BUILDING AN ENERGY FUTURE
INVESTORS’ HANDBOOK
ROYAL DUTCH SHELL PLC FINANCIAL AND
OPERATIONAL INFORMATION 2007–2011
BUILDING AN
ENERGY FUTURE
GLOBAL ENERGY DEMAND IS
RISING AND SO ARE CONSUMER
EXPECTATIONS – MORE PEOPLE
WANT ENERGY FROM CLEANER
SOURCES. AT SHELL WE WORK WITH
OTHERS TO UNLOCK NEW ENERGY
SOURCES AND SQUEEZE MORE
FROM WHAT WE HAVE. WE DO THIS
IN RESPONSIBLE AND INNOVATIVE
WAYS. IN BUILDING A BETTER ENERGY
FUTURE WE ALL HAVE A PART TO PLAY.
SHELL IS DOING ITS PART.
CONTENTS
1
Introduction from the CEO
SUMMARY REVIEW
2
3
5
8
10
11
Our businesses
Highlights 2011
Strategy and outlook
Key projects under construction
Market overview 2007–2011
Results 2007–2011
UPSTREAM
12
14
16
18
20
21
22
23
24
27
28
Highlights
Exploration
Options for future growth
Integrated gas
Production
Proved reserves
Europe
Africa
Asia (including Middle East
and Russia)
Oceania
Americas
DOWNSTREAM
31
32
33
33
34
35
36
37
37
Highlights
Refining
Supply and distribution
Business to Business (B2B)
Retail
Lubricants
Chemicals
Portfolio actions
Trading
CORPORATE SEGMENT
43
43
43
Treasury
Headquarters and central functions
Risk and insurance
MAPS
44
46
48
52
53
Europe
Africa
Asia
Oceania
Americas
CONSOLIDATED DATA
56
57
Employees
Consolidated financial data
UPSTREAM DATA
65
67
69
70
73
76
78
Upstream earnings
Oil and gas exploration and
production activities earnings
Oil sands
Proved oil and gas reserves
Oil, gas, synthetic crude oil and
bitumen production
Acreage and wells
LNG and GTL
DOWNSTREAM DATA
79
81
82
Oil products and refining locations
Oil sales and retail sites
Chemicals and manufacturing
locations
ADDITIONAL INVESTOR
INFORMATION
ALTERNATIVE ENERGY
38
39
Biofuels
Wind
PROJECTS & TECHNOLOGY
40
41
41
42
42
KEY TO SYMBOLS
web or email address
QR code. Scan this code with the
QR reader app on your smartphone
and get a hyperlink to the mobile
internet
Delivering projects
Innovative technology
R&D expenditure
Safety
Contracting and procurement
84
85
86
87
89
89
Share information
Dividends
Bondholder information
Financial calendar
Addresses
Abbreviations
ABOUT THIS PUBLICATION
This Investors’ Handbook contains detailed information about our annual financial
and operational performance over varying timescales from 2007 to 2011. Wherever
possible, the facts and figures have been made comparable. The information in this
publication is best understood in combination with the narrative contained in our
Annual Report and Form 20-F 2011.
All information from this and our other reports is available for online reading and
downloading at:
http://reports.shell.com
Shell Investors’ Handbook
INTRODUCTION FROM THE CEO
My colleagues on both the Board of
Directors and the Executive Committee
recognise how important it is to keep
shareholders informed of Shell’s
latest developments and we regularly
communicate with them on strategy and
performance. To aid investors in their
analysis of Royal Dutch Shell, we publish
this Investors’ Handbook: a compilation
of five years’ worth of financial and
operational information.
But any analysis of the Company’s potential
return must first be put into context. The
current macroeconomic environment is
uncertain and the global economy is
likely to see continued high volatility in the
coming years. Energy markets have been
affected by unprecedented geopolitical
events, such as the earthquake in Japan,
the eurozone debt crisis and the Arab
Spring. At the same time, rapid economic
development in non-OECD countries
is creating robust structural growth in
energy demand. By 2030 global oil and
gas demand could be 40% greater than
it is today. This growth equates to seven
times the current North Sea production.
To meet that future demand will require a
huge industry investment. The declining
production of many traditional petroleum
provinces makes the challenge all the
more difficult. The industry has to grow
production from new fields to more than
offset the natural production declines of
the old.
As a result, intense competition exists for
access to upstream resources and new
downstream markets. But we believe our
technology, project-delivery capability
and operational excellence will remain
key differentiators for Shell. As energy
projects become more complex and more
technically demanding, we believe our
engineering expertise will be a deciding
factor in the growth of our businesses.
Innovation and a competitive mindset will
also be crucial to our success.
We have delivered the strategic drivers
that made it possible for us to reach our
latest performance targets: cost reduction,
continual operational improvements and
16 successful project start-ups. Those
achievements allowed us to offer some
$10.5 billion of dividends in 2011, which
is the largest dividend in our sector and
more than 10% of the entire dividend
payout of the FTSE 100. Our improving
financial position also allows for a
measured increase in both our investment
levels and cash returns to shareholders
in 2012. Over time, our performance is
reflected in the returns we generate for our
shareholders not only in terms of dividends
we pay but also in the value of Royal Dutch
Shell shares.
Shell has built up a substantial portfolio
of options for the next wave of production
growth up to the end this decade. This
portfolio has been designed to capture
energy price upside and manage Shell’s
exposure to industry challenges, such as
cost inflation and political risk. We see
significant opportunities in both greenfield
exploration and established resource
positions in the Gulf of Mexico, North
American tight gas, liquids-rich shales and
Australian LNG. Shell is working to mature
these opportunities into viable projects, with
an emphasis on financial returns. Our net
spending in 2012 is expected to be $30
billion to support our growth programme
for the medium term, with over 60 new
projects under construction or in design.
This investment is based on new cash-flow
targets of up to $200 billion excluding
working capital for 2012–15 assuming
$100 oil prices, improved US gas prices
and downstream environment from 2011.
I hope you will find plenty of support for
these encouraging plans in the Investors’
Handbook.
Peter Voser
Chief Executive Officer
www.shell.com/intro_handbook_video
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Shell Investors’ Handbook
Summary review
SUMMARY REVIEW
OUR BUSINESSES
UPSTREAM INTERNATIONAL
DOWNSTREAM
PROJECTS & TECHNOLOGY
Upstream International manages the
Upstream businesses outside the Americas.
It searches for and recovers crude oil and
natural gas, liquefies and transports gas,
and operates the upstream and midstream
infrastructure necessary to deliver oil and
gas to market. Upstream International also
manages Shell’s LNG and GTL businesses.
Its activities are organised primarily within
geographical units, although there are
some activities that are managed across
the businesses or provided through support
units.
Downstream manages Shell’s
manufacturing, distribution and marketing
activities for oil products and chemicals.
These activities are organised into globally
managed classes of business, although
some are managed regionally or provided
through support units. Manufacturing
and supply includes refining, supply
and shipping of crude oil. Marketing
sells a range of products including fuels,
lubricants, bitumen and liquefied petroleum
gas (LPG) for home, transport and industrial
use. Chemicals produces and markets
petrochemicals for industrial customers,
including the raw materials for plastics,
coatings and detergents. Downstream also
trades Shell’s flow of hydrocarbons and
other energy-related products, supplies
the Downstream businesses, governs
the marketing and trading of gas and
power and provides shipping services.
Additionally, Downstream oversees Shell’s
interests in alternative energy (including
biofuels but excluding wind) and CO2
management.
Projects & Technology manages the
delivery of Shell’s major projects and drives
the research and innovation to create
technology solutions. It provides technical
services and technology capability
covering both Upstream and Downstream
activities. It is also responsible for providing
functional leadership across Shell in the
areas of safety and environment, and
contracting and procurement.
UPSTREAM AMERICAS
Upstream Americas manages the Upstream
businesses in North and South America.
It searches for and recovers crude oil and
natural gas, transports gas and operates
the upstream and midstream infrastructure
necessary to deliver oil and gas to market.
Upstream Americas also extracts bitumen
from oil sands that is converted into
synthetic crude oil. Additionally, it manages
the US-based wind business. It comprises
operations organised into business-wide
managed activities and supporting
activities.
$28.6
BILLION
EARNINGS ON A CURRENT
COST OF SUPPLIES BASIS
13.1%
RATIO OF NET DEBT
TO TOTAL CAPITAL
2%
OF THE WORLD’S
OIL PRODUCTION
$23.5
BILLION
NET CAPITAL INVESTMENT
3.2
MILLION
BARRELS OF OIL EQUIVALENT
PRODUCED A DAY
3%
OF THE WORLD’S
GAS PRODUCTION
$1.1
BILLION
R&D EXPENDITURE
48%
SHARE OF PRODUCTION
THAT IS NATURAL GAS
7.7%
OF THE WORLD’S
LNG SALES
Shell Investors’ Handbook
Summary review
HIGHLIGHTS 2011
FIRST
QUARTER
Deep-water oil discovery in Brunei
Brunei Shell Petroleum confirmed a significant new
oil discovery in the waters of the south-east Asian
sultanate. The discovery, named Geronggong, is
situated in the 3rd Offshore Acreage Area, about
100 km offshore Brunei.
Sale of Stanlow refinery to Essar Oil
Shell agreed to sell its Stanlow refinery in the UK and
certain associated local marketing businesses to Essar
Oil (UK) Ltd for a total consideration of some $1.2
billion (including some $0.9 billion for working capital).
SECOND
QUARTER
Expansion of oil-sands upgrader
Shell successfully started the production from its Scotford
Upgrader Expansion project in Canada. The 100
thousand barrels-per-day expansion boosts upgrading
capacity at Scotford to 255 thousand barrels per day of
heavy oil from the Athabasca oil sands.
Global cooperation agreement with CNPC
Shell and China National Petroleum Company (CNPC)
announced their shared intent to pursue mutually
beneficial cooperation opportunities internationally as
well as in China.
Launch of biofuels JV Raízen
Shell and Cosan launched Raízen, a multibillion-dollar
joint venture that will become a leading producer of a
low-carbon biofuel: ethanol made from sugar cane.
Agreement to divest African downstream
businesses
Shell agreed to divest the majority of its shareholding in
most of its African downstream businesses to Vitol and
Helios Investment Partners for a total consideration of
some $1 billion. Shell retains equity in two new jointventure companies that will continue to market Shell
fuels and lubricants in Africa.
Final investment decision on Prelude FLNG
Shell decided to move forward with its game-changing
Prelude floating LNG (FLNG) project in Australia.
Final investment decision on development of
deep-water field in Gulf of Mexico
Shell announced a significant investment to develop
its major Cardamom oil and gas field in the deep
waters of the Gulf of Mexico. The Cardamom project
is expected to produce 50 thousand boe/d at peak
production.
First cargo of Pearl GTL products
The Pearl gas-to-liquids (GTL) plant, located in Ras
Laffan Industrial City in Qatar, sold its first commercial
shipment of GTL Gasoil.
THIRD
QUARTER
Proposed acquisition of Bow Energy
Arrow Energy Holdings Pty Ltd (Arrow) made proposal
to Bow Energy Ltd (Bow Energy) to acquire all of the
issued capital in Bow Energy.
Deep-water oil discovery in French Guiana
Shell confirmed a notable oil discovery in the Guyane
Maritime permit approximately 150 km offshore French
Guiana.
FOURTH
QUARTER
New PSCs in Malaysia
Petronas and Shell Malaysia signed a heads of
agreement for two 30-year production-sharing contracts
(PSCs) for enhanced oil recovery projects offshore
Sarawak and Sabah.
Agreement to develop petrochemical complex
in Qatar
Qatar Petroleum and Shell agreed to develop a worldscale petrochemical complex in Ras Laffan Industrial
City, Qatar.
Final approval of Iraq natural-gas JV
The Iraqi cabinet approved an agreement with Shell
and Mitsubishi Corporation forming a joint venture to
gather raw gas from three major oil fields.
Inauguration of Pearl GTL Project
The Emir of Qatar officially inaugurated the Pearl
gas-to-liquids (GTL) project, the largest GTL plant in the
world and the largest energy project in Qatar.
3
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Shell Investors’ Handbook
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STRATEGY AND
OUTLOOK
Meeting the growing demand for
energy worldwide in ways that minimise
environmental and social impact is a
major challenge for the global energy
industry. We are committed to improving
energy efficiency in our own operations,
supporting customers in managing their
energy demands, and continuing to
research and develop technologies that
increase efficiency and reduce emissions in
liquids and natural gas production.
We leverage our diverse and global
business portfolio and customer focused
businesses built around the strength of the
Shell brand.
STRATEGY
Our strategy seeks to reinforce our position
as a leader in the oil and gas industry in
order to provide a competitive shareholder
return, while helping to meet global
energy demand in a responsible way.
Safety and corporate environmental and
social responsibility are at the heart of our
activities.
Intense competition exists for access to
upstream resources and to new downstream
markets. But we believe our technology,
project-delivery capability and operational
excellence will remain key differentiators
for our businesses. We expect around 80%
of our capital investment in 2012 to be in
our Upstream businesses.
5
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UPSTREAM
PROJECTS & TECHNOLOGY
In Upstream we focus on exploration for
new liquids and natural gas reserves and
on developing major new projects where
our technology and know-how add value to
the resource holders. The implementation of
our strategy will see us actively managing
our portfolio around three themes in
Upstream:
 building our resource base through
global exploration, focused acquisitions
and exits from non-core portfolio positions;
 accelerating the extraction of value from
our resources, with profitable production
growth, top-quartile project delivery and
operational excellence; and
 differentiating ourselves from our
competition through integrated gas
leadership, technology and partnerships.
Our commitment to technology and
innovation continues to be at the core of
our strategy. As energy projects become
more complex and more technically
demanding, we believe our engineering
expertise will be a deciding factor in the
growth of our businesses. Our key strengths
include the development and application
of technology, the financial and projectmanagement skills that allow us to deliver
large field development projects, and the
management of integrated value chains.
DOWNSTREAM
In our Downstream businesses, our emphasis
remains on sustained cash generation from
our existing assets and selective investments
in growth markets. The implementation of
our strategy will see us actively manage our
assets around three themes in Downstream:
operational excellence and cost

efficiency, to maximise the uptime and
operating performance of our asset base,
and to reduce costs and complexity;
 refocusing our refining portfolio on the
most efficient facilities – those that best
integrate with crude supplies, marketing
outlets and local petrochemical plants; and
 selective growth in countries such as
China, India and Brazil, which have high
growth potential, while maintaining or
increasing our margins in our core countries.
This includes researching, developing and
marketing biofuels.
CONVERTING RESOURCES TO PRODUCTION
billion boe
35
30
ACQUISITIONS 2009–2011
Upstream
Downstream
Total $15 billion
GROWTH DELIVERY
OUTLOOK
We have defined three distinct layers for
Shell’s strategy development: performance
focus and continuous improvement; growth
delivery; and maturing next-generation
project options for the longer term.
PERFORMANCE FOCUS AND
IMPROVEMENT
We will work on continuous improvements
in operating performance, with an
emphasis on health, safety and
environment, asset performance and
operating costs. Asset sales are a core
element of our strategy – improving our
capital efficiency by focusing investment
on the most attractive growth opportunities.
Shell has sold a substantial portion of its
non-core assets in the last years. Asset sales
of up to $3 billion are expected in 2012 as
Shell exits from further non-core positions.
We have initiatives underway that are
expected to improve Shell’s integrated
Downstream businesses, focusing on the
most profitable positions and growth
potential. Shell announced exits from
800 thousand b/d of non-core refining
capacity and from selected retail and other
marketing positions in 2009–2011, and
has taken steps to improve the quality of its
Chemicals assets.
25
We are planning a net capital investment
of some $30 billion in 2012 – an increase
from 2011 levels – as Shell invests for longterm growth. This amount relates largely
to investments in some 17 new projects for
which final investment decisions were taken
in 2010–2011. They are part of a portfolio
of more than 60 new growth projects that
are under construction or being assessed
for future investment. Going forward,
annual spending will be driven by the
timing of investment decisions and the nearterm macroeconomic outlook.
In early 2012, Shell defined a set of
ambitious financial and operating targets
for profitable growth. These targets are
driven by Shell’s performance in maturing
new projects for final investment decision
and by project start-ups.
Cash flow from operations (CFFO),
excluding working capital movements, was
$136 billion for 2008–2011. We expect
aggregate cash flow from operations,
excluding working capital movements,
for 2012–2015 to be 30-50% higher,
GROUP CAPITAL INVESTMENT
$ billion
35
30
25
20
20
DIVESTMENTS 2009–2011
15
15
10
10
5
Upstream
Downstream
0
-5
2008
2009
On-stream
Under construction
Study
Production
2010
2011
Long-term upside
Total $17 billion
5
0
2009–11 average
Downstream
Europe (Upstream)
Americas (Upstream)
Asia2aciƂc (Upstream)
Africa, Middle East, CIS (Upstream)
Shell Investors’ Handbook
Summary review
FINANCIAL FRAMEWORK
CASH PERFORMANCE
ƒ +30-50% CFFO 2012–2015 versus
2008–2011 [A]
ƒ )rowth free cash ƃow
ƒ CFFO drives investment and pay-out
PAY-OUT
INVESTMENT
ƒ Dividend linked to business results
ƒ Scrip dividend with buyback offset
ƒ ~$10.5 billion in 2011
ƒ ~$30 billion net capex 2012
ƒ #ffordability proƂtability portfolio
BALANCE SHEET
ƒ 0-30% gearing through cycle
ƒ Balance sheet underpins investment
ƒ Capital employed grows steadily
[A] CFFO outlook at $80-100/b Brent and assumes improved US gas and downstream environment from 2011; CFFO excludes working capital movements.
assuming that the Brent oil price is in the
range of $80-100 per barrel and that
conditions improve for North American
natural gas prices and downstream margins
relative to 2011.
MATURING NEXT-GENERATION
PROJECT OPTIONS
In Upstream we have the potential to reach
an average production of some 4.0 million
boe/d in 2017–2018, compared with 3.2
million boe/d in 2011. This production
potential will be driven by the timing of
investment decisions and the near-term
macroeconomic outlook, and assumes some
250 thousand boe/d of expected asset
sales and licence expiries. In Downstream
we are adding new refining capacity in
the USA and making selective growth
investments in marketing.
Shell has built up a substantial portfolio
of options for a next wave of growth. This
portfolio has been designed to capture
energy price upside and manage Shell’s
exposure to industry challenges from cost
inflation and political risk. Key elements
of this opportunity set are in global
exploration and established resource
positions in the Gulf of Mexico, North
American tight gas, liquids-rich shales and
Australian LNG. These projects are part of
a portfolio that has the potential to underpin
production growth to the end of this
decade. Shell is working to mature these
projects, with an emphasis on financial
returns.
SUSTAINED CASH FLOW GROWTH [A]
GROUP PRODUCTION OUTLOOK
OIL AND GAS PRODUCTION [A]
DKNNKQP
%
million boe/d
200
100
4.0
D
D
150
75
D$TGPV
3.5
100
50
50
25
3.0
0
0
2008–11
2012–15
RQVGPVKCN
0GVECRKVCNKPXGUVOGPV
&KXKFGPFUCPFDW[DCEMU
[A] CFFO outlook assumes improved US gas and downstream
environment from 2011. CFFO excludes working capital
movements.
2.5
2011
2017
2011
2017
Traditional
Americas
Tight/shale oil
and gas
#UKC2CEKƂE
Integrated gas
Europe
Deep water
Middle East, Africa, CIS
Heavy oil/EOR
2009
2010
2011
Production and potential
2010–11 asset sales
Future asset sales and licence expiries
[A] Production outlook at $80/b Brent.
2017–18
average
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Shell Investors’ Handbook
Summary review
KEY PROJECTS UNDER CONSTRUCTION
AOSP
DEBOTTLENECKING
SCHIEHALLION
REDEVELOPMENT
CORRIB
CLAIR PH2
KASHAGAN PH1
NORTH AMERICAN
TIGHT GAS
MAJNOON FCP
PORT ARTHUR
EAGLE FORD
MARS B, W. BOREAS & S. DEIMOS
BAB
CARDAMOM
HARWEEL
BONGA NW
KEY
EY
E
Y
BC-10 PH2

radi io
oil
oi and
d gas
ga
 TTraditional
SAS
AMAL STEAM
SABAH GAS
KEBABANGAN
GUMUSUT-KAKAP
WHEATSTONE LNG
PRELUDE FLNG
NORTH RANKIN 2
GORGON LNG T1-3
GREATER WESTERN FLANK PH1

eg ated gas
gas
 IIntegrated





Deep
D
eep water
wa er
Tight/shale
TTi
ght/ hal oil
oill and
and gas
gas
Heavy
H
eavy oil/EOR
oil/EOR
i /EOR
Refining/Chemicals
K E Y P R O J E CT S – P O ST F I N A L I N V E ST M E N T D E C I S I O N
Start-up
2012–2013
2014–2015
2016+
Project
Amal Steam
AOSP Debottlenecking
Country
Oman
Canada
Bab Thamama G and Bab Habshan-2
BC-10 Phase 2
Eagle Ford
Gumusut-Kakap
Harweel
Kashagan Phase 1
Majnoon FCP
North American Tight Gas
North Rankin 2
Port Arthur Refinery Expansion
SAS
Bonga North West
Cardamom
Corrib
Gorgon LNG T1-3
Mars B, W. Boreas & S. Deimos
Sabah Gas Kebabangan (KBB)
Clair Phase 2
Greater Western Flank Phase 1
Prelude FLNG
Schiehallion Redevelopment
Wheatstone LNG
United Arab Emirates
Brazil
USA
Malaysia
Oman
Kazakhstan
Iraq
USA/Canada
Australia
USA
United Arab Emirates
Nigeria
USA
Ireland
Australia
USA
Malaysia
UK
Australia
Australia
UK
Australia
[A] Shell entitlement at $80/b.
[B] Shell share (subject to investment pace).
[C] Not including 1.7 mtpa NGLs.
Shell interest
Peak production
(%)
34
60
100% (kboe/d)
20
10
9.5
50
100
33
34
17
45
Various
21
50
9.5
55
100
45
25
72
30
28
21
67.5
36
6.4
80
35
45
135
40
300
>30[A]
~125[B]
280
115
45
50
45
440
100
130
120
110
110
130
260
LNG 100%
capacity (mtpa)
Category
Heavy oil/EOR
Heavy oil/EOR
Traditional oil and gas
Deep water
Tight/shale oil and gas
Deep water
Heavy oil/EOR
Traditional oil and gas
Traditional oil and gas
Tight/shale oil and gas
Integrated gas
Refining/Chemicals
Traditional oil and gas
Deep water
Deep water
Traditional oil and gas
15
Integrated gas
Deep water
Deep water
Traditional oil and gas
Integrated gas
3.6[C]
Integrated gas
Traditional oil and gas
8.9
Integrated gas
Shell
operated












Shell Investors’ Handbook
Summary review
KEY PROJECT S UPDATE
AOSP DEBOTTLENECKING
(Shell interest 60%; Shell operated)
The Athabasca Oil Sands Project (AOSP)
extracts bitumen from the Muskeg River
and Jackpine mines in the province of
Alberta, Canada, and synthesises from it
a crude oil at the Scotford Upgrader near
Edmonton. The successful start-up of an
expansion project in 2011 has increased
the AOSP’s mining and upgrading capacity
to 255 thousand boe/d. The focus will
now be to improve operating efficiencies
and reliability further, thereby adding
more processing capacity with low capital
investment and low business risk. This
“debottlenecking” opportunity, which will
be developed over the next 10 years, is
expected to increase production by as much
as 85 thousand boe/d while reducing unit
costs. In 2011, we took the final investment
decision on the first 10 thousand boe/d
capacity-increasing increment.
BONGA NORTH WEST
(Shell interest 55%; Shell operated)
The Bonga North West project is Shell’s
first brownfield subsea tieback in Nigerian
deep water. The project connects newly
discovered oil and gas fields to the existing
Bonga floating production, storage and
offloading unit. All engineering contracts
have been awarded and the project is in
the execution phase. Production is expected
to come on-stream in 2014, reaching a
peak of 45 thousand boe/d.
CARDAMOM DEEP
(Shell interest 100%; Shell operated)
The Cardamom Deep field lies below
the Auger and Cardamom fields in the
deep waters of the Gulf of Mexico. Shell
discovered the Cardamom reservoir in
2010 using advanced seismic technology
that was able to produce improved
images versus traditional seismic methods.
Furthermore, the Cardamom appraisal well
was with the first deep-water exploration
plan to be approved by the Bureau of
Ocean Energy Management, Regulation
and Enforcement after the BP Deepwater
Horizon incident. The field is expected to
produce a peak of 50 thousand boe/d
through wells connected to the existing
Auger platform, some directly and others
via a new subsea tie-back system. The wells
will be drilled over the next two years,
following the final investment decision in
2011.
CLAIR PHASE 2
NORTH AMERICAN TIGHT GAS AND
(Shell interest 28%)
The second phase of the Clair development
involves drilling 36 wells and the design,
fabrication and installation of two fixed
platforms connected by a bridge. Drilling
and production facilities will be situated
on one platform, and utilities and living
quarters will be on the other. The new
facilities, located west of the Shetland
Islands, are being designed for 40 years of
production. The final investment decision
was announced in 2011. Installation
is scheduled for 2015, with production
expected to come on-stream in 2016. Peak
production is expected to be 120 thousand
boe/d.
LIQUIDS-RICH SHALES
GUMUSUT-KAKAP
(Shell interest 33%; Shell operated)
The Gumusut-Kakap field is the first deepwater opportunity for Shell in Malaysia.
Lying in water 1,200 m deep, the field is
being developed on the basis of a semisubmersible platform with a production
capacity of 150 thousand boe/d of oil from
19 subsea wells. The oil will be exported
via a 200 km pipeline to a new terminal at
Kimanis, Sabah. The gas associated with
the oil production will be re-injected into the
reservoir to help improve the oil recovery.
MARS B
(Shell interest 71.5%; Shell operated)
The Mars B project will help boost production
from the Mars field and bring on-stream two
other nearby fields – West Boreas and South
Deimos. The fields are located in water depth
of around 900 m in the Gulf of Mexico. The
Mars B project includes the construction
of a new tension-leg platform – the second
at the Mars field and the sixth of its type
for Shell in the Gulf of Mexico. Production
from the new platform, called Olympus,
is expected to start around 2015; peak
production will be 100 thousand boe/d.
The Mars field has been one of Shell’s most
important fields over the last 15 years. Yet
by the end of 2011, the field still contained
around 1.1 billion boe. The Mars B project
extends the life of the field to at least 2050.
We plan to start development drilling at the
site of the Olympus TLP with the Noble Bully
One drillship in spring 2012, having taken
the final investment decision in September
2011.
(Shell interests various; Shell operated)
We have an industry-leading portfolio of
tight-gas and liquids-rich shale resources in
the USA and Canada. Our main regions
of operation in the USA are: Eagle Ford,
Texas; Marcellus, Pennsylvania and
New York; Haynesville, Louisiana; and
Pinedale, Wyoming. In Canada they are:
Groundbirch, British Colombia; and Deep
Basin and Foothills in Alberta. Production
from these assets was about 220 thousand
boe/d in 2011 and could reach more than
400 thousand boe/d (2.3 bcf/d) by 2015.
PRELUDE FLNG
(Shell interest 67.5%; Shell operated)
In 2011 Shell took its first final investment
decision to move ahead with building a
floating liquefied natural gas (FLNG) facility.
Total production capacity will be 3.6 mtpa of
LNG, 1.3 mtpa of condensate and 0.4 mtpa
of LPG. The floating processing and storage
facility will be moored above an offshore
gas field, liquefying the gas produced from
the field. Ocean-going carriers will offload
the liquefied natural gas, as well as other
liquid by-products, for delivery to market.
Located more than 200 km offshore Western
Australia, the Prelude FLNG facility will be
the largest offshore facility in the world,
measuring 488 m by 74 m and weighing
around 600,000 tonnes when fully loaded.
Shell has moved forward rapidly to bring
this project to reality; first production of LNG
is expected some 10 years after the Prelude
gas field has been discovered.
SCHIEHALLION
(Shell interest 36%)
The Schiehallion Redevelopment Project
“Quad 204” will replace an existing
floating production, storage and offloading
unit (FPSO) with a newly built one. In so
doing, the project extends the expected
life (2023–2047) of the Schiehallion and
Loyal deep-water fields west of the Shetland
Islands, enabling continued production
from the existing wells. The new FPSO will
be capable of exporting as much as 130
thousand boe/d and store in excess of 900
thousand boe. The final investment decision
for the project was announced in 2011.
The FPSO installation is scheduled in 2015,
and production is expected to come onstream in 2016.
9
10
Shell Investors’ Handbook
Summary review
MARKET OVERVIEW 2007–2011
SHELL REALISED PRICES
YEAR AVERAGE
2011
SUBS
Oil and NGL ($/b)
Europe
Asia
Oceania
Africa
North America – USA
North America – Canada
South America
Total
Natural gas ($/thousand scf)
Europe
Asia
Oceania
Africa
North America – USA
North America – Canada
South America
Total
Other ($/b)
North America – Bitumen
North America – Synthetic crude oil
North America – Minable oil sands
106.77
103.73
92.38
111.70
104.93
70.72
100.44
105.74
9.40
4.83
9.95
2.32
4.54
3.64
2.81
5.92
76.28
91.32
2010
EAI
SUBS
103.97
62.81
99.74[A]
73.35
76.21
67.90
79.63
76.36
53.23
69.99
75.74
83.24
55.53
44.27
57.50
78.05[A] 50.47
61.45
74.27
57.25
39.26
63.57
57.76
52.42
57.39
6.87
4.40
8.59
1.96
4.90
4.09
3.79
5.28
6.71
7.06
6.55
3.61
8.79[A] 5.29
1.71
7.27
4.36
3.73
3.18
6.81
4.83
66.00
71.56
50.00
56.23
109.49
97.76
73.01
8.58
8.37
10.09
8.91
0.99
8.58
EAI
2009
SUBS
EAI
2008
SUBS
56.97
89.28
36.53
95.92
56.16[A] 85.92
98.52
56.24
97.95
67.07[B]
58.00
79.42
42.49
92.75
EAI
2007
SUBS
86.33
68.45
49.78
67.49
99.99[A] 72.70
72.92
89.74
66.49
50.27[B]
82.25
63.09
63.59
67.99
8.17
9.46
4.26
4.67
3.94[A] 2.96
1.67
5.02
9.61
7.71
4.37
6.73
6.85
10.87
7.24
7.06
3.46
4.13[A] 2.22
1.20
12.15
7.23
5.90
3.58
9.63
5.14
88.98
61.97
EAI
73.12
53.53
78.29[A]
64.45
71.21
59.23
8.54
3.15
1.81[A]
9.85
6.83
[A] Estimate based on publicly available data.
[B] Includes bitumen.
OIL AND GAS MARKER INDUSTRY PRICES
$/b
$/MMBtu
120
10
110
9
REFINING MARKER INDUSTRY GROSS MARGINS
CHEMICAL MARGINS
$/b
$/tonne
18
800
16
700
14
100
8
90
7
10
80
6
8
70
5
600
12
500
400
300
6
200
4
60
4
3
50
2007
2008
2009
Brent
WTI
Henry Hub ($/MMBtu)
JCC
2010
2011
100
2
0
0
2007
2008
2009
US West Coast margin
US Gulf Coast coking margin [A]
Rotterdam complex margin [B]
Singapore
2010
[A] US Gulf Coast margin up to and including 2009.
[B] Rotterdam Brent up to and including 2009.
2011
2007
2008
2009
US ethane
Western Europe naphtha
East Asia naphtha
2010
2011[A]
[A] Based on available market information at the end of the year.
Shell Investors’ Handbook
Summary review
RESULTS 2007–2011
S U M M A RY O F R E S U LT S
$ MILLION
2011
24,455
4,289
(119)
28,625
2,293
30,918
3,938
24,687
4.61
0.37
4.98
9.96
36,771
5.92
1.68
3.36
Upstream
Downstream (CCS basis)
Corporate and non-controlling interest
CCS earnings
Estimated CCS adjustment for Downstream
Income attributable to shareholders
Identified items
CCS earnings excluding identified items
Basic CCS earnings per share ($)
Estimated CCS adjustment per share ($)
Basic earnings per share ($)
Basic earnings per ADS ($)
Cash flow from operating activities
Cash flow from operating activities per share ($)
Dividend per share ($)
Dividend per ADS ($)
2010
15,935
2,950
(242)
18,643
1,484
20,127
570
18,073
3.04
0.24
3.28
6.56
27,350
4.46
1.68
3.36
INCOME ATTRIBUTABLE TO
ROYAL DUTCH SHELL PLC SHAREHOLDERS
$ million
REVENUE
$ million
470,171
458,361
31,331
2009
8,354
258
1,192
9,804
2,714
12,518
(1,749)
11,553
1.60
0.44
2.04
4.08
21,488
3.51
1.68
3.36
2008
26,506
5,309
(449)
31,366
(5,089)
26,277
2,956
28,410
5.09
(0.82)
4.27
8.54
43,918
7.13
1.60
3.20
2007
18,094
8,588
882
27,564
3,767
31,331
2,259
25,305
4.39
0.61
5.00
10.00
34,461
5.50
1.44
2.88
CASH FLOW FROM OPERATING ACTIVITIES [A]
$ million
30,918
43,242
40,667
26,277
368,056
355,782
35,983
33,279
20,127
278,188
23,820
12,518
2007
2008
2009
2010
2011
2007
2008
2009
2010
2011
2007
2008
2009
2010
2011
[A] Excludes working capital movements.
BASIC EARNINGS PER SHARE
DIVIDENDS PAID TO
ROYAL DUTCH SHELL PLC SHAREHOLDERS
$ million
TOTAL EQUITY
$
$ million
5.00
4.98
10,526
171,003
4.27
9,001
149,780
3.28
125,968
128,866
2007
2008
10,196
10,453
9,516
138,135
2.04
2007
2008
2009
2010
2011
2009
2010
2011
2007
2008
2009
2010
2011
Cash dividend (2010: $9,584 mln; 2011: $6,877 mln)
Equivalent value of shares issued under Scrip Dividend
Programme (2010: $612 mln; 2011: $3,576 mln)
11
12
Shell Investor
to s’ Han
Handbo
dbook
ok
Upstre
e am
UPSTREAM
UPSTREAM EARNINGS [A]
HIGHLIGHTS
$ billion
 Produced 3.2 million boe/d of oil and gas.
 Sold 18.8 million tonnes of LNG.
 Added 1.2 billion boe proved reserves (excluding the year’s production).
 Discovered notable fields offshore French Guiana (Zaedyus, with more than 300 million
boe potential on a 100% basis) and offshore Australia (Vos, Satyr and Acme West).
 Brought on-stream three major projects – Qatargas 4, Pearl GTL and AOSP Expansion
Phase 1.
 Took 12 final investment decisions: Prelude, North West Shelf – Greater West
Flank Phase 1 and Wheatstone LNG in Australia; Clair Phase 2 and Schiehallion
Redevelopment in the UK; Sabah Gas Kebabangan in Malaysia; AOSP
Debottlenecking, Cardamom and four tight-gas final investments decisions in North
America.
 Acquired a 30% interest in the Masela production-sharing contract in Indonesia for
some $0.9 billion, thereby acquiring a stake in the Abadi field.
 Signed an agreement with the China National Petroleum Corporation to establish a
50:50 well-manufacturing joint venture.
 Acquired Bow Energy through Arrow Energy LNG for some $0.3 billion (Shell share
of funding).
 Divested interests in several Upstream assets, including the Rio Grande Valley south
Texas assets in the USA; the natural gas transport infrastructure joint venture Gassled
in Norway; Pecten Cameroon Company LLC; and Oil Mining Leases 26 and 42 and
related facilities in Nigeria.
25
K E Y STAT I ST I C S
Upstream earnings ($ million)
Upstream International
Upstream Americas
Total Upstream earnings ($ million)
of which Integrated gas
Total Upstream earnings excluding identified items
($ million)
Upstream cash flow from operations ($ million) [A]
Liquids production (thousand b/d) [B][C]
Natural gas production (million scf/d) [B]
Synthetic oil production (thousand b/d) [B]
Mined oil sands production (thousand b/d) [B]
Total production (thousand boe/d) [B][D]
Equity LNG sales volume (million tonnes)
Upstream net capital investment ($ million)
Upstream capital employed ($ million)
Upstream employees (thousands)
[A]
[B]
[C]
[D]
2011
2010
2009
2008
2007
19,697
4,758
24,455
7,279
15,205
730
15,935
5,727
7,209
1,145
8,354
1,785
19,298
7,208
26,506
4,093
12,453
5,641
18,094
3,144
20,600
33,281
1,551
8,986
115
–
3,215
18.8
19,083
126,437
27
14,442
24,526
1,637
9,305
72
–
3,314
16.8
21,222
113,631
26
8,488
18,445
1,600
8,483
80
–
3,142
13.4
22,326
98,826
23
23,019
35,448
1,693
8,569
–
78
3,248
13.1
28,257
83,997
22
16,623
25,870
1,818
8,214
–
81
3,315
13.2
13,555
71,711
22
Excludes net working capital movements.
Available for sale.
Includes bitumen production.
Natural gas volumes are converted to oil equivalent using a factor of 5,800 scf per barrel.
20
15
10
5
0
2007
2008
2009
Excluding integrated gas
Integrated gas
2010
2011
=#?'ZENWFKPIKFGPVKƂGFKVGOU
PRODUCTION
million boe/d
million tonnes
4
20
3
15
2
10
1
5
0
0
2007
Liquids
Gas
2008
LNG sales volumes
(million tonnes)
2009
2010
2011
Shelllll In
Sh
She
Inve
ves
e torrs’
es
s Ha
H an
andbo
db
book
ok
Upstre
Ups
tre
tr
rea
am
13
3
14
Shell Investors’ Handbook
Upstream
EXPLORATION
Our exploration strategy is designed to
deliver new resources that grow production,
creating substantial value to Shell. We have
extensive acreage in high-potential basins
around the world and have had significant
success discovering resources in them.
We draw on our extensive geological
knowledge, deploy innovative
technologies, get early access to new
licences and focus on material opportunities
– both near existing infrastructure and
in promising new basins and plays. We
continue to focus on cost-efficiency and
making early decisions regarding a
prospect’s potential.
algorithms, interpretation software and
ever-greater computing power, allow
us to create sharper seismic images of
rock formations. We can then locate
drilling targets in the formations more
accurately. For onshore seismic acquisition
in support of tight-gas and liquids-rich
shale opportunities, we are developing
innovative fibre-optic and magneto-electric
sensor systems.
Advances in onshore well technology, such
as Shell’s proprietary light land rig and
lower drilling costs, allow us to develop
and produce resources that were previously
uneconomic. We have extended the
concept of a light drilling rig to offshore
operations, where we also have taken
advantage of automation to reduce the rig
crew’s exposure to hazards.
DISCOVERIES
Our exploration performance has been
robust. Over the past five years, we have
added discovered resources averaging
more than 1.9 billion boe per year.
Between 2009 and 2011 we added 7
billion boe including tight-gas resources.
During 2011, we participated in 417
successful exploration and appraisal
wells drilled outside proved fields. They
comprised 30 conventional and 161 tightgas and tight-oil wells, and 226 appraisal
wells near known fields. New proved
reserves have been allocated to 197 of
these wells.
Eleven notable new discoveries and
appraisals were made during 2011. These
are in Australia, Canada, China, French
Guiana, Nigeria, the UK and the USA.
TECHNOLOGY
Shell continues to build on a strong
legacy of innovative technology for
exploration in deep water, near existing
fields or infrastructure and – increasingly
– in new tight-gas and liquids-rich shale
opportunities. Our research centres develop
concepts, algorithms and tools that are
integrated with leading-edge technologies
from the external market to enable the
identification, appraisal and development
of hydrocarbons in deeper and more
complex geological settings with lower risk
and cost.
We are a leader in the acquisition of
seismic data in deep water by means of
wide-azimuth surveys and ocean-bottom
sensors. These technologies, when
combined with proprietary processing
We have an outstanding safety record
in drilling deep-water wells. We brought
that expertise into the establishment of
the Marine Well Containment Company,
which provides containment systems for
deep-water wells in the US Gulf of Mexico.
In the shallower waters of Alaska, we will
have a dedicated oil-spill capping and
containment system designed to deal with
Arctic conditions.
We are locating and draining previously
stranded hydrocarbons near our existing
offshore field infrastructure with recordsetting wells that extend laterally for
several miles from the drilling rig. We
are also developing new techniques to
understand and predict the distribution of
heterogeneities in tight gas and liquidsrich shale reservoirs. This will enable us
to confidently identify productive “sweet
spots”.
ACREAGE ADDITIONS
Since 2007, Shell has acquired exploration
rights to some 360,000 km2. In 2011
alone, we secured rights to more than
140,000 km2 of new exploration acreage
including approximately 12,000 km2 of
positions in liquids-rich shales. Recent
significant additions are specified below.
ARGENTINA
In 2011, Shell became partner in
three blocks in the Neuquen Basin. The
transactions were formally approved in
January 2012.
AUSTRALIA
In November 2011, Shell and Woodside
Petroleum Ltd (Woodside) were awarded
three blocks in the Canning Basin in the
offshore North West Shelf. The area covers
about 23,000 km2. Through the acquisition
of Bow Energy by Arrow Energy LNG, Shell
also added acreage to its Queenslandbased coalbed-methane joint venture with
PetroChina.
BRUNEI
In June 2011, Shell became partner in the
offshore Block CA2, which has an area of
about 5,000 km2.
CANADA
During 2011, Shell acquired additional
liquids-rich shale acreage in British
Columbia and Alberta. In January 2012,
Shell was also the successful bidder for four
deep-water blocks offshore Nova Scotia.
The blocks were awarded in March 2012.
CHINA
In January 2012, Shell signed an
agreement with Ivanhoe Energy to acquire
its interest in the Zitong block in the
Sichuan Basin. This agreement is subject to
governmental approvals.
COLOMBIA
Shell was awarded Block 27 in the middle
Magdalena Basin, and it additionally
farmed into Blocks 28 and 3.
FRENCH GUIANA
In February 2012, French authorities
ratified Shell’s entry into the Guyane
Maritime block comprising about
25,000 km2 of deep-water acreage, and
Shell assumed operatorship.
MALAYSIA
In March 2012, Shell signed exploration
PSCs and joint operating agreements in
offshore Sarawak for Blocks 2B and SK318
adding some 9,200 km2 to our Malaysia
position.
ALBANIA
In February 2012, Shell signed an
agreement with Petromanas Energy to
become a partner in two onshore blocks.
This agreement is subject to governmental
approvals.
NEW ZEALAND
In August 2011, Shell became partner
in two blocks in the deep-water Great
South Basin with a total size of about
32,000 km2.
Shell Investors’ Handbook
Upstream
PHILIPPINES
In October 2010, Shell signed a farm-in
agreement to acquire a 45% interest in
Service Contract 54 – block B, offshore
north-west Palawan. The acreage covers an
area of around 3,200 km2. The transaction
was formally approved in January 2011.
RUSSIA
In October 2011, Shell won the bid for the
onshore East Talotinsky licence in the Timan
Pechora area.
exploration area lies in the deep waters
of the Mediterranean south-west of the
country. The offshore acreage amounts
to about 16,000 km2. The agreements
are pending ratification by the Turkish
government.
DISCOVERED RESOURCES POTENTIAL
UKRAINE
1.5
billion boe
2.5
2.0
In September 2011, Shell was awarded
an exploration contract, adding two blocks
to an area specified in an earlier joint
activity agreement with the state-owned gas
producer.
1.0
0.5
SOUTH AFRICA
In February 2012, Shell was awarded a
deep-water exploration block in the Orange
Basin offshore South Africa. The area is
about 37,000 km2.
0
USA
2007
2008
2009
Traditional oil and gas
Integrated gas
Tight/shale oil and gas
Shell acquired additional liquids-rich
shale and shale-gas acreage in Colorado,
Kansas, Ohio and Texas.
2010
TANZANIA
In September 2011, Shell became
partner in deep-water Blocks 5 and 6
offshore Tanzania. The total area is about
15,000 km2.
TURKEY
In November 2011, Shell signed two
agreements with Türkiye Petrolleri Anonim
Ortaklığı (TPAO), the state-owned oil
company, to become an exploration
partner both onshore and offshore. The
onshore exploration is to be conducted in
the south-east of the country; the offshore
EXPLORATION
IO
ON
N PERFORMANCE
PERFORMANCE
ALASKA
GREENLAND
RUSSIA
NORWAY
UK
GERMANY
NORTH AMERICAN TIGHT GAS
UKRAINE
NOVA SCOTIA
GULF OF MEXICO
GUYANA
SWEDEN
RUSSIA
ITALY ALBANIA
TURKEY
CHINA
TUNISIA
IRAQ
EGYPT
JORDAN QATAR
PHILIPPINES
BRUNEI
MALAYSIA
FRENCH GUIANA
NIGERIA
GABON
COLOMBIA
BRAZIL
TANZANIA
AUSTRALIA
SOUTH AFRICA
KEY



2007 – March
March 2012
20 2 acreage
acreage access
ces
2011 discovery
covery
ove y
2011 appraisal
praisal
ra sal success
ucc ss
ARGENTINA
NEW ZEALAND
2011
15
16
Shell Investors’ Handbook
Upstream
OPTIONS FOR
FUTURE GROWTH
Shell has a strong portfolio of pre-FID
options that can support production growth
up to 2020. We have 36 projects in the
concept-selection or design phase, around
half of which are to be operated by Shell.
The projects include not only traditional
exploration and production activities, but
they also involve deep water, LNG, tight
gas, liquids-rich shale and heavy oil. In
total, these projects represent some 12
billion boe of resources. The main areas
of potential growth are the deep-water
fields in the Gulf of Mexico, tight-gas
and liquids-rich shale resources (mainly
in North America) and LNG projects in
Oceania.
GLOBAL TIGHT-GAS AND LIQUIDS-RICH
SHALES
Worldwide, Shell has approximately
50,000 km2 (12 million acres) of land
holdings containing tight-gas or shale
resources. Some 12,000 km2 (3 million
acres) of liquids-rich shales were added in
2011 at a cost of around $2 billion.
www.shell.com/tightgas_video
Total global spending in these plays in
2012 will be some $6 billion. Development
spending on North American tight gas will
be around $3 billion for 2012 – similar to
what it was in 2011. Those figures are at
the low end of our spending range of $3-5
billion per year, reflecting the weak price
of natural gas. We will also spend some
$2 billion on exploration and appraisal of
tight-gas and liquids-rich shale resources
this year, with a focus on maturing our new
liquids-rich portfolio.
Appraisal and development of new liquidsrich shale acreage could provide up to 250
thousand boe/d potential in 2017–2018.
We are moving to develop our Eagle Ford
liquids-rich position, following a successful
appraisal there in 2011. This forms part
of a more than $1 billion development
spending programme on North American
liquids-rich shales in 2012.
GULF OF MEXICO
We are drilling at least five exploration
wells in the Gulf of Mexico in 2012. Shell’s
2017–2018 production potential in the
Gulf of Mexico is around 350 thousand
boe/d. The field-development priorities
are hub-based projects at the Vito and
Appomattox discoveries. We aim to take
the final investment decision on those
projects before 2015, with start-up a few
years later.
APPOMATTOX
 ~100 kboe/d hub potential
 Appraisal drilling underway
 > 250 million boe resources
 Shell 80% (operator)
USA
A
APPOMATTOX
NAKIKA
A
MARS
URSA
MARS B, W.
W BOREAS, S. DEIMOS
M
CARDAMOM DEEP
C
BRUTUS
U
VITO
AUGER
HOLSTEIN
L
VITO
 ~100 kboe/d potential
 >200 million boe resources
 Shell 55% (operator)
CAESAR/TONGA
R
GULF OF MEXICO
G
AUSTRALIAN AND INDONESIAN LNG
We are assessing future options in Australia
and Indonesia totalling around 10 mtpa by
2020.
STONES
N
PERDIDO
0
STONES
 45 kboe/d potential
 Shell 35% (operator)
200 km
The Arrow LNG project (Shell share 50%)
is based on coalbed methane, with two
liquefaction trains having a combined
capacity of 8 mtpa in the first phase. The
purchase of Bow Energy in 2011 will
allow us to meet the current two train
requirements and subsequently develop
future expansion.
ABADI FLNG
 Inpex 60%
 Shell 30%
 EMPI 10%
 2012 FEED
ABADI
A FLNG
G
GREATER
EATER SUNRISE
S
Shell has a 20% stake in Browse and a
34% stake in the Greater Sunrise floating
LNG project, both of which are operated
by Woodside. In 2011, Shell also entered
the 2.5 mtpa Abadi floating LNG project in
Indonesia with a 30% stake.
ARROW ENERGY LNG
 Bow Energy acquisition
 Shell/PetroChina 50:50
PRELUDE
D FLNG
B
BROWSE
D
Derby
Broome
m
PLUTO
O (WOODSIDE)
D
WHEATSTONE
E
N
NORTH
H WEST SHELF
S
Dampier
e
G
GORGON
N
KEY




ARROW
A
R W ENERGY
N
LNG
NG
Existing production hub
AUSTRALIA
R
Under construction
2011 FID
Options
0
1,000
00 km
Shell Investors’ Handbook
Upstream
17
TIGHT GAS AND LIQUIDS-RICH SHALES ACREAGE
CANOL
GROUNDBIRCH
DEEP BASIN
FOOTHILLS
BAKKEN
UTICA
PINEDALE
MARCELLUS
NIOBRARA
MISSISSIPPI LIME
MONTEREY
WOLFCAMP
HAYNESVILLE
EAGLE FORD
MONTNEY
GERMANY
UKRAINE
TURKEY
CHINA
EGYPT
OMAN
COLOMBIA
KEY


ARGENTINA
Tight gas
Liquids-rich shales potential
nttial
ial
P OT E N T I A L 2 0 1 4 – 2 0 2 0 STA RT- U P S
Phase
Concept
selection
Design
Project
Abadi FLNG Phase 1
AOSP Debottlenecking
Appomattox
Basrah Gas Company Rehab &
Rejuvenation
BC-10 Massa Phase 3
Bonga North
Bosi Field Development
Carmon Creek Expansion Phase 2
Geronggong
Gorgon T4 Expansion
Majnoon FFD/West Qurna FFD [A]
Nigeria NLNG Train 7
Pearls – Khazar
Greater Sunrise LNG
Tukau Timur
Vito
Zabazaba
Zaedyus
AOSP Debottlenecking
Arrow Energy LNG
Bonga South West
Bokor Phase 3
Browse (BCT) LNG
Carmon Creek Expansion Phase 1
Erha North Phase 3
Forcados Yokri Integrated Project
Fram
Gbaran Ubie Phase 2
Linnorm
Malikai
North American tight gas
North American liquids-rich shales
Rabab Harweel Integrated Project
Stones
Southern Swamp AG
Tempa Rossa
[A] Shell entitlement at $80/b.
[B] Shell share (subject to investment pace).
Country
Indonesia
Canada
USA
Iraq
Brazil
Nigeria
Nigeria
Canada
Brunei
Australia
Iraq
Nigeria
Kazakhstan
Australia
Malaysia
USA
Nigeria
French Guiana
Canada
Australia
Nigeria
Malaysia
Australia
Canada
Nigeria
Nigeria
UK
Nigeria
Norway
Malaysia
USA/Canada
USA/Canada
Oman
USA
Nigeria
Italy
Shell interest
(%)
30
60
80
44
Peak production
100% (kboe/d)
65
55
100
0
50
55
44
100
50
25
45/15
26
55
34
50
55
50
45
60
50
44
40
20
100
44
30
28
30
30
35
Various
Various
34
35
30
25
20
200
130
40
250
100-200
220
50
120
40
100
135
20
170
200
30
310
40
40
100
35
200
50
60
>400[B]
~175[B]
40
45
85
45
LNG 100%
capacity (mtpa)
2.5
5
8.4
4.1
8
>10
Category
Integrated gas
Heavy oil/EOR
Deep water
Traditional oil and gas
Deep water
Deep water
Deep water
Heavy oil/EOR
Deep water
Integrated gas
Traditional oil and gas
Integrated gas
Traditional oil and gas
Integrated gas
Integrated gas
Deep water
Deep water
Deep water
Heavy oil/EOR
Integrated gas
Deep water
Traditional oil and gas
Integrated gas
Heavy oil/EOR
Deep water
Traditional oil and gas
Traditional oil and gas
Integrated gas
Traditional oil and gas
Deep water
Tight/shale oil and gas
Tight/shale oil and gas
Heavy oil/EOR
Deep water
Traditional oil and gas
Traditional oil and gas
Shell
operated















Various


18
Shell Investors’ Handbook
Upstream
INTEGRATED GAS
Shell integrated gas projects that came
on-stream over the past few years include
Pearl GTL, Pluto LNG Train 1 (Woodside),
Qatargas 4 and Sakhalin-2. The Prelude
floating LNG project as well as the Greater
Western Flank Phase 1, Gorgon, North
Rankin 2 and Wheatstone projects are
currently under construction and are
expected to come on-stream within the next
few years.
Shell has also started considering GTL and
LNG options to monetise natural gas in
North America. These would be projects
that involve the entire natural gas value
chain and so play very much to Shell’s
strengths as an integrated player, but they
are still in very early stages of assessment.
Integrated gas earnings are part of the
Upstream segment and incorporate LNG
(including LNG marketing and trading) and
GTL operations. In addition, the associated
upstream oil and gas production activities
from the projects Sakhalin-2, North West
Shelf, Pluto LNG Train 1 (Woodside),
Qatargas 4 and Pearl GTL are included in
integrated gas earnings, as well as power
generation and coal gasification activities.
In 2011, integrated gas accounted for
around 30% of our Upstream earnings.
Our expertise in the LNG industry is based
on the more than 45 years of technical
advice that we have provided for gas
liquefaction plants around the world –
including the world’s first commercial plant,
which came on-stream in 1964 in Algeria.
LNG is fast becoming a truly global
commodity and will continue its rapid
expansion in the years ahead, with global
demand potentially doubling in the next
decade. This will be driven by the growing
gas import needs of China, India, the
Middle East and Europe – but also by new
importers such as Malaysia, the Philippines,
Singapore, Thailand and Vietnam.
LNG
GLOBAL LNG CAPACITY GROWTH
LNG LEADERSHIP [A]
mtpa
year-end mtpa
50
30
Others
25
Gorgon
T1-3
20
Wheatstone
and Prelude
10
0
0
Current
On-stream
Under construction
Options
Shell ExxonMobil Chevron
2011
2017
~2020+
BG
Total
[A] Projects in operation or under construction.
GLOBAL
BAL
B
AL LNG
LNG PORTFOLIO
PORTFO IO [A]
A]
SAKHALIN-2
QATARGAS 4
OMAN LNG AND QALHAT LNG
NIGERIA LNG
MALAYSIA LNG
BRUNEI LNG
PRELUDE FLNG
NORTH WEST SHELF PLUTO (WOODSIDE)
GORGON WHEATSTONE
KEY
NG
N
G – iin
no
operation
pe at on
 LNG

NG
N
G – under
unde construction
co t uc io
 LNG

 Regasifification – in operation

[A] As of March 2012.
BP
Shell Investors’ Handbook
Upstream
At Shell, we are proud of our leadership
in this sector of the industry. In recent
years, ventures in which Shell participated
have supplied as much as 30% of global
LNG. We have around 21 mtpa of Shellshare liquefaction capacity currently in
operation in Australia, Brunei, Malaysia,
Nigeria, Oman, Qatar and Russia.
Qatargas 4, a joint venture between
Qatar Petroleum (70%) and Shell (30%),
was brought on-stream in early 2011
with a single mega train delivering
approximately 7.8 mtpa of LNG and a
peak production of 280 thousand boe/d.
The project opened up new markets for
Qatari LNG in China and Dubai, with
agreements signed in 2008.
Our total LNG sales volume in 2011
was 18.8 million tonnes – up 12% from
2010. This increase mainly reflected the
increase in sales volumes from Qatargas
4. Sales volumes were also higher from
Nigeria LNG, helped by a stable gas
supply, and from the Sakhalin-2 project,
where production reached 10 mtpa.
These increases were partly offset by
the reduction in the Shell share of LNG
production from Woodside Petroleum
Ltd – the result of Shell’s sale of part
of its shareholding in the company in
November 2010.
During 2011, total LNG sales contracts
were signed for some 6 mtpa. These longterm contracts of up to 25 years are linked
to oil prices and will be fulfilled by Shell’s
global LNG portfolio. At an oil price of
$110 per barrel the contracts would deliver
revenues of around $100 billion on an
undiscounted basis.
Three LNG projects are currently under
construction in Australia, totalling around
7 mtpa: Prelude FLNG (Shell interest
67.5%), Gorgon Trains 1-3 (25%) and
Wheatstone (6.4%). We are also assessing
an additional 15 mtpa in future options with
projects involving Arrow Energy, Gorgon
Train 4 and the Browse and Greater Sunrise
fields offshore Australia as well as the
Abadi field of Indonesia.
www.shell.com/preludeflng_video
In May 2011, Shell announced the world’s
first final investment decision to build an
FLNG facility. The facility will be used to
develop the Prelude gas field, 200 km
off Australia’s north-west coast (see also
page 9).
LNG FOR TRANSPORT
FLOATING LNG
We believe that floating liquefied natural
gas (FLNG) will write the next chapter in
the history of the industry. In the coming
years, Shell will start to produce and
liquefy natural gas at sea, enabling the
development of gas resources ranging from
clusters of smaller and more remote offshore
fields to potentially larger fields. FLNG can
open up new business opportunities for
countries looking to develop their natural
gas resources.
LNG has the potential to provide real
economic and environmental benefits for
operators of fleets of large, heavy-duty
trucks, ships and trains. As a transport fuel,
it lowers emissions of sulphur, particulates
and nitrogen oxides, and the energy
density of LNG means that it can offer the
distance range that operators need. The
potential cost advantage in using gas rather
than oil products can reduce the payback
time for investment in infrastructure, and
LNG used in trucks and other heavy duty
vehicles can mean quieter traffic, which
 The Prelude FLNG facility will be the largest offshore facility in the world.
19
20
Shell Investors’ Handbook
Upstream
is particularly important for working at
night. Several manufacturers are already
supplying LNG-powered engines for a
range of vehicles. As a fuel for ships, LNG
is not a new idea. Ocean-going LNG
carriers have been using it for more than
45 years. Shell has been a pioneer in such
shipping, with an excellent track record in
terms of the safe storage and handling of
LNG.
We see the main growth opportunities in
the near term to be in road transport and
coastal or inland shipping. Increasingly
stringent emissions regulations, abundant
supplies of competitively priced natural gas,
and the sheer scale and pace of demand
for fuel are driving these opportunities.
In 2011, Shell took the final investment
decision on the Green Corridor project. It
will develop a retail infrastructure for the
supply of LNG along a busy truck route in
the province of Alberta, Canada. The LNG
will be supplied from a 0.3 mtpa plant
near Calgary based on Shell’s innovative
low-cost Moveable Modular Liquefaction
System.
GTL
Almost 40 years ago, Shell began
researching how to convert natural gas
into liquid fuels, lubricants and chemical
feedstocks. In 1993, this gas-to-liquids
(GTL) technology became a commercial
reality when the Shell Middle Distillate
Synthesis plant started up in Bintulu,
Malaysia. All in all, Shell has filed more
than 3,500 patents covering all stages of
the GTL process.
We used our proprietary technology and
operational experience with GTL to build
Pearl, Shell’s and Qatar Petroleum’s massive
plant in Qatar. Ten times bigger than the
Bintulu plant, Pearl is the world’s largest
GTL plant and one of the largest industrial
developments in the world.
Both trains of the Pearl project have started
production, with the first commercial gasoil
shipment from Train 1 having taken place in
June 2011. At peak production capacity,
Pearl will take 320 thousand boe/d of
gas and turn it into 140 thousand boe/d
of GTL products and 120 thousand boe/d
of natural gas liquids and ethane. This
amounts to almost 8% of Shell’s worldwide
production, making it the company’s
main engine for growth for 2012. Over
its lifetime, Pearl will process about three
billion boe from the world’s largest single
non-associated gas field, the North Field,
which contains more than 900 tcf of gas.
PRODUCTION
In 2011, hydrocarbon production available
for sale averaged 3,215 thousand boe/d,
which was 3% lower than in 2010 and 2%
higher than in 2009. Excluding production
lost from divestments, 2011 production was
approximately the same as it was in 2010.
Production in 2011 was mainly driven by
new projects coming on-stream, notably
Qatargas 4 LNG and Pearl GTL in Qatar,
the Athabasca Oil Sands Project expansion
in Canada and the continued ramp-up of
the Gbaran-Ubie project in Nigeria. New
start-ups and the continuing ramp-up of
fields more than offset the impact of field
declines and the effect of higher prices on
production-sharing contract entitlements,
but were further offset by lower demand
due to warm weather in Europe in the
fourth quarter of 2011 and increased
maintenance activities compared with
2010.
 Workers at the Pearl GTL plant, Qatar.
Shell Investors’ Handbook
Upstream
PROVED RESERVES
In 2011, Shell added 1,205 million boe
of SEC proved oil and gas reserves before
accounting for the year’s production. At
the end of the year, total proved oil and
gas reserves excluding non-controlling
interest were 14,250 million boe (10,304
million boe for Shell subsidiaries and
3,946 million boe for equity-accounted
investments). Reserve life (an estimate of
how many years it would take to exhaust
the current proved reserves at the current
level of production) has increased from 10
years at the end of 2007 to approximately
12 years at the end of 2011.
The Reserves Replacement Ratio for
Shell subsidiaries and equity-accounted
investments was 99% in 2011 (and 165%
over the last three years). Excluding
acquisitions, divestments and price effects,
the ratio was 127% in 2011 and 175% in
the period 2009–2011.
The largest crude-oil proved reserves
additions in 2011 were from field
performance studies for development
activities in Europe (140 million barrels,
primarily Italy and the UK) and Africa (128
million barrels). An extension of mining
operations in Alberta, Canada also added
significantly to proved reserves (116 million
barrels). The main increase in natural gas
reserves came from: field extensions and
discoveries associated with LNG integrated
projects in Australia (1,471 billion scf);
revisions and reclassifications in Denmark,
Norway, Ireland and the UK that resulted
from better production performance and
development activities (990 billion scf);
and extensions and discoveries related
to development drilling in Canada (816
billion scf).
Proved reserves can be either developed
or undeveloped. Subsidiaries’ proved
oil-equivalent reserves at the end of 2011
were divided into 63% developed and
37% undeveloped. For the Shell share of
equity-accounted investments the proved oilequivalent reserves were divided into 76%
developed and 24% undeveloped.
MAJOR
JJOR
OR RESERVES
RESERVES ADDITIONS
ADD TIONS 2007
200
2007–2011
07–2011
2011
NORWAY
CANADA
DENMARK
UK
NETHERLANDS
RUSSIA
GERMANY
CHINA
USA
QATAR
OMAN
NIGERIA
MALAYSIA
BRAZIL
BRUNEI
AUSTRALIA
P R OV E D O I L A N D G A S R E S E RV E S AT T R I B U TA B L E TO R OYA L D U TC H S H E L L P LC S H A R E H O L D E R S
Organic reserves additions
Production
Total proved reserves
[A] Excluding acquisitions, divestments and year-average price impact.
[B] Excluding acquisitions, divestments and year-end price impact.
2011
1.5[A]
1.2
14.2
2010
1.6[A]
1.2
14.2
BILLION BOE
2009
3.2[A]
1.2
14.1
2008
1.1[B]
1.2
11.9
2007
1.5[B]
1.2
11.9
21
22
Shell Investors’ Handbook
Upstream
EUROPE
HIGHLIGHTS
 Production amounted to more than 0.8 million boe/d, which was around 25% of our
total 2011 production.
 After-tax earnings from oil and gas exploration and production operations of our
subsidiaries in the region were $3.3 billion. Our share of oil and gas exploration and
production earnings of equity-accounted investments was $1.5 billion.
 We are participating in the development of the Corrib project in Ireland, as well as
the Clair Phase 2 and Schiehallion Redevelopment projects in the UK.
venture between Shell and ExxonMobil
formed in 1947. NAM is the largest
hydrocarbon producer in the Netherlands.
An important part of NAM’s gas production
comes from its onshore Groningen gas
field, in which the Dutch government has a
40% financial interest, with NAM holding
the remaining share. Shell also has a 30%
interest in the Schoonebeek oil field, where
production restarted in 2011 after a 15year hiatus. The field’s redevelopment was
made possible by enhanced oil recovery
technology.
NORWAY
KEY FIGURES
Total production (thousand boe/d) [A]
Liquids production (thousand b/d) [A]
Natural gas production (million scf/d) [A]
Gross developed and undeveloped acreage (thousand acres)
Proved oil and gas reserves excluding non-controlling interest (million boe) [B]
2011
815
239
% of total
25%
16%
3,338
15,704
3,409
37%
6%
24%
[A] Available for sale.
[B] Includes proved reserves associated with future production that will be consumed in operations.
We hold a non-operating 46% interest
in a producing concession covering the
majority of our activities in Denmark. The
concession was granted in 1962 and will
expire in 2042. Our interest will reduce to
36.8% in July 2012, when the government
enters the partnership with a 20% interest
and the government profit share of 20% is
abolished.
we received all three consents for the
planning and construction of an onshore
pipeline. The legal challenges to the
onshore consents have been withdrawn.
The construction of the onshore pipeline
will commence in 2012 and will take
at least two years to complete. At peak
production, Corrib is expected to supply a
significant portion of the country’s natural
gas demand.
IRELAND
THE NETHERLANDS
We are the operator of the Corrib Gas
project (Shell interest 45%), which is
currently under development. In 2011,
Shell has interests in various assets through
its participation in Nederlandse Aardolie
Maatschappij B.V. (NAM), a 50:50 joint
DENMARK
 Schoonebeek gas field, the Netherlands.
We are a partner in over 20 production
licences on the Norwegian continental
shelf and are the operator in eight of
these, including the Draugen oil field (Shell
interest 26.2%) and the Ormen Lange
gas field (Shell interest 17.1%). We hold
interests in the Troll field (Shell interest
8.1%), the Gjøa field (Shell interest 12%),
the Kvitebjørn field (Shell interest 6.5%),
and have further interests in the Valemon
field development and various other
potential development assets. In 2011, we
divested our interests in the Gassled naturalgas transport infrastructure joint venture for
a consideration of $0.7 billion.
UNITED KINGDOM
We operate a significant number of
our interests in the UK Continental Shelf
on behalf of a 50:50 joint venture with
ExxonMobil. Most of our UK oil and gas
production comes from the North Sea. The
northern sector and central sectors of the
North Sea contain a mixture of oil and gas
fields, and the southern sector contains
mainly gas fields. We hold various nonoperating interests in the Atlantic Margin
area, principally in the West of Shetlands
area. In 2011, we took the final investment
decision for the Clair development and the
Schiehallion redevelopment projects.
REST OF EUROPE
Shell also has interests in Austria, Germany,
Greece, Hungary, Italy, Slovakia, Spain
and Ukraine.
Shell Investors’ Handbook
Upstream
AFRICA
HIGHLIGHTS
 Production amounted to nearly 0.5 million boe/d, which was around 15% of our total
2011 production.
 After-tax earnings from oil and gas exploration and production operations of our
subsidiaries in the region were $4.1 billion.
 We are participating in the development of the Bonga North West project in Nigeria.
KEY FIGURES
Total production (thousand boe/d) [A]
Liquids production (thousand b/d) [A]
Natural gas production (million scf/d) [A]
Gross developed and undeveloped acreage (thousand acres)
Proved oil and gas reserves excluding non-controlling interest (million boe) [B]
2011
471
326
% of total
15%
21%
840
26,766
1,200
9%
11%
8%
[A] Available for sale.
[B] Includes proved reserves associated with future production that will be consumed in operations.
EGYPT
We have a 50% interest in the Badr
El-Din Petroleum Company (Bapetco), a
joint venture with the Egyptian General
Petroleum Corporation. Bapetco carries out
field operations in the West Desert, where
we have interests in the BED, NEAG, NEAG
Extension, West Sitra, Sitra, Obaiyed and
Alam El Shawish West concession areas.
In addition, we have interests in the
offshore North West Demiatta concession
and two BP-operated offshore concessions:
North Damietta Offshore and North Tineh
Offshore.
GABON
We have interests in eight onshore mining
concessions and three offshore exploration
concessions. Two of the non-operated
concessions (Coucal and Avocette) have
been converted into PSCs as of January
1, 2011. A Shell-operated exploration
concession – in the deep-water Igoumou
Marin block – has entered the second
exploration period, but is currently
suspended pending the resolution of a
geographical boundary dispute.
NIGERIA
Security in Nigeria remained relatively
stable during 2011. Shell-share production
in Nigeria was some 385 thousand
boe/d in 2011 compared with some 400
thousand boe/d in 2010.
Onshore
The Shell Petroleum Development Company
of Nigeria Ltd (SPDC) is the operator of
a joint venture (Shell interest 30%) that
holds over 30 Niger Delta onshore oil
mining leases (OMLs), which expire in
2019. To provide funding, Modified Carry
Agreements are in place for certain key
projects and a bridge loan was drawn
down by the Nigerian National Petroleum
Company (NNPC) in 2010.
The Gbaran-Ubie integrated oil and gas
project (Shell interest 30%) came on-stream
in 2010 in Bayelsa State and achieved peak
gas production of 1 billion scf/d in early
2011. Gas from Gbaran-Ubie is delivered to
power plants for domestic use and to Nigeria
LNG Ltd (NLNG) for export. Oil production
has reached some 45 thousand b/d.
In Nigeria Shell sold its 30% interest
in oil mining leases 26 and 42 and
related facilities in the Niger Delta for a
consideration of some $0.5 billion. The
assignment of its interests in respect of
OMLs 34 and 40 is still awaiting requisite
consents for completion.
Offshore
The main offshore deep-water activities are
carried out by Shell Nigeria Exploration
and Production Company (Shell interest
100%) with interests in three deep-water
blocks. Shell operates two of the blocks
including the Bonga field 120 km offshore.
Deep-water offshore activities are typically
governed through PSCs with NNPC.
Additionally, SPDC holds an interest in six
shallow-water offshore leases, of which five
expired on November 30, 2008. However,
SPDC satisfied all the requirements of the
Nigerian Petroleum Act, to be entitled to an
extension.
LNG
Shell has a 25.6% interest in Nigeria LNG
(NLNG), which operates six LNG trains
with a total capacity of 21.6 mtpa. NLNG
continued production at near full capacity
during 2011, mainly as a consequence of
improved gas supply due to stable security
and the start-up of the Gbaran-Ubie project.
REST OF AFRICA
Shell also has interests in Algeria, Ghana,
Libya, South Africa, Tanzania, Togo and
Tunisia.
 Welder at the Gbaran-Ubie project, Nigeria.
23
24
Shell Investors’ Handbook
Upstream
ASIA (INCLUDING MIDDLE EAST AND RUSSIA)
HIGHLIGHTS
 Production amounted to nearly 1.1 million boe/d, which was around 33% of our total
2011 production.
 After-tax earnings from oil and gas exploration and production operations of our
subsidiaries in the region were $2.5 billion. Our share of oil and gas exploration and
production earnings of equity-accounted investments was $2.4 billion.
 We are participating in the development of eight projects in the region: Harweel and
Amal in Oman; SAS and Bab Thamama G and Bab Habshan-2 in the United Arab
Emirates; Gumusut-Kakap and Sabah Gas Kebabangan in Malaysia; Kashagan
Phase 1 in Kazakhstan; and Majnoon FCP in Iraq. Shell also signed an agreement
with the government of Iraq to establish the Basrah Gas Company and acquired a
30% interest in the Indonesian Masela block, which contains the Abadi FLNG field.
KEY FIGURES
Total production (thousand boe/d) [A]
Liquids production (thousand b/d) [A]
Natural gas production (million scf/d) [A]
Gross developed and undeveloped acreage (thousand acres)
Proved oil and gas reserves excluding non-controlling interest (million boe) [B]
2011
1,070
639
2,504
75,822
4,585
% of total
33%
42%
28%
30%
32%
[A] Available for sale.
[B] Includes proved reserves associated with future production that will be consumed in operations.
BRUNEI
Shell and the Brunei government are 50:50
shareholders in Brunei Shell Petroleum
Company Sendirian Berhad (BSP). BSP
holds long-term oil and gas concession
rights onshore and offshore Brunei, and
sells most of its natural gas production to
Brunei LNG Sendirian Berhad (BLNG, Shell
interest 25%). BLNG was the first LNG plant
in the Asia-Pacific region and sells most of
the LNG on long-term contracts to buyers in
Japan and South Korea.
We also have a 35% interest in the Block B
concession, where gas and condensate
are produced from the Maharaja Lela
Field, a 12.5% interest in exploration Block
CA-2 and a 53.9% operating interest in
exploration Block A.
Ordos Basin, where Shell has an agreement
to evaluate resources in Daning.
Shell is also a partner of the Hangzhou city
ring joint venture that develops, operates
and manages a high-pressure natural gas
pipeline system.
Shell operates the onshore Changbei tightgas field under a PSC with PetroChina. The
two parties have also agreed to appraise
and develop tight gas in the Jinqiu block
of the central Sichuan Province under a
30-year PSC, which expires in 2040.
The Jinqiu project achieved first gas in
September 2011. Also in Sichuan, Shell
and PetroChina are assessing shale-gas
opportunities in the Fushun block. The
two parties are additionally assessing
opportunities in coalbed methane in the
In November 2011, Shell signed an
agreement with the government of Iraq
to establish a joint venture between Shell
(44%), the South Gas Company (51%)
and Mitsubishi Corporation (5%). The joint
venture will be called Basrah Gas Company
(BGC). BGC will gather, treat and process
raw gas produced from the Rumaila, Zubair
and West Qurna 1 fields. Currently, an
estimated 700 million scf/d of gas is flared
because of a lack of infrastructure to collect
and process it. The processed natural
gas and associated products, such as
condensate and LPG, will be sold primarily
to the domestic market with the potential to
export any surplus.
KAZAKHSTAN
INDONESIA
In 2011, Shell agreed to acquire a 30%
participating interest in the offshore Masela
block from Inpex Masela, the operator. The
Masela block contains the Abadi gas field.
The operator has selected an FLNG concept
for the field’s first development phase. The
transaction was formally approved by the
Indonesian government on December 1,
2011.
IRAN
CHINA
are Petronas (30%) and the Iraqi state
partner (25%), represented by the Missan
Oil Company. Located in southern Iraq,
Majnoon is one of the world’s largest oil
fields. The Iraqi government estimates it
to have about 38 billion barrels of oil in
place. The first phase of the development is
planned to bring production to some 175
thousand b/d from the start level of 45
thousand b/d, when the contract entered
into effect in March 2010. We also hold a
15% interest in the West Qurna 1 field, as
part of the ExxonMobil-led consortium. At
the end of 2011, production was some 370
thousand b/d. According to both contracts’
provisions, Shell’s equity entitlement
volumes will be lower than the Shell interest
implies.
Shell ceased its upstream activities in Iran
in 2010 as a direct consequence of the
international sanctions imposed on Iran,
including the US Comprehensive Iran
Sanctions, Accountability and Divestment
Act of 2010.
We have a 16.8% interest in the offshore
Kashagan field, where the North Caspian
Operating Company is the operator on
behalf of the shareholders. This shallowwater field covers an area of approximately
3,400 km2. Phase 1 development of
the field is expected to lead to plateau
production of some 300 thousand boe/d,
increasing further with additional phases of
development. NC Production Operations
Company, a joint venture between
Shell and KazMunaiGas, will manage
production operations.
IRAQ
We are also a 55% partner in the Pearls
production-sharing contract, which covers
an area of some 900 km2 in the north
Caspian Sea. The block contains two oil
discoveries, which are currently under
appraisal.
We hold a 20-year technical service
contract, which expires in 2030, for
the development of the Majnoon oil
field and operate the field with a 45%
interest. The other Majnoon shareholders
The Caspian Pipeline Consortium (Shell
interest 5.4%) exports production from west
Kazakhstan to the Black Sea. The pipeline
is 1,510 km long and has been operational
Shell Investors’ Handbook
Upstream
since October 2001. A pipeline expansion
project is underway.
MALAYSIA
We have been operating in Malaysia
since 1910. As contractor to Petronas,
we produce oil and gas located offshore
Sarawak and Sabah under 14 PSCs, in
which our interests range from 30% to 80%.
In Sabah we operate four producing
offshore oil fields with interests ranging
from 50% to 80% as part of the 2011
North Sabah enhanced oil recovery (EOR)
PSC and the SB1 PSC. We also have
additional interests ranging from 35%
to 50% in PSCs for the exploration and
development of five deep-water blocks,
which include the unitised Gumusut-Kakap
field (Shell interest 33%) and the Malikai
field (Shell interest 35%). Both fields are
currently being developed with Shell as
the operator. We have a 21% interest in
the Siakap North/Petai field operated
by Murphy Oil Corporation and a 30%
interest in the Kebabangan field operated
by the Kebabangan Petroleum Operating
Company.
In Sarawak we are the operator of 18 gas
fields with interests ranging from 37.5%
to 70%. Nearly all of the gas produced is
supplied to Malaysia LNG in Bintulu where
we have a 15% interest in each of the Dua
and Tiga LNG plants. We also have a 40%
interest in the 2011 Baram Delta EOR PSC
and a 50% interest in Block SK-307.
In 2011, we signed a heads of agreement
with Petronas for two 30-year PSCs for
enhanced oil recovery projects offshore
Sarawak and Sabah. These PSCs replace
the existing 2003 Baram Delta and
1996 North Sabah PSCs. The heads of
agreement specifies work activities and
new investment from Shell and its joint
venture partner to increase the average
recovery factor of the fields in the PSC and
extend their productive life beyond 2040.
We also operate a GTL plant (Shell interest
72%), which is adjacent to the LNG
facilities in Bintulu. Using Shell technology,
the plant converts natural gas into highquality middle distillates and other specialty
products.
OMAN
We have a 34% interest in Petroleum
Development Oman (PDO). PDO is the
operator of an oil concession expiring in
2044. It currently produces about 550
thousand b/d.
We also participate in the development
of the Mukhaizna oil field (Shell interest
17%) where steam flooding, an enhanced
oil recovery method, is being applied on a
large scale.
We have a 30% interest in Oman LNG,
which mainly supplies Asian markets under
long-term contracts. We also have an 11%
indirect interest in Qalhat LNG, another
Oman-based LNG supplier.
QATAR
Pearl GTL in Qatar is the world’s largest
gas-to-liquids project. Shell provides
100% of the funding under a development
and production-sharing contract with the
government of Qatar. The fully integrated
project includes production, transport and
processing of some 1.6 billion scf/d of
well-head gas from Qatar’s North Field with
 Operators in the central control room, Pearl GTL, Qatar.

www.shell.com/pearlgtl_video
25
26
Shell Investors’ Handbook
Upstream
installed capacity around 140 thousand
boe/d of high-quality liquid hydrocarbon
products and 120 thousand boe/d of
natural gas liquids and ethane. By the
end of 2011, Train 1 was ramping up
production and Train 2 had started up.
Shell has a 30% interest in Qatargas 4,
which comprises integrated facilities to
produce some 1.4 billion scf/d of natural
gas from Qatar’s North Field, an onshore
gas-processing facility and an LNG train
with a collective production capacity of 7.8
mtpa of LNG and 70 thousand boe/d of
natural gas liquids. The train delivered first
LNG in January 2011 and has ramped up to
full production during the year with the LNG
shipped mainly to markets in the Middle
East, Europe, Asia and North America.
Shell also holds a 75% equity interest in
Block D under the terms of an exploration
and production-sharing contract with
Qatar Petroleum, representing the national
government. Shell is the operator, with
PetroChina holding a 25% interest.
RUSSIA
We have a 27.5% interest in Sakhalin-2,
which is one of the world’s largest
integrated oil and gas projects. Located in a
subarctic environment, the project reached
planned plateau production of some
360 thousand boe/d in 2010, supplying
around 9.6 mtpa of LNG from two trains.
After optimisation of the LNG plant,
production from the two trains reached 10
mtpa in 2011. Additionally, we have a
50% interest in the Salym fields in western
Siberia, where production averaged some
165 thousand boe/d during 2011.
(AFPC), a Syrian joint-stock company, which
performs operations under SSPD contracts.
In compliance with international sanctions
on Syria, including European Council
Decision 2011/782/CFSP, in December
2011 Shell suspended all exploration and
production activities in Syria.
UNITED ARAB EMIRATES
We also hold interests in two exploration
and production licences in Russia, one
for the East Talotinskiy area in the Nenets
Autonomous District and the other for the
Barun-Yustinsky block in Kalmykia.
In Abu Dhabi we hold a concessionary
interest of 9.5% in the oil and gas
operations run by Abu Dhabi Company
for Onshore Oil Operations (ADCO). The
licence expires in 2014. We also have a
15% interest in the licence of Abu Dhabi
Gas Industries Limited (GASCO), which
expires in 2028. GASCO exports propane,
butane and heavier liquid hydrocarbons
that it extracts from the wet natural gas
associated with the oil produced by ADCO.
SYRIA
REST OF ASIA (INCLUDING MIDDLE EAST
Shell holds a 65% interest in Syria Shell
Petroleum Development B.V. (SSPD), a
venture between Shell and China National
Petroleum Corporation. SSPD holds a 31.3%
interest in Al Furat Petroleum Company
AND RUSSIA)
Shell also has interests in Azerbaijan,
India, Japan, Jordan, Kuwait, Philippines,
Saudi Arabia, Singapore, South Korea and
Turkey.
 LNG plant with oil export terminal, Sakhalin, Russia.
Shell Investors’ Handbook
Upstream
OCEANIA
HIGHLIGHTS
 Production amounted to nearly 0.2 million boe/d, which was around 5% of our total
2011 production.
 After-tax earnings from oil and gas exploration and production operations of our
subsidiaries in the region were $1.5 billion. Our share of oil and gas exploration and
production earnings of equity-accounted investments was $0.3 billion.
 We are participating in the development of five key projects in Australia: North
Rankin; Gorgon LNG Trains 1-3; North West Shelf Gas – Greater Western Flank
Phase 1; Prelude FLNG; and Wheatstone LNG.
KEY FIGURES
Total production (thousand boe/d) [A]
Liquids production (thousand b/d) [A]
Natural gas production (million scf/d) [A]
Gross developed and undeveloped acreage (thousand acres)
Proved oil and gas reserves excluding non-controlling interest (million boe) [B]
2011
171
48
715
69,705
1,432
% of total
5%
3%
8%
28%
10%
[A] Available for sale.
[B] Includes proved reserves associated with future production that will be consumed in operations.
AUSTRALIA
We have interests in offshore production
and exploration licences in the North
West Shelf (NWS) and Greater Gorgon
areas of the Carnarvon Basin, as well as
in the Browse Basin and Timor Sea. Some
of these interests are held directly and
others indirectly through a shareholding of
approximately 23% in Woodside Petroleum
Ltd (Woodside). Woodside is the operator
of Pluto LNG.
Woodside is also the operator on behalf of
six joint-venture participants of the NWS
gas, condensate and oil fields, which
produced 512 thousand boe/d in 2011.
Shell provides technical support for the
NWS development. In December 2011,
the NWS joint venture announced the final
investment decision on the Greater Western
Flank Phase 1 project.
We also have a 50% interest in Arrow
Energy Holdings Pty Limited (Arrow),
a Queensland-based joint venture with
PetroChina. Arrow owns coalbed-methane
assets, a domestic power business, and
the site for a proposed LNG plant on Curtis
Island, near Gladstone. In 2011, Arrow
entered into an agreement to acquire all
the shares of coalbed-methane company
Bow Energy Ltd (Bow) for a Shell share
consideration of approximately $0.3
billion. The acquisition of Bow contributes to
Arrow’s opportunity to expand the proposed
8 mtpa LNG project on Curtis Island. In
December 2011, the transaction received
final government and shareholder approval,
and it was completed in January 2012.
The Gorgon LNG project (Shell interest
25%) involves the development of the
largest gas discoveries to date in Australia,
beginning with the offshore Gorgon (Shell
interest 25%) and Jansz/Io fields (Shell
interest approximately 20%). It includes the
construction of a 15 mtpa LNG plant on
Barrow Island. Construction activities on
Barrow Island continued in 2011.
We are the operator of a permit in the
Browse Basin in which two separate gas
fields were found – Prelude in 2007 and
Concerto in 2009. In 2011, we announced
the final investment decision to develop
these fields on the basis of our innovative
floating liquefied natural gas (FLNG)
technology. This technology enables gas
to be processed offshore, reducing the
development’s costs and minimising its
environmental impact. The Prelude FLNG
project is expected to produce some 110
thousand boe/d of natural gas and natural
gas liquids, delivering some 3.6 mtpa
of LNG, 1.3 mtpa of condensate and
0.4 mtpa of liquefied petroleum gas (LPG).
Shell also has rights to the gas of the
nearby Crux field (AC/P23) and operates
the AC/P41 block (Shell interest 75%),
where the Libra-1 gas discovery was made
in 2008.
We are also a partner in the Browse joint
venture (Shell interest approximately
20%) covering the Torosa, Brecknock
and Calliance gas fields. In 2010, as
required by the Retention Lease, the jointventure participants began planning the
development of the Browse resources on
the basis of an LNG plant at James Price
Point on the Dampier Peninsula of Western
Australia.
In the Timor Sea Shell holds interests in the
large Greater Sunrise and Evans Shoal
gas fields (Shell interest approximately
34% and 32.5%, respectively). The joint
venture partners have selected FLNG as
the preferred development concept for
Greater Sunrise. The development is subject
to approval from both the Australian and
Timor Leste governments.
Shell also holds 6.4% interest in the
Wheatstone LNG project which includes
construction of two LNG trains with a
combined capacity of 8.9 mtpa. The final
investment decision for the Wheatstone
LNG project was announced in 2011.
NEW ZEALAND
We have an 83.8% interest in the offshore
Maui gas field, a 50% interest in the
onshore Kapuni gas field and a 48%
interest in the offshore Pohokura gas field.
The gas produced is sold domestically,
mainly under long-term contracts. Shell
has interests in other exploration licence
areas in the Taranaki Basin. In 2011, we
acquired a 50% interest in two exploration
licences in the Great South Basin.
27
28
Shell Investors’ Handbook
Upstream
Capture and Storage (CCS) project (Shell
interest 60%), which is expected to capture
and permanently store more than one mtpa
of CO2 from the Scotford Upgrader.
AMERICAS
HIGHLIGHTS
 Production amounted to nearly 0.7 million boe/d, which was around 21% of our total
2011 production.
 After-tax earnings from oil and gas exploration and production operations of our
subsidiaries in the region were $3.2 billion. Our share of oil and gas exploration and
production earnings of equity-accounted investments was $1.3 billion.
 We are participating in the development of five projects in North and South
America: AOSP Debottlenecking; Parque das Conchas (BC-10) Phase 2; Eagle Ford;
Cardamom; Mars B; as well as various tight-gas projects.
KEY FIGURES
Total production (thousand boe/d) [A]
Liquids production (thousand b/d) [A]
Natural gas production (million scf/d) [A]
Synthetic crude oil production (thousand b/d) [A]
Bitumen production (thousand b/d) [A]
Gross developed and undeveloped acreage (thousand acres)
Proved oil and gas reserves excluding non-controlling interest (million boe) [B]
2011
688
284
1,589
115
15
62,898
3,624
% of total
21%
18%
18%
100%
100%
25%
26%
[A] Available for sale.
[B] Includes proved reserves associated with future production that will be consumed in operations.
NORTH AMERICA
CANADA
In total, we hold over 2,000 mineral
leases in Canada (mainly in Alberta and
British Columbia). We produce and market
natural gas, NGL, sulphur, synthetic crude
oil and bitumen. Bitumen is a very heavy
crude oil produced through conventional
methods as well as through enhanced oilrecovery methods, such as those based on
heating the reservoirs. Synthetic crude oil
is produced by mining bitumen-saturated
sands, extracting the bitumen from the
sands, and transporting it to a processing
facility where hydrogen is added to
produce a wide range of feedstock for
refineries.
Gas
Half of our Canadian gas production
comes from the Foothills region of Alberta.
We own and operate four natural gas
processing and sulphur-extraction plants
in southern and south-central Alberta and
are among the world’s largest producers
and marketers of sulphur. Additionally,
we hold a 31.3% interest in the Sable
Offshore Energy project, a natural gas
complex offshore eastern Canada, and
have a 20% non-operating interest in an
early stage deep-water exploration asset
off the east coast of Newfoundland. We
also hold a number of exploration licences
in the Mackenzie Delta. Shell continued
to develop tight and shale gas fields in
west-central Alberta and east-central
British Columbia during 2011, through
drilling programmes and investment in
infrastructure facilitating new production.
Shell holds rights to approximately 3,200
km2 (800,000 acres) in these tight-gas
areas.
Synthetic crude oil
We operate the Athabasca Oil Sands
Project (AOSP) in north-east Alberta as
part of a joint venture (Shell interest 60%).
The bitumen is transported by pipeline
for processing at the Scotford Upgrader,
which is operated by Shell and located
in the Edmonton area of central Alberta.
AOSP’s bitumen production capacity is 255
thousand boe/d, following an expansion
project completed in 2010. In 2011, the
expansion of the Scotford Upgrader was
completed, delivering first commercial
production in May and allowing it to
process 255 thousand boe/d. In addition,
we took the final investment decision on a
debottlenecking project for AOSP, which
is expected to add an additional 10
thousand boe/d at peak production. This
project is the first of several debottlenecking
opportunities for AOSP. We also signed
agreements with the governments of
Alberta and Canada to secure some $0.9
billion in funding for the Quest Carbon
Shell also holds a number of other minable
oil sands leases in the Athabasca region
with expiry dates ranging from 2012 to
2020. By completing a certain minimum
level of development prior to their expiry,
leases may be extended.
Bitumen
We produce and market bitumen in the
Peace River area of Alberta, and have a
steam-assisted gravity drainage project
in operation near Cold Lake, Alberta.
Additional heavy oil resources and
advanced recovery technologies are under
evaluation on about 1,200 km2 (300,000
acres) in the Grosmont oil sands area, also
in northern Alberta.
LNG
In 2011, Shell announced investment in the
Green Corridor LNG-for-transport project
(Shell interest 100%). Pending regulatory
approval, the Green Corridor project
includes a 0.3 mtpa LNG production
facility.
UNITED STATES
We produce oil and gas in the Gulf of
Mexico, heavy oil in California and
primarily onshore tight gas in Louisiana,
Pennsylvania, Texas and Wyoming. The
majority of our oil and gas production
interests are acquired under leases granted
by the owner of the minerals underlying the
relevant acreage (including many leases
for federal onshore and offshore tracts).
Such leases usually run on an initial fixed
term that is automatically extended by the
establishment of production for as long as
production continues, subject to compliance
with the terms of the lease (including, in the
case of federal leases, extensive regulations
imposed by federal law).
Gulf of Mexico
The Gulf of Mexico is the major production
area, accounting for a little over 50%
of Shell’s oil and gas production in
the USA. We hold approximately 600
federal offshore leases in the Gulf, about
one third of which are producing. Our
share of production in the Gulf of Mexico
averaged over 180 thousand boe/d in
2011. Key producing assets are Auger,
Brutus, Enchilada, Holstein, Mars, NaKika,
Perdido, Ram Powell and Ursa.
Shell Investors’ Handbook
Upstream
The 2010 drilling moratorium in the
Gulf of Mexico, and new regulatory
requirements following the BP Deepwater
Horizon incident, resulted in deferment of
various Shell exploration and development
programmes. Those deferments continued
to affect the operational flexibility and
delivery timing of our Gulf of Mexico
business in 2011. Since the lifting of the
moratorium, Shell has met all deep-water
regulatory permitting and environmental
assessment requirements for key projects.
Although the new regulatory regime has
resulted in a longer permitting process,
the number of permits we secured in 2011
is approximately the same as in 2009
and is aligned with 2011 activity plans.
Additionally, all Shell rigs are compliant
with new regulatory mandates and are
conducting operations.
Shell also announced a multibillion-dollar
investment to develop its major Cardamom
oil and gas field in the deep waters of the
Gulf of Mexico. The Cardamom project
(Shell interest 100%) is expected to produce
50 thousand boe/d at peak production.
Onshore
We hold some 3,400 km2 (850,000 acres)
of mostly contiguous tracts of land in the
Marcellus shale, centred on Pennsylvania
in the north-east USA. We additionally
have some 1,100 km2 (270,000 acres)
of mineral rights in the Eagle Ford shale
formation in south Texas. Not only did we
conduct 3D seismic surveys there in 2011,
but we also had five rigs drill a total of 43
wells. We also have other ongoing multi-
rig drilling programmes at the Pinedale
Anticline in Wyoming (35,000 acres) and
in the Haynesville tight-gas formation of
north-west Louisiana (200,000 acres).
REST OF NORTH AMERICA
Furthermore, we are actively appraising our
acreage in multiple liquids-rich US plays,
including the Niobrara and Utica shales
and the Mississippi Limestone.
SOUTH AMERICA
California
We hold a 51.8% interest in Aera Energy
LLC (Aera), an exploration and production
company with assets in the San Joaquin
Valley and Los Angeles Basin areas of
southern California. Aera operates more
than 15,000 wells, producing about 140
thousand boe/d of heavy oil and gas, and
accounting for approximately 30% of the
state’s production.
Alaska
We hold over 410 federal leases for
exploration in the Beaufort and Chukchi
seas in Alaska. Following an adverse
Environmental Appeals Board ruling on
Environmental Protection Agency air
permits at the end of 2010, we cancelled
our 2011 Alaska exploratory drilling
programme. We therefore focused on
obtaining the permits required for drilling in
2012, receiving conditional approvals from
the Bureau of Ocean Energy Management,
Regulation and Enforcement for the
Beaufort and Chukchi Seas Exploration
Plans. We also received an air permit for
the Discovererr drillship to work in both the
Beaufort and Chukchi seas.
Shell also has interests in Mexico and
exploration interests offshore Greenland.
BRAZIL
We are the operator of several producing
fields offshore Brazil. They include the
Bijupirá and Salema fields (Shell interest
80%) and the Parque das Conchas (BC-10)
field (Shell interest 50%). We also have
interests in offshore development and
exploration blocks in the Campos, Santos
and Espirito Santo basins with interests
ranging from 17.5% to 80%. We operate
one of these blocks (BM-S-54), as well as 5
blocks in the São Francisco area. In 2011,
as part of a portfolio review, we divested
our 20% participating interest in Block
BM-S-8 and our 40% interest in Block BS-4,
both in the Santos basin offshore Brazil.
The BS-4 divestment received regulatory
approval in March 2012.
We also hold an 18% interest in Brazil
Companhia de Gas de São Paulo
(Comgás), a natural gas distribution
company in the state of São Paulo.
FRENCH GUIANA
Shell has a 45% interest in the offshore
Zaedyus field.
REST OF SOUTH AMERICA
Shell also has interests in Argentina,
Colombia, Guyana and Venezuela.
 Athabasca Oil Sands Project (AOSP), Canada.
29
30
Shell Investors’ Handbook
Downstream
She
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31
DOWNSTREAM
CCS EARNINGS [A]
HIGHLIGHTS
$ billion
 Made good progress in delivering strategic goals; improved many aspects of
operating performance.
 Delivered a concentrated portfolio ahead of schedule.
 Kept expansion of the Port Arthur site on track for completion in 2012. Once
complete, the site will have doubled in size to become North America’s largest
refinery with planned capacity of some 600 thousand b/d.
 Moved into biofuels production with the start-up of our Raízen joint venture in Brazil.
The joint venture produces and commercialises ethanol and power from sugar cane
and distributes a variety of transportation and industrial fuels through a combined
distribution and retail network in Brazil. With annual production capacity of more
than two billion litres, Raízen is one of the world’s largest ethanol producers.
 Was named the number-one global lubricant supplier by the consultancy Kline &
Company for the fifth consecutive year.
 Secured our 1,000th retail site in China. Overall, 271 new sites were secured in
2011 and the total number of secured sites reached 1,011 by the end of the year.
 Developed promising new leads to expand Chemicals: Signed the heads
of agreement with Qatar Petroleum for proposals to develop a world-scale
petrochemical complex in Qatar; announced an investment decision to build a
500-tonne per year demonstration unit to manufacture diphenyl carbonate; and
announced our intent to explore the opportunity to build a cracker in the North East of
the USA.
9
8
7
6
5
4
3
2
1
0
2007
2008
Oil products
Chemicals
2009
2010
2011
=#?'ZENWFKPIKFGPVKƂGFKVGOU
AVAILABILITY AND SALES VOLUMES
CXCKNCDKNKV[
XQNWOG
100
25
80
20
60
15
40
10
20
5
K E Y STAT I ST I C S
Downstream CCS earnings ($ million)
Oil products
Chemicals
Total Downstream earnings ($ million) [A]
Total Downstream earnings excluding identified items
($ million)
Downstream cash flow from operations ($ million) [B]
Total oil products sales (thousand b/d)
Chemicals sales volumes (thousand tonnes)
Refinery intake (thousand b/d)
Oil products refinery availability (%)
Petrochemicals manufacturing plant availability (%) [C]
Downstream net capital investment ($ million)
Downstream capital employed ($ million)
Downstream employees (thousands)
2011
2010
2009
2008
2007
2,235
2,054
4,289
1,439
1,511
2,950
(58)
316
258
5,153
156
5,309
6,906
1,682
8,588
4,274
8,746
6,196
18,831
2,845
92
89
4,342
71,976
51
3,873
8,138
6,460
20,653
3,197
92
94
2,358
67,287
59
1,940
5,839
6,156
18,311
3,067
93
92
6,232
62,632
62
5,744
1,750
6,568
20,327
3,388
91
94
3,104
54,050
64
8,289
13,150
6,625
22,555
3,779
91
93
2,682
65,042
69
[A] With effect from 2010, Downstream segment earnings are presented on a current cost of supplies (CCS)
basis. Comparative information is consistently presented.
[B] Excludes working capital movements.
[C] The calculation of chemical plant availability for 2011 is based on a methodology to bring better alignment
for our Downstream assets. On this basis, 2010 and 2009 figures would be 92% and 91% respectively.
0
0
2007
2008
2009
4GƂPGT[CXCKNCDKNKV[
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2010
2011
32
Shell Investors’ Handbook
Downstream
REFINING
We have interests in more than 30 refining
sites worldwide. Together, they processed
2.8 million barrels of crude oil a day
in 2011 into a wide range of products,
including gasoline, diesel, heating oil,
aviation fuel, marine fuel, lubricants,
liquefied petroleum gas, sulphur and
bitumen. Around 35% of our refining
capacity is in Europe, 30% in the Americas
and 30% in Asia-Pacific.
We focus on energy-efficiency
improvements at our refineries and
chemicals plants. Those improvements
have contributed to a reduction in their
greenhouse gas emissions. Achieving even
greater efficiency will help us deliver more
profitability – so too will greater operational
reliability. The average availability of our
refineries – a measure of their operational
excellence – was 92% in 2011.
A key part of our strategy is to divest noncore assets while selectively investing in
REFINING CAPACITY [A]
REFINERY SCALE
million b/d Shell share
kb/d
5
250
4
200
3
150
2
100
1
50
0
0
2002
2006
Europe and Other
Americas
#UKC2CEKƂE
2009
[A] Subject to successful completion of announced deals.
REFINERY
IINERY
NERY
RY PORTFOLIO
PORTFOL O
KEY
Y




≥ 100,000
100
100,000
000 b/d
b/d
< 100,000
100
1
00,000
000 b/d
b/d
To
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b divested
d
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ermi all
Shell
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intere t ≤ 30%
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2002
2006
#XGTCIGTGƂPGT[UK\G
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2011
2012E
high-growth markets, especially in the East.
We aim to create a Downstream portfolio
that is more focused on larger, integrated
refining sites that are better able to respond
to tighter fuel specifications and growth
opportunities.
The Port Arthur refinery in Texas, USA, will
have a prominent place in that portfolio. Part
of the joint venture Motiva Enterprises (Shell
interest 50%) is currently in the finishing
stages of an expansion project that will make
it the largest refinery in our portfolio. The
expanded refinery will have a total capacity
of some 600 thousand b/d and be capable
of handling most grades of crude oil. New
technology will also lower most emissions
from the refinery on a per-barrel basis.
Including the Port Arthur expansion, we
have reduced our refining capacity by 15%
between 2009 and 2012. The capacity
reduction amounts to around 800 thousand
b/d, most of it located in Europe, where the
market has been in oversupply. Since 2002,
capacity has been reduced by around a
third. We have retained the larger and more
integrated refineries and petrochemical
plants, and the current portfolio is positioned
for optimisation across the entire value
chain. Major asset sales have been
completed, but we will continue to review
the portfolio regularly and improve it further
where necessary.
Shell Investors’ Handbook
Downstream
SUPPLY AND
DISTRIBUTION
BUSINESS TO
BUSINESS (B2B)
A network of some 150 distribution
facilities with more than 1,500 storage
tanks in around 25 countries serves to
deliver feedstocks to our refineries and
chemical plants as well as finished products
to our Marketing businesses and customers
worldwide. We move products in Europe,
the USA and other parts of the world
through 9,000 km of onshore and offshore
pipelines. Our global fleet of around 2,600
Shell-owned or contracted trucks travels
around 860,000 km every day, making a
delivery somewhere in the world every 13
seconds.
We sell fuels and specialty products and
services to a broad range of commercial
customers.
Through various means, we have
systematically reduced the cost and time
of deliveries. We have adopted fuelsaving driving techniques, made larger
deliveries and made the best use of vehicle
availability. We also continue to look at
opportunities to manage stock levels more
efficiently in response to changes in market
conditions.
A large refinery can process many different
crude oils through various distillation and
treatment processes to end up with a wide
range of different products. We optimise
refinery runs to meet demand in many
regions. We assess the value of crude
oils, maximise refinery margins, optimise
transport and forecast demand, thereby
balancing regional supply and demand.
customers in more than 20 countries. Our
Commercial Road Transport business
supplies road haulage and bus companies
worldwide through a global network of sites
and offers payment services through Shell’s
card system.
Shell also provides specialities products
and services related to the bitumen residue
from crude-oil refining and sulphur derived
from the processing of natural gas and
crude oil. Every day, on average we supply
to some 1,600 customers worldwide
around 11,000 tonnes of bitumen – enough
to repave 350 km of road. We are one
of the largest premium grade bitumen
supplier in China and the only international
bitumen supplier for China’s high-speed
railway sector. We have developed
innovative bitumen products that can be
mixed and laid at temperatures lower than
conventional asphalt to reduce energy use
and carbon dioxide emissions.
Shell Aviation provides fuel every
day for around 7,000 aircraft at over
800 airports in more than 30 countries.
On average, it refuels a plane every 12
seconds. Customers range from private
pilots to the largest global airlines. Shell
Aviation was named Best Aviation Fuel
Provider in the Emerging Markets Aviation
Awards in 2010 and 2011. More than
400 customers voted for Shell Aviation on
both occasions, recognising the business’s
safe and reliable supply of products and
services to customers in emerging markets.
Shell marine activities provides
lubricants, fuels and related technical
services to the shipping and boating
industries. We supply over 100 grades of
lubricants and 20 different types of fuel
for marine vessels powered by diesel,
steam-turbine and gas-turbine engines. We
serve more than 15,000 customer vessels
worldwide, ranging from large oceangoing tankers, containerships and dry bulk
carriers to offshore drilling rigs and small
fishing boats.
Shell has also developed innovative
sulphur-based products such as Shell
Thiopave, a paving material that can
prolong road life; Shell Thiocrete, a very
durable, fast setting concrete; and Shell
Thiogro, a new family of fertilisers for
sulphur-responsive soils.
Shell Gas (LPG) provides liquefied
petroleum gas and related services to retail,
commercial and industrial customers for
cooking, heating, lighting and transport.
Shell Commercial Fuels provides
transport, industrial and heating fuels
and related services to more than 15,000
 Supplying fuel for the service station at Beaconsfield, UK.
33
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Shell Investors’ Handbook
Downstream
RETAIL
Our branded fuel retail network is the
world’s largest, with around 43,000
service stations in more than 80 countries.
Our experience in fuel development,
over more than 100 years, underpins our
position today as a leading provider of
innovative fuels. Differentiated fuels with
unique formulations designed to improve
performance are available in more than 60
countries under the Shell V-Power brand.
In 2009, we launched Shell FuelSave. It is
now available in 15 countries. Our FuelSave
programme aims to inform motorists of
driving techniques and car-care tips that
can help them get the most out of the Shell
fuel they buy. Shell also sells Shell Fuel
Economy for petrol and diesel in more than
20 countries.
Shell has a close technical partnership
with Scuderia Ferrari. Our fuel has helped
Ferrari to achieve 10 Formula One World
Constructors’ and 12 World Championship
Drivers’ titles. This partnership enables our
scientists and engineers to develop cuttingedge fuel technologies for the racetrack that
can then be transferred to road fuels for the
benefit of our customers.
BRANDED RETAIL SITES
thousand, per year-end
50
40
30
20
10
0
2007
2008
Americas
#UKC2CEKƂE
Europe
Other
2009
2010
2011
COUNTRIES
UNTRIES
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WITH SHELL
SHELL RETAIL
RETAIL BRANDED
BR
RAND D PRESENCE
PRESEN
NCE
We continued to invest in selected retail
markets, such as those of the UK and China.
In 2011 we acquired 253 retail sites in
the UK, primarily in central and south-east
England. In Brazil we launched a joint
venture (Shell interest 50%) with Cosan
called Raízen for the production of ethanol,
sugar and power, as well as the supply,
distribution and retailing of transport fuels.
This move supports Shell’s growth platform
for our retail and commercial fuels business
in Brazil.
Shell Investors’ Handbook
Downstream
LUBRICANTS
For the fifth consecutive year, the
consultancy Kline & Company has named
Shell the number-one global lubricant
supplier. With more than 13% share of
the market in volume terms, we sell more
lubricants than any other company in the
world (source: Kline & Company, 2011).
We make and sell a wide variety of
lubricants to meet customer needs across
a range of applications. These include
consumer motoring, heavy-duty transport,
mining, power generation and general
engineering. Shell’s portfolio of lubricant
brands includes Pennzoil, Quaker State,
Shell Helix, Shell Rotella, Shell Tellus and
Shell Rimula. Shell also owns Jiffy Lube®
franchised service centres, with more
than 2,000 franchised service centres in
North America, serving approximately
24 million customers each year. Jiffy Lube
pioneered the fast oil change industry in
1979 by establishing the first drive-through
service bay, providing customers with fast,
professional service for their vehicles.
Our lubricants are marketed in
approximately 100 countries. We have
LUBRICANT
RICANT
R
CANT PORTFOLIO
PORTFOLIO
KEY
Y


Lubricants
ubricants
u
bricants oil
oil-blending
blending
bl
ble di
ding plants
pl t
Base oil manufacturing plants
leading positions in both mature and
emerging markets. Shell is the top supplier
by volume in the USA – the world’s largest
lubricant market – and the top international
supplier by volume in China – the world’s
fastest growing lubricant market.
We continue to expand in emerging
markets. We have an oil-blending plant
in Zhuhai, Guangdong Province, China.
Associated with this, we opened Shell’s
first Lubricants Technical Service Centre in
Zhuhai in August 2011. The construction of
Shell’s largest grease manufacturing plant
is ongoing on this same site. Shell was also
the first international oil company to build
an oil-blending plant in Russia.
We have leading lubricants research
centres in Germany, Japan (in a joint
venture with Showa Shell), the UK and the
USA.
We invest significantly in technology and
work closely with our customers to develop
innovative lubricants. Our focus is on
developing products and services for our
clients that provide both superior protection
and efficiency. One of the ways we push
the boundaries of lubricant technology is
by working closely with top motor racing
teams, such as Scuderia Ferrari. These
technical partnerships enable us to expand
our knowledge of lubrication science and
transfer cutting-edge technology from the
racetrack to our commercial products.
35
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Shell Investors’ Handbook
Downstream
CHEMICALS
We produce and sell petrochemicals to
some 1,100 major industrial customers
worldwide, with the top 20 customers
accounting for about 42% of our thirdparty sales proceeds. Our range of
petrochemicals includes base chemicals,
such as ethylene, propylene and aromatics;
and first-line derivatives, such as styrene
monomer, propylene oxide, solvents,
detergent alcohols, and ethylene oxide.
Our customers, many of them leading
companies in their own fields, use these
products to make everyday items, such
as plastics, detergents, textiles, medical
equipment and computers. All in all, we
sold almost 19 million tonnes of bulk
petrochemicals in 2011.
We also produce additives for fuel and
lubricants, and catalysts for refinery and
petrochemical markets. Shell catalysts
have steadily improved the production of
ethylene oxide, an important building block
for synthetic fabrics, plastic bottles and
antifreeze. More efficient ethylene oxide
production has the benefit of lowering CO2
emissions.
Shell petrochemical alcohols are the basis
of more concentrated household laundry
detergents that clean clothes at lower
temperatures. Compared with traditional
powders, they not only require less
detergent per wash but also have lower
packaging, shipping-weight and shelf
space requirements. Washing laundry at
colder temperatures can help consumers to
save energy.
TOTAL CHEMICALS PRODUCT SALES [A]
million tonnes
25
20
15
Over many decades we have developed
the proprietary technologies, processes
and catalysts that enable Shell to enjoy
a powerful competitive advantage in our
core petrochemical markets. Our OMEGA
technology is considered the most efficient
technology currently available in the world
for converting ethylene to ethylene oxide,
which is used to make a wide range of
industrial and consumer products, such as
polyester films and fibres, engine coolants
and antifreeze. OMEGA uses about 20%
less steam and 30% less waste water
than a traditional thermal conversion
MEG plant with the same capacity. The
technology also produces significantly less
carbon dioxide per tonne of MEG than
conventional processes.
In Singapore, we are building a
demonstration unit to manufacture the
chemical ingredient diphenyl carbonate, a
versatile and growing engineering plastic
used in a wide variety of applications, from
optical media, household items, automotive
components to electronics and sheeting/film.
10
5
0
2007
2008
2009
Base chemicals
First-line derivatives and others
2010
2011
[A] Excludes volumes sold by equity-accounted investments,
chemical feedstock trading and by-products.
We will continue to focus on the synergies
among our chemical plants, refineries and
Upstream businesses to increase the supply
of the best available feedstock for our
crackers.
Our Chemicals strategy is based on
selective growth at existing sites through
increases in capacity, improvements
in efficiency and integration, and
strengthening our feedstock sources.
It is also based on securing integrated
 MEG storage and facility at the Shell Eastern Petrochemicals Complex (SEPC), Singapore.
Shell Investors’ Handbook
Downstream
growth projects with partners and
developing technologies to convert gas to
chemicals.
In 2011 we signed a heads of agreement
with Qatar Petroleum for the joint
development of a proposed major
petrochemical complex whose feedstock
would come from natural gas projects in
Qatar. We are working with the Qataris
and Petrochina to develop a potential
integrated refinery and petrochemicals
complex in China. We are also developing
plans to build a proposed world-scale
ethylene cracker with integrated
polyethylene derivative units in the
Appalachian region in the North East of
the USA.
PORTFOLIO
ACTIONS
In the Marketing businesses we continued
to invest in selected retail markets, such
as those in the UK and China, and in our
growing Lubricants businesses in Asia.
In the UK we acquired 253 retail sites,
primarily in central and south-east England.
We signed a heads of agreement with
Qatar Petroleum for the joint development
of a proposed major petrochemical
complex whose feedstock would come
from natural gas projects in Qatar. The
complex will include a world-scale steam
cracker. It will also include a mono-ethylene
glycol plant of up to 1.5 mtpa capacity
and higher-olefin plant of 0.3 mtpa
capacity, both based on Shell proprietary
technologies. Shell will have a 20% equity
interest in the project and Qatar Petroleum
will have the remaining 80%.
We sold our 272 thousand b/d Stanlow
refinery in the UK for a total consideration
of $1.2 billion (including some $0.9
billion for working capital). The sale also
included certain associated local marketing
businesses, Chemicals Manufacturing
(excluding the higher olefins plant and
alcohols units) and access rights to specific
distribution terminal assets.
We announced the divestment of our
Downstream businesses in Africa (excluding
South Africa) for a total consideration of
some $1 billion. In 2011, we completed
the sale of the businesses in Cape Verde,
Madagascar, Mali, Mauritius, Morocco,
Senegal and Tunisia. The businesses in the
remaining countries under consideration for
divestment are expected to be sold during
the course of 2012. We also launched
Vivo Energy (Shell interest 20%) and Vivo
Lubricants (Shell interest 50%). Under the
agreements, these entities will continue to
market Shell fuels and lubricants, which are
available in 14 African countries under the
Shell brand.
In Chile we sold our Downstream business
for a total consideration of $0.6 billion.
The deal included all of Shell’s Retail,
Commercial Fuels, Bitumen and Chemicals
businesses, as well as related supply
and distribution infrastructure. The Retail
network of about 300 sites will continue
to be Shell branded through a trademark
licence agreement.
Additional businesses and activities
deemed non-core were divested as part
of the ongoing strategy to refocus our
Downstream portfolio.
TRADING
Shell Trading is the business name of
a global organisation comprising a
network of separate companies that sell
crude oil to a wide range of customers
within and outside Shell. The companies
also trade natural gas, LNG and power
around the world. Their supply portfolio
includes the largest equity share of LNG
of any international oil company. These
companies share knowledge and best
practice, use common systems and controls,
and manage the risks associated with
international trading in a competitive
environment. Shell Trading supports Shell’s
Upstream and Downstream businesses by
trading natural gas, LNG, electrical power,
crude oil, refined products, chemical
feedstocks and environmental products. It
also manages a shipping fleet of more than
50 ocean-going vessels.
Shell Trading companies operate out
of a variety of locations, including
Dubai, Houston, London, Rotterdam and
Singapore. Two major Shell Trading units
concentrate their dealings in Europe and
North America. Shell Energy Europe
markets and trades gas, power and
carbon dioxide throughout Europe, serving
around 7,000 customers. Together with its
subsidiaries, Shell Energy North America
trades and markets Shell’s North American
natural gas production, benefitting from
access to power generation and gas
storage assets.
 Downstream Shell Shipping and Trading staff, Shell Centre, London.
37
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Shell Investors’ Handbook
Alternative energy
ALTERNATIVE
ENERGY
BIOFUELS
The international market for biofuels is
growing, driven largely by the introduction
of new energy policies in Europe and the
USA that call for more renewable, lowercarbon fuels for transport. Today, biofuels
make up around 3% of the global road
transport fuel mix. This could rise to 9% by
2030. Sustainable biofuels are expected
to play an increasingly important role in
helping to meet customers’ fuel needs and
reduce CO2 emissions.
Shell has a 30-year history of biofuel
development and investment. Producing,
buying, trading, storing, blending and
distributing biofuels are now part of
our usual business. We believe we are
one of the world’s largest distributors of
biofuels, and we continue to build capacity
in conventional biofuels that meet our
corporate and social responsibility criteria.
Shell Investors’ Handbook
Alternative energy
In 2011, Shell and Cosan launched the
Raízen biofuels joint venture (Shell interest
50%) in Brazil for the production of ethanol,
sugar and power, as well as the supply,
distribution and retailing of transport
fuels. With an annual production capacity
of more than 2 billion litres per year of
ethanol from sugar cane, Raízen is one of
the world’s largest ethanol producers. This
deal marks Shell’s first move into the mass
production of biofuels. Ethanol produced
from sugar cane in Brazil is the most
sustainable and cost-competitive of today’s
biofuels. It can reduce net CO2 emissions
by up to 70% compared with gasoline.
We recognise the sustainability challenges
associated with some biofuels. For that
reason, we are working to ensure that
the feedstocks and conversion processes
for the biofuels we purchase today are
as sustainable as possible. In 2007,
we introduced environmental and
social clauses into the contracts for the
bio-components that we purchase for
blending. And we monitor how well our
suppliers adhere to those clauses. We
are also working with non-governmental
organisations, policymakers and industry
coalitions to develop and promote
robust global standards for ensuring the
sustainability of biofuels production.
Advanced biofuels, which are based on
new conversion processes for feedstock
such as crop waste or inedible plants, offer
the potential for improved CO2 reductions
and improved fuel characteristics. Shell was
one of the first energy companies to invest
in advanced biofuels and we continue to
invest in them. They will take time to reach
commercial scale and government support
will be required to accelerate their speed of
development.
Our Projects & Technology organisation
has a dedicated team working on biofuelrelated research at four centres in the UK,
the USA, the Netherlands and India. Its
efforts are complemented by agreements
with experts in academic institutions across
the world.
Shell also has technical partnerships with
the leading biotechnology companies
exploring new production techniques for
advanced biofuels. With the Canadian
firm Iogen Energy we are developing
technology that uses enzymes to break
down the cellulose in, for example, wheat
and barley straw. The cellulose is converted
to sugars which are then fermented and
distilled into ethanol. Through Raízen, our
research programme with Codexis in the
USA is developing natural enzymes into
super-enzymes that speed up the conversion
of biomass to ethanol. Those of Virent, in
contrast, are based on the direct conversion
of organic sugars into gasoline or gasolineblend components.
www.shell.com/raizen_cosan_video
WIND
Shell Wind Energy has strong operational
and development capabilities with 10
joint-venture projects – eight in the USA and
two in Europe (Shell share approximately
50%). The projects’ generating capacity
totals about 1,000 megawatts – enough
electricity to meet the annual requirements
of 300,000 homes. If supplied by
conventional power plants, that amount
of electricity would have necessitated the
emission of 3 million tonnes of CO2.
Almost 900 MW of our total capacity come
from 722 wind turbines of the eight US
projects. The biggest single one, the 264
MW Mount Storm wind project in West
Virginia, began operations in 2008. Our
European wind projects are located in
Germany and the Netherlands. All in all,
the European operations involve a total
of 38 wind turbines with an aggregate
capacity of 111 MW.
INSTALLED WIND CAPACITY
MW, Shell share
600
500
400
300
200
100
0
2007
USA
Europe
2008
2009
2010
2011
39
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PROJECTS &
TECHNOLOGY
The delivery of Shell’s strategic objectives
depends on its capability to build large
and complex projects reliably and safely,
on time and on budget. The Projects
& Technology (P&T) organisation has
that capability. It executes projects and
provides a range of technical services in
both Upstream and Downstream. It also
drives the research and innovation to create
the technology that will be needed in the
future. Furthermore, it provides functional
leadership in contracting and procurement
as well as in safety. In total, more than
8,000 people work in P&T, of whom
roughly 600 have PhDs.
DELIVERING
PROJECTS
Specialist P&T teams manage complex
mega projects from concept to commission,
often in challenging environments. Our
Cardamom field in the Gulf of Mexico, for
example, sits under more than 800 m of
water and another 7,600 m of rock, and is
expected to produce 50 thousand boe/d.
Our massive Prelude floating facility is
expected to produce, liquefy, store and
offload 110 thousand boe/d of Australian
natural gas entirely out of sight of land.
Shell Investors’ Handbook
Projects & Technology
Shell’s growth profile has recently been
dominated by three large upstream projects:
Pearl GTL, Qatargas 4 and the Athabasca
Oil Sands Project expansion. Despite their
particular environmental and engineering
challenges, they have all been successfully
delivered and are now on-stream.
P&T teams also undertake downstream
projects. At several refineries around the
globe they have implemented technology
that improves the refinery’s efficiency
and enables it to use a wider range
of feedstock. In Port Arthur, Texas, for
instance, an expansion project will turn
the refinery there into the largest in North
America. P&T also works with local teams
to deliver more routine projects that require
extra support or expertise.
We are constantly looking for opportunities
to simplify and standardise project execution,
with the aim of improving efficiency and
reducing costs. In 2011, Shell created a
global community of project managers to
facilitate resourcing and build up expertise
through the sharing of best practices. The
Shell Project Academy invigorates this
global community. It provides an accredited
competence development programme that
makes our project staff capable of delivering
sustained top-quartile performance.
INNOVATIVE
TECHNOLOGY
In a fast-changing and highly competitive
world, technological innovation is a key
differentiator for Shell. We continue to
invest in technology for our Downstream
business across the range of its activities
– from refining to chemicals. For example,
our technology leadership in lubricants –
as a portfolio of more than 150 patent
series attests – provides a key competitive
advantage to help create some of the most
advanced oils and greases.
Our cutting-edge technology continues to
deliver powerful catalysts and proprietary
processes to help give us a competitive
edge in core petrochemical markets. Our
catalysts, for example, lie at the heart of
some of the most efficient manufacturing
units for ethylene oxide and mono-ethylene
glycol. And a new process chemistry
we are developing has the potential
to create a more sustainable route to
diphenyl carbonate: a key raw material for
polycarbonates, which substitutes for glass
in many products.
As we enter a new wave of growth
based on deep-water projects and the
development of tight, shale and coalbedmethane resources, drilling is becoming
a key determinant of Shell’s success. Shell
already has a strong performance record
there. For several years running, it has
been ranked first in benchmarking studies
of the Independent Project Analysis Institute
and in the top quartile in terms of cost
competitiveness. As we further develop our
drilling operations, we are commissioning
state-of-the-art rigs and well technologies
that comply with the highest industry
standards for safety and the environment.
We also lead the industry in the use of
“underbalanced” drilling. Such drilling
results in higher inflow rates after the well
is completed. That extra flow is particularly
important in “tight” gas reservoirs, where
– even under the best of circumstances – the
gas moves through the rock a thousand times
slower than it would through conventional
reservoirs. The successful development of
tight-gas fields also depends critically on
drilling costs. Here too we have developed
ways to save money without compromising
safety or putting the environment at undue
risk. Our soft-torque rotary drilling system,
for instance, dampens the uncontrolled
twisting of drill pipe, making it possible to
finish wells quicker and with fewer drill-bit
changes.
We persist in pursuing technological
breakthroughs across the spectrum
of our businesses: from novel seismic
acquisition technology to enhanced
oil-recovery methods, from advanced
biofuels to ultralow-friction lubricants. We
also work on technologies to reduce the
environmental footprint of our operations
and products. These are applied, for
example, in carbon capture and storage
schemes to reduce CO2 and other emissions
or in energy-efficiency programmes for our
refineries or for our customers.
The development of Shell technology
is intrinsically linked to our strategic
objectives and based on the needs of our
customers. It is driven by a single integrated
R&D organisation that complements
in-house development of proprietary
technologies with external scientific and
technological partnerships. This partnering,
which sometimes involves openly sharing
results, helps to ensure a healthy influx of
41
WELL MANUFACTURING SYSTEM
We aim to further improve our drilling
efficiency and control costs through
innovative automation. In 2011, we
reached an agreement with China National
Petroleum Corporation (CNPC) to develop
jointly a well manufacturing system that can
repeatedly drill and complete standardised
wells in a automated manner. Such a system
will help us unlock resources that so far had
been uneconomic to develop.
A new Shell technology – SCADAdrill –
will play an important role in the well
manufacturing system. SCADAdrill is the
control software that enables computerised
drilling to proceed autonomously, with
continual self-adjustment of the bit
trajectory. In this way, well engineers can
be kept away from the worksite hazards as
drilling proceeds faster and more reliably.
The Shell/CNPC venture expects to build
nine of these automated rigs in 2012 and
offer support services on a world-wide
basis. We expect the venture to spend
about $1 billion, employ 700 staff and
have more than 40 rigs operational by
2015.
www.shell.com/well_manufacturing_video
new ideas and to speed up technology
developments.
R&D EXPENDITURE
Technology and innovation provide ways
for Shell to stand apart from its competitors.
They help our current businesses perform,
and they make our future businesses
possible. Over the last five years our spend
on R&D averaged more than $1 billion
annually – more than any other international
energy company. In 2011, R&D
expenditures were $1.1 billion, compared
with $1.0 billion in 2010 and $1.1 billion in
2009. We also anticipate spending figures
in the same range in the coming years.
42
Shell Investors’ Handbook
Projects & Technology
Sustained investment in our key business
technologies pays off. Some 30 years
ago we started working on chemicals for
enhanced oil recovery that include polymer
solutions like the one that is being injected
since early 2010 into the Marmul field in
Oman. There it is expected to boost oil
recovery by some 10% or more. Shell has
also pioneered deep-water exploration
and production over the decades, recently
producing oil and gas through the Perdido
platform in the Gulf of Mexico. Perdido is
moored in water deeper than that of any
other vertical-access platform, tapping
fields under more than 2,450 metres
(8,000 feet) of water.
SAFETY
Sustaining our licence to operate depends
on maintaining the safety and reliability of
our operations. We manage the hazards
of our businesses through rigorous controls
and compliance systems combined with
a safety-focused culture. Our global
standards and operating procedures define
the controls and physical barriers we
require to prevent incidents. For example,
our wells are designed and executed under
the protection of two barriers to minimise
the risk of an uncontrolled release of
hydrocarbons. We regularly inspect, test
and maintain these barriers to ensure they
are meeting our standards.
testing frequencies, training protocols and
safety procedures. We have made some
adjustments to our safety and technical
procedures including: the introduction
of an advanced well-control class in our
mandatory well engineering training
program; the completion of a new real-time
well control tool; and the introduction of
revised procedures for casing and tubing
design as well as for cement casing.
We also reviewed and updated our
requirements for asset integrity and process
safety.
We continue to build the safety culture
among our employees and contractors. We
hold an annual global safety day to give
workers time to reflect on how to prevent
accidents. We expect everyone working
for us to intervene and stop work that may
appear to be unsafe. Everyone working for
us has to comply with our 12 mandatory
Life-Saving Rules. If employees break these
rules, they will face disciplinary action up to
and including termination of employment.
If contractors break them, they can be
removed from the worksite.
CONTRACTING
AND PROCUREMENT
with suppliers, governments, technical
partners and the various communities that
neighbour its operations.
Shell’s Contracting and Procurement
(C&P) organisation is responsible for
nearly everything that Shell subsidiaries
buy across the full scope of activities in
the Upstream, Downstream and Projects
& Technology Businesses. This currently
amounts to over $60 billion in annual
spend. C&P’s specialised knowledge helps
Shell subsidiaries focus on what and how
much should be bought and at what price.
The priority is on getting the most value out
of our purchases, not just the lowest cost.
By putting its global internal demand for
goods and services into one contractual
package on the external marketplace,
Shell gains leverage in terms of safety,
quality of goods and services, costs and
technical innovation. The selection of
preferred suppliers enables a far closer
oversight of delivery and performance,
better mechanisms for quality control and
significantly lower prices. Such contractmanagement improvements, coupled
with increasingly efficient operations and
collaborative relationships with suppliers,
saved more than $1 billion per year in
2010 and 2011.
In order to reinforce the safety of our
operations around the world after the BP
Deepwater Horizon incident in 2010, we
undertook a review of operating practices,
To gain a competitive advantage within the
oil and gas industry, Shell must leverage its
overall buying power. We must also remain
vigilant and nimble in a volatile economy
in order to mitigate business risks and
unlock business opportunities. And we must
develop mutually beneficial relationships
The C&P organisation also analyses the
market, enabling it to be forward-looking
in its support of sourcing strategies. In
addition, C&P has a key role in ensuring
Shell seeks to work with contractors and
suppliers who contribute to sustainable
development and are economically,
environmentally and socially responsible.
RESEARCH & DEVELOPMENT EXPENDITURE
TOTAL RECORDABLE CASE FREQUENCY [A]
PROCUREMENT: LOW COST COUNTRIES
$ billion
injuries
6
5
900
4
800
million working hours
number of suppliers
$ billion
300
4
225
3
150
2
75
1
4
3
700
2
600
1
500
2
0
0
Shell
Other majors
Cumulative 2007–2011
400
01
02 03 04 05 06 07 08
Injuries p/million working hours
Working hours
09
10
11
[A] Employees and contractors per million working hours;
Shell-operated facilities.
0
0
2008
2009
2010
5WRRNKGTUSWCNKƂGF
5WRRNKGTUDGKPISWCNKƂGF
5RGPFKPIQPSWCNKƂGFUWRRNKGTU
2011
Shell Investors’ Handbook
Corporate segment
CORPORATE SEGMENT
The Corporate segment covers the nonoperating activities supporting Shell. It
includes Shell’s treasury organisation,
its headquarters and central functions as
well as its risk management and selfinsurance activities. All finance income
and expense, as well as related taxes and
exchange-rate effects, are included in the
Corporate segment earnings rather than
in the earnings of the Business segments.
The Corporate segment earnings also
include functional costs that have not been
allocated to the other segments.
TREASURY
The holdings and treasury organisation
manages many of the Corporate entities
and is the point of contact between Shell
and the external capital markets. It is
centralised in London and supported by
regional centres in Singapore and Rio
de Janeiro. Its daily operations include
liquidity management, advising and
financing subsidiaries and joint ventures,
arranging the efficient investment of any
surplus funds, transacting foreign exchange
and managing Shell’s bank account
infrastructure. The treasury organisation
maintains Shell’s credit ratings and debt
platforms, issues short- and long-term
capital-market instruments and executes the
Royal Dutch Shell dividend, scrip and share
buyback programmes.
HEADQUARTERS
AND CENTRAL
FUNCTIONS
Headquarters and central functions render
services to the Businesses (Upstream
Americas, Upstream International,
Downstream, Projects & Technology) as
well as other functions. They also provide
support for the shareholder-related activities
of Royal Dutch Shell. The services they
render cover the areas of finance, human
resources, legal advice, information
technology, real estate, communications,
health, security and government relations.
They also assist the Chief Executive Officer
and the Executive Committee. The central
functions have been increasingly supported
by business service centres located
around the world. These centres process
transactions, manage data and produce
statutory reports, among other services.
The majority of the headquarters and
central-function costs are recovered from the
Business segments. Those costs that are not
recovered are retained in Corporate.
RISK AND
INSURANCE
The BP Deepwater Horizon incident was a
harsh reminder of the vital importance of
effective risk management in the oil and
gas industry. At Shell, we aim to drive
down the total cost of risk by using robust
methodologies and processes to assess,
mitigate and manage risk. They include
the valuation of risks so that this can be
properly taken into account in decision
making. It also requires the causes of
losses experienced to be analysed and
understood so that they can be reduced in
the future. To support this, Shell’s insurable
risks are mainly aggregated and retained
within insurance subsidiaries, which
means that Shell self-insures most of its
risk exposures. The insurance subsidiaries
form a key part of the Shell’s approach to
risk management. They provide insurance
coverage to Shell entities, up to $1.15
billion per event, generally limited to
Shell’s percentage interest in the relevant
entity. The type and extent of the coverage
is equal to that which is otherwise
commercially available in the third-party
insurance market.
43
44
Shell Investors’ Handbook
Maps
MAPS
EUROPE
ITALY
UKRAINE
SLOVENIA
CROATIA
RUSSIA
BOSNIA AND
HERZEGOVINA
SAN MARINO
ITALY
KIEV
MONTENEGRO
KHARKIV
ROME
ADRIATIC SEA
UKRAINE
NAPLES
Dnieper-Donetsk
Tempa Rossa
"
" """
""
""
Val d'Agri
TYRRHENIAN SEA
KHERSON
PALERMO
G.R17-22.NP
0
100
200
{ Shell oil projects
{ Shell gas projects
SEA OF AZOV
IONIAN SEA
300
400 km
{ Terminal
2011 discoveries from core exploration activities
0
50 100 150 200 km
Shell oil pipeline
Shell gas pipeline
Shell interest
Shell Investors’ Handbook
Maps
NORTH- WEST EUROPE
"
Asterix
ICELAND
Ormen Lange
Hasselmus
"
Linnorm
NORTH
ATLANTIC OCEAN
"
"
"
"
"
Loyal
"
SWEDEN
Gjøa
Kvitebjorn
Troll
"
"
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Sullom Voe
OSLO
"
Beryl
"
"
" "
""
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Nyhamna
NORWAY
""
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"
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""
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NETHERLANDS
Schoonebeek
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BRUSSELS
BELGIUM
GERMANY
CELTIC SEA
FRANCE
LUXEMBOURG
"
LUXEMBOURG
"
0
100
200
300
400 km
BERLIN
45
46
Shell Investors’ Handbook
Maps
AFRI CA
EGYPT
MEDITERRANEAN SEA
N.Damietta Offshore"A"
N.Tineh Offshore
MATRUH
Obaiyed J2
"
"
" AL
"
"
HAMRA
" "
"
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NE Abu Gharadig
"
"
West Sitra
"
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""
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"
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"
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"
"
"
"
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"
"
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"
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"
"
""
"
"
""
""
" "
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SUEZ
NEAG2 C5 E
"
"
"
"
EL FAIYUM
LIBYA
0
TANTA
"
"
"
"
PORT SAID
ALEXANDRIA
""
"
"" "
"
EGYPT
50
100
150
200 km
NIGERIA
""
BIGHT OF BENIN
" " "
"
"
"
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Gbetiokun
"
OML133
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Bosi "
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"
"
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OML71
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OML135
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Doro "
EQUATORIAL GUINEA
BIGHT OF
BIAFRA
Zabazaba " OPL245
" Etan
0
50
{ Shell oil projects
{ Shell gas projects
100
150
200 km
{ Terminal
2011 discoveries from core exploration activities
Shell oil pipeline
Shell gas pipeline
Shell interest
Shell Investors’ Handbook
Maps
GABON
LIBYA AND TUNISIA
EQUATORIAL
GUINEA
SAO TOME
AND
PRINCIPE
GREECE
Igoumou Marin
Raf Raf
LIBREVILLE
Azmour
SÃO TOMÉ
AND PRÍNCIPE
TUNIS
LAMBARENE
PORT GENTIL
Damier
Avocette
M'Boukou
Toucan
MEDITERRANEAN
SEA
GABON
Awoun
TUNESIA
Koula
Coucal
Rabi
""
""
"
"
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BC 9
"
BCD 10
Gamba
"
"
"
Mellitah "
Ras Lanuf
"
NC212
CONGO
ALGERIA
100
150
0
200 km
TANZANIA
KENYA
DODOMA
TANZANIA
Block 5-6
INDIAN OCEAN
MOZAMBIQUE
0
100
200
300
400 km
LIBYA
"
Area 89
" Zueitina
Brega
NC211-NC215
NC211C
MAYUMBA
50
TRIPOLI
BENGHAZI
Atora
Bende-M'Bassou
Totou
Gamba-Ivinga
SOUTH
ATLANTIC OCEAN
0
ITALY
100 200 300 400 km
47
48
Shell Investors’ Handbook
Maps
ASIA
IRA Q, QATAR, UNITED ARAB EMIRATES, SAUDI ARABIA AND OMAN
Majnoon
West Qurna
IRAQ
IRAN
KUWAIT
THE GULF
Qatar Gas 3/4
"
"
"
BAHRAIN
Ras Laffan "
Qatargas 4
Pearl GTL
Block D
QATAR
UNITED ARAB
EMIRATES
DOHA
RIYADH
ABU DHABI
"
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Bida Al Qemzan " Bu Hasa
"
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"
"
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RAYSUT
0
100
{ Shell oil projects
{ Shell gas projects
200
300
400 km
{ Terminal
2011 discoveries from core exploration activities
Shell oil pipeline
Shell gas pipeline
Shell interest
ARABIAN SEA
Shell Investors’ Handbook
Maps
SYRIA AND TURKEY [A]
TURKEY
Dadas Licences
ANTALYA
Antalya Licences
SYRIA
"
"
"
CYPRUS
BLOCK XIII
(Amouria)
"
"
""
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"
"
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"
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LEBANON
MEDITERRANEAN SEA
BLOCK XV
DAMASCUS
IRAQ
0
50
100
150
[A] In compliance with international sanctions, Shell has suspended activities in Syria.
200 km
JORDAN
SYRIA
IRAQ
North West
Oil Shale
AMMAN
MEDITERRANEAN
SEA
Central Oil Shale
ISRAEL
South Oil Shale
EGYPT
0
25
50
75
JORDAN
100 km
SAUDI ARABIA
49
50
Shell Investors’ Handbook
Maps
RUSSIA – SALYM
RUSSIA – SAKHALIN
OKHA
"
"
PA-B
Piltun-Astokhskoye
OKHA
PA-B
Talotinsky East
NOGLIKI
Piltun-Astokhskoye
Onshore Processing
Facility (OPF)
" "
Onshore Processing
Facility (OPF)
Lunskoye
Lunskoye
A
RUSSIA
RUSSIA
Sakhalin
Sakhalin
KHOLMSK
NEFTEYUGANSK
KHANTY-MANSIYSK
West Salym
Zhuravl
Upper Salym
0
100
200
300
"
""
"
YUZHNO-SAKHALINSK
LNG Plant
Oil Export Terminal
KHOLMSK
Vadelyp
LNG Plant
400 km
0
KAZAKHSTAN
50
SEA OF
OKHOTSK
YUZHNO-SAKHALINSK
"
Oil Export Terminal
100 150 200 km
CHINA
KAZAKHSTAN
BEIJING
CB207
Barun-Yustinskiy
YINCHUAN
ATYRAU
RUSSIA
Kashagan
Kashagan SW
"
Khazar " "
Auezov
"
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"
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Aktote
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"
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GEORGIA
Fushun
ARMENIA
0
100
AZERBAIJAN
200
{ Shell oil projects
{ Shell gas projects
300
TURKMENISTAN
400 km
0
{ Terminal
2011 discoveries from core exploration activities
100 200 300 400 km
Shell oil pipeline
Shell gas pipeline
Shell interest
Wuhu
Shell Investors’ Handbook
Maps
BRUNEI AND EAST MALAYSIA
Ubah "
SOUTH CHINA SEA
"
"
"
"
""
"
"
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F6
F28
F05E
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100
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Malampaya
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SC 38A
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SULU SEA
0
50
100
150
ND7
Bintulu
INDONESIA
0
PHILIPPINES
MALAYSIA
200 km
CELEBES SEA
51
52
Shell Investors’ Handbook
Maps
OCEANIA
WEST AUSTRALIA AND INDONESIA
INDONESIA
"
Greater Sunrise "
"
Abadi
Evans Shoal
TIMOR SEA
DARWIN
North West Shelf
WA-371-P
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Gaea
Goodwyn
Goodwyn South
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Pemberton
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Urania
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Wilcox
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Achilles
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"
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DAMPIER
AUSTRALIA
Gorgon
Western Australia
EXMOUTH
100 200 300 400 km
EAST AUSTRALIA
NEW ZEALAND
AUCKLAND
Huntly Power Station "
CORAL SEA
NEW PLYMOUTH
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" Queensland CBM
"
"
" "
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Tipton West "
NEW ZEALAND
BRISBANE
DUNEDIN
Queensland
New South Wales
0
100 200 300 400 km
{ Shell oil projects
{ Shell gas projects
Great South Basin
0
{ Terminal
2011 discoveries from core exploration activities
100
200
Shell oil pipeline
Shell gas pipeline
300
400 km
Shell interest
PACIFIC OCEAN
Shell Investors’ Handbook
Maps
53
AMERICAS
NORTH-WEST USA
PENNSYLVANIA, NEW YORK AND OHIO
CANADA
UNITED STATES
CANADA
New York
UNITED STATES
Washington
North Dakota
Marcellus
Montana
GILLETTE
CODY
Oregon
Idaho
South Dakota
"
"
Wyoming
" Pinedale
"
"
Appalachia
1401-2H
"
"
"
"
2013-1HM
Ohio
Utah
Colorado
Arizona
New Mexico
"
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Nebraska
ROCK SPRINGS
Nevada
"
"
" "" """""
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"
"
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" "
"
"
Pennsylvania
Kansas
California
Texas
Maryland
LOS ANGELES
West Virginia
0
150 300 450 600 km
0
50
100
150
D
Virginia
200 km
SOUTH TEXAS AND GULF OF MEXICO
Haynesville
""
"
""
""
"
UNITED STATES
" "
""
"""
"
"
Texas
Mississippi
Alabama
Louisiana
Florida
BATON ROUGE
NEW IBERIA
PORT ARTHUR
NEW ORLEANS
HOUSTON
HOUMA
Kepler
(NaKika)
"
Eagle Ford
"
"
Elmer
Enchilada
Salsa
Conger
Piloncillo
Antiqua "
Cardamom-Deep
Auger
Oregano
Macaroni
Cougar
"
"
"
"
"
""
"
"
Troika
Habanero
Llano
Serrano
""
Cognac " Ursa
WD 143 "
North " "" "
West Boreas King
""
"
"
Hickory "
" Mensa
"
Europa """
"""
"
"
"
Princess
"
"
"
Popeye
Ursa
"
Brutus
" ""
Vito
Crosby
Glider
Mars
Mars B
South Deimos
"
"
Perdido
Great White
50
100
150
Silvertip
Tobago
GULF OF MEXICO
MEXICO
0
"
""
"
200 km
Holstein
Caesar
Tonga
Stones
Ram-Powell
Ariel (NaKika)
NaKika
Appomattox
Herschel
Fourier
Coulomb (NaKika)
East Anstey
(NaKika)
54
Shell Investors’ Handbook
Maps
ALASKA, YUKON AND NORTHWESTERN TERRITORIES
NOVA SCOTIA
CANADA
BEAUFORT SEA
Newfoundland
CHUKCHI SEA
"
Kaktovik
" Inuvik
UNITED STATES
NOME
Nova Scotia
CANADA
HALIFAX
Northwestern
Territories
Alaska
Sable Island
"
NORTH ATLANTIC OCEAN
"
Yukon
0 100 200 300 400 km
0
100
200
300
400 km
ALBERTA AND BRITISH COLUMBIA
"
UNITED STATES
"
"
CANADA
"
Gundy "
"
Namur
"
"
Kitimat
"
"
FORT ST. JOHN
"
Phosphate
" "
""
"
Groundbirch
"
"
"
"
Peace River ""
"
" "
"
"
"
"
"
"
" " GRANDE
" "
""
"
British Columbia
"
Ells River "
Grosmont
"
"
"
"
"" "
"
FORT MC MURRAY
Alberta
"
"
PACIFIC OCEAN
"
"
"
Clearwater
Limestone
Panther
Jumping Pound
"
Muskeg River Mine
"
Seal
Chipmunk
PRAIRIE
"
" ""
""
""""
"
"
"
"" "
"
"
" "
""
Marsh
"
"
"
Scotford "
"
EDMONTON
"
"
""
"
"
"
Caroline
""
"
"
""
"
ES
""
""
STAT
ITED
UN
""
""
"
" """
"
" " Burnt"Timber
"
""
"
"
""" Jumping Pound
"
"
"
""
"""
"CALGARY
Klapp
a
an Are
CA NA
DA
"
"
"
"
""
"
""
UNITED STATES
Waterton
Bakken
0
100
200
{ Shell oil projects
{ Shell gas projects
300
400 km
{ Terminal
2011 discoveries from core exploration activities
Shell oil pipeline
Shell interest
Shell gas pipeline
Designated oil sands areas
Saskatchewan
Saska tch
Shell Investors’ Handbook
Maps
GREENLAND
FRENCH GUIANA AND GUYANA
TRINIDAD
AND TOBAGO
ATLANTIC OCEAN
Stabroek
MABARUMA
VENEZUELA
GEORGETOWN
Anu
Guyane Maritime
GREENLAND
Napu
PARAMARIBO
GUYANA
Zaedyus ""
UPERNAVIK
CAYENNE
BAFFIN BAY
SURINAME
FRENCH
GUIANA
BRAZIL
0
0
100 200 300 400 km
COLOMBIA AND VENEZUELA
100
200
300
400 km
BRAZIL AND ARGENTINA
MACEIO
Gua-3
BRAZIL
BRASILIA
MARACAIBO
Quindim
Brigadeiro
Pe de Moleque
Argonauta
BOLIVIA
CARACAS
Urdaneta Oeste
PANAMA
"
"
VMM 27
VENEZUELA
VMM 3
PARAGUAY
Macueta
San Pedrito
VMM 28
COLOMBIA
"
Luna Llena
200
300
400 km
"
URUGUAY
BUENOS AIRES
0
200 400 600 800 km
Ostra
Abalone
Salema
Bijupira
Gato do Mato
ARGENTINA
CPE 4
100
"
"
CPE 2
BOGOTA
0
RIO DE JANEIRO
SAO PAULO
"
"
""
"
SOUTH
ATLANTIC OCEAN
55
56
Shell Investors’ Handbook
Consolidated data
CONSOLIDATED DATA
EMPLOYEES
E M P LOY E E S BY S E G M E N T (AVERAGE NUMBERS)
Upstream
Downstream
Corporate [A]
Total
2011
27
51
12
90
2010
26
59
12
97
THOUSANDS
2009
23
62
16
101
2008
22
64
16
102
2007
22
69
13
104
[A] Corporate includes employees working in business service centres.
E M P LOY E E S BY G E O G R A P H I CA L A R E A
(AVERAGE NUMBERS)
The Netherlands
UK
Other
Europe
Africa, Asia, Oceania
USA
Other Americas
Total
THOUSANDS
2011
2010
2009
2008
2007
8
7
10
25
33
20
12
90
8
7
13
28
34
20
15
97
9
8
14
31
34
22
14
101
9
8
15
32
34
23
13
102
10
8
17
35
33
24
12
104
2011
11,158
774
1,804
754
14,490
2010
10,667
758
1,980
701
14,106
2009
10,608
818
2,679
642
14,747
2008
10,581
890
(302)
241
11,410
E M P LOY E E CO ST S
Remuneration
Social law taxes
Retirement benefits
Share-based compensation
Total
$ MILLION
2007
10,021
854
98
589
11,562
E M P LOY E E S BY CO U N T RY (AVERAGE NUMBERS)
Argentina
Australia
Brazil
Canada
China/Hong Kong
France
Germany
India
Malaysia
Morocco
The Netherlands
Nigeria
Norway
Philippines
Poland
Qatar
Russia
Singapore
South Africa
Thailand
UK
USA
As percentage of total (%)
Total
[A] Fewer than 500 employees.
THOUSANDS
2011
2
2
1
8
4
1
4
3
6
1
8
2010
3
2
2
8
4
1
5
3
6
1
8
2009
3
3
2
6
4
1
5
2
7
1
9
2008
3
3
2
6
4
2
5
1
7
1
9
2007
3
3
2
6
4
3
6
1
7
1
10
2
1
4
2
1
[A]
3
1
[A]
7
20
81
90
90
2
1
4
2
1
[A]
3
2
1
7
20
86
89
97
2
1
3
2
1
[A]
3
2
1
8
22
88
87
101
2
1
3
1
1
[A]
3
2
1
8
23
88
86
102
2
1
1
1
[A]
1
2
1
2
8
24
89
86
104
Shell Investors’ Handbook
Consolidated data
CONSOLIDATED FINANCIAL DATA
CO N S O L I DAT E D STAT E M E N T O F I N CO M E
Revenue
Share of profit of equity-accounted investments
Interest and other income
Total revenue and other income
Purchases
Production and manufacturing expenses
Selling, distribution and administrative expenses
Research and development
Exploration
Depreciation, depletion and amortisation
Interest expense
Income before taxation
Taxation
Income for the period
Income attributable to non-controlling interest
Income attributable to Royal Dutch Shell plc shareholders
$ MILLION
2011
470,171
8,737
5,581
484,489
370,044
26,458
14,335
1,125
2,266
13,228
1,373
55,660
24,475
31,185
267
2010
368,056
5,953
4,143
378,152
283,176
24,458
15,528
1,019
2,036
15,595
996
35,344
14,870
20,474
347
2009
278,188
4,976
1,965
285,129
203,075
25,301
17,430
1,125
2,178
14,458
542
21,020
8,302
12,718
200
2008
458,361
7,446
5,133
470,940
359,587
25,565
16,906
1,230
1,995
13,656
1,181
50,820
24,344
26,476
199
2007
355,782
8,234
5,760
369,776
262,255
23,219
16,449
1,167
1,822
13,180
1,108
50,576
18,650
31,926
595
30,918
20,127
12,518
26,277
31,331
2011
30,918
(2,293)
28,625
2010
20,127
(1,484)
18,643
2009
12,518
(2,714)
9,804
2008
26,277
5,089
31,366
2007
31,331
(3,767)
27,564
2011
4.98
4.97
2010
3.28
3.28
2009
2.04
2.04
2008
4.27
4.26
2007
5.00
4.99
2011
6,212.5
6,221.7
6,220.1
2010
6,132.6
6,139.3
6,154.2
2009
6,124.9
6,128.9
6,122.3
2008
6,159.1
6,171.5
6,121.7
CC S E A R N I N G S
Income attributable to Royal Dutch Shell plc shareholders
Estimated CCS adjustment for Downstream
CCS earnings
$ MILLION
EARNINGS PER SHARE
Basic earnings per share
Diluted earnings per share
$
SHARES
Basic weighted average number of Class A and B shares
Diluted weighted average number of Class A and B shares
Shares outstanding at the end of the period
MILLION
2007
6,263.8
6,283.8
6,210.4
57
58
Shell Investors’ Handbook
Consolidated data
CO N S O L I DAT E D B A L A N C E S H E E T (AT DECEMBER 31)
$ MILLION
2011
2010
2009
2008
2007
4,521
152,081
119,789
31,467
5,039
142,705
109,677
32,205
5,356
131,619
97,208
33,513
5,021
112,038
80,302
30,876
5,366
101,521 [A]
68,493
31,945
825
37,990
5,492
4,732
11,408
9,256
225,480
823
33,414
3,809
5,361
10,368
8,970
209,666
898
31,175
3,874
4,533
10,009
9,158
195,724
860
28,327
4,065
3,418
6,198
6,764
165,831
1,083
29,153 [A]
3,461
3,253
5,559
5,760
154,073
28,976
79,509
11,292
119,777
29,348
70,102
13,444
112,894
27,410
59,328
9,719
96,457
19,342
82,040
15,188
116,570
31,503
74,238
9,656
115,397
345,257
322,560
292,181
282,401
269,470
30,463
4,921
14,649
5,931
15,631
71,595
34,381
4,250
13,388
5,924
14,285
72,228
30,862
4,586
13,838
5,923
14,048
69,257
13,772
3,677
12,518
5,469
12,570
48,006
12,363
3,893
13,039
6,165
13,658
49,118
Total liabilities
Equity
Share capital
Shares held in trust
Other reserves
Retained earnings
Equity attributable to Royal Dutch Shell plc shareholders
Non-controlling interest
6,712
81,846
10,606
387
3,108
102,659
174,254
9,951
76,550
10,306
377
3,368
100,552
172,780
4,171
67,161
9,189
461
3,807
84,789
154,046
9,497
85,091
8,107
383
2,451
105,529
153,535
5,736
75,697
9,733
426
2,792
94,384
143,502
536
(2,990)
8,984
162,987
169,517
1,486
529
(2,789)
10,094
140,179
148,013
1,767
527
(1,711)
9,982
127,633
136,431
1,704
527
(1,867)
3,178
125,447
127,285
1,581
536
(2,392)
14,148
111,668 [A]
123,960
2,008 [A]
Total equity
Total liabilities and equity
171,003
345,257
149,780
322,560
138,135
292,181
128,866
282,401
125,968
269,470
Assets
Non-current assets
Intangible assets
Property, plant and equipment
Upstream
Downstream
Corporate
Equity-accounted investments
Investments in securities
Deferred tax
Pre-paid pension costs
Trade and other receivables
Current assets
Inventories
Accounts receivable
Cash and cash equivalents
Total assets
Liabilities
Non-current liabilities
Debt
Trade and other payables
Deferred tax
Retirement benefit obligations
Decommissioning and other provisions
Current liabilities
Debt
Trade and other payables
Taxes payable
Retirement benefit obligations
Decommissioning and other provisions
[A] In March 2007, Shell acquired the non-controlling interests in Shell Canada for a cash consideration of $7.1 billion. This was reflected as a decrease in noncontrolling interest and in retained earnings of $1,639 million and $5,445 million respectively. In April 2007, Shell sold half of its interest in Sakhalin-2 for $4.1
billion reducing its interest from 55% to 27.5%. As a result of this transaction, Sakhalin-2 has been accounted for as an associated company rather than as a
subsidiary with effect from April 2007. The main impact on the Consolidated Balance Sheet was a decrease of $15.7 billion in property, plant and equipment and
$6.7 billion in non-controlling interest, and an increase in equity-accounted investments of $3.7 billion.
Shell Investors’ Handbook
Consolidated data
CO N S O L I DAT E D STAT E M E N T O F CA S H F LO W S
Cash flow from operating activities
Income for the period
Adjustment for
Current taxation
Interest expense (net)
Depreciation, depletion and amortisation
Net gains on sale of assets
(Increase)/decrease in net working capital
Share of profit of equity-accounted investments
Dividends received from equity-accounted investments
Deferred taxation and decommissioning and other provisions
Other
Net cash from operating activities (pre-tax)
Taxation paid
Cash flow from operating activities
Cash flow from investing activities
Capital expenditure
Investments in equity-accounted investments
Proceeds from sale of assets
Proceeds from sale of equity-accounted investments
Proceeds from sale/(purchases) of securities (net)
Interest received
Net cash used in investing activities
Cash flow from financing activities
Net (decrease)/increase in debt with maturity period within three months
Other debt
New borrowings
Repayments
Interest paid
Change in non-controlling interest
Cash dividends paid to:
Royal Dutch Shell plc shareholders
Non-controlling interest
Repurchases of shares
Shares held in trust: net (purchases)/sales and dividends received
Net cash used in financing activities
Currency translation differences relating to cash and cash equivalents
(Decrease)/increase in cash and cash equivalents
Cash and cash equivalents at January 1
Cash and cash equivalents at December 31
$ MILLION
2011
2010
2009
2008
2007
31,185
20,474
12,718
26,476
31,926
23,009
1,164
13,228
(4,485)
(6,471)
(8,737)
9,681
1,768
(949)
59,393
(22,622)
36,771
16,384
842
15,595
(3,276)
(5,929)
(5,953)
6,519
(1,934)
(10)
42,712
(15,362)
27,350
9,297
1,247
14,458
(781)
(2,331)
(4,976)
4,903
(1,925)
(1,879)
30,731
(9,243)
21,488
24,452
1,039
13,656
(4,071)
7,935
(7,446)
9,325
(1,030)
(549)
69,787
(25,869)
43,918
20,076
550
13,180
(3,349)
(6,206)
(8,234)
6,955
(773)
(801)
53,324
(18,863)
34,461
(26,301)
(1,886)
(26,940)
(2,050)
(26,516)
(2,955)
(35,065)
(1,885)
(24,576)
(1,852)
6,990
468
90
196
(20,443)
3,325
3,591
(34)
136
(21,972)
1,325
1,633
(105)
384
(26,234)
4,737
2,062
224
1,012
(28,915)
8,566 [A]
1,012
1,055
1,225
(14,570)
(3,724)
4,647
(6,507)
4,161
(455)
1,249
(4,649)
(1,665)
8
7,849
(3,240)
(1,312)
381
19,742
(2,534)
(902)
62
3,555
(2,890)
(1,371)
40
4,565
(2,796)
(1,235)
(6,757)[A]
(6,877)
(438)
(1,106)
(929)
(18,131)
(349)
(2,152)
13,444
11,292
(9,584)
(395)
–
187
(1,467)
(186)
3,725
9,719
13,444
(10,526)
(191)
–
27
(829)
106
(5,469)
15,188
9,719
(9,516)
(325)
(3,573)
525
(9,394)
(77)
5,532
9,656
15,188
(9,001)
(203)
(4,387)
876
(19,393)
156
654
9,002
9,656
[A] In March 2007, Shell acquired the non-controlling interests in Shell Canada for a cash consideration of $7.1 billion. This was reflected as a decrease in noncontrolling interest and in retained earnings of $1,639 million and $5,445 million respectively. In April 2007, Shell sold half of its interest in Sakhalin-2 for $4.1
billion, reducing its interest from 55% to 27.5%. As a result of this transaction, Sakhalin-2 has been accounted for as an associated company rather than as a
subsidiary with effect from April 2007. The main impact on the Consolidated Balance Sheet was a decrease of $15.7 billion in property, plant and equipment and
$6.7 billion in non-controlling interest, and an increase in equity accounted investments of $3.7 billion.
59
60
Shell Investors’ Handbook
Consolidated data
Q UA RT E R LY E A R N I N G S BY B U S I N E S S S E G M E N T
$ MILLION
Q1
Q2
Q3
Q4
2011
Year
863
1,139
1,852
3,854
1,035
1,539
2,287
4,861
1,261
1,806
2,320
5,387
1,922
1,223
2,450
5,595
5,081
5,707
8,909
19,697
1,487
1,068
928
3,483
910
770
1,257
2,937
745
1,551
1,424
3,720
1,186
2,826
1,053
5,065
4,328
6,215
4,662
15,205
Upstream Americas
Total
* of which integrated gas [B]
Downstream (CCS basis)
Oil products
Chemicals
Total
Corporate and non-controlling interest
Interest and investment income/(expense)
Currency exchange gains/(losses)
Other – including taxation
Corporate
1,904
5,758
759
1,200
6,061
2,160
684
6,071
2,437
970
6,565
1,923
4,758
24,455
7,279
932
4,415
960
333
3,270
813
(567)
3,153
1,280
32
5,097
2,674
730
15,935
5,727
685
485
1,170
1,347
536
1,883
827
653
1,480
(624)
380
(244)
2,235
2,054
4,289
430
313
743
1,081
390
1,471
10
315
325
(82)
493
411
1,439
1,511
2,950
(194)
92
201
99
(160)
126
175
141
(152)
(270)
168
(254)
(118)
(25)
243
100
(624)
(77)
787
86
(98)
(63)
(15)
(176)
(39)
(160)
87
(112)
(107)
50
205
148
(65)
215
81
231
(309)
42
358
91
Non-controlling interest
Total
CCS earnings
Estimated CCS adjustment for Downstream
Income attributable to Royal Dutch Shell plc shareholders
(102)
(3)
6,925
1,855
8,780
(90)
51
7,995
667
8,662
(51)
(305)
7,246
(270)
6,976
38
138
6,459
41
6,500
(205)
(119)
28,625
2,293
30,918
(85)
(261)
4,897
584
5,481
(100)
(212)
4,529
(136)
4,393
(105)
43
3,521
(58)
3,463
Upstream* [A]
Europe
Asia-Pacific
Other
Upstream International
Q1
Q2
Q3
Q4
2010
Year
(43)
(333)
188
(242)
5,696 18,643
1,094
1,484
6,790 20,127
[A] Europe: Europe. Asia-Pacific: East Asia and Oceania. Other: Africa, Middle East and Commonwealth of Independent States. Americas: North and South America.
[B] Integrated gas is part of the Upstream segment. It incorporates liquefied natural gas, including LNG marketing and trading, and gas-to-liquids operations, as
previously reported in the Gas & Power segment. In addition, the associated upstream oil and gas production activities from projects where there are integrated fiscal
and ownership structures across the value chain are included in integrated gas. These include the North West Shelf, Pearl, Qatargas 4 and Sakhalin-2 projects, which
were on-stream in 2011. Power generation and coal gasification activities are also included in integrated gas.
Q UA RT E R LY I D E N T I F I E D I T E M S BY B U S I N E S S S E G M E N T [A]
Upstream* [B]
Europe
Asia-Pacific
Other
Upstream International
Upstream Americas
Total
* of which integrated gas [C]
Downstream (CCS basis)
Oil products
Chemicals
Total
Corporate and non-controlling interest
Corporate
Non-controlling interest
Total
CCS earnings impact
$ MILLION
Q1
Q2
Q3
Q4
2011
Year
Q1
Q2
Q3
Q4
2010
Year
(162)
(38)
221
21
1,099
1,120
(319)
85
482
27
594
47
641
535
171
381
132
684
(48)
636
534
450
152
544
1,146
312
1,458
111
544
977
924
2,445
1,410
3,855
861
16
–
(50)
(34)
144
110
9
(49)
6
11
(32)
42
10
42
339
453
102
894
(1,178)
(284)
405
(19)
1,927
(20)
1,888
(231)
1,657
2,023
287
2,386
43
2,716
(1,223)
1,493
2,479
(479)
(4)
(483)
796
6
802
(317)
(21)
(338)
34
–
34
34
(19)
15
(35)
–
(35)
365
(54)
311
(1,128)
–
(1,128)
10
(81)
(71)
(788)
(135)
(923)
–
–
–
637
–
–
–
1,443
(53)
–
(53)
245
76
45
121
1,613
23
45
68
3,938
–
–
–
75
–
–
–
321
–
–
–
(1,412)
–
–
–
1,586
–
–
–
570
[A] Identified items generally relate to events with an impact of more than $50 million on earnings and are shown to provide additional insight into segment earnings and
income attributable to shareholders. A detailed description of Shell’s identified items per quarter can be found in the Quarterly Results Announcements.
[B] Europe: Europe. Asia-Pacific: East Asia and Oceania. Other: Africa, Middle East and Commonwealth of Independent States. Americas: North and South America.
[C] Integrated gas is part of the Upstream segment. It incorporates liquefied natural gas, including LNG marketing and trading, and gas-to-liquids operations, as
previously reported in the Gas & Power segment. In addition, the associated upstream oil and gas production activities from projects where there are integrated fiscal
and ownership structures across the value chain are included in integrated gas. These include the North West Shelf, Pearl, Qatargas 4 and Sakhalin-2 projects, which
were on-stream in 2011. Power generation and coal gasification activities are also included in integrated gas.
Shell Investors’ Handbook
Consolidated data
Q UA RT E R LY E A R N I N G S BY B U S I N E S S S E G M E N T
$ MILLION
Q1
Q2
Q3
Q4
2009
Year
1,461
209
722
471
1,402
362
566
467
1,395
724
575
581
1,880
2,756
2,614
1,839
7,209
1,748
1,021
1,470
4,239
1,240
1,290
1,638
4,168
3,213
1,031
1,833
6,077
2,608
1,140
1,066
4,814
8,809
4,482
6,007
19,298
1,386
748
927
3,061
1,009
649
963
2,621
472
665
1,531
2,668
2,952
1,015
136
4,103
5,819
3,077
3,557
12,453
689
2,091
441
148
1,543
473
656
2,536
360
1,145
8,354
1,785
2,100
6,339
881
2,689
6,857
1,044
2,570
8,647
1,217
(151)
4,663
951
7,208
26,506
4,093
1,260
4,321
798
1,466
4,087
806
1,433
4,101
692
1,482
5,585
848
5,641
18,094
3,144
1,163
129
1,292
(2,041)
279
(1,762)
1,195
201
1,396
1,075
(142)
933
2,303
116
2,419
580
(19)
561
5,153
156
5,309
1,478
480
1,958
2,929
494
3,423
1,628
360
1,988
871
348
1,219
6,906
1,682
8,588
751
320
2,532
(348)
2,184
511
1,077
(74)
1,003
21
(46)
158
133
(23)
110
3,297
191
3,488
(257)
(18)
(275)
25
379
144
548
(24)
524
2,340
1,482
3,822
59
160
(17)
202
(47)
155
2,990
257
3,247
255
151
21
427
(24)
403
1,177
784
1,961
(58)
316
258
360
644
306
1,310
(118)
1,192
9,804
2,714
12,518
Q1
Q2
Q3
110
(62)
98
146
(105)
41
7,776
1,307
9,083
81
27
93
201
(89)
112
7,902
3,654
11,556
Q4
2008
Year
Q1
Q2
Q3
Q4
2007
Year
178
(264)
43
(43)
(41)
(351)
19
(373)
328
(650)
253
(69)
(120)
(163)
10,903
(2,455)
8,448
(66)
(439)
4,785
(7,595)
(2,810)
(380)
(449)
31,366
(5,089)
26,277
583
46
172
801
(148)
653
6,932
349
7,281
158
20
(1)
177
(131)
46
7,556
1,111
8,667
122
57
234
413
(110)
303
6,392
524
6,916
Q UA RT E R LY I D E N T I F I E D I T E M S BY B U S I N E S S S E G M E N T [A]
2009
Year
Q1
Q2
Q3
Q4
233
65
97
395
(65)
330
80
(389)
70
–
(319)
204
(115)
(6)
49
46
(15)
80
(203)
(123)
125
(76)
(256)
(33)
(365)
139
(226)
(232)
(183)
(75)
49
(209)
75
(134)
(33)
(186)
(19)
(205)
(611)
(67)
(678)
576
(40)
536
(1,429)
94
(1,335)
(1,650)
(32)
(1,682)
162
–
162
287
(17)
–
(17)
(810)
(42)
–
(42)
371
(36)
–
(36)
(1,597)
67
–
67
(1,749)
Q2
(161)
–
–
(161)
84
(77)
–
(373)
47
132
(194)
(8)
(202)
35
1,737
(67)
193
1,863
505
2,368
104
(269)
(206)
(475)
477
(32)
445
–
–
–
(77)
(116)
(120)
6,684
1,783
8,467
875
205
307
1,387
(505)
882
27,564
3,767
31,331
$ MILLION
Q1
–
–
–
12
82
(98)
(4)
–
–
–
(677)
Q3
–
–
–
2,813
Q4
2008
Year
Q1
Q2
Q3
906
35
430
1,371
27
1,398
91
2,109
15
755
2,879
608
3,487
230
(93)
–
126
33
110
143
110
19
–
136
155
245
400
473
(62)
–
122
60
66
126
1
(176)
–
(176)
205
–
205
404
–
404
371
55
–
55
660
(383)
(22)
(405)
(175)
(260)
(435)
(96)
–
(96)
897
(96)
–
(96)
2,956
Q4
2007
Year
1,317
145
(827)
635
167
802
145
1,181
145
(443)
883
588
1,471
729
121
18
139
177
(46)
131
327
(28)
299
–
–
–
265
30
–
30
963
489
–
489
2,259
61
62
Shell Investors’ Handbook
Consolidated data
A D D I T I O N A L S E G M E N TA L I N F O R M AT I O N
$ MILLION
2011
2010
2009
2008
2007
24,455
15,935
8,354
26,506
18,094
2,266
8,827
7,127
2,036
11,144
4,900
2,178
9,875
3,852
1,995
9,906
7,521
1,822
9,913
5,446
15,606
1,276
30,579
(2,702)
33,281
126,437
13,697
1,512
24,872
346
24,526
113,631
13,958
2,206
19,935
1,490
18,445
98,826
13,763
2,030
38,681
3,233
35,448
83,997
13,122
2,015
27,363
1,493
25,870
71,711
4,289
2,950
258
5,309
8,588
4,251
1,577
10,547
4,254
948
10,592
4,399
661
11,829
3,574
834
12,225
3,106
2,406
10,546
12,920
4,921
(3,825)
8,746
71,976
13,716
1,961
(6,177)
8,138
67,287
14,505
4,056
(1,783)
5,839
62,632
14,451
8,607
6,857
1,750
54,050
13,858
5,468
(7,682)
13,150
65,042
86
1,271
56
1,215
9,765
91
517
(98)
615
13,194
1,310
(2,503)
(2,039)
(464)
11,710
(69)
(3,370)
(2,155)
(1,215)
14,088
1,387
1,630
(17)
1,647
7,314
28,830
(205)
28,625
36,771
(6,471)
43,242
208,178
18,976
(333)
18,643
27,350
(5,929)
33,279
194,112
9,922
(118)
9,804
21,488
(2,332)
23,820
173,168
31,746
(380)
31,366
43,918
7,935
35,983
152,135
28,069
(505)
27,564
34,461
(6,206)
40,667
144,067
Upstream
Segment earnings
Including:
Exploration
Depreciation, depletion and amortisation
Share of profit of equity-accounted investments
Production and manufacturing expenses
Selling, distribution and administrative expenses
Cash flow from operations
Less: Net working capital movements
Cash flow from operations excluding net working capital movements
Capital employed
Downstream
Segment CCS earnings
Including:
Depreciation, depletion and amortisation
Share of profit of equity-accounted investments
Production and manufacturing expenses
Selling, distribution and administrative expenses
Cash flow from operations
Less: Net working capital movements
Cash flow from operations excluding net working capital movements
Capital employed
Corporate
Segment earnings
Cash flow from operations
Less: Net working capital movements
Cash flow from operations excluding net working capital movements
Capital employed
Shell group
CCS earnings
Non-controlling interest
CCS earnings (after non-controlling interest)
Cash flow from operations
Less: Net working capital movements
Cash flow from operations excluding net working capital movements
Capital employed
Shell Investors’ Handbook
Consolidated data
CA P I TA L E M P LOY E D [A] (AT DECEMBER 31)
Upstream
Europe
Asia-Pacific
Other
Upstream International
Upstream Americas
Downstream
Oil products
Chemicals
Corporate
Total
$ MILLION
2011
2010
2009
2008
2007
10,682
23,372
41,427
75,481
50,956
10,588
16,578
38,772
65,938
47,693
9,767
13,352
35,779
58,898
39,928
7,615
10,035
32,164
49,814
34,183
11,227
9,932
25,699
46,858
24,853
59,176
12,800
9,765
208,178
55,302
11,985
13,194
194,112
50,751
11,881
11,710
173,168
44,146
9,904
14,088
152,135
54,471
10,571
7,314
144,067
2011
2010
2009
2008
2007
1,731
5,683
4,133
11,547
9,134
20,681
1,892
2,794
5,128
9,814
12,509
22,323
3,117
2,010
6,792
11,919
8,345
20,264
2,689
1,720
9,069
13,478
15,469
28,947
2,669
1,458
8,390
12,517
6,700
19,217
4,845
634
5,479
141
26,301
1,462
1,402
1,466
420
31,051
3,714
809
4,523
94
26,940
1,214
358
1,646
404
30,562
3,994
1,985
5,979
273
26,516
1,186
1,078
1,270
1,685
31,735
3,796
2,081
5,877
241
35,065
1,447
47
1,294
591
38,444
3,601
1,344
4,945
414
24,576
1,115
(471)
1,472
380
27,072
4,280
3,206
62
7,548
23,503
4,487
2,401
(6)
6,882
23,680
1,625
1,278
(50)
2,853
28,882
3,909
2,932
182
7,023
31,421
7,807
2,613
213
10,633
16,439
19,083
11,243
7,840
4,342
3,793
549
78
23,503
4,537
21,222
8,497
12,725
2,358
1,714
644
100
23,680
2,890
22,326
13,564
8,762
6,232
4,638
1,594
324
28,882
5,119
28,257
12,324
15,933
3,104
1,343
1,761
60
31,421
6,999
13,555
7,515
6,040
2,682
1,315
1,367
202
16,439
1,460
[A] Consists of total equity, current debt and non-current debt.
N E T CA P I TA L I N V E ST M E N T
Capital expenditure
Upstream
Europe
Asia-Pacific
Other
Upstream International
Upstream Americas
Total Upstream
Downstream
Oil products
Chemicals
Total Downstream
Corporate
Total capital expenditure
Exploration expense
Leases and other adjustments [A]
New equity in equity-accounted investments
New loans to equity-accounted investments
Total capital investment
Proceeds from divestments [B]
Upstream
Downstream
Corporate
Total
Total net capital investment *
* Comprising
Upstream**
Upstream International
Upstream Americas
Downstream
Oil products
Chemicals
Corporate
Total
** Of which integrated gas
$ MILLION
[A] Includes finance leases and other adjustments related to timing differences between the recognition of assets and associated underlying cash flows.
[B] Includes proceeds from the sale of assets, equity-accounted investments and securities, as shown in the Consolidated statement of cash flows (see page 59).
63
64
Shell Investors’ Handbook
Consolidated data
F I X E D A S S E T S [A] (AT DECEMBER 31)
$ MILLION
2011
2010
2009
2008
2007
14,327
27,536
44,913
86,776
59,683
16,119
20,536
42,868
79,523
54,453
18,478
16,307
38,637
73,422
46,391
16,550
13,094
32,886
62,530
39,228
20,270
12,775
26,921
59,966
28,232
39,711
11,735
2,180
200,085
37,072
11,799
2,120
184,967
38,166
11,642
2,403
172,024
35,002
10,486
2,205
149,451
38,907
9,958
2,438
139,501
Upstream
Europe
Asia-Pacific
Other
Upstream International
Upstream Americas
Downstream
Oil products
Chemicals
Corporate
Total
[A] Comprises intangible assets, property, plant and equipment, equity-accounted investments and investments in securities.
D E P R E C I AT I O N , D E P L E T I O N A N D A M O RT I S AT I O N
Upstream
Europe
Asia-Pacific
Other
Upstream International
Upstream Americas
Downstream
Oil products
Chemicals
Corporate
Total
$ MILLION
2011
2010
2009
2008
2007
1,519
2,732
2,746
3,113
3,319
1,222
1,603
4,344
4,483
1,063
1,445
5,240
5,904
1,091
1,507
5,344
4,531
1,426
1,944
6,483
3,423
1,193
2,397
6,909
3,004
3,408
843
150
13,228
3,444
810
197
15,595
3,469
930
184
14,458
2,686
888
176
13,656
2,440
666
161
13,180
2011
23,009
1,466
24,475
44
2010
16,384
(1,514)
14,870
42
2009
9,297
(995)
8,302
39
2008
24,452
(108)
24,344
48
2007
20,076
(1,426)
18,650
37
2011
2010
2009
2008
2007
15.9
11.5
8.0
18.3
23.7
5.6
4.6
3.5
4.8
7.3
19.3
14.0
9.4
20.6
26.0
1.2
1.1
1.1
1.1
1.2
15.1
18.7
18.3
9.7
8.9
17.9
22.8
20.2
15.3
12.6
13.1
17.1
15.5
5.9
6.3
TA X AT I O N
Current taxation ($ million)
Deferred taxation ($ million)
Total ($ million)
As percentage of income before taxation (%)
F I N A N C I A L R AT I O S
Return on average capital employed
Income for the period adjusted for interest expense, less tax for the period,
as % of the average capital employed
Return on sales
Income attributable to Royal Dutch Shell plc shareholders plus noncontrolling interest as % of sales proceeds (including sales taxes, etc.)
Return on equity
Income attributable to Royal Dutch Shell plc shareholders as % of average
net assets (i.e. equity attributable to Royal Dutch Shell plc shareholders
and non-controlling interest)
Current ratio
Current assets : current liabilities
Long-term debt ratio
Non-current debt as % of capital employed less current debt
Total debt ratio
Non-current debt plus current debt as % of capital employed
Gearing ratio at December 31
Net debt as % of total capital
Shell Investors’ Handbook
Upstream data
UPSTREAM DATA
UPSTREAM EARNINGS
2011
$ MILLION
Revenue (third party and inter-segment)
Share of profit of equity-accounted investments
Interest and other income
Total revenue and other income
Purchases
Production and manufacturing expenses
Taxes other than income tax
Selling, distribution and administrative expenses
Research and development
Europe
26,263
1,527
42
27,832
9,687
2,775
390
1,010
505
Exploration
Depreciation, depletion and amortisation
Interest expense
Earnings before taxation
Taxation
Earnings after taxation
Cash flow from operations
Less: Net working capital movements
Cash flow from operations excluding net working capital movements
313
1,519
356
11,277
6,196
5,081
6,680
(876)
7,556
Asia [A]
11,125
1,111
841
13,077
2,190
1,735
835
83
15
413
1,222
53
6,531
824
5,707
6,343
(133)
6,476
Other [B]
33,451
3,121
1,052
37,624
4,605
4,606
1,553
22
–
584
1,603
149
24,502
15,593
8,909
9,421
(2,225)
11,646
Upstream
International
70,839
5,759
1,935
78,533
16,482
9,116
2,778
1,115
520
Upstream
Americas
20,852
1,368
2,214
24,434
5,606
6,490
239
161
162
Total
91,691
7,127
4,149
102,967
22,088
15,606
3,017
1,276
682
1,310
4,344
558
42,310
22,613
19,697
22,444
(3,234)
25,678
956
4,483
198
6,139
1,381
4,758
8,135
532
7,603
2,266
8,827
756
48,449
23,994
24,455
30,579
(2,702)
33,281
Upstream
International
52,222
3,986
3,356
59,564
11,156
8,155
1,939
1,091
Upstream
Americas
15,976
914
260
17,150
2,936
5,542
254
421
Total
68,198
4,900
3,616
76,714
14,092
13,697
2,193
1,512
421
1,014
5,240
509
30,039
14,834
15,205
18,523
(10)
18,533
199
1,022
5,904
154
718
(12)
730
6,349
356
5,993
620
2,036
11,144
663
30,757
14,822
15,935
24,872
346
24,526
2010
Revenue (third party and inter-segment)
Share of profit of equity-accounted investments
Interest and other income
Total revenue and other income
Purchases
Production and manufacturing expenses
Taxes other than income tax
Selling, distribution and administrative expenses
Research and development
Exploration
Depreciation, depletion and amortisation
Interest expense
Earnings before taxation
Taxation
Earnings after taxation
Cash flow from operations
Less: Net working capital movements
Cash flow from operations excluding net working capital movements
[A] Asia: East Asia and Oceania.
[B] Other: Africa, Middle East and Commonwealth of Independent States.
$ MILLION
Europe
21,379
1,378
37
22,794
7,379
2,981
303
989
416
335
2,732
344
7,315
2,987
4,328
5,096
(347)
5,443
Asia[A]
7,893
1,099
3,153
12,145
1,175
1,539
567
90
5
337
1,063
37
7,332
1,117
6,215
5,269
472
4,797
Other [B]
22,950
1,509
166
24,625
2,602
3,635
1,069
12
–
342
1,445
128
15,392
10,730
4,662
8,158
(135)
8,293
65
66
Shell Investors’ Handbook
Upstream data
2009
Revenue (third party and inter-segment)
Share of profit of equity-accounted investments
Interest and other income
Total revenue and other income
Purchases
Production and manufacturing expenses
Taxes other than income tax
Selling, distribution and administrative expenses
Research and development
Exploration
Depreciation, depletion and amortisation
Interest expense
Earnings before taxation
Taxation
Earnings after taxation
Cash flow from operations
Less: Net working capital movements
Cash flow from operations excluding net working capital movements
$ MILLION
Europe
20,403
1,485
75
21,963
7,341
3,229
322
1,555
415
273
2,745
338
5,745
2,989
2,756
4,724
894
3,830
Asia [A]
6,617
740
379
7,736
1,187
1,705
316
71
–
276
1,091
22
3,068
454
2,614
3,723
(84)
3,807
Upstream
International
42,336
3,208
536
46,080
10,028
8,482
1,144
1,665
415
1,209
5,344
498
17,295
10,086
7,209
12,859
438
Upstream
Americas
12,804
644
116
13,564
1,618
5,414
124
541
219
969
4,531
147
1
(1,144)
1,145
7,076
1,052
Total
55,140
3,852
652
59,644
11,646
13,896
1,268
2,206
634
2,178
9,875
645
17,296
8,942
8,354
19,935
1,490
12,421
6,024
18,445
Other[B]
25,233
2,065
446
27,744
1,910
3,465
903
26
–
388
1,943
111
18,998
12,991
6,007
9,977
1,737
8,240
Upstream
International
64,262
6,080
3,440
73,782
11,627
8,090
2,280
1,577
481
989
6,483
482
41,773
22,475
19,298
28,506
3,517
24,989
Upstream
Americas
24,046
1,441
684
26,171
5,231
5,572
191
453
295
1,006
3,423
104
9,896
2,688
7,208
10,175
(284)
10,459
Other[B]
20,111
1,612
19
21,742
1,831
4,301
839
37
–
408
2,397
74
11,855
8,298
3,557
7,287
63
7,224
Upstream
International
47,998
4,276
2,233
54,507
7,889
8,555
1,738
1,364
439
845
6,909
392
26,376
13,923
12,453
17,786
(221)
18,007
Upstream
Americas
19,280
1,170
805
21,255
4,059
4,493
140
651
427
977
3,004
79
7,425
1,784
5,641
9,577
1,714
7,863
Other [B]
15,316
983
82
16,381
1,500
3,548
506
39
–
660
1,508
138
8,482
6,643
1,839
4,412
(372)
4,784
2008
Revenue (third party and inter-segment)
Share of profit of equity-accounted investments
Interest and other income
Total revenue and other income
Purchases
Production and manufacturing expenses
Taxes other than income tax
Selling, distribution and administrative expenses
Research and development
Exploration
Depreciation, depletion and amortisation
Interest expense
Earnings before taxation
Taxation
Earnings after taxation
Cash flow from operations
Less: Net working capital movements
Cash flow from operations excluding net working capital movements
$ MILLION
Europe
28,979
2,582
2,304
33,865
7,164
3,131
502
1,431
481
416
3,114
348
17,278
8,469
8,809
12,885
1,466
11,419
Asia[A]
10,050
1,433
690
12,173
2,553
1,494
875
120
–
185
1,426
23
5,497
1,015
4,482
5,644
314
5,330
2007
Revenue (third party and inter-segment)
Share of profit of equity-accounted investments
Interest and other income
Total revenue and other income
Purchases
Production and manufacturing expenses
Taxes other than income tax
Selling, distribution and administrative expenses
Research and development
Exploration
Depreciation, depletion and amortisation
Interest expense
Earnings before taxation
Taxation
Earnings after taxation
Cash flow from operations
Less: Net working capital movements
Cash flow from operations excluding net working capital movements
Total
88,308
7,521
4,124
99,953
16,858
13,662
2,471
2,030
776
1,995
9,906
586
51,669
25,163
26,506
38,681
3,233
35,448
$ MILLION
Europe
21,080
1,767
1,815
24,662
4,725
3,257
401
1,242
439
178
3,319
300
10,801
4,982
5,819
6,394
(174)
6,568
Asia [A]
6,807
897
399
8,103
1,333
997
498
85
–
259
1,193
18
3,720
643
3,077
4,105
(110)
4,215
Total
67,278
5,446
3,038
75,762
11,948
13,048
1,878
2,015
866
1,822
9,913
471
33,801
15,707
18,094
27,363
1,493
25,870
Shell Investors’ Handbook
Upstream data
OIL AND GAS EXPLORATION AND PRODUCTION ACTIVITIES
EARNINGS
Shell subsidiaries
2011
$ MILLION
North America
South
USA
Other [B] America
Europe
Asia
Oceania
Africa
5,038
10,379
15,417
2,243
390
288
1,473
(1,670)
9,353
4,227
14,495
18,722
1,301
588
326
1,008
(3,242)
12,257
1,823
1,160
2,983
386
300
178
351
(331)
1,437
3,143
10,986
14,129
1,453
1,499
493
1,181
1,071
10,574
3,369
4,016
7,385
2,005
59
745
2,427
797
2,946
342
6,710
7,052
2,979
–
110
1,575
(2,080)
308
96
1,570
1,666
250
180
126
352
504
1,262
18,038
49,316
67,354
10,617
3,016
2,266
8,367
(4,951)
38,137
Taxation charge/(credit)
Earnings after taxation
6,048
3,305
9,748
2,509
(15)
1,452
6,511
4,063
714
2,232
165
143
471
791
23,642
14,495
Revenue
Production costs excluding taxes
Taxes other than income tax [A]
Exploration expense
Depreciation, depletion and amortisation
Other income/(costs)
Earnings before taxation
Taxation charge/(credit)
Earnings after taxation
83.64
12.17
2.12
1.56
7.99
(9.06)
50.74
32.81
17.93
99.60
6.92
3.13
1.73
5.36
(17.25)
65.21
51.86
13.35
65.91
8.53
6.63
3.93
7.76
(7.31)
31.75
(0.33)
32.08
82.19
8.45
8.72
2.87
6.87
6.23
61.51
37.87
23.63
65.91
17.89
0.53
6.65
21.66
7.11
26.29
6.37
19.92
78.54
33.18
–
1.23
17.54
(23.17)
3.43
1.84
1.59
82.99
12.45
8.97
6.28
17.53
25.11
62.86
23.46
39.40
Revenue
Third parties
Sales between businesses
Total
Production costs excluding taxes
Taxes other than income tax [A]
Exploration expense
Depreciation, depletion and amortisation
Other income/(costs)
Earnings before taxation
Total
$/BOE
2010
83.01
13.08
3.72
2.79
10.31
(6.10)
47.00
29.14
17.86
$ MILLION
North America
South
USA
Other [B] America
Europe
Asia
Oceania
Africa
Revenue
Third parties
Sales between businesses
Total
Production costs excluding taxes
Taxes other than income tax [A]
Exploration expense
Depreciation, depletion and amortisation
Other income/(costs)
Earnings before taxation
Taxation charge/(credit)
Earnings after taxation
4,100
8,572
12,672
2,186
303
335
2,690
(1,144)
6,014
2,915
3,099
2,755
10,672
13,427
1,106
333
275
748
(2,748)
8,217
6,752
1,465
1,674
980
2,654
287
284
110
436
2,479
4,016
524
3,492
2,215
8,225
10,440
1,244
1,019
294
1,192
497
7,188
4,564
2,624
3,547
3,153
6,700
1,700
100
730
1,858
(528)
1,784
542
1,242
487
4,101
4,588
2,257
–
167
3,178
(1,324)
(2,338)
(614)
(1,724)
121
1,356
1,477
209
154
125
636
72
425
132
293
Revenue
Production costs excluding taxes
Taxes other than income tax [A]
Exploration expense
Depreciation, depletion and amortisation
Other income/(costs)
Earnings before taxation
Taxation charge/(credit)
Earnings after taxation
58.55
10.10
1.40
1.55
12.43
(5.28)
27.79
13.47
14.32
73.72
6.07
1.83
1.51
4.11
(15.09)
45.11
37.07
8.04
53.86
5.82
5.76
2.23
8.85
50.30
81.50
10.63
70.87
59.47
7.09
5.80
1.67
6.79
2.82
40.94
25.99
14.95
50.85
12.90
0.76
5.54
14.10
(4.01)
13.54
4.11
9.43
60.72
29.87
–
2.21
42.06
(17.52)
(30.94)
(8.12)
(22.82)
62.26
8.81
6.49
5.27
26.81
3.03
17.91
5.56
12.35
Total
14,899
37,059
51,958
8,989
2,193
2,036
10,738
(2,696)
25,306
14,815
10,491
$/BOE
[A] Includes cash paid royalties to governments outside North America.
[B] Comprises Canada and Greenland.
60.81
10.52
2.57
2.38
12.57
(3.15)
29.62
17.34
12.28
67
68
Shell Investors’ Handbook
Upstream data
2009
$ MILLION
North America
South
USA
Other [B] America
Europe
Asia
Oceania
Africa
2,945
8,271
11,216
2,729
322
273
2,730
(1,064)
4,098
2,886
1,212
2,449
8,170
10,619
1,113
185
208
937
(2,458)
5,718
4,744
974
1,001
877
1,878
177
172
196
307
(463)
563
69
494
1,613
5,524
7,137
1,285
465
532
1,233
(444)
3,178
2,370
808
3,055
2,774
5,829
1,666
56
610
2,440
(653)
404
(458)
862
348
3,334
3,682
1,963
–
177
1,999
(1,075)
(1,532)
(572)
(960)
119
486
605
184
68
182
124
(72)
(25)
(126)
101
Revenue
Production costs excluding taxes
Taxes other than income tax [A]
48.96
11.91
1.41
55.94
5.86
0.97
38.51
3.63
3.53
53.95
9.71
3.51
42.37
12.11
0.41
47.95
25.56
–
42.54
12.94
4.78
49.44
11.00
1.53
Exploration expense
Depreciation, depletion and amortisation
Other income/(costs)
Earnings before taxation
Taxation charge/(credit)
Earnings after taxation
1.19
11.92
(4.64)
17.89
12.60
5.29
1.10
4.94
(12.95)
30.12
24.99
5.13
4.02
6.29
(9.50)
11.54
1.41
10.13
4.02
9.32
(3.37)
24.02
17.91
6.11
4.43
17.74
(4.74)
2.94
(3.33)
6.27
2.31
26.03
(14.00)
(19.95)
(7.45)
(12.50)
12.80
8.72
(5.06)
(1.76)
(8.86)
7.10
2.63
11.79
(7.52)
14.97
10.76
4.21
Revenue
Third parties
Sales between businesses
Total
Production costs excluding taxes
Taxes other than income tax [A]
Exploration expense
Depreciation, depletion and amortisation
Other income/(costs)
Earnings before taxation
Taxation charge/(credit)
Earnings after taxation
Total
11,530
29,436
40,966
9,117
1,268
2,178
9,770
(6,229)
12,404
8,913
3,491
$/BOE
2008
$ MILLION
North America
South
USA
Other [B] America
Europe
Asia
Oceania
Africa
Revenue
Third parties
Sales between businesses
Total
Production costs excluding taxes
Taxes other than income tax [A]
Exploration expense
Depreciation, depletion and amortisation
Other income/(costs)
Earnings before taxation
Taxation charge/(credit)
Earnings after taxation
6,210
13,771
19,981
2,383
501
414
3,102
(440)
13,141
8,391
4,750
3,764
13,001
16,765
1,331
639
131
1,299
(2,107)
11,258
9,098
2,160
170
1,440
1,610
157
258
143
220
8
840
205
635
3,104
8,429
11,533
1,207
882
300
1,595
(20)
7,529
4,505
3,024
5,219
5,235
10,454
1,294
101
680
2,166
(76)
6,137
2,044
4,093
1,131
1,573
2,704
750
–
180
880
(330)
564
11
553
479
371
850
161
90
147
74
(41)
337
287
50
Revenue
Production costs excluding taxes
Taxes other than income tax [A]
Exploration expense
Depreciation, depletion and amortisation
Other income/(costs)
Earnings before taxation
Taxation charge/(credit)
Earnings after taxation
77.53
9.25
1.94
1.61
12.04
(1.70)
50.99
32.56
18.43
88.66
7.01
3.38
0.69
6.87
(11.17)
59.54
48.12
11.42
34.99
3.41
5.61
3.11
4.78
0.17
18.25
4.45
13.80
71.91
7.53
5.50
1.87
9.95
(0.11)
46.95
28.09
18.86
77.05
9.54
0.74
5.01
15.96
(0.57)
45.23
15.06
30.17
63.69
17.67
–
4.24
20.73
(7.77)
13.28
0.25
13.03
56.79
10.76
6.01
9.82
4.94
(2.75)
22.51
19.17
3.34
Total
20,077
43,820
63,897
7,283
2,471
1,995
9,336
(3,006)
39,806
24,541
15,265
$/BOE
[A] Includes cash paid royalties to governments outside North America.
[B] Comprises Canada and Greenland.
75.50
8.61
2.92
2.36
11.03
(3.54)
47.04
29.00
18.04
Shell Investors’ Handbook
Upstream data
2007
$ MILLION
North America
South
USA
Other [B] America
Europe
Asia
Oceania
Africa
3,750
11,654
15,404
2,433
401
178
3,311
107
9,188
4,961
4,227
2,961
9,097
12,058
1,313
342
141
893
(1,529)
7,840
6,499
1,341
226
1,352
1,578
131
165
183
350
90
839
139
700
1,108
8,955
10,063
1,312
829
345
2,168
(1,670)
3,739
2,332
1,407
3,099
5,765
8,864
1,242
74
675
2,183
(398)
4,292
1,488
2,804
1,322
1,021
2,343
655
–
246
514
(708)
220
(66)
286
192
501
693
158
67
54
13
(44)
357
19
338
Revenue
Production costs excluding taxes
Taxes other than income tax [A]
57.84
9.15
1.51
66.12
7.20
1.88
31.76
2.64
3.32
58.47
7.62
4.82
56.24
7.88
0.47
55.19
15.43
–
48.64
11.09
4.70
57.65
8.19
2.12
Exploration expense
Depreciation, depletion and amortisation
Other income/(costs)
Earnings before taxation
Taxation charge/(credit)
Earnings after taxation
0.67
12.43
0.42
34.50
18.63
15.87
0.77
4.90
(8.38)
42.99
35.64
7.35
3.68
7.05
1.82
16.89
2.80
14.09
2.00
12.60
(9.70)
21.73
13.55
8.18
4.28
13.85
(2.53)
27.23
9.44
17.79
5.79
12.11
(16.68)
5.18
(1.56)
6.74
3.79
0.91
(3.09)
25.06
1.34
23.72
2.06
10.66
(4.70)
29.92
17.37
12.55
Africa
–
–
–
–
–
–
–
–
–
North America
USA
Canada
2,807
–
457
–
127
–
8
–
211
–
103
–
2,107
–
765
–
1,342
–
South
America
318
41
89
–
35
(108)
45
45
–
Total
21,105
2,030
7,638
170
1,979
173
9,461
3,907
5,554
–
(203)
165
145
3,815
2,908
4,970
3,583
Revenue:
Third parties
Sales between businesses
Total
Production costs excluding taxes
Taxes other than income tax [A]
Exploration expense
Depreciation, depletion and amortisation
Other income/(costs)
Earnings before taxation
Taxation charge/(credit)
Earnings after taxation
Total
12,658
38,345
51,003
7,244
1,878
1,822
9,432
(4,152)
26,475
15,372
11,103
$/BOE
[A] Includes cash paid royalties to governments outside North America.
[B] Comprises Canada and Greenland.
Shell share of equity-accounted investments
2011–2007
$ MILLION
2011
Third party revenue
Production costs excluding taxes
Taxes other than income tax [A]
Exploration expense
Depreciation, depletion and amortisation
Other income/(costs)
Earnings before taxation
Taxation
Earnings after taxation
Europe
5,688
353
2,990
13
237
349
2,444
940
1,504
Asia
11,021
932
4,358
60
1,250
(30)
4,391
1,983
2,408
Oceania [B]
1,271
247
74
89
246
(141)
474
174
300
2010
2009
2008
2007
1,394
1,509
2,519
1,667
1,085
552
467
597
518
283
535
238
–
–
–
–
818
767
1,281
929
–
–
3
7
[A] Includes cash paid royalties to governments outside North America.
[B] Includes Shell’s ownership of Woodside Petroleum Ltd (24% from November 2010, previously 34%), a publicly listed company on the Australian Securities Exchange.
We have limited access to data; accordingly the numbers are estimated.
OIL SANDS
O I L S A N D S U N I T O P E R AT I N G CO ST S
Mining and upgrader cash operating costs [A]
Depreciation, depletion and amortisation costs
Total unit costs
$/B
2011
43.00
10.21
53.21
2010
47.74
6.99
54.73
2009
32.49
4.88
37.37
2008
38.15
5.68
43.83
2007
28.92
4.42
33.34
[A] Unit cash operating cost defined as: operating, selling and general expenses plus cash costs items included in cost of goods sold excluding pre-development and
centrally allocated costs divided by synthetic crude sales volumes excluding blend stock.
69
70
Shell Investors’ Handbook
Upstream data
PROVED OIL AND GAS RESERVES
The tables present oil and gas reserves on a
net basis which means that they include the
reserves relating to (i) the Shell subsidiaries
excluding the reserves attributable to
non-controlling interest holders in our
subsidiaries and (ii) the Shell share of equity-
accounted investments. Proven minable oil
sands reserves are reported separately for
2007–2008. As a result of SEC rule changes,
these proven minable oil sands reserves have
been converted to synthetic crude oil proved
reserves and from 2009 onwards these are
included in the proved oil and gas reserves.
Moreover, from 2009 onwards bitumen
proved reserves are reported separately. In
previous years, the bitumen proved reserves
were included in the reported proved oil and
gas reserves in Canada.
P R OV E D C R U D E O I L A N D N AT U R A L G A S L I Q U I D S , SY N T H E T I C C R U D E O I L A N D B I T U M E N R E S E RV E S F O R S H E L L
S U B S I D I A R I E S A N D E Q U I T Y- ACCO U N T E D I N V E ST M E N T S [A][B][C] (AT DECEMBER 31)
Europe
Asia
Oceania
Africa
North America – USA
North America – Canada
Oil and NGL
Synthetic crude oil
Bitumen
South America
Total including year-average/end price effects
2011
754
1,664
209
718
838
2010
617
2,080
109
737
843
MILLION BARRELS
2009
526
1,830
135
725
710
2008
491
1,562
124
590
588
2007
641
1,604
126
562
672
35
35
38
48
119
1,680
55
82
6,035
1,567
51
89
6,128
1,599
57
57
5,677
32
3,435
39
3,763
P R OV E D N AT U R A L G A S R E S E RV E S F O R S H E L L S U B S I D I A R I E S A N D E Q U I T Y- ACCO U N T E D I N V E ST M E N T S [A][B][C][D]
(AT DECEMBER 31)
Europe
Asia
Oceania
Africa
North America – USA
North America – Canada
South America
Total including year-average/end price effects
2011
15,401
16,943
7,094
2,791
3,259
2,045
110
47,643
2010
15,566
18,194
6,149
2,981
2,745
1,308
160
47,103
2009
15,835
19,797
6,632
3,033
2,323
1,172
243
49,035
P R OV E N M I N A B L E O I L S A N D S R E S E RV E S (AT DECEMBER 31)
THOUSAND MILLION SCF
2008
15,732
18,791
3,100
1,759
2,402
1,231
303
43,318
MILLION BARRELS
2008
997
Total including year-end price effects
TOTA L P R OV E D O I L A N D G A S R E S E RV E S [A][B][C][E][F] (AT DECEMBER 31)
Europe
Asia
Oceania
Africa
North America – USA
North America – Canada
South America
Total including year-average/end price effects
Year-average/end price effects
[A]
[B]
[C]
[D]
[E]
2007
16,481
16,224
2,686
1,741
2,480
923
334
40,869
2007
1,111
MILLION BOE
2011
3,409
4,585
1,432
1,200
1,400
2,123
101
14,250
(235)
2010
3,301
5,217
1,169
1,250
1,316
1,879
117
14,249
(198)
2009
3,256
5,243
1,278
1,249
1,111
1,896
99
14,132
260
2008
3,203
4,802
659
893
1,002
1,257
84
11,900
19
2007
3,483
4,401
589
862
1,100
1,388
97
11,920
(183)
2009–2011 includes proved reserves associated with future production that will be consumed in operations. These volumes were not included in previous years.
Total attributable to Royal Dutch Shell plc shareholders.
Year-end price effect for 2007 and 2008; year-average price effect for 2009–2011.
These quantities have not been adjusted to standard heat content.
Natural gas volumes are converted to oil equivalent using a factor of 5,800 scf per barrel. Rounding difference may occur in estimate of gas reserves conversion from
scf to boe.
[F] Proven minable oil sands included for 2007–2008.
Shell Investors’ Handbook
Upstream data
Changes
The tables present changes in the reserves
of (i) Shell subsidiaries without deduction of
the reserves attributable to non-controlling
interest holders in our subsidiaries and
(ii) the Shell share of equity-accounted
investments. Changes in proven minable
oil sands reserves are reported separately
for 2007–2008. As a result of SEC rule
changes, these proven minable oil sands
reserves have been converted to synthetic
crude oil proved reserves and from 2009
onwards these are included in the proved
oil and gas reserves.
P R OV E D C R U D E O I L A N D N AT U R A L G A S L I Q U I D S , SY N T H E T I C C R U D E O I L A N D B I T U M E N R E S E RV E S C H A N G E S
F O R S H E L L S U B S I D I A R I E S A N D E Q U I T Y- ACCO U N T E D I N V E ST M E N T S [A][C] (AT DECEMBER 31)
Revisions and reclassifications
Improved recovery
Extensions and discoveries
Purchases of minerals in place
Sales of minerals in place
Total additions including year-average/end price effects
Production
2011
190
34
326
–
(37)
513
(611)
2010
856
66
161
59
(57)
1,085
(626)
2009
1,205 [B]
42
617
–
(1)
1,863
(616)
P R OV E D N AT U R A L G A S R E S E RV E S C H A N G E S F O R S H E L L S U B S I D I A R I E S A N D E Q U I T Y- ACCO U N T E D
I N V E ST M E N T S [A][C][D] (AT DECEMBER 31)
Revisions and reclassifications
Improved recovery
Extensions and discoveries
Purchases of minerals in place
Sales of minerals in place
Total additions including year-average/end price effects
Production
2011
899
3
3,504
–
(394)
4,012
(3,485)
2010
829
42
1,288
237
(743)
1,653
(3,573)
MILLION BARRELS
2008
242
54
51
4
(65)
286
(619)
THOUSAND MILLION SCF
2009
4,688
1
4,326
16
–
9,031
(3,315)
P R OV E N M I N A B L E O I L S A N D S R E S E RV E S C H A N G E S (AT DECEMBER 31)
2008
4,184
–
968
448
(19)
5,581
(3,137)
TOTA L P R OV E D O I L A N D G A S R E S E RV E S C H A N G E S [A][C][E][F] (AT DECEMBER 31)
Extensions and discoveries
Purchases of minerals in place
Sales of minerals in place
Total additions including year-average/end price effects
Year-average/end price effects
Total additions excluding year-average/end price effects
Total additions excluding acquisitions and divestments and excluding
year-average/end price effects
Production
[A]
[B]
[C]
[D]
[E]
2007
1,388
1
3,636
1
(5,275)
(249)
(2,998)
MILLION BARRELS
2008
(85)
–
(85)
(29)
Revisions and reclassifications
Extensions and discoveries
Total additions including year-end price effects
Production
Revisions and reclassifications
Improved recovery
2007
164
59
225
–
(206)
242
(663)
2007
6
–
6
(29)
MILLION BOE
2011
345
2010
999
35
930
–
(105)
1,205
(235)
1,440
73
383
100
(185)
1,370
(198)
1,568
1,545
(1,212)
1,753
(1,242)
2009
2,013 [B]
2008
878
2007
409
42
1,363
3
(1)
3,420
260
3,160
54
219
81
(68)
1,164
19
1,145
59
853
–
(1,115)
206
(183)
389
3,161
(1,187)
1,213
(1,189)
1,504
(1,210)
2009–2011 includes proved reserves associated with volumes consumed in operations. These volumes were not included in previous years.
Excludes the 997 million barrels of previously booked proven minable oil sands reserves.
Year-end price effect for 2007 and 2008; year-average price effect for 2009–2011.
These quantities have not been adjusted to standard heat content.
Natural gas volumes are converted to oil equivalent using a factor of 5,800 scf per barrel. Rounding difference may occur in estimate of gas reserves conversion from
scf to boe.
[F] Proven minable oil sands included for 2007–2008.
71
72
Shell Investors’ Handbook
Upstream data
Changes by region 2011
The tables present changes in the reserves
of (i) Shell subsidiaries without deduction of
the reserves attributable to non-controlling
interest holders in our subsidiaries and
(ii) the Shell share of equity-accounted
investments. As a result of SEC rule
changes, proven minable oil sands reserves
have been converted to synthetic crude oil
proved reserves and from 2009 onwards
these are included in the proved oil and gas
reserves. Moreover, from 2009 onwards
bitumen proved reserves are reported
separately.
P R OV E D C R U D E O I L A N D N AT U R A L G A S L I Q U I D S , SY N T H E T I C C R U D E O I L A N D B I T U M E N R E S E RV E S C H A N G E S F O R
S H E L L S U B S I D I A R I E S A N D E Q U I T Y- ACCO U N T E D I N V E ST M E N T S [A] (AT DECEMBER 31)
Revisions and reclassifications
Improved recovery
Extensions and discoveries
Purchases of minerals in place
Sales of minerals in place
Total additions
including year-average price effects
Production
Europe
Oil and
NGL
143
–
81
–
–
Asia
Oil and
NGL
(210)
2
20
–
–
Oceania
Oil and
NGL
23
–
96
–
(1)
Africa
Oil and
NGL
128
–
1
–
(29)
USA
Oil and
NGL
43
31
5
–
(7)
Oil and
NGL
3
–
4
–
–
224
(87)
(188)
(233)
118
(18)
100
(119)
72
(77)
7
(7)
MILLION BARRELS
North America
Canada
Synthetic
crude oil
Bitumen
42
9
–
–
116
–
–
–
–
–
158
(45)
9
(5)
N AT U R A L G A S R E S E RV E S C H A N G E S F O R S H E L L S U B S I D I A R I E S A N D E Q U I T Y- ACCO U N T E D I N V E ST M E N T S [A][B]
Revisions and reclassifications
Improved recovery
Extensions and discoveries
Purchases of minerals in place
Sales of minerals in place
Total additions
including year-average price effects
Production
Europe
1,062
–
31
–
(4)
Asia
(550)
–
407
–
(120)
Oceania
(230)
–
1,485
–
(30)
Africa
90
–
71
–
(21)
1,089
(1,254)
(263)
(1,002)
1,225
(280)
140
(329)
South
America
Oil and
NGL
9
1
3
–
–
All products
190
34
326
–
(37)
13
(20)
513
(611)
THOUSAND MILLION SCF
North America
USA
Canada
399
155
3
–
694
816
–
–
(214)
(5)
South
America
(27)
–
–
–
–
Total
899
3
3,504
–
(394)
966
(229)
(27)
(23)
4,012
(3,485)
North America
Canada
Synthetic
crude oil
Bitumen
42
9
South
America
Oil, NGL
and gas
4
All products
345
882
(368)
TOTA L P R OV E D R E S E RV E S C H A N G E S F O R S H E L L S U B S I D I A R I E S A N D E Q U I T Y- ACCO U N T E D I N V E ST M E N T S [ A][ C]
Revisions and reclassifications
Improved recovery
Europe
Oil, NGL
and gas
326
Asia
Oil, NGL
and gas
(304)
Oceania
Oil, NGL
and gas
(17)
Africa
Oil, NGL
and gas
144
USA
Oil, NGL
and gas
112
–
2
–
–
32
Extensions and discoveries
86
90
352
13
125
Purchases of minerals in place
–
–
–
–
–
Sales of minerals in place
(1)
(21)
(6)
(32)
(44)
Total additions
including year-average price effects
411
(233)
329
125
225
Year-average price effect
Production
(303)
(406)
(66)
(176)
(141)
Reserves replacement ratio excluding acquisitions and divestments and year-average price effects
Total additions excluding acquisitions and divestments and including year-average price effects
Reserves replacement ratio including acquisitions and divestments and year-average price effects
Oil, NGL
and gas
29
Total
MILLION BOE
Total
–
145
–
(1)
–
116
–
–
–
–
–
–
1
3
–
–
35
930
–
(105)
173
158
9
8
(46)
(45)
(5)
(24)
1,205
(235)
(1,212)
127%
108%
99%
[A] Includes proved reserves associated with volumes consumed in operations. These volumes were not included in previous years.
[B] These quantities have not been adjusted to standard heat content.
[C] Natural gas volumes are converted to oil equivalent using a factor of 5,800 scf per barrel. Rounding difference may occur in estimate of gas reserves conversion from
scf to boe.
Shell Investors’ Handbook
Upstream data
73
OIL, GAS, SYNTHETIC CRUDE OIL AND BITUMEN PRODUCTION
C R U D E O I L A N D N AT U R A L G A S L I Q U I D S P R O D U CT I O N AVA I L A B L E F O R S A L E [A][B]
Europe
Denmark
Italy
Norway
UK
Other
Total Europe
Asia
Brunei
Malaysia
Oman
Russia
United Arab Emirates
Other
Total Asia
Oceania
Australia
Other
Total Oceania
Africa
Gabon
Nigeria
Other
Total Africa
North America
USA
Other
Total North America
South America
Brazil
Other
Total South America
Total oil production
SUBS
2011
EAI
SUBS
2010
EAI
88
35
37
71
3
234
–
–
–
–
5
5
98
33
48
98
3
280
2
40
200
–
–
40
76
–
–
117
144
20
282
THOUSAND B/D
SUBS
2009
EAI
SUBS
2008
EAI
SUBS
2007
EAI
–
–
–
–
5
5
107
30
62
110
3
312
–
–
–
–
5
5
114
32
67
154
3
370
–
–
–
–
5
5
126
35
69
183
4
417
–
–
–
–
6
6
3
40
199
–
–
29
77
–
–
117
135
1
2
39
195
–
–
42
76
–
–
106
127
1
1
38
192
–
–
51
80
–
–
70
146
1
2
42
191
–
–
56
90
–
–
51
146
1
357
271
330
278
310
282
297
291
288
20
10
30
18
–
18
18
12
30
29
–
29
18
12
30
35
–
35
17
12
29
39
–
39
25
13
38
33
–
33
44
262
20
326
–
–
–
–
34
302
20
356
–
–
–
–
29
231
24
284
–
–
–
–
30
266
22
318
–
–
–
–
31
287
24
342
–
–
–
–
141
18
159
70
–
70
163
20
183
74
–
74
195
20
215
78
–
78
45
1
46
1,077
–
9
9
459
53
1
54
1,174
–
7
7
445
24
1
25
1,144
–
9
9
437
190
46[C]
236
23
1
24
1,259
82
–
82
–
11
11
434
238
47[C]
285
22
1
23
1,396
[A] Includes natural gas liquids. Royalty purchases are excluded. Reflects 100% of production attributable to subsidiaries except in respect of PSCs, where the figures
shown represent the entitlement of the subsidiaries concerned under those contracts.
[B] Other comprises countries where 2011 production was lower than 20 thousand b/d or where specific disclosures are prohibited.
[C] Includes bitumen production.
86
–
86
–
9
9
422
74
Shell Investors’ Handbook
Upstream data
N AT U R A L G A S P R O D U CT I O N AVA I L A B L E F O R S A L E [A][B]
Europe
Denmark
Germany
The Netherlands
Norway
UK
Other
Total Europe
Asia
Brunei
China
Malaysia
Russia
Other
Total Asia
Oceania
Australia
Other
Total Oceania
Africa
Nigeria
Other
Total Africa
North America
USA
Canada
Total North America
Total South America
Total gas production
SUBS
2011
EAI
256
253
–
618
403
41
1,571
MILLION SCF/D
SUBS
2010
EAI
SUBS
2009
EAI
–
–
1,767
–
–
–
1,767
328
267
–
643
541
38
1,817
52
174
763
–
363
1,352
524
–
–
382
246
1,152
SUBS
2008
EAI
SUBS
2007
EAI
–
–
1,997
–
–
–
1,997
335
311
–
593
561
31
1,831
–
–
1,639
–
–
–
1,639
406
333
–
492
678
29
1,938
–
–
1,741
–
–
–
1,741
369
390
–
357
663
34
1,813
–
–
1,518
–
19
–
1,537
55
253
807
–
209
1,324
497
–
–
359
–
856
44
257
886
–
217
1,404
473
–
–
192
–
665
51
231
874
–
205
1,361
499
–
–
–
–
499
47
106
865
–
192
1,210
506
–
–
–
–
506
373
167
404
204
383
216
345
215
339
203
175
548
–
167
202
606
–
204
218
601
–
216
216
561
–
215
230
569
–
203
707
133
840
–
–
–
587
137
724
–
–
–
292
163
455
–
–
–
552
145
697
–
–
–
584
167
751
–
–
–
961
570
1,531
51
5,893
6
–
6
1
3,093
1,149
563
1,712
61
6,244
4
–
4
–
3,061
1,055
530
1,585
81
5,957
6
–
6
–
2,526
1,048
406
1,454
98
6,109
5
–
5
–
2,460
1,124
402
1,526
93
5,962
6
–
6
–
2,252
[A] Reflects 100% of production attributable to subsidiaries except in respect of PSCs, where the figures shown represent the entitlement of the subsidiaries concerned
under those contracts.
[B] Other comprises countries where 2011 production was lower than 150 million scf/d or where specific disclosures are prohibited.
Shell Investors’ Handbook
Upstream data
TOTA L P R O D U CT I O N AVA I L A B L E F O R S A L E [A][B][C]
Europe
Denmark
Germany
Italy
The Netherlands
Norway
UK
Other
Total Europe
Asia
Brunei
China
Malaysia
Russia
United Arab Emirates
Other
Total Asia
Oceania
Australia
New Zealand
Total Oceania
Africa
Gabon
Nigeria
Other
Total Africa
North America
USA
Canada
Total North America
South America
Brazil
Others
Total South America
Total oil and gas production
Synthetic oil production
Bitumen production
Mined oil sands production
Grand total
75
THOUSAND BOE/D
SUBS
2011
EAI
SUBS
132
47
42
–
144
140
–
505
–
–
–
310
–
–
–
310
155
49
40
–
159
191
–
594
11
30
172
–
–
302
515
166
–
–
183
144
62
555
84
40
124
2010
EAI
SUBS
2009
EAI
SUBS
2008
EAI
SUBS
2007
EAI
–
–
349
164
57
35
–
164
207
–
627
–
–
–
287
–
–
–
287
184
60
37
–
152
271
–
704
–
–
–
305
–
–
–
305
190
71
41
–
131
297
–
730
–
–
–
268
–
–
3
271
12
48
179
–
–
260
499
163
–
–
179
135
1
478
10
56
192
–
–
263
521
157
–
–
139
127
1
424
10
54
189
–
–
264
517
166
–
–
70
146
1
383
10
35
191
–
–
263
499
177
–
–
51
146
1
375
47
–
47
88
47
135
65
–
65
85
49
134
72
–
72
77
49
126
76
–
76
83
53
136
68
–
68
44
384
43
471
–
–
–
–
34
403
44
481
–
–
–
–
29
281
53
363
–
–
–
–
30
361
47
438
–
–
–
–
31
388
53
472
–
–
–
–
307
116
423
71
–
71
361
117
478
74
–
74
377
111
488
79
–
79
46
9
55
2,093
115
15
–
2,223
–
9
9
992
–
–
–
992
54
10
64
2,251
72
18
–
2,341
–
7
7
973
–
–
–
973
27
12
39
2,172
80
19
–
2,271
–
9
9
871
–
–
–
871
–
–
–
349
370
116[D]
486
29
12
41
2,312
–
–
78
2,390
83
–
83
–
11
11
858
–
–
–
858
432
116[D]
548
28
11
39
2,424
–
–
81
2,505
[A] Natural gas volumes are converted to oil equivalent using a factor of 5,800 scf per barrel.
[B] Includes natural gas liquids. Royalty purchases are excluded. Reflects 100% of production attributable to subsidiaries except in respect of PSCs, where the figures
shown represent the entitlement of the subsidiaries concerned under those contracts.
[C] Other comprises countries where 2011 production was lower than 25 thousand b/d or where specific disclosures are prohibited.
[D] Includes bitumen production.
87
–
87
–
9
9
810
–
–
–
810
76
Shell Investors’ Handbook
Upstream data
ACREAGE AND WELLS
O I L A N D G A S AC R E AG E [A][B] (AT DECEMBER 31)
THOUSAND ACRES
Developed
Gross
Net
Europe
Asia [C]
Oceania
Africa
North America – USA
North America – Other [D]
South America
Total
9,016
27,268
1,798
6,060
1,592
1,101
162
46,997
2,586
9,810
500
2,465
984
757
76
17,178
2011
Undeveloped
Gross
Net
6,688
48,554
67,907
20,706
7,815
31,573
20,655
203,898
2,376
25,779
26,326
15,364
6,140
23,849
8,905
108,739
Developed
Gross
Net
8,983
27,496
2,274
6,701
1,568
1,002
162
48,186
2,550
9,970
553
2,424
952
664
76
17,189
2010
Undeveloped
Gross
Net
8,165
41,781
81,748
23,327
7,003
31,501
15,878
209,403
3,265
22,800
24,413
17,079
5,834
21,489
6,588
101,468
N U M B E R O F P R O D U CT I V E W E L L S [A][B] (AT DECEMBER 31)
2011
Gas
Oil
Europe
Asia [E]
Oceania
Africa
North America – USA
North America – Canada
South America
Total
Gross
1,454
7,361
48
883
14,993
476
67
25,282
Net
427
2,352
5
357
7,607
406
33
11,187
Gross
1,317
289
557
98
3,449
1,115
7
6,832
Net
430
162
212
65
2,222
906
2
3,999
2010
Gas
Oil
Gross
1,464
7,236
39
1,180
15,322
433
73
25,747
Net
412
2,382
4
447
7,771
370
34
11,420
Gross
1,341
298
608
89
3,884
1,007
6
7,233
Net
443
164
211
59
2,457
764
1
4,099
N U M B E R O F N E T P R O D U CT I V E W E L L S A N D D RY H O L E S D R I L L E D [A] (AT DECEMBER 31)
Exploratory
Europe
Asia
Oceania
Africa
North America – USA
North America – Canada
South America
Total
Development
Europe
Asia
Oceania
Africa
North America – USA
North America – Canada
South America
Total
Productive
2011
Dry
Productive
2010
Dry
1
23
32
6
20
70
3
155
1
97
2
5
2
4
1
112
4
27
33
15
80
64
4
227
4
31
2
5
5
8
1
56
12
196
–
23
347
102
1
681
1
8
–
2
2
1
–
14
20
269
3
11
388
34
1
726
1
4
–
–
–
–
–
5
[A] Including equity-accounted investments.
[B] The term “gross” relates to the total activity in which Shell subsidiaries and equity-accounted investments have an interest. The term “net” refers to the sum of
the fractional interests owned by Shell subsidiaries plus the Shell share of equity-accounted investments’ fractional interest.
[C] In compliance with international sanctions, Shell has suspended activities in Syria. Gross and net developed acreage decreased by 477,000 and 309,000 acres
respectively, with a corresponding increase in undeveloped acreage.
[D] Comprises Canada and Greenland. Greenland acreage at December 31, 2010, has been reclassified from Europe to North America – Other.
[E] In compliance with international sanctions, Shell has suspended activities in Syria. Gross and net productive oil wells decreased by 241 and 155 respectively.
Shell Investors’ Handbook
Upstream data
O I L A N D G A S AC R E AG E [A][B] (AT DECEMBER 31)
Developed
Gross
Net
Europe
Asia
Oceania
Africa
North America – USA
North America – Other
South America
Total
9,045
30,969
2,276
7,393
1,030
966
126
51,805
2,592
11,108
568
2,615
597
628
59
18,167
THOUSAND ACRES
2009
Undeveloped
Gross
Net
9,770
78,382
82,945
27,096
6,250
26,712
18,081
249,236
77
3,653
40,547
24,326
18,656
5,027
19,448
7,178
118,835
Developed
Gross
Net
9,646
31,252
2,146
7,314
1,009
1,025
115
52,507
2,785
11,260
552
2,582
593
707
53
18,532
2008
Undeveloped
Gross
Net
8,924
74,749
79,548
26,959
6,238
27,792
4,387
228,597
3,038
36,811
23,052
20,289
4,973
19,546
1,877
109,586
Developed
Gross
Net
10,253
32,677
2,013
7,568
1,067
803
114
54,495
2,894
11,971
516
2,709
620
544
54
19,308
2007
Undeveloped
Gross
Net
10,384
76,890
82,560
38,203
4,825
27,409
4,387
244,658
3,007
32,269
20,791
24,079
3,542
19,200
1,877
104,765
N U M B E R O F P R O D U CT I V E W E L L S [A][B] (AT DECEMBER 31)
2009
Gas
Oil
Europe
Asia
Oceania
Africa
North America – USA
North America – Canada
South America
Total
Gross
1,544
6,751
39
1,150
15,425
446
72
25,427
Net
423
2,250
6
415
7,835
382
32
11,343
Gross
1,343
207
566
80
1,640
947
12
4,795
Net
446
99
122
53
1,170
713
5
2,608
2008
Gas
Oil
Gross
1,569
6,043
42
1,163
15,505
429
68
24,819
Net
422
2,038
9
420
7,828
365
29
11,111
Gross
1,323
200
319
79
1,412
888
12
4,233
Net
440
95
60
49
1,037
665
5
2,351
2007
Gas
Oil
Gross
1,638
5,652
31
1,028
15,493
360
67
24,269
Net
427
1,906
7
374
7,825
303
29
10,871
Gross
1,334
178
116
71
1,040
339
12
3,090
Net
452
85
34
47
765
262
6
1,651
N U M B E R O F N E T P R O D U CT I V E W E L L S A N D D RY H O L E S D R I L L E D [A] (AT DECEMBER 31)
Exploratory
Europe
Asia
Oceania
Africa
North America – USA
North America – Canada
South America
Total
Development
Europe
Asia
Oceania
Africa
North America – USA
North America – Canada
South America
Total
Productive
2009
Dry
Productive
2008
Dry
Productive
2007
Dry
6
38
24
8
49
32
1
158
3
10
3
4
2
19
–
41
9
27
6
13
13
41
3
112
3
4
2
4
4
46
1
64
10
41
3
11
23
50
1
139
1
7
8
6
3
10
1
36
15
260
27
12
424
45
5
788
–
3
–
1
1
–
–
5
7
210
3
17
475
59
2
773
1
1
–
1
1
–
–
4
18
185
3
22
475
42
2
747
1
2
–
–
2
–
–
5
[A] Including equity-accounted investments.
[B] The term “gross” relates to the total activity in which Shell subsidiaries and equity-accounted investments have an interest, and the term “net” relates to the sum of
the fractional interests owned by Shell subsidiaries plus the Shell share of equity-accounted investments’ fractional interest.
78
Shell Investors’ Handbook
Upstream data
LNG AND GTL
L N G R E G A S I F I CAT I O N T E R M I N A L S (AT DECEMBER 31, 2011)
Project name
Altamira
Barcelona
Costa Azul
Cove Point
Elba Expansion
Elba Island
Hazira
Hazira Expansion (under construction)
Location
Shell capacity rights (mtpa)
Tamaulipas, Mexico
3.3
Barcelona, Spain
0.9
Baja California, Mexico
2.7
Lusby, MD, USA
1.8
Elba Island, GA, USA
4.2
Elba Island, GA, USA
2.8
Gujarat, India
2.2
Gujarat, India
1.5
Capacity right period
from 2006
2010–2034[A]
2008–2028
2003–2023
2010–2035
2006–2036
from 2005
from 2013
Status
In operation
In operation
In operation
In operation
In operation
In operation
In operation
In operation
Shell interest (%)
Leased
Leased
Leased
Leased
Leased
Leased
74
74
Start-up date
2006
1969
2008
2003
2010
2006
2005
2013
[A] Capacity rights have a cancellation notice period of three months.
L N G L I Q U E FACT I O N P L A N T S I N O P E R AT I O N
(AT DECEMBER 31, 2011)
Location
Australia North West Shelf
Brunei LNG
Malaysia LNG (Dua and Tiga)
Nigeria LNG
Oman LNG
Qalhat (Oman) LNG
Qatargas 4
Sakhalin LNG
L N G L I Q U E FACT I O N P L A N T S U N D E R CO N ST R U CT I O N
(AT DECEMBER 31, 2011)
Shell interest, direct 100% capacity
and indirect (%)[A]
(mtpa)[B]
Karratha
Lumut
Bintulu
Bonny
Sur
Sur
Ras Laffan
Prigorodnoye
21
25
15
26
30
11
30
27.5
16.3
7.8
17.3[C]
21.6
7.1
3.7
7.8
9.6
[A] Interest may be held via indirect shareholding.
[B] As reported by the operator.
[C] Our interests in Dua and Tiga plants are due to expire in 2015 and 2023
respectively.
S H E L L S H A R E O F L N G S A L E S VO LU M E S
Australia
Brunei
Malaysia
Nigeria
Oman
Qatar
Sakhalin
Total
2011
3.1
1.7
2.4
5.0
2.0
1.7
2.9
18.8
2010
3.4
1.7
2.4
4.5
2.0
–
2.8
16.8
MILLION TONNES
2009
3.2
1.6
2.2
2.9
2.1
–
1.4
13.4
2008
2.6
1.8
2.3
4.2
2.2
–
–
13.1
2007
2.6
1.9
2.3
4.2
2.2
–
–
13.2
Location
Australia Pluto 1
Gorgon
Prelude
Wheatstone
Shell interest, direct
and indirect (%)
Karratha
Barrow Island
Offshore Australia
Onslow
100% capacity
(mtpa)[A]
21.2[B]
25.0
100.0
6.4
4.3
15.0
3.6
8.9
[A] As reported by the operator.
[B] Based on 90% Woodside shareholding in the Pluto 1 plant.
GT L P L A N T S (AT DECEMBER 31, 2011)
Bintulu
Pearl
Country
Malaysia
Qatar
Shell interest
(%)
72
100
100% capacity
(b/d)
14,700
140,000
Shell Investors’ Handbook
Downstream data
DOWNSTREAM DATA
OIL PRODUCTS AND REFINING LOCATIONS
The tables below reflect Shell subsidiaries, the 50% Shell interest
in Motiva in the USA and instances where Shell owns the crude
or feedstock processed by a refinery. Other equity-accounted
investments are only included where explicitly stated.
O I L P R O D U CT S R E F I N E RY AVA I L A B I L I T Y
%
2011
92
2010
92
2009
93
2008
91
2011
104.71
2010
77.22
2009
58.96
2008
94.05
2011
1,243
861
1,064
82
3,251
2010
1,501
855
1,155
82
3,594
2009
1,519
853
1,185
82
3,639
2008
1,601
861
1,154
82
3,698
2011
1,058
731
985
200
2,974
2010
1,306
729
1,007
222
3,264
2009
1,323
593
1,013
214
3,143
2008
1,428
790
1,073
203
3,494
Crude oil
Feedstocks
2011
2,652
193
2010
2,939
258
2009
2,819
248
2008
3,122
266
2007
3,497
282
Europe
Asia-Pacific
Americas
Other
Total
2,845
1,041
666
1,075
63
2,845
3,197
1,314
650
1,158
75
3,197
3,067
1,330
532
1,141
64
3,067
3,388
1,481
656
1,178
73
3,388
3,779
1,731
748
1,237
63
3,779
2011
993
339
977
252
385
2,946
2010
1,224
354
1,074
315
442
3,409
2009
1,179
341
1,025
279
432
3,256
2008
1,229
375
1,145
315
471
3,535
Average worldwide
CO ST O F C R U D E O I L P R O C E S S E D O R CO N S U M E D [A]
Total
$/B
C R U D E D I ST I L L AT I O N CA PAC I T Y [B]
Europe
Asia-Pacific
Americas
Other
Total
2007
1,815
871
1,185
82
3,953
THOUSAND B/D [C]
R E F I N E RY P R O C E S S I N G I N TA K E [F]
2007
1,721
847
1,107
214
3,889
THOUSAND B/D [C]
R E F I N E RY P R O C E S S I N G O U T T U R N [ G]
Gasolines
Kerosines
Gas/diesel oils
Fuel oil
Other products
Total
2007
71.83
THOUSAND B/CALENDAR DAY [C][ D]
O I L P R O D U CT S – C R U D E O I L P R O C E S S E D [E]
Europe
Asia-Pacific
Americas
Other
Total
2007
91
THOUSAND B/D [C]
[A] Includes Upstream margin on crude oil supplied by Shell and equity-accounted investment exploration and production companies.
[B] Shell average operating capacity for the year, excluding mothballed capacity.
[C] One barrel per day is equivalent to approximately 50 tonnes a year, depending on the specific gravity of the crude oil.
[D] Calendar day capacity is the maximum sustainable capacity minus capacity loss due to normal unit downtime.
[E] Including natural gas liquids; includes processing for others and excludes processing by others.
[F] Includes crude oil, natural gas liquids and feedstocks processed in crude oil distillation units and in secondary conversion units.
[G] Excludes “own use” and products acquired for blending purposes.
2007
1,363
366
1,190
348
593
3,860
79
80
Shell Investors’ Handbook
Downstream data
S H E L L I N T E R E ST BY R E F I N I N G LO CAT I O N A N D CA PAC I T Y DATA [A] (AT DECEMBER 31, 2011)
Shell
Location
Europe
Czech Republic
Denmark
Germany
The Netherlands
Norway
Asia-Pacific
Australia
Japan
Malaysia
Pakistan
Philippines
Singapore
Turkey
Americas
Argentina
Canada
Alberta
Ontario
USA
California
Louisiana
Texas
Washington
Other
Saudi Arabia
South Africa
Kralupy [D]
Litvinov [D]
Fredericia
Harburg
Miro [D]
Rheinland
Schwedt [D]
Pernis
Mongstad [D]
Asset class
interest %[C]
Crude distillation
capacity
Thousand b/calendar day, 100% capacity[B]
Thermal cracking/
Catalytic
Hydrocracking
visbreaking/coking
cracking


16
16
100
100
32
100
38
90
21
59
101
63
108
310
327
220
404
205
–
14
40
14
65
57
47
45
23
24
–
–
15
89
–
50
48
56
–
30
–
–
–
79
–
81
–




100
100
18
13
26
79
118
60
110
193
–
–
23
–
–
35
38
38
25
55
–
–
–
–
–
51
30
67
100
1
1
1
1
107
43
96
462
20
218
217
107
–
–
31
63
–
18
–
–
39
–
–
34
–
14
13
–
–
–
–
55
–
17
24
15

100
100
18
20
–


100
100
92
71
–
5
–
19
62
9
Martinez
Convent [D]
Norco [D]
Deer Park
Port Arthur [D]
Puget Sound






100
50
50
50
50
100
145
227
230
312
275
135
42
–
25
79
52
23
65
82
107
63
81
52
37
45
34
53
–
–
Al Jubail [D]
Durban [D]


50
38
292
165
85
23
–
34
45
–
Clyde
Geelong
Mizue (Toa) [D]
Yamaguchi [D]
Yokkaichi [D]
Port Dickson
Karachi [D]
Tabangao
Pulau Bukom
Batman [D]
Izmir [D]
Izmit [D]
Kirikale [D]
Buenos Aires
Scotford
Sarnia






[A] Excludes mothballed capacity.
[B] Calendar day capacity is the maximum sustainable capacity minus capacity loss due to normal unit downtime.
[C] Shell interest rounded to nearest whole percentage point; Shell share of production capacity may differ.
[D] Indicates refining location is not operated by Shell.
 Integrated refinery and chemical complex.
 Refinery complex with cogeneration capacity.

Refinery complex with chemical unit(s).
Shell Investors’ Handbook
Downstream data
OIL SALES AND RETAIL SITES
O I L P R O D U CT S A L E S VO LU M E S [A]
2011
Europe
Gasolines
Kerosines
Gas/diesel oils
Fuel oil
Other products
Total
Asia-Pacific
Gasolines
Kerosines
Gas/Diesel oils
Fuel oil
Other products
Total
Americas
Gasolines
Kerosines
Gas/Diesel oils
Fuel oil
Other products
Total
Other
Gasolines
Kerosines
Gas/Diesel oils
Fuel oil
Other products
Total
Total product sales [B][C]
Gasolines
Kerosines
Gas/diesel oils
Fuel oil
Other products
Total
THOUSAND B/D
2010
2009
2008
2007
467
261
876
227
192
2,023
505
299
953
205
227
2,189
520
267
1,003
210
242
2,242
531
294
1,148
343
249
2,565
603
269
1,176
316
259
2,623
315
164
423
273
220
1,395
308
172
370
301
224
1,375
303
159
337
187
214
1,200
298
166
330
196
191
1,181
305
168
338
181
176
1,168
1,136
265
461
91
236
2,189
1,128
270
523
90
249
2,260
1,107
246
465
130
208
2,156
1,091
256
543
117
241
2,248
1,136
241
535
118
216
2,246
156
93
236
60
44
589
174
86
253
75
48
636
141
69
226
77
45
558
131
76
233
86
48
574
134
78
246
89
41
588
2,074
783
1,996
651
692
6,196
2,115
827
2,099
671
748
6,460
2,071
741
2,031
604
709
6,156
2,051
792
2,254
742
729
6,568
2,178
756
2,295
704
692
6,625
[A] Excludes deliveries to other companies under reciprocal sale and purchase
arrangements, which are in the nature of exchanges. Sales of condensate and
natural gas liquids are included.
[B] Certain contracts are held for trading purposes and reported net rather than
gross. The effect in 2011 was a reduction in oil product sales of approximately
925 thousand b/d (2010: 934 thousand b/d; 2009: 739 thousand b/d;
2008: 698 thousand b/d; 2007: 805 thousand b/d).
[C] Export sales as a percentage of total oil sales amounted to 26.0% in 2011
(2010: 24.1%; 2009: 20.0%; 2008: 20.7%; 2007: 19.6%).
S A L E S BY P R O D U CT A S P E R C E N TAG E
O F TOTA L P R O D U CT S A L E S
%
2011
33.5
12.6
32.2
10.5
11.2
100.0
2010
32.7
12.8
32.5
10.4
11.6
100.0
2009
33.7
12.0
33.0
9.8
11.5
100.0
Europe
Asia-Pacific
Americas
Other
2011
10,417
9,489
21,005
2,001
2010
10,863
9,784
20,141
2,028
2009
11,406
9,624
20,691
2,191
2008
11,605
10,115
20,500
2,385
2007
11,575
10,040
21,115
2,430
Total
42,912
42,816
43,912
44,605
45,160
Gasolines
Kerosines
Gas/diesel oils
Fuel oil
Other products
Total
B R A N D E D R E TA I L S I T E S
2008
31.2
12.1
34.3
11.3
11.1
100.0
2007
32.9
11.4
34.7
10.6
10.4
100.0
YEAR-END NUMBER
81
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Shell Investors’ Handbook
Downstream data
CHEMICALS AND MANUFACTURING LOCATIONS
C H E M I CA L S M A N U FACT U R I N G P L A N T AVA I L A B I L I T Y [A]
%
2011
89
Average worldwide
2010
94
2009
92
2008
94
2007
93
[A] The calculation of chemical plant availability for 2011 is based on a methodology to bring better alignment for our Downstream assets. On this basis, 2010 and
2009 figures would be 92% and 91% respectively.
C H E M I CA L S S A L E S VO LU M E S [A]
THOUSAND TONNES
Europe
Base chemicals
First-line derivatives and others
Total
Asia-Pacific
Base chemicals
First-line derivatives and others
Total
Americas
Base chemicals
First-line derivatives and others
Total
Other
Base chemicals
First-line derivatives and others
Total
Total product sales
Base chemicals
First-line derivatives and others
Total
2011
2010
2009
2008
2007
4,006
2,689
6,695
4,507
2,795
7,302
4,610
2,776
7,386
5,531
2,941
8,472
5,892
3,016
8,908
2,027
3,111
5,138
2,209
3,415
5,624
1,837
2,518
4,355
1,726
2,585
4,311
2,063
2,752
4,815
3,405
3,193
6,598
3,949
3,134
7,083
3,396
2,698
6,094
4,156
2,774
6,930
4,960
3,221
8,181
229
171
400
461
183
644
323
153
476
160
454
614
53
598
651
9,667
9,164
18,831
11,126
9,527
20,653
10,166
8,145
18,311
11,573
8,754
20,327
12,968
9,587
22,555
2010
1,878
1,565
2,212
366
6,021
2009
1,880
681
2,255
366
5,182
2008
1,880
950
2,631
366
5,827
2007
1,935
950
2,965
366
6,216
[A] Excludes volumes sold by equity-accounted investments, chemical feedstock trading and by-products.
E T H Y L E N E CA PAC I T Y [A][B]
2011
1,659
1,556
2,212
366
5,793
Europe
Asia-Pacific
Americas
Other
Total
[A] Excludes volumes sold by equity-accounted investments, chemical feedstock trading and by-products.
[B] Includes the Shell share of equity-accounted investments’ capacity entitlement (offtake rights), which may be different from nominal equity interest. Nominal capacity is
quoted as at December 31.
C H E M I CA L P R O D U CT S A N D T H E I R M A J O R A P P L I CAT I O N S
Product group
Base chemicals:
ethylene, propylene and aromatics
Ethylene oxide/glycols (EO/G)
Higher olefins and derivatives (HODer)
Styrene monomer
Propylene oxide and derivatives
Solvents
Phenol
Some typical end uses
Feedstock for petrochemical derivatives typically used for:
polyethylene film for packaging, carrier bags, polypropylene for moulded plastic buckets, food
containers, polyvinyl chloride (PVC) for drainpipes
Brake fluids, polyethylene terephthalate (PET) plastics, polyester, packaging, antifreeze
Sunscreen, shower gel, automobile interiors, wire insulation, detergents
Polystyrene, fridge insulation, tyres, food containers, crash helmets, film scenery
Insulation, foam for bedding and car interiors, engineering plastics, aeroplane de-icers, cosmetics
Pharmaceuticals, paints, mining and metalworking fluids, adhesives, inks, hand sanitisers
Plywood, kitchen worktops, fibreglass boats, car parts, CDs, circuit boards
Shell Investors’ Handbook
Downstream data
S H E L L S H A R E P R O D U CT I O N CA PAC I T Y BY C H E M I CA L M A N U FACT U R I N G P L A N T LO CAT I O N [A]
(AT DECEMBER 31, 2011)
Location
Europe
Germany
The Netherlands
UK
Asia-Pacific
China
Japan
Singapore
Americas
Canada
USA
Other
Saudi Arabia
Styrene monomer
Ethylene glycol
Rheinland
Moerdijk
Mossmorran [D]
Stanlow [D]
270
974
415
–
–
789
–
–
–
155
–
–
–
–
–
330
A
A, I
–
I
Nanhai [D]
Yamaguchi [D]
Jurong Island [E]
Pulau Bukom
475
–
281
800
320
–
720
–
175
–
880
–
–
11
–
–
A, I, P
A
A, I, P, O
A, I
–
836
–
1,376
450
–
–
–
450
–
375
–
–
–
920
–
A, I
A, I
I
A
A, O
Scotford
Deer Park
Geismar
Norco
Al Jubail [D]
Total
366
400
–
–
2,679
2,035
1,261
OT H E R C H E M I CA L S LO CAT I O N S
Location
The Netherlands
Asia-Pacific
Australia
Japan
Malaysia
Philippines
Americas
Argentina
Canada
USA
Other
South Africa
[A] A: Aromatics/lower olefins.
I: Intermediates.
O: Other.
Harburg
Karlsruhe
Schwedt
Pernis
Geelong
Kawasaki
Yokkaichi
Bintulu
Port Dickson
Tabangao
Buenos Aires
Sarnia
Martinez
Mobile
Puget Sound
Durban
Higher olefins[B]
5,793
[A] Includes joint-venture plants, with the exception of the Infineum additives joint ventures.
[B] Higher olefins are linear alpha and internal olefins (products range from C6-C2024).
[C] A: Aromatics/lower olefins.
I: Intermediates.
P: Polyethylene, polypropylene.
O: Other.
[D] Plant not operated by Shell.
[E] Combination of 100% Shell owned plants and joint ventures (Shell and non-Shell operated).
Europe
Germany
THOUSAND TONNES/YEAR
Ethylene
Products[A]
I
A
A
A, I, O
A, I
A, I
A
I
A
I
I
A, I
O
A
O
I
Additional products[C]
83
84
Shell Investors’ Handbook
Additional investor information
ADDITIONAL INVESTOR
INFORMATION
SHARE INFORMATION
The following table shows the high, low and year-end prices of the
Company’s registered ordinary shares:
 of €0.07 nominal value on the London Stock Exchange;
 of €0.07 nominal value on Euronext Amsterdam; and
 in the form of ADSs on the New York Stock Exchange (ADSs do
not have a nominal value).
SHARE PRICES
2007
2008
2009
2010
2011
High
€
31.35
29.63
21.46
25.28
28.40
2007
2008
2009
2010
2011
High
pence
2,173
2,245
1,897
2,149
2,476
Euronext Amsterdam
Class A shares
Low
Year-end
€
€
23.72
28.75
16.25
18.75
15.27
21.10
19.53
24.73
20.12
28.15
London Stock Exchange
Class B shares
Low
Year-end
pence
pence
1,600
2,090
1,223
1,726
1,315
1,812
1,550
2,115
1,768
2,454
New York Stock Exchange
Class A ADSs
Low
Year-end
$
$
62.71
84.20
41.62
52.94
38.29
60.11
49.16
66.78
57.97
73.09
New York Stock Exchange
Class B ADSs
Low
Year-end
$
$
62.20
83.00
41.41
51.43
37.16
58.13
47.12
66.67
58.42
76.01
High
$
88.31
88.73
63.75
68.54
77.96
High
$
87.94
87.54
62.26
68.32
78.75
H I STO R I CA L T S R P E R F O R M A N C E O F R OYA L D U TC H S H E L L P LC
Growth in the value of a hypothetical €100 holding and £100 holding over five years. Euronext 100 and FTSE 100 comparison based on 30 trading day average values.
RDSA VERSUS EURONEXT 100
RDSA
Euronext 100
Value of hypothetical €100 Holding
RDSB VERSUS FTSE 100
RDSB
FTSE 100
Value of hypothetical £100 Holding
€175
£175
€150
£150
€125
£125
€100
£100
€75
£75
£50
€50
Dec 06
Dec 07
Dec 08
Dec 09
Dec 10
Dec 11
Dec 06
Dec 07
Dec 08
Dec 09
Dec 10
Dec 11
Shell Investors’ Handbook
Additional investor information
CLASS A AND B SHARES
DIVIDENDS
POLICY
Shell’s policy is to grow the US dollar dividend through time in line
with our view of Shell’s underlying earnings and cash flow. When
setting the dividend, the Board of Directors looks at a range of
factors, including the macro environment, the current balance sheet
and future investment plans. In addition, we may choose to return
cash to shareholders through share buybacks, subject to the capital
requirements of Shell. In September 2010, we introduced a Scrip
Dividend Programme which enables shareholders to increase their
shareholding by choosing to receive new shares instead of cash
dividends, if approved by the Board.
SCRIP DIVIDEND PROGRAMME
In September 2010, Royal Dutch Shell introduced a Scrip
Dividend Programme which enables shareholders to increase their
shareholding by choosing to receive new shares instead of cash
dividends, if approved by the Board. Only new Class A shares
are issued under the programme, even to shareholders who hold
Class B shares. When the programme was introduced, the Dividend
Reinvestment Plans provided by Equiniti and Royal Bank of Scotland
N.V. were withdrawn; the dividend reinvestment feature of the plan
provided by The Bank of New York Mellon was likewise withdrawn.
Joining the Scrip Dividend Programme has the following
implications for shareholders:
 Shareholders will increase the number of shares in the Royal
Dutch Shell without having to buy shares in the market, avoiding
brokerage costs.
 Shareholders residing in certain countries may gain a significant
tax advantage. In particular, dividends paid out as shares
by Royal Dutch Shell will not be subject to Dutch dividend
withholding tax and will not generally be taxed upon receipt
by a UK shareholder or a Dutch corporate shareholder. Note,
however, that the tax consequences of electing to receive new
Class A shares in place of a cash dividend depend on individual
circumstances.
$
2011
0.42
0.42
0.42
0.42
1.68
2010
0.42
0.42
0.42
0.42
1.68
2009
0.42
0.42
0.42
0.42
1.68
2008
0.40
0.40
0.40
0.40
1.60
2011
Q1
0.29
Q2
0.29
Q3
0.32
Q4
0.32
Total announced in respect of the year 1.22
Amount paid during the year
1.20
2010
0.32
0.32
0.31
0.30
1.25
1.25
2009
0.32
0.30
0.28
0.30
1.21
1.21
2008
0.26
0.26
0.31
0.30
1.13
1.07
2011
2010
2009
Q1
25.71 27.37 28.65
Q2
25.77 26.89 25.59
Q3
27.11 26.72 25.65
Q4
26.74 25.82 26.36
Total announced in respect of the year 105.33 106.80 106.25
Amount paid during the year
104.41 107.34 107.86
2008
20.05
20.21
24.54
27.97
92.77
82.91
2007
18.09
17.56
17.59
18.11
71.35
69.84
2008
0.80
0.80
0.80
0.80
3.20
3.12
2007
0.72
0.72
0.72
0.72
2.88
2.81
Q1
Q2
Q3
Q4
Total
CLASS A SHARES
€ [A]
2007
0.26
0.26
0.25
0.24
1.02
1.03
[A] Euro equivalent, rounded to the nearest euro cent.
CLASS B SHARES
PENCE [A]
[A] Pound sterling equivalent.
CLASS A AND B ADSs
2011
Q1
0.84
Q2
0.84
Q3
0.84
Q4
0.84
Total announced in respect of the year 3.36
Amount paid during the year
3.36
S C R I P I S S UA N C E C L A S S A S H A R E S
Full details regarding the Scrip Dividend Programme
and its taxation consequences can be found at
www.shell.com/scrip
2007
0.36
0.36
0.36
0.36
1.44
Q1
Q2
Q3
Q4
Total issuance
$
2010
0.84
0.84
0.84
0.84
3.36
3.36
2009
0.84
0.84
0.84
0.84
3.36
3.32
NUMBER OF SHARES IN MILLION
2011
31.1
23.9
2010
–
–
22.3
27.3
104.6
–
18.3
18.3
85
86
Shell Investors’ Handbook
Additional investor information
BONDHOLDER INFORMATION
Publicly traded bonds were issued by Shell
International Finance BV and guaranteed
by Royal Dutch Shell plc. Shell International
Finance BV is a 100% subsidiary of Royal
Dutch Shell plc.
C R E D I T R AT I N G S (AT 31 DECEMBER 2011)
BOND MATURITY PROFILE
S&P
$ million equivalent
6,000
Royal Dutch Shell plc
Debt of Shell International Finance BV
5,000
Short-term
rating
A-1+
A-1+
Long-term
rating
AA
AA
Short-term
Outlook
rating
Stable
P-1
Stable
P-1
Moody’s
Long-term
rating
Aa1
Aa1
Outlook
Stable
Stable
4,000
3,000
2,000
1,000
0
12 13 14 15 16 17 18 19 20
USD
EUR
38
40
P U B L I C LY T R A D E D B O N D S , C U R R E N T O U T STA N D I N G
Settlement
22 Mar 2007
22 May 2007
11 Dec 2008
09 Feb 2009
23 Mar 2009
13 May 2009
13 May 2009
22 Sep 2009
22 Sep 2009
25 Mar 2010
25 Mar 2010
25 Mar 2010
24 Jun 2010
28 Jun 2010
Maturity
22 Mar 2017
22 May 2017
15 Dec 2038
09 Feb 2016
21 Mar 2014
14 May 2013
14 May 2018
22 Sep 2015
22 Sep 2019
25 Mar 2013
25 Mar 2020
Currency
USD
EUR
USD
EUR
USD
EUR
EUR
USD
USD
USD
USD
Million
750
1,500
2,750
1,250
2,500
2,500
2,500
1,000
2,000
2,000
1,250
Coupon
5.20%
4.63%
6.38%
4.50%
4.00%
3.00%
4.38%
3.25%
4.30%
1.88%
4.38%
Listing
New York
London
New York
London
New York
London
London
New York
New York
New York
New York
ISIN
US822582AC66
XSO301945860
US822582AD40
XS0412968876
US822582AF97
XSO428146442
XSO428147093
US822582AH53
US822582AJ10
US822582AL65
US822582AM49
25 Mar 2040
22 Jun 2012
28 Jun 2015
USD
USD
USD
1,000
1,000
1,750
5.50%
Floating
3.10%
New York
New York
New York
US822582AN22
US822582AP79
US822582AQ52
Shell Investors’ Handbook
Additional investor information
FINANCIAL CALENDAR
Financial year ends
Announcements
Full year results for 2011
First quarter results for 2012
Second quarter results for 2012
Third quarter results for 2012
December 31, 2011
February 2, 2012
April 26, 2012
July 26, 2012
November 1, 2012
Dividend timetable [A]
2011 Fourth quarter interim [B]
Announced
Ex-dividend date
Record date
Scrip reference share price announcement date
Closing date for scrip election and currency election [C]
Euro and sterling equivalents announcement date
Payment date
February 2, 2012
February 15, 2012
February 17, 2012
February 22, 2012
March 2, 2012
March 9, 2012
March 22, 2012
2012 First quarter interim
Announced
Ex-dividend date
Record date
Scrip reference share price announcement date
Closing date for scrip election and currency election [C]
Euro and sterling equivalents announcement date
Payment date
April 26, 2012
May 9, 2012
May 11, 2012
May 16, 2012
May 25, 2012
June 1, 2012
June 21, 2012
2012 Second quarter interim
Announced
July 26, 2012
Ex-dividend date
August 8, 2012
Record date
August 10, 2012
Scrip reference share price announcement date
August 15, 2012
Closing date for scrip election and currency election [C]
August 24, 2012
Euro and sterling equivalents announcement date
September 3, 2012
Payment date
September 20, 2012
2012 Third quarter interim
Announced
Ex-dividend date
Record date
Scrip reference share price announcement date
Closing date for scrip election and currency election [C]
Euro and sterling equivalents announcement date
Payment date
Annual General Meeting
November 1, 2012
November 14, 2012
November 16, 2012
November 21, 2012
November 30, 2012
December 7, 2012
December 20, 2012
May 22, 2012
[A] This timetable is the intended timetable as announced on
October 27, 2011.
[B] The Directors do not propose to recommend any further distribution
in respect of 2011.
[C] Different scrip and dividend currency election dates may apply to
shareholders holding shares in a securities account with a bank or
financial institution ultimately holding through Euroclear Nederland.
Such shareholders can obtain the applicable deadlines from their broker,
financial intermediary, bank or other financial institution where they hold
their securities account. A different scrip election date may also apply to
registered and non-registered ADS holders. Registered ADS holders can
contact The Bank of New York Mellon for the applicable deadline. Nonregistered ADS holders can contact their broker, financial intermediary,
bank or other financial institution for the applicable election deadline.
Our INVESTOR & MEDIA app
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Shell Investors’ Handbook
Additional investor information
About this publication
This publication contains forward-looking statements
concerning the financial condition, results of operations
and businesses of Royal Dutch Shell plc (the Company).
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 assumptions and involve known and
unknown risks and uncertainties that could cause actual
results, performance or events to differ materially from
those expressed or implied in these statements. Forward
looking statements include, among other things, statements
concerning the potential exposure of Shell 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”, “goals”, “intend”, “may”,
“objectives”, “outlook”, “plan”, “probably”, “project”,
“risks”, “scheduled”, “seek”, “should”, “target”, “will” and
similar terms and phrases. Also included as forwardlooking statements in this publication is our disclosure of
reserves, proved oil and gas reserves, resources, and all
future estimates of refining capacity, oil and gas production,
capital investment and expenditure, cash from operations,
dividends, share buybacks and investments. There are a
number of factors that could affect the future operations of
Shell and could cause those results to differ materially from
those expressed in the forward-looking statements included
in this publication, including (without limitation): (a) price
fluctuations in crude oil and natural gas; (b) changes in
demand for Shell’s products; (c) currency fluctuations;
(d) drilling and production results; (e) proved reserves
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 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 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 publication 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-looking statements. Additional factors that
may affect future results are contained in the Company’s
20-F for the year ended December 31, 2011 (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
publication, April 27, 2012. Neither the Company 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 or inferred from the forward-looking
statements contained in this publication.
Please refer to the Annual Report and Form 20-F for the
year ended December 31, 2011, for a description of certain
important factors, risks and uncertainties that may affect the
businesses of Shell.
urged to consider closely the disclosure in our Form 20-F,
File No 001-32575, available on the SEC website
www.sec.gov. You can also obtain these forms from the
SEC by calling 1-800-SEC-0330.
The companies in which the Company directly and
indirectly owns investments are separate entities. In this
publication “Shell” is sometimes used for convenience
where references are made to the Company and its
subsidiaries in general. Likewise, the words “we”, “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”
and “Shell subsidiaries” as used in this publication refer
to companies over which the Company, either directly or
indirectly, has control through a majority of the voting rights
or the right to exercise control or to obtain the majority of
the benefits and be exposed to the majority of the risks. The
Consolidated Financial Statements consolidate the financial
statements of the Parent Company and all subsidiaries.
The companies in which Shell has significant influence but
not control are referred to as “associates” and companies
translated at quarterly average rates. Translation
differences arising on consolidation are taken directly to a
currency translation differences account within equity. Upon
divestment or liquidation of an entity, cumulative currency
translation differences related to that entity are taken to
income.
The maps in this publication are intended only to give an
impression of the magnitude of Shell’s Upstream activities in
certain parts of the world. The maps are not comprehensive
and show primarily major projects and assets mentioned
in this publication. The maps must not be considered
authoritative, particularly in respect of delimitation of
national, concession or other boundaries, nor in respect
of the representation of pipeline routes and landfalls, field
sizes or positions. The maps mainly describe the situation as
at December 31, 2011.
This publication contains references to Shell’s website. These
references are for the reader’s convenience only. Shell is not
incorporating by reference any information posted on www.
shell.com.
in which Shell has joint control are referred to as “jointly
controlled entities”. Joint ventures are comprised of jointly
controlled entities and jointly controlled assets. In this
publication, associates and jointly controlled entities are
also referred to as “equity-accounted investments”.
The term “Shell interest” is used for convenience to indicate
the direct and/or indirect ownership interest held by Shell
in a venture, partnership or company, after exclusion of
all third-party interests. (For example, Shell interest in
Woodside Petroleum Ltd is 23%.)
The term “reserves” in this publication means SEC proved oil
and gas reserves.
The term “resources” in this publication includes quantities
of oil and gas not yet classified as SEC proved oil and
gas reserves. Resources are consistent with the Society of
Petroleum Engineers 2P and 2C definitions.
There can be no assurance that dividend payments will
match or exceed those set out in this publication in the
future, or that they will be made at all.
The Financial Statements contained in this publication
have been prepared in accordance with the provisions of
the Companies Act 2006 and with International Financial
Reporting Standards (IFRS) as adopted by the European
Union. IFRS as defined above includes interpretations issued
by the IFRS Interpretations Committee.
To facilitate a better understanding of underlying business
performance, the financial results are also presented on an
estimated current cost of supplies (CCS) basis as applied for
the Downstream segment earnings. CCS earnings provide
useful information concerning the effect of changes in the
cost of supplies on Shell’s results of operations and are used
to manage the performance of the Downstream segment. But
they are not a measure of financial performance under IFRS.
Except as otherwise noted, the figures shown in this
publication are stated in US dollars. As used herein all
references to “dollars” or “$” are to the US currency.
This publication has not been subject to audit.
Internal segment reporting is on a global basis. For the
main segments an analysis of certain data is provided in
this publication between the USA and the world outside the
USA.
We use certain terms in this publication that US Securities
and Exchange Commission’s guidelines strictly prohibit us
from including in filings with the SEC. U.S. Investors are
Assets and liabilities of non-US dollar subsidiaries are
translated to US dollars at year-end rates of exchange,
whilst their statements of income and cash flows are
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The printing of this document was
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ADDRESSES
REGISTERED OFFICE
Royal Dutch Shell plc
Shell Centre
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United Kingdom
Registered in England
and Wales
Company number 4366849
Registered with the Dutch
Trade Register under
number 34179503
HEADQUARTERS
Royal Dutch Shell plc
Carel van Bylandtlaan 30
2596 HR The Hague
The Netherlands
INVESTOR RELATIONS
Royal Dutch Shell plc
PO Box 162
2501 AN The Hague
The Netherlands
+31 (0)70 377 4540
or
Shell Oil Company
Investor Relations
910 Louisiana Street, 4580B
Houston, TX 77002
USA
+1 713 241 1042
+1 713 241 0176
ir-usa@shell.com
www.shell.com/investor
REPORT ORDERING
+31 (0)888 800 844
Annual Report/20-F service for
US residents
+1 888 301 0504
ABBREVIATIONS
SHARE REGISTRATION
Equiniti
Aspect House
Spencer Road
Lancing
West Sussex BN99 6DA
United Kingdom
0800 169 1679 (UK)
+44 (0)121 415 7073
+44 (0)1903 833168
holding and to change the way you
receive your company documents:
www.shareview.co.uk
AMERICAN DEPOSITARY SHARES
(ADS S )
The Bank of New York Mellon
PO Box 358516
Pittsburgh, PA 15252–8516
USA
+1 888 737 2377 (USA)
+1 201 680 6825 (international)
www.bnymellon.com/shareowner
Currencies
$
€
£
US dollar
euro
sterling
Units of measurement
acre
approximately 0.4 hectares or
0.004 square kilometres
b(/d)
barrels (per day)
bcf/d
billion cubic feet per day
boe(/d)
barrels of oil equivalent (per day);
natural gas volumes are converted
to oil equivalent using a factor of
5,800 scf per barrel
kb(/d)
thousand barrels (per day)
kboe/d
thousand barrels of oil equivalent
per day
km
km2
m
MMBtu
mtpa
MW
per day
scf(/d)
tcf
kilometres
square kilometres
metres
million British thermal units
million tonnes per annum
megawatts
volumes are converted to a daily
basis using a calendar year
standard cubic feet (per day)
trillion cubic feet
Products
GTL
LNG
LPG
MEG
NGL
gas to liquids
liquefied natural gas
liquefied petroleum gas
mono-ethylene glycol
natural gas liquids
Miscellaneous
ADS
American Depositary Share
CCS
current cost of supplies
CFFO
cash flow from operations
CO2
E
EAI
EOR
FEED
FID
FLNG
JV
OML
PSC
R&D
SEC
SUBS
carbon dioxide
expected
equity-accounted investments
enhanced oil recovery
front-end engineering and design
final investment decision
floating liquefied natural gas
joint venture
oil mining lease
production-sharing contract
research and development
United States Securities and
Exchange Commission
Shell subsidiaries
OTHER SHELL PUBLICATIONS
HTTP://REPORTS.SHELL.COM
All information from our reports is available for
online reading and for downloading as a PDF file.
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PAPER AND COST SAVINGS
Annual Report and Form
20-F for the year ended
December 31, 2011
A comprehensive operational
and financial report on our
activities throughout 2011.
Sustainability Report
2011
Report on our progress in
contributing to sustainable
development.
Shell apps
Apps that provide company
news, interactive stories about
innovation, service-station
locations and other information.
www.shell.com/mobile_and_apps