 numbers from from new new FIDs, and and you 

you 

can see the estimate here. 

261. As these these new projects come on stream, we 

expect quite a roll roll-over er of of capex to cash flow. The 

post-FID FID portfolio today, combined with 2009 start-ups start 

should be generating substantial cashflow from 2012 

and onwards. 

262. Group cash flow in 2009 was $24 $24 billion 

billion excluding 

net working capital movements. 

263. We expect that to increase by by around 50% 50% in 

2012 at $60 per barrel oil prices, and by y over 80% in a 

$80 oil price world. 

264. This also assumes assumes a a more more normalized 

normalized 

environment for downstream and natural gas. 

265. It’s also important to note note that that in in 2012 we should 

see a higher impact of oil price price changes on on the bottom 

line. 

266. Oil price sensitivity tod today is about $3.2 billion for 

an annual $10 oil price move move, , growing to about $3. $3.5 

billion by 2012. 

Page 63 of 78


267. North America gas price sensitivity will will also 

increase, from from about about $360 million per per year year per per $ per 

per 

thousand standard cubic feet currently, to to over over $450 

$450 

million per year by 2012. 

268. This is because of of the the increase increase in in the the production 

production 

profile – more barrels and therefore more impact – 

and because we are investing in in projects projects with 

improved oil price upside. 

269. So how how are are we we going to use use this cash? 

cash? 

SLIDE INVESTMENT AND BALANCE SHEET 

INVESTMENT AND BALANCE SHEET 

BALANCE SHEET MANAGEMENT 

Gearing % 

30% 

20% 

10% 

0% 

2005 2006 2007 2008 2009 

CAPITAL INVESTMENT 

$ Bln 


270. We will continue to invest for growth, with the 

the 

largest proportion proportion of spending in upstream. 

Page 64 of 78 

Gearing range 

2009 2010E 2011- 

14E 

Organic investment 31 ~28 25 – 30 

Acquisitions 1 ~2 

Disposals (3) (~1) (up to 3) 

Net Capital Investment 28 ~29 25– 27 

� Capital spending outlook 

• > 80% of total spending in Upstream 

• Annual spend assessed against choices + 

macro environment 

� Balance sheet flexibility 

• 0-30% gearing through cycle 

� Generating surplus cashflow >$60/bbl 

2012 

• Start-up of major projects 

• Asset sales + cost cutting 

� Dividend 

• Constant in 2010 

• Revised policy 

2012 ASSUMES NORMALIZED DOWNSTREAM AND NATURAL GAS ENVIRONMENT


271. The precise annual spending level will be be driven 

by the investment investment choices choices we we make make and the macro 

environment, with some linkage of oil prices and a 

industry costs, and of course improved affordability affordability if 

if 

oil prices are high. 

272. We typically complete up to $3 billion billion per year year of 

of 

asset sales, sales, and and I expect that to continue as part of 

normal capital efficiency strategy. 

273. On the acquisition side, the upda update te you see here 

for 2010 2010 reflects the Cosan joint venture, venture, assuming we 

we 

succeed in in finalizing finalizing that that deal, and the 2010 impact of 

$400 million for the end-2009 end 2009 Woodside rights issue. 

274. Potential acquisition costs for Arrow Energy 

Limited are not included here here, and we will update at a 

later stage. 

275. The grou group p should be generating surplus cash 

flow above $60 oil prices in 2012 with this framework, 

and this will keep balance balance sheet gearing below the 

30% ceiling that we see as prudent. 

Page 65 of 78


276. Let me make a comment on our dividend policy. 

277. Shell has has updated updated its payout policy today, and the 

new policy is now in line with major competitors and 

market trends. 

278. We aim to grow the dividend dividend through time time in in line 

line 

with our view of the underlying business earnings and 

and 

cash flow of the he group. 

279. We also intend to to introduce a a scrip dividend 

dividend 

option, subject subject to to approvals approvals at at the the next next AGM, so that 

that 

investors can opt to receive new shares rather rather than 

cash dividends. 

280. These changes will enhance both Shell’s financial 

flexibility, and the potent potential ial for payout to be more 

closely linked to Shell’s profitability. 

281. Dividend for 2010 is expected to be $0.42/share 

each quarter, rter, and unchanged from from 2009. 

2009. 

Page 66 of 78


SLIDE: EXPLORATION & DEVELOPMENT PLANS 

EXPLORATION & DEVELOPMENT PLANS 

North 

America 

Tight Gas 


282. Peter has outlined our medium term term option set. 

This chart gives you a snapshot of the activity activity levels 

we are expecting in 2010 and 2011. 

283. On the exploration side, we expect to drill some 

23 key wells in 2010, including sub sub-salt salt in Brazil, deep 

water Gulf of Mexico, and in the North North America America Arctic. 

284. For 2010-11 

we expect to put at least 10 new 

projects into into front end end engineering and design – this is 

the step step before you take final investment decision… 

decision… 

and we hope to take at least 11 FIDs. 

285. This is all part part of of the the programme programme to to sustain 

sustain 

growth after 2012 2012-14 and beyond. 

Page 67 of 78 

Cardamon 

Deep 

Mars B 

Stones 

Vito 

Claire Phase 2 

Tempa Rossa 

Gbaran Ubie Ph. 2 

Bonga North 

BC10 Phase 2 

BS-4 

CMOC 

Amin Waterflood 

Champion 

Rabab/Harweel Waterflood 

Sabah Gas KBB 

2010 

EXPLORATION/ APPRAISAL 

Prelude 

Malikai 

Sunrise 

2010-11 

FEED TARGET 

Curtis Island LNG 

2010-11 

FID TARGET


SLIDE UPSTREAM REGIONAL REGIO OUTLOOK 

UPSTREAM REGIONAL OUTLOOK 

Europe 

Strong net cash generation; managed decline 

Multiple growth opportunities; sustained investment 

Gjoa, Italy onshore 0 oil, 200North 400 Sea Gas600 

800 1000 1200 1400 AOSP, Tight Gas, 0 Vito, 200 Mars B400 

600 800 1000 1200 

Production 

Capital 

Investment 

0 2 4 6 8 10 12 14 

0 2 4 6 8 10 12 

Asia Pacific 

Middle East, CIS, Russia, Africa, Others 

Gas drives 0 significant 200 growth 400 from 600 middle 800 of decade 

Near term growth; 

1000 1200 1400 

0 200 longer 400 term opportunities 

600 800 1000 1200 

Gorgon, Gumusut, Prelude, Malikai 

Gbaran Ubie, Qatar, Kashagan, Iraq 

Production 

CFFO 

Capital 

CFFO 

Investment 

Capital… 

$ Bln 

Kboe/d 

CFFO 

286. I appreciate many of you are interested in more 

details on on how how we deliver deliver the the strategy in in financial 

financial 

terms. 

287. This Upstream focused slide shows shows how you you can 

expect metrics to develop over over the the coming coming years, years, and 

and 

you will be able to track track delivery in the the quarterly 

quarterly 

results as this matches our normal segmentation. 

288. Europe is a mature business, production is in 

slow managed decline decline with growth projects in Norway, 

the UK and Italy and a stable long long-life life position in the 

Netherlands. . 

289. Capex is 10% - 15% of Upstream total and cash 

surplus is is strong, strong, with with high price price upside. A great 

portfolio of assets that helps finance investment 

elsewhere. 

Page 68 of 78 

0 2 4 6 8 10 12 14 

0 5 

10 

0 500 

OUTLOOK Production AT $60/BBL OIL PRICES 


1000 

Americas 

Production 

CFFO 

Capital 

Investment 

Production 

CFFO 

Capital 

Investment 

0 2 4 6 8 10 12 

2009 2012 Post-FID Pre-FID 

1400 

14 

1400 

14


290. Asia-Pacific Pacific has several several strong strong heartlands with 

with 

many years of of production production left, left, and and includes includes the th high 

investment in Australia, overall absorbing maybe 30 30- 30 

40% of investment. 

291. This region will see significant production and and 

cash flow growth from the middle of the the decade. 

292. The Americas is likely to be our core growth 

region, also taking 30% - 40% of investment vestment with 

significant annual flexibility due to the the nature nature of 

of 

investments in the region. 

293. Growth in in both both production and and cash generation generation is 

likely to be steady steady and and sustained for at least a decade, 

all with attractive price upside and returns. 

returns. 

294. The remaining aining aggregated regions regions include include in 

practice mainly major resource holding countries in 

the Middle Middle East, Africa and Russia/CIS. 

295. Investment here is currently very high: this this will fall 

once Qatar comes on stream, although our new Iraq 

Iraq 

position will attract significant investment throughout 

the decade. 

296. This region generates very significant significant growth growth in 

in 

production and cash flow in the the next next three years and 

includes several long life life positions such such as as Sakhalin, 

Sakhalin, 

Nigeria, Kashagan, Qatar and of course course Oman. 

Oman. 

297. Thereafter, eafter, the trend in investment and 

associated revenues revenues will will be be a a function function of of success in 

in 

accessing further profitable profitable opportunities in these 

these 

regions and and the the evolution of the investment climate in 

in 

established heartlands such as Nigeria. 

Page 69 of 78


298. In addition of cours course, e, we expect some growth in 

Downstream cash cash generation, generation, driven driven by by some level of 

of 

macro recovery, reduced costs and growth growth from the 

current refining and chemical investments. 

299. Together this should give you confidence confidence in 

where the overall growth in cash generation will come 

from, and demonstrates the diversity of the portfolio 

portfolio 

that should both protect against the down-cycle down 

and 

increase our our exposure exposure to higher higher oil oil and gas gas prices. 

prices. 

Page 70 of 78


SLIDE: FINANCIAL FRAMEWORK 

FINANCIAL FRAMEWORK 


300. We look for competitive cash flows from the 

company, ny, and expect a substantial step up to 2012, 

as downstream and and gas margins start start to to recover, recover, new 

new 

projects come come on stream, and we take out cost. 

301. Shell has a strong medium-term medium term portfolio, and we 

are planning to sustain our growth investment 

investment 

strategy, with a portfolio that can support growth to 

2020… 

302. …and we expect to generate surplus cash flow 

after dividends in 2012, assuming assuming oil prices prices above above $60 

$60 

per barrel and a more normal normal environment for gas 

prices and downstream. 

303. With that, let me hand you back back to Peter. 

Pete 

Page 71 of 78 

PAY-OUT 

� Dividend linked to business results 

� Scrip dividend option 

� >$10 billion expected in 2010 

CASH PERFORMANCE 

� ~50 ~50-80% CFFO increase 2009-12 

$60 - $80/bbl oil price scenarios 

� Surplus cash flow 2012 at $60/bbl 

BALANCE SHEET 

� 0 – 30% gearing through cycle 

� Balance sheet underpins investment 

� Capital employed grows steadily 

INVESTMENT 

� $ 25-27 billion net capex /year 

� Up to $3 billion/year asset sales 

� Affordability, profitability, portfolio


SLIDE: PETER VOSER 

304. Thanks Simon 

305. We have covered a lot of ground. 

306. Let me sum up. 

Page 72 of 78


SLIDE: STRATEGY TIMELINE 

STRATEGY TIMELINE 

REJUVENATING PORTFOLIO: 

UPSTREAM & DOWNSTREAM 

2004 2008 


307. I look at our strategy in a set of different layers. 

308. In n the near term… 

309. ..it is all about raising raising our our game game on on the 

the 

performance side…sha side…sharper 

delivery…profitability…competitiveness 

delivery…profitability…competitiveness… … 

310. ….then delivering on the growth projects that we 

have launched in in the the last last five five years…this is is growth growth to 

2014… 

311. …and working on new options for the next next wave 

of investment, that can grow the cash flow flow after after 2014. 

Page 73 of 78 

PERFORMANCE 

FOCUS 


PROJECT OPTIONS 

NEW WAVE OF 

PRODUCTION 

GROWTH 

2012 2015+


SLIDE: IDE: SUMMARY 

SUMMARY 


OF PROJECT OPTIONS 

NEW WAVE OF PRODUCTION 

GROWTH 


312. Let me me recap on on the the priorities. The The priorities priorities for 

for 

me as CEO, and everyone in Shell. 

313. I want to see a more competitive competitive performance 

from Shell. I look at profitability, oil & gas gas production 

production 

and sustainable development. 

314. Shareholders are inv investing esting in Shell for profitable 

growth. So are we. This is all about cash cash flow flow from 

from 

operations, investment in new new projects, and cash 

returns to shareholders. 

315. …and I want to to see sharper sharper delivery delivery of of our 

our 

strategy, and a more commercial focus in everything 

that we do. 

Page 74 of 78 

PERFORMANCE FOCUS 

• Upstream growth potential to ~2020 

• 8 billion Boe resources; 35 new projects 

• Financial growth in focus 

• 2009-14 oil & gas growth; +11% 2009-12 

• Enhanced Downstream portfolio 

• Substantial cashflow growth: ~+50-80% 

2009-12 

• Improved operating performance 

• $1 billion 2010 cost reduction 

• Downstream restructuring 

Competitive performance – Profitable growth – Sharper delivery


317. We have come a long way in recent years, years, but 

but 

there is a lot more to do and I am really energized ene 

around that. 

318. With that, let’s go for your questions questions. . 

SLIDE: Q&A 

Q&A 


Page 75 of 78 


STRATEGY UPDATE


APPENDIX CHARTS 


Page 76 of 78 


APPENDIX 

2007-2009 2009 RESERVES SUMMARY 

RESERVES IN MLN BOE 

Movements 

Organic 1 reserves additions 

Year end price effect 

Production 

Acquisition & divestment 

Total subsidiaries and affiliates movements 206 1,164 3,420 

Year end positions 

Total subsidiaries and affiliates reserves 

Minority interests 

RESERVES Net Shell reserves REPLACEMENT RATIOS 

2 

RESERVES REPLACEMENT RATIOS 

RRR Organic 

RRR Organic incl. price effects 

RRR Reported 

1 Excludes acquisitions, divestments and year-end price impact 

2 Reserves attributable to Royal Dutch Shell shareholders 

3 Based on year end prices for 2007 and 2008, and based on 12-month month average price for 2009 

Slide shows 2007 & 2008 reserves including proven minable oil sands; 2009 reserves additions excludes the 997 million boe of previously booked proven minable oil sands. 


2007 2008 2009 

1,504 1,132 3,158 

-183 19 260 

-1,210 -1,189 -1,187 

-1,115 13 2 

11,937 11,912 14,145 

17 12 13 

11,920 11,900 14,132 

2007 2008 2009 2007-09 

124% 95% 266% 162% 

109% 97% 288% 164% 

17% 98% 288% 134%


KEY PROJECTS UNDER CONSTRUCTION 

Start up Project Country Shell Share Peak Production LNG 100% Products Theme Shell 

% kboe/d Capacity 

mtpa 

Operated 

2010-11 AOSP EXP 1 CANADA 60 106 � 

CAESAR/TONGA USA 

22.5 51 

GBARAN UBIE PH 1 NIGERIA 30 250 � 

GJOA NORWAY 12 107 

HARWEEL OMAN 34 43 

NORTH AMERICA TIGHT GAS USA/CANADA Various 100* � 

PEARL GTL QATAR 100 320 140 kbbl/d GTL � 

PERDIDO USA 

35 100 � 

PLUTO LNG T1 (WOODSIDE) AUSTRALIA 31 129 4.3 

QARN ALAM EOR OMAN 34 36 

QATARGAS 4 LNG QATAR 30 280 7.8 

SCHOONEBEEK NETHERLANDS 30 20 � 

SHELL EASTERN PETROCHEMICALS SINGAPORE 100 800 kta ehtylene DS � 

2012-13 AMAL STEAM OMAN 34 22 

CORRIB IRELAND 45 57 � 

GUMUSUT-KAKAP MALAYSIA 33 135 � 

KASHAGAN PHASE 1 KAZAKHSTAN 16.8 300 

MAJNOON /WEST QURNA IRAQ 

45/15 >30* � 

NORTH RANKIN B AUSTRALIA 16.7 268 

PORT ARTHUR REFINERY EXPANSION USA 

50 325 DS 

SAS ABU DHABI 9.5 95 

2014+ BONGA NW NIGERIA 55 43 � 

GORGON LNG T1-3 AUSTRALIA 25 440 15 

DEEPWATER 

TRADITIONAL 


Page 77 of 78 

TIGHT GAS 

LNG 

SOUR 

GTL 

* SHELL SHARE SHELL DIRECT AND INDIRECT POSITION VIA SHELL’S 34% SHAREHOLDING IN WOODSIDE 

PROJECT MANAGEMENT + PERFORMANCE 

PROJECT STATUS 

Construction time elapsed % 

Singapore Chemicals 

Perdido 

Gbaran Ubie Ph1 

Harweel 

Qatargas 4 

Gjoa 

AOSP Expansion 1 

Pearl GTL 

Schoonebeek 

Qarn Alam Steam 

Corrib 

Kashagan Ph 1 

Port Arthur 

Bonga NW 

Gumusut-Kakap 


Caesar/Tonga 

SAS 

Amal Steam 

Gorgon T1 - 3 

FID TO FIRST PRODUCTION (TIME) 

0% 50% 

END 2009 


HEAVY OIL & 

EOR 

100% 

Assess 

Feasibility 

Study 

Select 

Concept 

Selection 

QATAR PEARL GTL - MARCH 2010 

Define FID Execute 

Project 

Specifications 

Construction


STRONG PORTFOLIO OF PRE PRE-FID OPTIONS 

POTENTIAL 2014-2020 2020 START START-UPS 

Phase Project Country 

STUDY Bonga North Nigeria 

Bonga South West Nigeria 

Bosi Field Development Nigeria 

Erha North Ph 3 Nigeria 

Sabah Gas: KBB Malaysia 

Vito USA 

AOSP Debottlenecking Ph2&3 Canada 

Rabab/Harweel Oman 

Browse LNG Australia 

Curtis Island LNG Australia 

NLNG Train 7 Nigeria 

Sunrise Australia 

Clair Ph2 UK 

Fram Development UK 

Gbaran Ubie Phase 3 Nigeria 

Pearls (CMOC) Kazakhstan 

Stones USA 

DESIGN BC-10 Ph2 Brazil 

BS-4 EWT & EPS Brazil 

Malikai Malaysia 

Mars B USA 

West Boreas, South Deimos USA 

AOSP Debottlenecking Ph1 Canada 

Carmon Creek Phase 1 Canada 

Pluto LNG T2 (Woodside) Australia 

Prelude Australia 

Tight Gas North America 

1.8 Bab ThG & Hb2 Abu Dhabi 

Champion Waterflood Brunei 

Gbaran Ubie Phase 2 Nigeria 

Kashagan Ph 2 Kazakhstan 

Majnoon full field/West Qurna Iraq 

Tempa Rossa Italy 

Val D'Agri FDP Ph2 Italy 

* SHELL CONTRACTOR ENTITLEMENT @$70 SHELL DIRECT AND INDIRECT POSITION VIA SHELL’S 34% SHAREHOLDING IN WOODSIDE 


2007-2009 2009 DRILLING PERFORMANCE 

Start up Well name Country Shell Share Location Water depth Oil/Gas Shell 

2007 NW-Sabah (Petai-1) Malaysia 20 Offshore ~1400m OG � 

Persephone 1 Australia NWS 22 Offshore ~1125m G 

Agatha Nigeria 30 Onshore O � 

Prelude (+Toccatta appraisal) Australia 1 Offshore ~240m G � 

Vicksburg US GoM 58 Offshore ~2255m OG � 

Bubut-2 Brunei 50 Offshore ~20m G 

Khazar-1 Kazakhstan 52 Offshore ~10m OG 

West Tonga US GoM 17 Offshore ~1435m OG 

2008 Auezov-1 Kazakhstan 55 Offshore ~10m O 

HB-Buko-2 Nigeria 77 Offshore ~18m G 

Deep Basin West, BCG Canada ~ 70% Onshore G � 

Groundbirch Canada 100 Onshore G � 

Haynesville US, Louisiana 50 Onshore G 

Iago-2 Australia 33 Offshore ~120m OG 

Libra-1 Australia 65 Offshore ~120m OG � 

ML-J206T1 Malaysia 35 Offshore ~65m OG 

2009 Achilles-1 Australia 25 Offshore ~1150m G 

Al Ghubar S Oman 34 Onshore O 

Cardamon Deep US, GoM 100 Offshore ~870m OG � 

Concerto Australia 100 Offshore ~280m G � 

Gro Norway 50 Offshore ~1380m G � 

Kentish Knock Australia 50 Offshore ~1220m G 

Satyr Australia 25 Offshore ~1100m G 

Vito US, GoM 55 Offshore ~1,200m O � 

West Boreas US, GoM 100 Offshore ~960m O � 

Yellowglen Australia 0 Offshore ~1100m G 

Clio-2 Australia 33 Offshore ~950m G 

Fram UK 28 Offshore ~180m O � 

Groundbirch Canada 87 Onshore G � 

Haynesville US, Louisiana 50 Onshore G � 


Page 78 of 78 

% 

Shell share Peak production 

100% 

LNG (100%) 

capacity 

Theme Shell operated 

55 95 � 

55 110 � 

44 130 

44 40 

30 130 

55 100 � 

60 50 

34 40 

25 320 > 10 

TBD TBD TBD � 

27 220 8.4 

38 125 ~4 

19 105 

28 35 � 

30 60 

55 50 

35 80 � 

50 35 � 

40 35 � 

35 60 � 

72 100 � 

100 tbd 

60 30 � 

100 40 

34 > 100 4.3 

100 120 3.6 � 

Various > 350 

10 45 

50 30 � 

30 45 � 

17 550 

45/15 >150* � 

25 45 

39 60 

Operated 

HEAVY OIL & 

EOR 

SOUR 

GTL 

TIGHT GAS 

LNG 

DEEPWATER 

TRADITIONAL

slide - Shell

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