Building New Heartlands Shell Brochure 032009

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Royal Dutch Shell plcBuilding new heartlands



3 DOWNSTREAM

DISCLAIMER

This brochure contains forward-looking statements concerning the financial condition, results of operations and businesses of RoyalDutch Shell plc. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements.Forward-looking statements are statements of future expectations that are based on management’s current expectations and as-sumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differmaterially from those expressed or implied in these statements. Forward-looking statements include, among other things, statementsconcerning the potential exposure of Royal Dutch Shell plc to market risks and statements expressing management’s expectations,beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and

phrases such as ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’, ‘‘intend’’, ‘‘may’’, ‘‘plan’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘probably’’,‘‘project’’, ‘‘will’’, ‘‘seek’’, ‘‘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 theforward-looking statements included in this brochure, including (without limitation): (a) price fluctuations in crude oil and natural gas;(b) changes in demand for the Group’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserve estimates;(f) loss of market share and industr y 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 devel-opments including potential litigation and regulatory effects arising from recategorisation of reserves; (k) economic and financialmarket conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of theterms of contracts with 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-looking statements contained in this brochure are expresslyqualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reli-ance on forward-looking statements. Additional factors that may affect future results are contained in Royal Dutch Shell’s 20-F for the

year ended December 31, 2008 (available at www.shell.com/investor and www.sec.gov). These factors also should be consideredby the reader. Each forward-looking statement speaks only as of the date of this brochure, 17th March 2009. Neither Royal DutchShell nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking 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 orinferred from the forward-looking statements contained in this brochure.

The term “Shell interest”is used for convenience to indicate the direct and/or indirect (for example, through our 34% shareholdingin Woodside Petroleum Ltd.) ownership interest held by Shell in a venture, partnership or company, after exclusion of all t hird-partyinterest.

The United States Securities and Exchange Commission (SEC) permits oil and gas companies, in their filings with the SEC, todisclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economi-cally and legally producible under existing economic and operating conditions. We use certain terms in this brochure that SEC’sguidelines strictly prohibit us from including in filings with the SEC. U.S. Investors are urged to consider closely the disclosure in ourForm 20-F, File No 1-32575, available on the SEC website www.sec.gov. You can also obtain these forms from the SEC by calling1-800-SEC-0330.

March 2009

CONTENTS

5 Downstream

15 Upstream Heartlands

25 Integrated Gas

35 Tight Gas

43 Exploration

53 Researching Biofuels and CO2

T

Royal Dutch Shell plcBuilding new heartlands

www.shell.com/strategy



DOWNSTREAM



7 DOWNSTREAM

DOWNSTREAM

MAKE MOVE SELL

ShELL GLObAL DOwnStREAMLube Oil Blending PlantsBase Oil Manuacturing Plants

Chemical Manuacturing Plants

Refneries

REtAiL bRAnDED PRESEncE

45,000 Service Stations



9 DOWNSTREAM

MARKETING

RETAIL DIFFERENTIATED FUELS BUSINESS TO BUSINESS (B2B)

FUELS GROWTH TURKEY - SHELL / TURCAS

Volumes

SULPHUR LPG

COMMERCIAL FUELS BITUMEN

MARINE AVIATION

Strong brand preference Volumes



11 DOWNSTREAM

MANUFACTURING

PORT ARTHUR EXPANSION - USA

INTEGRATED CHEMICALS PLANT - SINGA

PORTFOLIO ACTIONS LEADING TOSTRENGTHENED REFINERY BASE

Average refinery size

Refinery complexity



13 DOWNSTREAM

SUPPLY & TRADING OPTIMISATION

MAIN PRODUCT FLOWS

TRADING

UPSTREAM CRUDELOGISTICS

REFINING

CRUDE OIL AND PETROLEUM PRODUCTS



UPSTREAM

HEARTLANDS



17

UPSTREAM HEARTLANDS

UPSTREAM HEARTLANDS



19

WELL & RESERVOIR MANAGEMENTinfiLL DR

OPERAtiOnAL EXcELLEncE

DEbOttLEnEcKinG

PRODuctiOn cAPAcitY

upSTREAM HEARTLANDS



21

OPERATIONAL EXCELLENCE

REVIEWING YESTERDAY’S COST- DAILY

REMOVING WASTE THROUGH “LEAN”

IMPROVING DRILLING THROUGH “DRILL THE LIMIT”

Auger Drilling Campaign 2006-2007

TECHNOLOGY

DAILY COST TRACKINGMEETING AT AN ASSET

SNAKE WELLS

• Dail cost tracing

• “Trilog” maintenance scheduling

• Facilit status reporting

UPSTREAM HEARTLANDS



GROWTH

FOUR NEW FIELDS IN 2008

GroningenNorg

Grijpskerk

Delfz

GRONINGEN - LIFE EXTENSION PROJECT

ORMEN LANGE SUBSURFACE OVERVIEW

SCHOONEBEEK

NORTH WEST EUROPE

UPSTREAM HEARTLANDS23



INTEGRATED GAS



INTEGRATED GAS

SAKhALin ii: 1St RuSSiAn LnG, StARtuP 2009

niGERiA LnG: wORLD’S fAStESt GROwinG LnG VEntuRE

• Shell 25.6%

• 21.6 mtpa capacit

• Major customers inNorth America and Europe

• Shell 30%


• Volumes to be sold to North

America and strategic markets

in the East

• Start up 2009

• Shell 27.5%


• Over 98% capacit sold

under long-term contract

QAtAR GAS 4: 7th LnG SuPPLY cOuntRY bRunEi LnG: 1St tO DELiVER 5,000 cARGOES

• Shell 25%


• Major customers in Far East

• 100% Shell funding

• Pea production

•140 bbl/d of GTL products

•120 boe/d of NGLs and Ethane

PEARL GtL QAtAR: wORLD’S LARGESt GtL PLAnt

INTEGRATED GAS27



LEADERSHIP ACROSS THE VALUE CHAIN

EXPLORATION & PRODUCTION

WORLD’S 2ND LARGEST GASPRODUCER AMONGST IOCs

LIQUEFACTION

LARGEST LNG SUPPLIER AMONGST IOCs

LNG SHIPPING

LARGEST SHIP OPERATOR AMONGST IOCs

REGAS, PIPELINES, STORAGE

STRATEGIC POSITIONS, ACTIVEPORTFOLIO MANAGEMENT

M

GLOBA

SHELL LNG LEADERSHIP

Year end capacity mtpa Full Year 2008

LNG OPERATING PERFORMANCE

INTEGRATED GAS29



LNG: FROM RESERVOIR TO MARKET DELIVERING OPERA

• Automaticall cooling down at the most efcien

• Reduces ris of bundle tube leas in Main Cro

• Greater reliabilit, better safet and an overall

AUTOMATED COOLDOWN

INTEGRATED GAS31



GAS TO LIQuIDS LEADERSHIp SHApING THE LNG

• Shell is a world leader in the manufacture of GTL products, operating the

Bintulu plant since 1993

• In recent ears Bintulu has been delivering rst quartile performance

• Bintulu reliabilit 98% in 2008

• Shell is appling its technical, project management and commercial

expertise to deliver the Pearl GTL plant in Qatar

PRODuctiOn fROM GtL PLAnt bintuLu

ShELL GtL - tEchnOLOGY

QALhAt LnG PLAnt h

DESiGn

• Capacit range 2-11 mtpa

• Modularised construction capabilit

• Lowest CO2 emissions

DELiVER

• 13 LN

• NWS

• Qalha

• Nigeri

(2007

INTEGRATED GAS33



TIGHT GAS





PRODUCTIVITY IMPROVEMENT -PINEDALE 40-ACRE WELLS

TRACK RECORD

WELL PRODUCTION

WELL COST VALUE

SOUTH TEXAS - DRILL ING COSTS PINEDALE - DRILL ING COSTS

TECHNOLOGY

TECH

DECREASE WELL CO • PAD DRILLING• RIGS ON SkIDS• MUD COMPOSIT• UNDERBALANCE• BIT OPTIMISATION

• MULTI-LATERAL D• FRACTURING TEC• MULTI-STAGE CO• PROPPANTS• MICRO SEISMIC

WELL DESIGN

TIGHT GAS39



CHANGBEI PROJECTPARTNERSHIP WITH PETROCHINA

• RAPID RAMP UP TO 300 MMSCF/D

• DRILLING TIMES REDUCED By 40% IN ONE yEAR

• SHELL 50%

STRONG PARTNER RELATIONSHIP

TIGHT GAS41

CAN



EXPLORATION



EXPLORATION

45 EXPLORATION



ExpLORATION pERfORMANCEExpLORATION pERfORMANCE

0%

01 02 03 04 05 06 07 08

100%

75%

50%

25%

Non-OECD OECD

DiScOVERED RESOuRcES

Focus on OECD

0

0.5

1.5

01 02 03 04 05 06 07 08

Oil Gas

Bln Boe

cOnSiStEnt DELiVERY

Resource additions

kboe/d

80

60

40

20

0

2004 2005

ShORt tERM PRODuctiO

Production rom 2004-2008 disc

47 ExpLORATION

Resource base is consistent with SPE 2P + 2C

ME, Russia, CIS

Asia Pacifc

Eu

A

47 ExpLORATION



INTEGRATED TECHNOLOGY

HYDROCARBON OCCURRENCEMAP

FOCUS ON MOST ATTRACTIVE ACREAGE

ON ICE SEISMIC

PROPRIETARY ICE PRESSURE AND MOVEMENT DATA

ARCTIC

MORE OUT OF SEIS

CONVENTIONAL 3D SEISMIC

49 EXPLORATION



HyDROCARBON MATuRATION

REDucinG cOStS inDEEP wAtER DRiLLinG

EXPLORinG in SAuDi ARAbiA MOntnEY

ZAbAZAbA, niGERiA

51 ExpLORATION



RESEARCHING

BIOFUELS AND CO2 TECHNOLOGIES



SHELL BIOFUELS PORTFOLIO

11%

27%

50%

5%

7%

SUSTAINABLE SOURCING OF B

INTERNAL POLICY, COMPLIANCE AND

FEEDSTOCk FOR BIOFUELS PURCHASED BY SHELL

ACTIVELY DEVELOPING AND RAISING

DEMAND GROWTH

55 RESEARCHING BIOFUELS AND CO2

TECHNOLOGIES



ATHABAS

ENERGY EFFICIENCY ENERGY EFFICIENCY THE WORLD ENERGY FLOWS - EFFICIENCY POTENTIAL ACHIEVING RESULTS

Energy intensity refineries E

Energy intensity Oil Sands F


TECHNOLOGIES

PERNIS REFINERY

New natural-gas fired combined heat and power(CHP) at PERNIS refinery Netherlands:

GHG emissions b >500 kT /ear reduced

Closed loop cool AO

160 kT GHG em



CARBON DIOXIDE CAPTURE AND STORAGE

SHELL CCS PORTFOLIO: BUILDING CAPABILITIES

Incentives needed to drive down costs

•

PROJECT “QUEST”, ALBERTA CANADA Geological storage options of CO

2

PROPOSED


TECHNOLOGIES



• Shell increaSed Shareholding in iogen to 50% in 2008 • demonStration facility on Stream 2004 • capacity 2 million literS/year • Straw aS feedStock • potential to reduce co2 production by up to 90%

compared to conventional gaSoline on a lifecycle baSiS

®

CO2

MANAGEMENT

GOVERNANCE

GREENHOUSE GAS EMISSIONS


TECHNOLOGIES

FERMENTOR STRAW AS FEEDSTOCK

IOGEN CANADA: CELLULOSIC ETHANOL



Building New Heartlands Shell Brochure 032009

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