(Federation of Malaya) Berhad (3926-U) (Incorporated in Malaysia)

corporate eng_0205.indd 2
13/04/11 4:30 PM

1.
Work with a valid work permit when required
4.
Obtain authorisation before entering a confined space
7.
Do not walk under a suspended load
10.
While driving, do not use your phone and do not exceed speed limits
2.
Conduct gas tests when required
5.
Obtain authorisation before overriding or disabling safety critical equipment
8.
Do not smoke outside designated smoking areas
11.
Wear your seat belt
3.
Verify isolation before work begins and use the specified life protecting equipment
6.
Protect yourself against a fall when working at height
9.
No alcohol or drugs while working or driving
12.
Follow prescribed
Journey
Management
Plan corporate eng_0205.indd 1 13/04/11 4:30 PM

2 Shell Refining Company
(Federation of Malaya) Berhad (3926-U)
(Incorporated in Malaysia)
(Continued) corporate eng_0205.indd 2 13/04/11 4:30 PM

ANNUAL REPORT 2010 3
corporate eng_0205.indd 3
6 Shell in Malaysia
12 Vision, Mission & Objective
13 Corporate Information
14 Shell General
Business Principles
19 Financial Calendar
20 Notice of the
52 nd Annual General Meeting
23 Statement Accompanying
Notice of the
52 nd Annual General Meeting
52 Staying Reliability and Lean
53 Financial Summary
56 Corporate
Social Responsibility
75 Awards & Recognition
76 2010 Community Events
26 Board of Directors
28 Directors’ Profile
34 Management Team
36 Chairman’s Statement
40 Managing Director’s Review
80 Corporate
Governance Statement
92 Statement of Internal Control
95 Audit Committee Report
101 Financial Statements
152 Company Properties
157 Analysis of Shareholdings
Proxy Form
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corporate eng_0205.indd 5
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6 Shell Refining Company
(Federation of Malaya) Berhad (3926-U)
(Incorporated in Malaysia)
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ANNUAL REPORT 2010 7 corporate eng_0205.indd 7
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.
In Upstream, we focus on exploring for new oil and gas reserves and developing major projects where our technology and know-how add value to the resource holders.
In Downstream, our emphasis remains on sustained cash generation from our existing assets and selective investments in growth markets.
Our core values of honesty, integrity and respect for people form the basis of the Shell
General Business Principles.
With a workforce of approximately 6,400 employees, Shell Malaysia companies are members of the Royal Dutch Shell Group.
Backed by over a century of presence in the country, the Shell operations in Malaysia include our Upstream, Downstream and Projects & Technology businesses.
Shell is the petroleum retail market leader in Malaysia, catering to approximately one-third of Peninsular Malaysia and half of Sabah and Sarawak’s market requirements.
Apart from managing one of the country’s largest networks of retail stations, and a robust upstream exploration and production business, our operations also include the world’s first commercial gas to liquids plant of its kind in Bintulu, Sarawak, and a complex oil refinery in Port Dickson, Negeri Sembilan.
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8 Shell Refining Company
(Federation of Malaya) Berhad (3926-U)
(Incorporated in Malaysia)
Shell is the market leader in fuels and lubricants in Malaysia.
An aerial view of the E11 platform, offshore Sarawak.
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ANNUAL REPORT 2010 9 corporate eng_0205.indd 9
2011 marks Shell’s 120 th year in the country – being one of the early investors in Malaysia’s oil and gas industry.
In 2011, Shell Malaysia will further develop various oil and gas facilities in our upstream and downstream operations across the country. These are the expansion of our wax plant in
Bintulu, the construction of a new diesel processing unit at our Port Dickson refinery, and the Gumusut deepwater development offshore Sabah.
These projects require an investment of RM5.1 billion in 2011. During the construction phase, these projects will create approximately 1,650 jobs.
In addition to providing employment opportunities during construction, we can look forward to the transfer of technology and knowledge from our foreign counterparts to our local talent in the long-term.
We also provide an increasing range of technical, human resources, financial and business support services and expertise to the Shell Group via our shared services centre in Cyberjaya.
We aim to have a Health, Safety, Security and Environment performance that we can be proud of, to earn the confidence of customers, shareholders and society at large, to be a good neighbour and contribute to sustainable development.
In pursuing high standards of performance, we seek a long-term presence in Malaysia; striving to help all our stakeholders improve their quality of life, while contributing to the nation’s progress.
Our Upstream operations have been in Malaysia for over
100 years, focusing on the efficient development and extraction of crude oil and natural gas offshore Sarawak and Sabah. Under production-sharing contracts with PETRONAS, we are the largest natural gas producer in Malaysia.
Shell’s recent venture into the relatively more challenging and costly deepwater exploration and production in Sabah and Sarawak is an affirmation of our long-term stance in the upstream oil and gas industry.
In Bintulu, our gas to liquids (GTL) plant is capable of converting natural gas into 14,700 barrels of GTL products a day. Virtually free from sulphur and aromatics, and highly biodegradable, GTL products are marketed to over 40 countries. We are also a partner in two joint ventures that convert natural gas to liquefied natural gas (LNG).
The Bintulu wax plant project during the expansion phase.
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10 Shell Refining Company
(Federation of Malaya) Berhad (3926-U)
(Incorporated in Malaysia)
Shell in
Malaysia
(Continued)
Shell Business Service Centre in Cyberjaya houses 2,100 staff, providing common business services to the Shell Group.
corporate eng_0205.indd 10 13/04/11 4:31 PM

ANNUAL REPORT 2010 11 corporate eng_0205.indd 11
In Downstream, Shell’s main activity is in refining, supply, trading and shipping of crude oil and petroleum products through the sales and marketing of transportation fuels, lubricants, specialty products and technical services.
Shell is the market leader in retail petroleum and lubricants in Malaysia, and has one of the largest networks of retail stations in the country.
The Shell Group has over 100 years of experience developing the technology and services that make it a leading provider of innovative fuels today. We are the only retailer in Malaysia providing a premium fuel –
Shell V-Power Racing, the Ferrari fuel for the road.
Shell Refining Company (Federation of
Malaya) Berhad is the sole public listed company within Shell in Malaysia. It operates one of the country’s largest refineries on a single site at Port Dickson, supplying key petroleum products to Shell’s Downstream business in Malaysia.
Our refinery aspires to be the “Top performing and most admired refinery in Asia”. While we continue our path to grow profitably, we also have a commitment to contribute to sustainable development. This commitment underscores our involvement in corporate social responsibility activities and practices.
In Shell, this means we are committed to finding and delivering energy products that help meet the growing need for affordable, convenient and cleaner energy. It is also a commitment to responsible operations: building our projects, running our facilities and managing our supply chain safely and in ways that reduce their negative impacts and create positive benefits.
This commitment corresponds directly to our involvement in the social development of the communities where we operate. Apart from hiring and building the skills of local staff, we also actively encourage and support social investment projects, with a focus on capacity building, environmental conservation and community development.
We aspire to establish a long-term presence among the communities we operate in. In this regard, we are committed to helping our stakeholders improve their quality of life, while simultaneously contributing to
Malaysia’s advancement and in achieving the goals of the New Economic Model.
Our Projects & Technology (P&T) business provides technical services, technology capability and major project delivery in both Upstream and Downstream activities. Malaysia is one of P&T’s seven hubs and is seen as the key driver supporting Shell’s agenda of growing the business in Asia. It also oversees safety and environment performance and procurement processes across Shell. P&T has a role in several key Downstream projects, including the new diesel processing unit.
With 2,100 staff, Malaysia has the Group’s second largest Shell Business Service Centre (SBSC), after
Manila. The Service Centre provides common business support and services for Shell operations worldwide.
These comprise IT, Finance operations, HR services,
Customer Service, and Contracts & Procurement.
Beginning April 2011, SBSC is housed in a new green office in Cyberjaya, which is also the first building in Malaysia to be certified with the “Leadership in
Energy and Environmental Design Gold” (US based accreditation).
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12 Shell Refining Company
(Federation of Malaya) Berhad (3926-U)
(Incorporated in Malaysia)
(Continued)
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ANNUAL REPORT 2010 13
corporate eng_0205.indd 13
Chairman, Non-Independent and
Non-Executive Director,
Member of Remuneration Committee and
Nominating Committee
Encik Mohd Anuar bin Taib
Managing Director and Executive Director
Tuan Haji Rozano bin Saad
Senior Independent and
Non-Executive Director,
Chairman of Remuneration Committee,
Member of Audit Committee and
Nominating Committee
Y. Bhg. Dato’ Seri Talaat bin
Haji Husain
DDSA, SPMP, DPCM, DPMP, JSD, PJK, PJM
Independent and Non-Executive Director,
Chairman of Audit Committee,
Member of Remuneration Committee and
Nominating Committee
Y. Bhg. Tan Sri Datuk Clifford
Francis Herbert
PSM, PSD, JSM, KMN
Independent and Non-Executive Director,
Chairman of Nominating Committee,
Member of Audit Committee and
Remuneration Committee
Y. Bhg. Datuk Zainun Aishah binti Ahmad
KMN, PMP, DPMP, JSM, PJN
Independent and Non-Executive Director,
Member of Audit Committee, Remuneration
Committee and Nominating Committee
Y. Bhg. Dato’ Saw Choo Boon
DSNS
Non-Independent and
Non-Executive Director,
Member of Audit Committee
Mr. David Lau Nai Pek
Non-Independent and
Non-Executive Director
Mr. Khong Kok Toong
Pn Rodziah binti Zainudin
(LS 0008034)
Ms Chuah Hooi Bien
(LS 0009510)
Messrs.
PricewaterhouseCoopers (AF 1146)
1 Sentral, Jalan Travers
Kuala Lumpur Sentral
P.O. Box 10192
50706 Kuala Lumpur
Symphony Share Registrars
Sdn Bhd (378993-D)
Level 6, Symphony House
Pusat Dagangan Dana 1
Jalan PJU 1A/46
47301 Petaling Jaya
Selangor Darul Ehsan
Tel : 03-7841 8000
Fax : 03-7841 8151/8152
Main Board of
Bursa Malaysia Securities Berhad
Bangunan Shell Malaysia
Changkat Semantan
Damansara Heights
50490 Kuala Lumpur
Tel : 03-2095 9144
Fax : 03-2091 2099
Batu 1, Jalan Pantai
71000 Port Dickson
Negeri Sembilan
Tel : 06-647 1311
Fax : 06-647 4622
Mr Hardip Singh
Tel : 03-2091 2344
Fax : 03-2091 2099
Email : Hardip.Singh@shell.com
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14 Shell Refining Company
(Federation of Malaya) Berhad (3926-U)
(Incorporated in Malaysia) corporate eng_0205.indd 14 13/04/11 4:31 PM

corporate eng_0205.indd 15
We believe that oil and gas will be integral to the global energy needs for economic development for many decades to come. Our role is to ensure that we extract and deliver them profitably and in environmentally and socially responsible ways.
We seek a high standard of performance, maintaining a strong long-term and growing position in the competitive environments in which we choose to operate. We aim to work closely with our customers, partners and policy-makers to advance more efficient and sustainable use of energy and natural resources.
* Royal Dutch Shell plc and the companies in which it directly or indirectly owns investments are separate and distinct entities. But in this publication, the collective expressions ‘Shell’ and ‘Shell
Group’ may be used for convenience where reference is made in general to those companies. Likewise, the words ‘we’, ‘us’,
‘our’, and ‘ourselves’ are used in some places to refer to the companies of the Shell Group in general. These expressions are also used where no useful purpose is served by identifying any particular company or companies.
Shell employees share a set of core values
– honesty, integrity and respect for people. We also firmly believe in the fundamental importance of trust, openness, teamwork and professionalism, and pride in what we do.
As part of the Business Principles, we are committed to contributing to our sustainable development. This requires balancing short and long-term interests, integrating economic, environmental and social considerations into business decision-making.
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16 Shell Refining Company
(Federation of Malaya) Berhad (3926-U)
(Incorporated in Malaysia)
Shell General
Business
Principles
(Continued)
Shell companies recognise five areas of responsibility. It is the duty of management continuously to assess the priorities and discharge these inseparable responsibilities on the basis of that assessment.
a. To shareholders
To protect shareholders’ investment, and provide a long-term return competitive with those of other leading companies in the industry.
b. To customers
To win and maintain customers by developing and providing products and services which offer value in terms of price, quality, safety and environmental impact, which are supported by the requisite technological, environmental and commercial expertise.
c. To employees
To respect the human rights of our employees and to provide them with good and safe working conditions, and competitive terms and conditions of employment.
To promote the development and best use of the talents of our employees; to create an inclusive work environment where every employee has an equal opportunity to develop his or her skills and talents.
To encourage the involvement of employees in the planning and direction of their work; to provide them with channels to report concerns.
We recognise that commercial success depends on the full commitment of all employees.
d. To those with whom we do business
To seek mutually beneficial relationships with contractors, suppliers and in joint ventures and to promote the application of these Shell
General Business Principles or equivalent principles in such relationships. The ability to promote these principles effectively will be an important factor in the decision to enter into or remain in such relationships.
e. To society
To conduct business as responsible corporate members of society, to comply with applicable laws and regulations, to support fundamental human rights in line with the legitimate role of business, and to give proper regard to health, safety, security and the environment.
corporate eng_0205.indd 16
Economics
Long-term profitability is essential to achieving our business goals and to our continued growth. It is a measure both of efficiency and of the value that customers place on Shell products and services. It supplies the necessary corporate resources for the continuing investment that is
PRINCIPLE required to develop and produce future energy supplies to meet customer needs. Without profits and a strong financial foundation, it would not be possible to fulfill our responsibilities.
Criteria for investment and divestment decisions include sustainable development considerations (economic, social and environmental) and an appraisal of the risks of the investment.
Competition
Shell companies support free enterprise. We seek to compete fairly and ethically and within the framework of applicable competition laws; we will not prevent others from competing freely with us.
Business Integrity
Shell companies insist on honesty, integrity and fairness in all aspects of our business and expect the same in our relationships with all those with whom we do business. The direct or indirect offer, payment, soliciting or acceptance of bribes in any form is unacceptable. made. Employees must avoid conflicts of interest between their private activities and their part in the conduct of company business. Employees must also declare to their employing company potential conflicts of interest. All business transactions on behalf of a Shell company must be reflected accurately and fairly in the accounts of the company in accordance with established procedures and are subject to audit and disclosure.
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ANNUAL REPORT 2010 17 corporate eng_0205.indd 17
Political Activities a. Of companies
Shell companies act in a socially responsible manner within the laws of the countries in which we operate in pursuit of our legitimate commercial objectives.
Shell companies do not make payments to political parties, organisations or their representatives. Shell companies do not take part in party politics. However, when dealing with governments, Shell companies have the right and the responsibility to make our position known on any matters, which affect us, our employees, our customers, our shareholders or local communities in a manner, which is in accordance with our values and the Business Principles.
b. Of employees
Where individuals wish to engage in activities in the community, including standing for election to public office, they will be given the opportunity to do so where this is appropriate in the light of local circumstances.
Health, Safety, Security and
The Environment
Shell companies have a systematic approach to health, safety, security and environmental management in order to achieve continuous performance improvement.
To this end, Shell companies manage these matters as critical business activities, set standards and targets for improvement, and measure, appraise and report performance externally.
We continually look for ways to reduce the environmental impact of our operations, products and services.
Local Communities
Shell companies aim to be good neighbours by continuously improving the ways in which we contribute directly or indirectly to the general well being of the communities within which we work.
We manage the social impacts of our business activities carefully and work with others to enhance the benefits to local communities, and to mitigate any negative impacts from our activities.
In addition, Shell companies take a constructive interest in societal matters, directly or indirectly related to our business.
Communication and
Engagement
Shell companies recognise that regular dialogue and engagement with our stakeholders is essential.
We are committed to reporting of our performance by providing full relevant information to legitimately interested parties, subject to any overriding considerations of business confidentiality.
In our interactions with employees, business partners and local communities, we seek to listen and respond to them honestly and responsibly.
Compliance
We comply with all applicable laws and regulations of the countries in which we operate.
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18 Shell Refining Company
(Federation of Malaya) Berhad (3926-U)
(Incorporated in Malaysia)
Shell General
Business
Principles
(Continued)
Our shared core values of honesty, integrity and respect for people, underpin all the work we do and are the foundation of our Business Principles.
The Business Principles apply to all transactions, large or small, and drive the behaviour expected of every employee in every Shell company in the conduct of its business at all times.
We are judged by how we act. Our reputation will be upheld if we act in accordance with the law and the
Business Principles. We encourage our business partners to live by them or by equivalent principles.
We encourage our employees to demonstrate leadership, accountability and teamwork, and through these behaviours, to contribute to the overall success of
Shell.
It is the responsibility of management to lead by example, to ensure that all employees are aware of these principles, and behave in accordance with the spirit as well as with the letter of this statement.
The application of these principles is underpinned by a comprehensive set of assurance procedures, which are designed to make sure that our employees understand the principles and confirm that they act in accordance with them.
As part of the assurance system, it is also the responsibility of management to provide employees with safe and confidential channels to raise concerns and report instances of non-compliance. In turn, it is the responsibility of Shell employees to report suspected breaches of the Business Principles to Shell.
The Business Principles have for many years been fundamental to how we conduct our business and living by them is crucial to our continued success.
corporate eng_0205.indd 18 13/04/11 4:31 PM

corporate eng_0205.indd 19
ANNUAL REPORT 2010 19
(Financial Year 2010)
Unaudited consolidated results for the 1 st quarter ended
31 March 2010
Unaudited consolidated results for the 2 nd quarter ended
30 June 2010
An interim dividend of
Twenty sen (RM0.20) per unit of share of RM1.00 each, less 25% Income Tax in respect of the financial year ending
31 December 2010
Interim dividend entitlement date
Interim dividend payment date
Unaudited consolidated results for the 3 rd quarter ended
30 September 2010
Unaudited consolidated results for the 4 th quarter ended
31 December 2010
Final dividend of Thirty sen
(RM0.30) per unit of share of RM1.00 each, less 25%
Income Tax in respect of the financial year ended
31 December 2010
52 nd Annual General Meeting
Final dividend entitlement date
Notice of 52 nd
Annual General Meeting
Final dividend payment date
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20 Shell Refining Company
(Federation of Malaya) Berhad (3926-U)
(Incorporated in Malaysia)
nd
nd
1. To receive the Audited Financial Statements of the Company for the financial year ended 31 December 2010 and the Reports of the Directors and Auditors thereon.
2. To approve the declaration of a final dividend of Thirty sen (RM0.30) less Malaysian
Income Tax at 25% per unit of ordinary share of RM1.00 each for the year ended
31 December 2010 as recommended by the Directors.
3. To re-elect the following directors, who are retiring in accordance with Article 81(2) and Article 81(9) of the Company’s Articles of Association and being eligible, offer themselves for re-election:
(a) Y. Bhg. Datuk Zainun Aishah binti Ahmad
(b) Y. Bhg. Dato’ Saw Choo Boon
(b) Mr. Khong Kok Toong
4. To re-elect the following directors who are retiring in accordance with Article 81(3) of the Company’s Articles of Association and being eligible, offer themselves for re-election:
(a) Encik Mohd Anuar bin Taib
(b) Y. Bhg. Tan Sri Datuk Clifford Francis Herbert
(c) Mr. David Lau Nai Pek
5. To appoint Messrs. PricewaterhouseCoopers as auditors and to authorise the Directors to fix the auditors’ remuneration.
6. As SPECIAL BUSINESS, to consider and, if thought fit, pass the following ordinary resolution:
Proposed Renewal of the Existing Shareholders’ Mandate and Proposed New
Shareholders’ Mandate for Recurrent Related Party Transactions of a Revenue or
Trading Nature.
Resolution 1
Resolution 2
Resolution 3
Resolution 4
Resolution 5
Resolution 6
Resolution 7
Resolution 8
Resolution 9 corporate eng_0205.indd 20 13/04/11 4:31 PM

ANNUAL REPORT 2010 21 corporate eng_0205.indd 21
“THAT subject to the Companies Act, 1965, the Memorandum and Articles of Association of the Company and the Main Market Listing Requirements of Bursa Malaysia Securities Berhad,
(a) approval be and is hereby given for the Renewal of the Existing Shareholders’ Mandate for the Company to enter into and give effect to the category of the recurrent arrangements or transactions of a revenue or trading nature from time to time with the Related Parties, as specified in Section 2.2 of the Circular to Shareholders dated 15 April 2011 ; and
(b) a New Shareholders’ Mandate be and is hereby granted for the Company to enter into additional recurrent related party transactions of a revenue or trading nature from time to time with Related Parties, namely as specified in Section 2.2 of the Circular to Shareholders dated 15 April 2011 , provided that such transactions are:
(i) recurrent transactions of a revenue or trading nature;
(ii) necessary for the Company’s day-to-day operations;
(iii) carried out in the ordinary course of business on normal commercial terms which are not more favourable to the Related Parties than those generally available to the public; and
(iv) not to the detriment of minority shareholders;
(the “Mandate”);
That such authority shall commence upon the passing of this resolution and shall continue to be in force until:-
(i) the conclusion of the next Annual General Meeting of the Company following the Annual General
Meeting at which such mandate was passed, at which time it will lapse, unless the authority is renewed by a resolution passed at the meeting;
(ii) the expiration of the period within which the next Annual General Meeting is required to be held pursuant to Section 143(1) of the Companies Act, 1965 but shall not extend to such extension as may be allowed pursuant to Section 143(2) of the Companies Act, 1965; or
(iii) revoked or varied by resolution passed by the shareholders in a general meeting; whichever is the earlier;
And further that the Directors of the Company be authorised to complete and do all such acts and things
(including executing all such documents as may be required), as they may consider expedient or necessary to give effect to the Mandate”.
By order of the Board
Pn. Rodziah binti Zainudin (LS 0008034)
Ms. Chuah Hooi Bien (LS 0009510)
Joint Secretaries
Kuala Lumpur
15 April 2011
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22 Shell Refining Company
(Federation of Malaya) Berhad (3926-U)
(Incorporated in Malaysia)
Notice of the 52 nd
Annual General Meeting
(Continued)
NOTICE is hereby given that a final dividend of Thirty sen (RM0.30) gross per unit of share less 25% Malaysian
Income Tax in respect of the financial year ended 31 December 2010, if approved by the shareholders, will be paid on 22 June 2011 to Shareholders registered in the Record of Depositors or Register of Members at the close of business on 8 June 2011 .
A Depositor shall qualify for entitlement only in respect of:
(a) Shares transferred into the Depositor’s Securities Account before 4.00 pm on 8 June 2011 in respect of share transfers; and
(b) Shares bought on Bursa Malaysia Securities Berhad on a cum entitlement basis according to the Rules of Bursa
Malaysia Securities Berhad.
Notes Relating To Proxy:
1. A member of the Company who is entitled to attend and vote at the meeting may appoint a maximum of two (2) proxies to attend and, on a poll, vote on the member’s behalf.
2. A proxy need not be a member of the Company.
3. The instrument appointing a proxy shall be in writing and signed by the appointor or by his attorney who is authorised in writing. In the case of a corporation, the instrument appointing a proxy or proxies must be made under seal or signed by an officer or an attorney duly authorised.
4. The signature to the instrument appointing a proxy or proxies executed outside Malaysia must be attested by a solicitor, notary public, consul or magistrate.
5. The instrument appointing a proxy and the power of attorney or other authority (if any) under which it is signed or notarised must be deposited at the registered office of the Company, Company
Secretary’s Office, Bangunan Shell Malaysia, Changkat Semantan,
Damansara Heights, 50490 Kuala Lumpur, not less than forty eight
(48) hours before the time for holding the meeting or adjourned meeting.
6. Only an original proxy form deposited at the registered office of the Company, will entitle the proxy holder to attend and vote at the meeting. Photocopies of proxy form will not be accepted for the purposes of the meeting. Additional original proxy forms are available to members upon request in writing to the Company.
7. Where a member appoints two (2) proxies, the appointment shall be invalid unless such member specifies the percentage of his/her holding to be represented by each proxy.
8. Any nomination of a Director must be made in accordance with the
Articles of Association of the Company.
Notes To The Agenda:
1. Pursuant to Sections 169(1) and 174(1) of the Companies Act, 1965 and Article 124 of the Company’s Articles of Association.
2. Pursuant to Article 112 of the Company’s Articles of Association, the Company has declared and paid interim dividend of Twenty Sen
(RM0.20) per unit of ordinary share and the Directors of the Company have recommended a final dividend of Thirty sen (RM0.30) per unit of ordinary share. This amounts to a total dividend of Fifty sen
(RM0.50) per unit of ordinary share for the year 2010. (All amounts referred to are before deduction of income tax).
3. Re-election is necessary pursuant to Article 81(2) of the Company’s
Articles of Association which requires the appointment of additional
Director to hold office only until the next Annual General Meeting but shall be eligible for re-election.
In addition, Article 81(9) of the Company’s Articles of Association, requires Directors appointed by the Board to fill casual vacancies during the year to be confirmed by the shareholders in the next following Annual General Meeting.
4. Re-election is pursuant to Article 81(3) of the Company’s Articles of
Association, which requires the rotation of one-third of the Directors to retire from office at the first Annual General Meeting and at the
Annual General Meeting in every subsequent year provided always that all Directors shall retire from office once at least in each three (3) years, but shall be eligible for re-election.
5. Pursuant to Section 172(2) of the Companies Act, 1965 and Article
127 of the Company’s Articles of Association.
6. Explanatory notes to Special Business:
On 15 April 2011, the Board announced to Bursa Malaysia
Securities Berhad that the Company would like to seek approval of its shareholders for the Proposed Renewal of the Existing Shareholders’
Mandate and Proposed New Shareholders’ Mandate for Recurrent
Related Party Transactions of a revenue or Trading Nature. The
Existing Shareholders’ Mandate, obtained on 12 May 2010, will expire at the conclusion of the forthcoming 52 nd please refer to the Circular to Shareholders dated 15 April 2011. All defined terms will have the same meaning as defined in the Circular to Shareholders dated 15 April 2011.
Annual General
Meeting to be held on 11 May 2011. For further information, corporate eng_0205.indd 22 13/04/11 4:31 PM

ANNUAL REPORT 2010 23
nd
(Pursuant to Paragraph 8.27 (2) of the Main Market Listing Requirements of
Bursa Malaysia Securities Berhad) corporate eng_0205.indd 23
1. Directors who are standing for re-election at the 52 nd
Annual General Meeting of the Company pursuant to Article 81(2) and Article 81(9) of the Company’s
Articles of Association are:
(a) Y. Bhg. Datuk Zainun Aishah binti Ahmad
(Refer to page 29 of Directors’ profile)
(b) Y. Bhg. Dato’ Saw Choo Boon
(Refer to page 32 of Directors’ profile)
(c) Mr. Khong Kok Toong
(Refer to page 33 of Directors’ profile)
2. Directors who are standing for re-election at the
52 nd Annual General Meeting of the Company pursuant to Article 81(3) of the Company’s Articles of Association are:
(a) Encik Mohd Anuar bin Taib
(Refer to page 28 of Directors’ profile)
(c) Y. Bhg Tan Sri Datuk Clifford Francis Herbert
(Refer to page 31 of Directors’ profile)
(c) Mr. David Lau Nai Pek
(Refer to page 33 of Directors’ profile)
3. The place, date and hour of the forthcoming 52 nd
Annual General Meeting:
Place: Sime Darby Convention Centre,
1A Jalan Bukit Kiara 1,
60000 Kuala Lumpur, Malaysia
Date: Wednesday, 11 May 2011
Hour: 11.00 a.m.
4. Details of Attendance of Directors at Board meetings.
Four Board of Directors Meetings were held during the financial year ended 31 December 2010. Details of attendance of Directors at the Board Meetings are as follows:
Name of Directors
No. of meetings attended
(a) Encik Mohd Anuar bin Taib
(b) Y. Bhg. Dato’ Seri Talaat bin
Haji Husain
(c) Y. Bhg Tan Sri Datuk Clifford
Francis Herbert
4 out of 4 meetings
4 out of 4 meetings
4 out of 4 meetings
(d) Y. Bhg. Dato’ Saw Choo Boon 4 out of 4 meetings
Name of Directors
(e) Y. Bhg. Datuk Zainun Aishah binti Ahmad
(Appointed on 1 June 2010)
(f) Tuan Haji Rozano bin Saad
No. of meetings attended
2 out of 2 meetings
(g) Mr. David Lau Nai Pek
(h) Y. Bhg. Dato’ Jaffar Indot
(Retired on 12 May 2010)
(i) Mr. Kevin Heng Yit Hwa
(Resigned on 24 February 2011)
(j) Mr. Khong Kok Toong
(Appointed on 1 March 2011)
4 out of 4 meetings
4 out of 4 meetings
2 out of 2 meetings
3 out of 4 meetings
Nil
5. The 51 st Annual General Meeting of the Company for the financial year ended 31 December 2009 was held at Sime Darby Convention Centre, 1A Jalan
Bukit Kiara 1, 60000 Kuala Lumpur, Malaysia.
The date, time and purpose of the 51 st
General Meeting held was as follows:
Date: Wednesday, 12 May 2010
Time: 11.00 am
Purpose: To pass the Ordinary Resolutions including Special Business for the Proposed Renewal of Existing
Annual
Shareholders’ Mandate and Proposed
New Shareholders’ Mandate for
Recurrent Related Party Transactions of a Revenue or Trading Nature.
6. None of the Directors has:
(a) Any family relationship with any Director and/ or major shareholder of Shell Refining Company
(Federation of Malaya) Berhad.
(b) Any conflict of interest with Shell Refining
Company (Federation of Malaya) Berhad save as disclosed in the Shareholders’ Circular on
Recurrent related party Transactions.
(c) Any conviction for offences within the past
10 years other than traffic offences.
In 2010, eight of the Company’s Directors are
Malaysians and one Director is a Singapore national.
13/04/11 4:31 PM

corporate eng_0205.indd 24 13/04/11 4:31 PM

corporate eng_0205.indd 25
13/04/11 4:31 PM

26 Shell Refining Company
(Federation of Malaya) Berhad (3926-U)
(Incorporated in Malaysia)
from left to right
Encik Mohd Anuar Bin Taib
Chairman, Non-Independent and
Non-Executive Director
Member of Remuneration Committee and
Nominating Committee
Y. Bhg. Datuk Zainun Aishah
Binti Ahmad
Chairman of Nominating Committee
Independent and Non-Executive Director
Member of Audit and Remuneration Committee
KMN, PMP, DPMP, JSM, PJN
Y. Bhg. Tan Sri Datuk Clifford
Francis Herbert
Independent and Non-Executive Director
Chairman of Audit Committee
Member of Remuneration Committee and
Nominating Committee
PSM, PSD, JSM, KMN
Y. Bhg. Dato‘ Seri Talaat
Bin Haji Husain
Senior Independent and Non-Executive Director
Chairman of Remuneration Committee
Member of Audit Committee and
Nominating Committee
DDSA, SPMP, DPCM, DPMP, JSD, PJK, PJM corporate eng_0205.indd 26 13/04/11 4:31 PM

from left to right
Joint Secretaries
Pn. Rodziah Binti Zainudin
Ms. Chuah Hooi Bien
Y. Bhg. Dato‘ Saw Choo Boon
Independent and Non-Executive Director
Member of Audit Committee, Remuneration
Committee and Nominating Committee
DSNS
Mr. Khong Kok Toong
Non-Independent and Non-Executive Director
Tuan Haji Rozano Bin Saad
Managing Director and Executive Director
Mr. David Lau Nai Pek
Non-Independent and Non-Executive Director
Member of Audit Committee
ANNUAL REPORT 2010 27 corporate eng_0205.indd 27 13/04/11 4:31 PM

28 Shell Refining Company
(Federation of Malaya) Berhad (3926-U)
(Incorporated in Malaysia)
Encik Mohd Anuar Bin Taib
Chairman, Non-Independent and
Non-Executive Director
Member of Remuneration Committee and
Nominating Committee
Encik Mohd Anuar bin Taib,
Malaysian, aged 43, was appointed a Director of your
Company on 24 February 2010 and Chairman on 12 May
2010. Encik Anuar became the
Chairman of Shell Malaysia on
1 January 2010 and continues to be the Vice President Malaysia for
Shell Upstream International Asia as well as the Managing Director for Sarawak Shell Berhad and
Sabah Shell Petroleum Company
Limited.
Encik Anuar holds a Bachelor of Science in Mechanical
Engineering from Case Western
Reserve University, United States of America and an MBA in
International Management from
RMIT University, Melbourne,
Australia. Encik Anuar has been with Shell for 20 years in diverse roles. Currently, Encik
Anuar chairs the Boards of
11 Shell companies in Malaysia, namely, Shell Malaysia Limited,
Shell MDS (Malaysia) Sendirian
Berhad, Shell Timur Sdn Bhd,
Shell Malaysia Trading Sendirian
Berhad, Shell Information
Technology International Sdn
Bhd, Sarawak Shell Berhad, Shell
Sabah Selatan Sdn Bhd, Sabah
Shell Petroleum Company Ltd,
Shell Treasury Malaysia (L) Ltd,
Shell New Ventures Malaysia
Sdn Bhd and Provista Ventures
Sdn Bhd.
Encik Anuar is also a director of
Malaysia LNG Dua Sdn Bhd,
Malaysia LNG Tiga Sdn Bhd,
Kebabangan Petroleum Operating
Company Sdn. Bhd and SPE-Asia
Pacific (M) Sdn Bhd. Encik Anuar is a Trustee of the Merdeka Award
Board which includes Trustees from PETRONAS and ExxonMobil.
Save for the directorships held in the Shell companies as disclosed in the Circular to Shareholders in relation to Recurrent Related
Party Transactions, Encik Anuar has no conflict of interest with your Company. He has not been charged for any offence during his tenure as a director of your
Company.
Encik Anuar attended all four Board meetings, three
Remuneration Committee meetings and one Nominating Committee meeting held in 2010.
corporate eng_0205.indd 28 13/04/11 4:31 PM

corporate eng_0205.indd 29
ANNUAL REPORT 2010 29
Tuan Haji Rozano Bin Saad
Managing Director and Executive Director
Tuan Haji Rozano Bin Saad,
Malaysian, aged 54, is the
Managing Director of your
Company and was appointed a
Director on 16 March 2009. On
8 May 2009, he was appointed as the Managing Director.
Tuan Haji Rozano holds a
Bachelor Degree in Mechanical
Engineering College of Swansea,
United Kingdom (1984). Prior to joining your Company, Tuan Haji
Rozano was the Site Director of the Huntsman Tioxide (M) Sdn Bhd plant in Telok Kelung, Terengganu.
He began his career with ICI Group in 1980, holding several senior positions including Design Engineer
(Project Development, Malaysia),
Plant Engineer (ICI Fertiliser),
Senior Project Manager (ICI
Fertiliser) and Techno-Commercial
Manager. Tuan Haji Rozano is also a member of the Institute of
Engineers of Malaysia since 1980.
In 2001, he was awarded the
Primal Leadership Award and in
2004, he was awarded the Prime
Minister’s Quality Award.
Tuan Haji Rozano has no family relationship with any director and/or major shareholder of your Company. He has no conflict of interest with your Company and has never been charged for any offence.
Tuan Haji Rozano attended all four
Board meetings held in 2010.
Datuk Zainun Aishah, Malaysian, aged 64, was appointed a Director of your Company on 1 June 2010.
Datuk Zainun graduated from
University of Malaya with an
Honours Degree in Economics.
Datuk Zainun began her career with
Malaysian Industrial Development
Authority (MIDA), the Malaysian government’s principal agency for the promotion and coordination of industrial development in the country where she worked for 35 years. In her years of service, she
Y. Bhg. Datuk Zainun Aishah Binti Ahmad
Independent and Non-Executive Director
Member of Audit Committee and Remuneration Committee
Chairman of Nominating Committee
KMN, PMP, DPMP, JSM, PJN held various key positions in MIDA as well as in some of the country’s strategic councils, notably her pivotal role as National Project
Director in the formulation of
Malaysia’s first Industrial Master
Plan. She was the Director General of MIDA for 9 years after being the Deputy Director General for
11 years.
Datuk Zainun was a Director of Tenaga Nasional Berhad,
Kulim Hi-Tech Park and Malayan
Banking Berhad. Currently Datuk
Zainun is a director in four other public listed companies namely
Scomi Engineering Bhd, Microlink
Solutions Berhad, Degem Bhd and
Berjaya Media Berhad. Datuk
Zainun also sits as Chairman of
Pernec Corporation Bhd, a public company.
Datuk Zainun has no family relationship with any director and/or major shareholder of the
Company. She has no conflict of interest with your Company and has not been charged for any offence during her tenure as a director of your Company.
Datuk Zainun attended all two
Board meetings, two Audit
Committee and three Remuneration
Committee meetings, as well as one
Nominating Committee meeting held from June 2010 to December
2010, following her appointment on
1 June 2010.
13/04/11 4:31 PM

30 Shell Refining Company
(Federation of Malaya) Berhad (3926-U)
(Incorporated in Malaysia)
Director’s
Profile
(Continued)
Y. Bhg. Dato‘ Seri Talaat Bin
Haji Husain
Senior Independent and Non-Executive Director
Member of Audit Committee and
Nominating Committee
Chairman of Remuneration Committee
DDSA, SPMP, DPCM, DPMP, JSD, PJK, PJM
Dato‘ Seri Talaat Bin Haji Husain,
Malaysian, aged 60, was appointed a Director of your
Company since 1 June 2007.
Dato‘ Seri Talaat obtained his early education at the Malay
College Kuala Kangsar. He holds a Bachelor of Social
Sciences (Political Science) from
University of Science Malaysia, a Masters in Professional Studies
(International Planning) from
Cornell University, USA and attended the Executive Programme at London Business School and
Harvard Business School.
Dato‘ Seri Talaat joined the
Malaysian Civil Service in 1973 and started as an Assistant
State Secretary in Penang, and subsequently held positions in the Prime Minister‘s Department,
National Institute for Public
Administration (“INTAN”), the
National Palace and the Ministry of Education. He has also served as Mayor of Ipoh City before becoming the Secretary General of the Ministry of Youth and
Sports. Prior to his retirement, he held the position of Secretary
General of the Ministry of
Domestic Trade and Consumer
Affairs. Whilst in the Government
Service, he held the positions of Chairman of Companies
Commission of Malaysia, and
Board Member of Malaysian
Intellectual Property Corporation,
Malaysian Communication and
Multi Media Corporation as well as Sepang International Circuit.
Besides holding the position of
Chairman in several private limited companies, Dato‘ Seri Talaat is also an Independent Director of
Silver Bird Group Berhad and
Konsortium Logistik Berhad. He is also currently a Board Member of
Outward Bound Trust of Malaysia.
Dato’ Seri Talaat has no family relationship with any director and/or major shareholder of your Company. He has no conflict of interest with your Company and has never been charged for any offence.
Dato’ Seri Talaat attended all four Board meetings, four Audit
Committee, four Remuneration
Committee and two Nominating
Committee meetings held in 2010.
corporate eng_0205.indd 30 13/04/11 4:31 PM

ANNUAL REPORT 2010 31
(Continued)
Y. Bhg. Tan Sri Datuk Clifford
Francis Herbert
Independent and Non-Executive Director
Chairman of Audit Committee
Member of Remuneration Committee and
Nominating Committee
PSM, PSD, JSM, KMN corporate eng_0205.indd 31
Tan Sri Datuk Clifford Francis
Herbert, Malaysian, aged 69, was appointed a Director of your
Company on 1 June 2008. Tan Sri
Datuk Clifford holds a Bachelor of
Arts (Hons) Degree from University of Malaya and a Masters of Public
Administration from University of
Pittsburgh, United States of America.
Presently, Tan Sri Datuk Clifford sits on the Boards of Genting Malaysia
Berhad, AMMB Holdings Berhad,
AmInvestment Bank Berhad,
AmIslamic Bank Berhad and
AmBank (M) Berhad.
Tan Sri Datuk Clifford has had an illustrious career with the
Government of Malaysia. He joined the Administrative and Diplomatic
Service of the Malaysian Civil
Service in 1964, serving as an
Assistant Secretary in the Public
Services Department from 1964 to
1968 and as Assistant Secretary in the Development Administration
Unit, Prime Minister‘s Department from 1968 to 1975. Subsequently, he served in the Ministry of Finance from 1975 to 1997, rising to the post of Secretary General to the
Treasury. He retired from the civil service in 1997. During Tan
Sri Datuk Clifford‘s tenure in the civil service, he sat on the Board of Pepper Marketing Agency,
Tourist Development Corporation,
Advisory Council of the Social
Security Organisation (“SOCSO”),
Aerospace Industries Malaysia Sdn
Bhd, Malaysian Highway Authority,
Malaysian Rubber Development
Corporation (“MARDEC”), Port
Kelang Authority, Kelang Container
Terminal Berhad, Bank Industri
Malaysia Berhad, Malaysia Export
Credit Insurance Ltd., National
Trust Fund (“KWAN”), Kumpulan
Khazanah Nasional Bhd,
Malaysia Airline System Berhad
(“MAS”), Petroliam Nasional
Berhad (“PETRONAS”), Bank
Negara Malaysia and Multimedia
Development Corporation Sdn
Bhd. He also served as Chairman of the Inland Revenue Board in
1997. Tan Sri Datuk Clifford is also the Chairman of Montfort Boys
Town and is a trustee of Yayasan
Nanyang and the National Kidney
Foundation. He is also a Vice
President of the Federation of
Malaysian Manufacturers. Tan Sri
Datuk Clifford was instrumental in establishing the Securities
Commission of which he was a member from 1993 to 1994 and was also a Board member of the Institute of Strategic and
International Studies (“ISIS”) from
1989 to 1997. As Secretary
General in the Ministry of Finance, he was also appointed as alternate
Governor to the World Bank. Tan
Sri Datuk Clifford was Chairman of KL International Airport Bhd
(“KLIAB”) from 1993 to 1999.
In 2000 he was appointed as
Executive Chairman of Percetakan
Nasional Malaysia Berhad
(“PNMB”) and was Chairman of
PNMB from 2002 to 2006.
Tan Sri Datuk Clifford has no family relationship with any director and/or major shareholder of the
Company. He has no conflict of interest with your Company and has not been charged for any offence during his tenure as a director of your Company.
Tan Sri Datuk Clifford attended all four Board meetings, four Audit Committee, three
Remuneration Committee and two
Nominating Committee meetings held in 2010.
13/04/11 4:31 PM

32 Shell Refining Company
(Federation of Malaya) Berhad (3926-U)
(Incorporated in Malaysia)
Director’s
Profile
(Continued)
Y. Bhg. Dato‘ Saw Choo Boon
Independent and Non-Executive Director
Member of Audit Committee,
Remuneration Committee and
Nominating Committee
DSNS
Dato’ Saw Choo Boon, Malaysian, aged 64, was appointed a
Non-Independent and Non-
Executive Director on 23 February
2006. He became the Chairman of your Company from 18 May
2006 to 12 May 2010. Following his retirement from Shell Malaysia, the Board on 24 February 2011, appointed him as an Independent and Non-Executive Director,
Member of Audit Committee,
Remuneration Committee and
Nominating Committee of your
Company.
Dato’ Saw holds a B.Sc. Hons
(Chemistry) Degree from University of Malaya. He joined Shell in
1970 as a Refinery Technologist in your Company. He then served in various capacities in manufacturing, supply, trading and planning in Malaysia,
Singapore and the Netherlands.
In 1996, he was appointed
Managing Director of Shell MDS
(Malaysia) Sendirian Berhad. In
1998 to 1999, he assumed the positions of Managing Director for Oil Products (Downstream)
Shell Malaysia and Managing
Director of your Company. In
1999, with the globalisation of the Shell Oil Products business, he was appointed the Vice-President of the Commercial business in the Asia-Pacific region, and in
2004, he became the President of Shell Oil Products East. In
2005, he managed Shell’s global marine business. On 30 June
2010, Dato’ Saw retired from
Shell after 40 years of continuous service. Currently Dato’ Saw is an
Independent Director of Digi.Com
Berhad, RHB Capital Berhad and
RHB Investment Bank Berhad.
Dato’ Saw has no family relationship with any director and/or major shareholder of the
Company. He has no conflict of interest with your Company and has not been charged for any offence during his tenure as a director of your Company.
Dato’ Saw attended all four Board meetings, one Remuneration
Committee meeting and one
Nominating Committee meeting held in 2010.
corporate eng_0205.indd 32 13/04/11 4:31 PM

corporate eng_0205.indd 33
ANNUAL REPORT 2010 33
Mr. David Lau Nai Pek
Non-Independent and Non-Executive Director
Member of Audit Committee
Mr. David Lau Nai Pek, Malaysian, aged 58, is the Finance Director of
Shell Malaysia. He was appointed a Director of your Company on
8 May 2009.
Mr. Lau has over 35 years of professional experience in finance and leading financial organisations in various locations in Australia,
Brunei, China, Malaysia, New
Zealand, the Netherlands and the
United Kingdom. He has served the Shell Group for 28 years in various capacities. His last job before returning to Malaysia was the Vice-President Finance, Shell
International Exploration and
Production B.V., the Netherlands.
Mr. Lau holds a Bachelor of
Commerce Degree from the
University of Canterbury, New
Zealand. He is a member of the
Malaysian Institute of Accountants and also a member of the New
Zealand Institute of Chartered
Accountants. Currently within
Shell, Mr. Lau sits on the Boards of 12 companies including Shell
Malaysia Trading Sendirian
Berhad, Shell MDS (Malaysia)
Sendirian Berhad, Sarawak Shell
Berhad, Sabah Shell Petroleum
Company Ltd, plus several other
Shell Malaysia holding and service companies, all of which are non-listed companies.
Mr. Lau is a Director of Axiata
Group Berhad, a public listed company, and Celcom Berhad, a public non-listed company, as Independent non-Executive
Director and Chairman of the
Board Audit Committee. He is also a member of the Investment
Panel of the Malaysian Employees
Provident Fund.
Save for the directorships held in the Shell companies as disclosed in the Circular to Shareholders in relation to Recurrent Related Party
Transactions, he has no conflict of interest with your Company.
He has not been charged for any offence during his tenure as a director of your Company.
Mr. Lau attended all four Board meetings and Audit Committee meetings held in 2010.
Mr. Khong Kok Toong
Non-Independent and Non-Executive Director
Mr. Khong Kok Toong,
Singaporean, aged 42, is the
Business Improvement Leader –
East for Shell based in Singapore.
He was appointed a Director of your Company on 1 March
2011. Mr. Khong holds a Bachelor
Degree in Chemical Engineering and a Masters in Material Science
& Engineering, both from National
University Singapore.
Prior to joining Shell, he worked in DuPont Singapore for 14 years, during which he performed various roles in technology, engineering and operations. Between 2004 and 2006, he has also performed a significant role in managing a joint venture operation between DuPont and Asahi Kasei in China as the
Deputy General Manager. He is a qualified Six Sigma black belt and familiar with LEAN practices.
Currently, Mr. Khong is also director of Shell Pakistan Refinery
Limited.
Mr. Khong has no family relationship with any director and/or major shareholder of your
Company. He has no conflict of interest with your Company and has not been charged for any offence during his tenure as a director of your Company.
13/04/11 4:31 PM

34 Shell Refining Company
(Federation of Malaya) Berhad (3926-U)
(Incorporated in Malaysia) from left to right
Tan Wei Chen
Manager, Economics & Scheduling,
Malaysian
BEng (Hons) Chemical Engineering,
University of Malaya
Joined Shell in 2000
Fong Seong Siew
Manager, Contracts & Procurement,
Malaysian
Higher Diploma Electrical and
Electronic Engineering,
Liverpool John Moores University,
United Kingdom
Joined Shell in 2006
Tuan Haji Rozano Saad
Managing Director,
Malaysian
BEng (Hon) Mechanical Engineering,
Engineering College of Swansea,
United Kingdom
Joined Shell in 2009
Rosly Bin Mohammed
Manager, Quality, Health, Safety,
Security & Environment,
Malaysian
Southend-On-Sea College of Technology,
United Kingdom
Joined Shell in 1980 corporate eng_0205.indd 34 13/04/11 4:31 PM

Arnold Teo
Senior Manager,Operations,
Malaysian
BEng (Hons) Chemical Engineering,
National University of Singapore
Joined Shell in 1994
Khairuddin Bin Tamby Hashim
Senior Manager, Engineering,
Malaysian
BSc Engineering (Thermal Engineering),
Southern Illinois University, Carbondale,
USA
Joined Shell in 2007
Isham Ismail
Manager, Human Resource,
Malaysian
BA (Hons) Management
Universiti Sains Malaysia
Joined Shell in 1993
Foo Ai Li
Manager, Finance,
Malaysian
B.C.M. (Accounting)
Lincoln University, New Zealand
Chartered Accountant, New Zealand
Malaysian Institute of Accountants (MIA)
Joined Shell in 2002
ANNUAL REPORT 2010 35 corporate eng_0205.indd 35 13/04/11 4:31 PM

36 Shell Refining Company
(Federation of Malaya) Berhad (3926-U)
(Incorporated in Malaysia) corporate eng_0205.indd 36 13/04/11 4:31 PM

corporate eng_0205.indd 37
ANNUAL REPORT 2010 37
13/04/11 4:31 PM

38 Shell Refining Company
(Federation of Malaya) Berhad (3926-U)
(Incorporated in Malaysia)
Chairman’s
Statement
(Continued)
The oil and gas industry is a key contributor to the nation’s progress and development and the main source of revenue for the government. This is underlined in the
Economic Transformation Programme (ETP) launched in
October 2010 to propel Malaysia towards becoming a high-income developed nation.
Under the ETP, the oil, gas and energy sector is identified as one of the four largest key growth engines, which together, are expected to contribute 60% of the incremental gross national income growth. This is not surprising as the oil, gas and energy sector represented
RM127 billion or 19% of GDP in 2009.
Shell Companies in Malaysia are proud to contribute to the growth of the country through our activities in this industry.
Shell has been in Malaysia for 120 years, and currently employs 6,400 people, 88% of whom are Malaysians.
Over that time, we have developed and grown alongside the country in all facets of our business, including oil and gas exploration and production, gas, refining, retail, shared business services and projects and technology.
There are currently 35 Shell Companies in Malaysia; your Company is the only one which is public listed.
Shell’s Downstream business in Malaysia encompasses your Company, along with the supply, distribution, sales and marketing of oil products. Much of our business growth, particularly in the Downstream sector, develops in parallel with the nation’s GDP. Shell is the market leader in retail, with more than 900 stations in the country. We are also the leader in lubricants, garnering about 30% market share in Malaysia.
In Upstream, Shell produces 170,000 barrels of oil equivalent per day, apart from being the largest gas operator in Malaysia, accounting for 60% of total gas production in the country. Production from Upstream supplied 40% of the crude for your Company.
In Cyberjaya, we operate the second largest Shell
Business Service Centre in the Shell Group, employing about one third of the current Shell Malaysia population.
The 2,100 strong staff provides common business support and services for Shell operations worldwide.
We have great confidence in your Company, as evidenced in our investment of RM810 million for the construction of a diesel processing unit in 2011, despite the current challenging refining market.
We continue to safeguard your Company’s assets and people through asset integrity, and process and people safety programmes. In many instances, this requires a change in culture, and a determination to learn from unfortunate incidents that happen to others in the industry. The Board and I are committed to ensure that there are no major untoward incidents during our watch.
We aim to be in the Top Quartile of refineries in the world. To achieve this, your Company will continue to focus on these areas, with specific emphasis on process and people safety. They are:
• Improving our health, safety, security and environmental performance
• Ensuring that fit-for-purpose products are delivered to our customers every time
• Employing world-class reliability and maintenance programmes to deliver high plant availability
• Managing costs by addressing primary components of the cost structure and effective contract management
• Developing long-term plans to maximise energy efficiency and reduce our carbon footprint
• Enhancing margin capture to maximise profits from our assets
In addition, as the oil and gas industry is technology driven and capital intensive, it requires a wide range of skilled talents. Your Company will continue to invest time, money and energy in developing the human resources needed to man and grow its operations in the country.
With regards to your Company’s performance, your
Board has recommended a final dividend of 30 sen per RM1 unit share (see Figure 1) in addition to the interim dividend of 20 sen declared in August 2010, as your Board maintains its intention to sustain an annual dividend level of at least 50 sen per share in the year under review.
corporate eng_0205.indd 38 13/04/11 4:31 PM

ANNUAL REPORT 2010 39 corporate eng_0205.indd 39
Interim Final Special Interim
Figure 1: SRC Dividends Declared
(sen per share)
In 2010, your Company’s share price as shown in Figure 2 continued to withstand market volatility
– indicating market confidence and strong fundamentals of your Company.
In 2010, our longest-serving Director took his leave from the board after 29 years of dedicated service. Y. Bhg.
Dato’ Jaffar Indot has served us as with unwavering diligence since 1981.
His contributions through the years have helped steer your Company successfully through challenging times, and his insights will be missed.
We also bid farewell to Mr. Kevin Heng who spent a short but productive period on our Board and is now moving on to new challenges.
I take this opportunity to express the Board’s regard and gratitude to both these inspiring individuals.
In their places, please also join me in extending a warm welcome to our new Directors, Y. Bhg. Datuk Zainun
Aishah and Mr. Khong Kok Toong.
11.00
10.80
10.60
10.40
10.20
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Figure 2: SRC Share Price (RM)
With her vast corporate experience as a former Director-
General of Malaysian Industrial Development Authority
(MIDA), and his many years on involvement with other
Shell companies, it is indeed a privilege and pleasure having them on board.
Last, but not least, on behalf of your Company, I would like to record my utmost appreciation to our shareholders, the Board of Directors, the management, our employees, contractors and all our other stakeholders for your continued support, perseverance and dedication.
Your commitment and contributions drive your Company to exceed expectations and excel in every way possible.
Thank you.
Anuar Taib
Chairman
13/04/11 4:31 PM

40 Shell Refining Company
(Federation of Malaya) Berhad (3926-U)
(Incorporated in Malaysia)
corporate eng_0205.indd 40 13/04/11 4:31 PM

corporate eng_0205.indd 41
World economy slowly recovered from the decade’s global economic crisis in 2010. Gross World Product
(GWP) grew 4.6%, from the initial forecast of 3.7%, largely on the strength of rebounding exports, which rose 20% compared to 2009.
Keeping pace with the global economic recovery, world oil demand increased slowly but steadily and, registered at 2.9 million barrels per day in 2010, a steep increase from the contraction of 1.2 million barrels per day in the previous year. Imbalances in economic recovery and trading activity caused oil price to fluctuate within the
US$80 – US$100 per barrel range throughout the year.
The Malaysian economy grew 7.2% in 2010, outperforming the official expectation of 6% and reversing the contraction of 1.7% in 2009. This better than average recovery was due to a confluence of domestic factors that helped spur consumer sentiment, such as the continuous series of positive news flow from
Government’s various policy initiatives (Government
Transformation Programme, 10th Malaysia Plan,
Economic Transformation Programme and 2011
Budget) throughout the year.
In the fourth quarter of 2010, the Malaysian economy registered a growth of 4.8%, led by higher public sector spending. This resulted in an expansion in domestic demand, which strengthened by 5.7% in the same quarter, year-on-year. Domestic demand for oil products remained constant and continued to reflect a shift of demand from commercial to retail consumers (see
Figure 1).
While demand for LPG and commercial customers remained constant, retail demand increased by
8 million barrels in 2010 in tandem with record breaking vehicle sales whereby the Total Industry Volume for the domestic automotive market surpassed the 600,000 level for the first time ever.
Retail Commercial
Figure 1: Sales of Petroleum Products in Malaysia
(million barrels)
LPG
The fluctuating cost of crude and oil coupled with the region’s increased refining capacity resulted in great pressure on refining margins. Your Company had anticipated these challenges and intensified our continued focus on optimising every aspect of our operations and inspiring a Safety, Reliability and
LEAN mindset in every employee. Whilst we maintain our Goal Zero target and our journey towards margin optimisation and being a High Reliability Organisation, we initiated the adoption of the LEAN methodology to ensure we are equipped to further enhance performance and face future challenges.
It is this commitment to a long-term performance and investment in our people, work processes and systems
Plan through the outstanding progress we have made in the three core areas of Safety, Reliability and LEAN.
110
100
90
80
70
MOG95
GASOIL
BRENT
TAPIS
60
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Figure 3: Crude and Product Prices, 2010
Figure 5: SRC’s Refinery Availability (%)
40.9 39.6
13/04/11 4:31 PM
’06 ’07 ’08
Sales Volume Refinery Intake
Figure 6: SRC Sales Volume and Refinery
(million barrels)
’09
10
8
6
SRC Refining Margin
Singapore Marker Margin
Average Singapore
Marker Margin
Average SRC
Refining Margin
4
2
0
-2
-4
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Figure 4: SRC and Singapore Refining Margins, 2010
(excludes stockholding impact)
52%
Far East and Africa
(excluding
Malaysia)
Figure 7: SRC Sources of Supply, 2010
7%
Tops
4%
Propylene
7%
LPG
6%
Jet Fuel
6%
LCO/HCO
’10
8%
Middle East
40%
Malaysia
34%
Motor
Gasoline
36% Gasoil
Figure 8: SRC Sales Turnover, 2010 (by Product)

42 Shell Refining Company
(Federation of Malaya) Berhad (3926-U)
(Incorporated in Malaysia)
Managing
Director’s
Review
(Continued)
Retail Commercial
Figure 1: Sales of Petroleum Products in Malaysia
(million barrels)
LPG
Safety remains a core focus at Shell Refining Company, and our high process safety standards continue to lead the way forward for the industry. In every aspect of our operations we remain conscious of the risks present in our workplace and have continuously cultivated a strong safety culture through initiatives such as Goal Zero and the Life-Saving Rules. Goal Zero is a simple message formulated to help drive our vision of ‘Zero deaths. Zero injuries. Zero significant incidents’. Compliance with the
Life-Saving Rules is mandatory for all Shell employees and contractors while conducting Shell business.
We saw outstanding safety performance for 2010 with the achievement of twelve million exposure hours without a Loss Time Injury (LTI) in 2010, and maintained zero
LTI through to the end of the year. We also continued to record zero fatality, major injury and occupational illness in 2010.
With over 400 people working in the refinery everyday, keeping a zero safety incident record is a major challenge. Chronic unease with regards to safety is widespread across the site as we focus our attention not on what we did well, but what we could have done better. In 2010, we recorded four first aid cases where immediate treatment was given on-site. Your company aspires to continue driving Top Quartile HSSE performance over the coming years, and to achieve near-term milestones towards zero process safety incidents.
Your Company continued to focus on embedding and realising the benefits of being a High Reliability
Organisation by delivering enhancements in reliability performance. This is key in achieving our business goals with our existing resources and whilst facing bigger challenges.
A key performance indicator of our plant’s reliability is incurred Controllable Unplanned Downtime performance. A Top Quartile performer is typically below 2%. I am proud to announce that your Company achieved a record unplanned downtime of 0.7%. This represents a notable improvement from 2.89% recorded in 2009.
Actual Downtime Plan
Figure 2: Unplanned Downtime (%)
Our LEAN journey began in late 2009. Being lean is about eliminating waste which adds unnecessary operating costs, creates fatigue, frustration and emotional stress for our employees all of which, has a cascading adverse impact on the product or services
Having a systematic and sustained effort to eliminate
GASOIL
BRENT
TAPIS
Apr May Jun Jul Aug Sep Oct Nov Dec
We continuously focus on deepening our LEAN capability in the way we run your refinery and with our strategic business partners to make continuous improvements in all aspects of our operations.
A detailed report of our Reliability and LEAN
Performance is presented at page 52.
8
Singapore Marker Margin
Average Singapore
Marker Margin
6
Average SRC
Refining Margin
4
2
0
-2
-4
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Figure 4: SRC and Singapore Refining Margins, 2010
(excludes stockholding impact) corporate eng_0205.indd 42
Figure 5: SRC’s Refinery Availability (%)
40.9 39.6
52%
Far East and Africa
(excluding
Malaysia)
’06 ’07 ’08
Sales Volume Refinery Intake
Figure 6: SRC Sales Volume and Refinery
(million barrels)
’09 ’10
8%
Middle East
40%
Malaysia
Figure 7: SRC Sources of Supply, 2010
7%
Tops
4%
Propylene
7%
LPG
6%
Jet Fuel
6%
LCO/HCO
36% Gasoil
Figure 8: SRC Sales Turnover, 2010 (by Product)
34%
Motor
Gasoline

ANNUAL REPORT 2010 43
Oil prices fluctuated between a low of US$80 and a high of US$100 throughout 2010. The average crude price for the year was higher at US$79 per barrel compared to the average in 2009 of US$63 per barrel. Similarly, the average product price was higher at US$91 per barrel compared to the average in
2009 of US$72 per barrel. As shown in Figure 3, the market was volatile with repeated downward pressure on product prices.
In tandem with oil price, your Company’s refining margins fluctuated throughout the year. Margins in the first quarter registered an all-time high of US$7.70 per barrel but this decreased to US$3.91 and US$2.08 in the next two quarters. Towards the end of the year, margins picked up again to close at an average of
US$4.48 for the last quarter. corporate eng_0205.indd 43 13/04/11 4:32 PM

Retail Commercial
Figure 1: Sales of Petroleum Products in Malaysia
(million barrels)
LPG
Retail Commercial
Figure 1: Sales of Petroleum Products in Malaysia
(million barrels)
LPG
Actual Downtime Plan
Figure 2: Unplanned Downtime (%) Figure 5: SRC’s Refinery Availability (%)
44 Shell Refining Company
(Federation of Malaya) Berhad (3926-U)
(Incorporated in Malaysia)
110
100
90
80
70
MOG95
GASOIL
BRENT
TAPIS
60
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Figure 3:
Figure 5: SRC’s Refinery Availability (%)
40.9 39.6
Managing
Director’s
Actual Downtime
Figure 2:
Review
(Continued)
(%)
’06 ’07 ’08
Sales Volume Refinery Intake
Figure 6: SRC Sales Volume and Refinery
(million barrels)
’09 ’10
110
100
90
80
70
MOG95
GASOIL
BRENT
TAPIS
60
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Figure 3: Crude and Product Prices, 2010
Overall, refining margins showed an increase in 2010 due to improved operational efficiency as we achieved
10 SRC Refining Margin and reliability. For 2010 we proudly recorded an
Average Singapore average margin of US$4.54 per barrel as compared to US$3.44 per barrel in 2009. We continued to outperform the average Singapore benchmark margin by US$3.40 per barrel, as illustrated in Figure 4.
Our unceasing efforts towards operational excellence will continue to sustain your Company’s performance
-2
-4
After-tax profit for 2010 is RM106 million compared to RM290 million in 2009 mainly due the impact of stockholding gains which was RM108 million in 2010 compared to RM339 million gained in 2009.
Your Company gained a 16% increase in revenue registering RM10.4 billion in 2010, compared to
RM8.9 billion in 2009, impacted mainly by higher oil prices.
Note: Stockholding gains or losses are a consequence of the accounting method and oil prices trends and volatility.
10
8
6
40.9 39.6
SRC Refining Margin
Singapore Marker Margin
Average Singapore
Marker Margin
Average SRC
Refining Margin
4
2
0
-2
-4
Jan Feb Mar Apr ’08
Sales Volume Refinery Intake
Figure 4: Figure 6: SRC Sales Volume and Refinery
(million barrels)
’10
8%
It is with pride that I announce your Company achieved a record operational availability of 99% as shown in Figure 5. Driven by margin optimisation and low unplanned downtime, the refinery processed
35.4 million barrels of crude in 2010.
Malaysia)
Sales volume in 2010 increased to 37.2 million barrels from 36.9 million barrels in 2009, as illustrated in
Figure 6.
40%
Malaysia
In 2010, 20 types of crude (inclusive of three new types of crude) were successfully processed.
Figure 7: SRC Sources of Supply, 2010
7%
Tops
4%
Propylene
7%
LPG
6%
Jet Fuel
6%
LCO/HCO
34%
Motor
Gasoline
52%
Far East and Africa
(excluding
Malaysia)
Figure 7: SRC Sources of Supply, 2010
7%
Tops
4%
Propylene
7%
LPG
6%
Jet Fuel
6%
LCO/HCO
36% Gasoil
Figure 8: SRC Sales Turnover, 2010 (by Product)
8%
Middle East
40%
Malaysia
34%
Motor
Gasoline
36% Gasoil
Figure 8: SRC Sales Turnover, 2010 (by Product) corporate eng_0205.indd 44 13/04/11 4:32 PM

Retail
Retail
(million barrels)
Commercial
Commercial
Commercial
LPG
LPG
LPG
(million barrels)
Figure 1:
Commercial
Sales of Petroleum Products in Malaysia
(million barrels)
LPG
Retail Commercial
Figure 1: Sales of Petroleum Products in Malaysia
(million barrels)
LPG
ANNUAL REPORT 2010 45
Actual Downtime
Figure 2:
Figure 2:
Unplanned Downtime
Unplanned Downtime
Actual Downtime
Plan
Plan
Plan
(%)
(%)
Figure 2: Unplanned Downtime (%)
Figure 2: Unplanned Downtime (%)
Figure 5: SRC’s Refinery Availability (%)
Figure 5: SRC’s Refinery Availability (%)
Figure 5: SRC’s Refinery Availability (%)
Figure 5: SRC’s Refinery Availability (%)
110
110
110
100
100
90
90
80
80
70
70
60
60
60
The procurement of crude is driven by the relative economic attractiveness of each type of crude to ensure that we are able to optimise our refining margin. In
Jan Feb Mar
Figure 3:
Apr
Malaysian light crudes, 52% Far East and Africa crudes
Apr
Figure 7.
May Jun Jul Aug Sep Oct Nov
May Jun Jul Aug Sep Oct Nov
May Jun Jul Aug Sep Oct Nov
May Jun Jul Aug Sep Oct Nov
Dec
Dec
Figure 3: Crude and Product Prices, 2010
Figure 3: Crude and Product Prices, 2010
10
10
SRC Refining Margin
SRC Refining Margin
Singapore Marker Margin
Average Singapore
Marker Margin
Average SRC
Average SRC
Average SRC
Refining Margin
To reflect the current trend of demand, gasoil was the refinery’s main product, making up 36% of the sales turnover, followed by gasoline at 34%. The other 30% consisted of jet fuel, LCO, LPG, propylene and Tops as shown in Figure 8.
’08
’08
’09
’09
’10
’10
’09
’09
’10
’10 Figure 6: ’07
Figure 6:
Figure 6:
SRC Sales Volume and Refinery
(million barrels)
Figure 6:
Refinery Intake
SRC Sales Volume and Refinery
(million barrels)
8%
Middle East
Middle East
8%
Middle East
Middle East
52%
Far East and Africa and Africa
(excluding
Malaysia)
(excluding
Malaysia)
40%
Malaysia
Malaysia
40%
Malaysia
Malaysia
Actual Downtime Plan
Figure 2: Unplanned Downtime (%)
110
100
90
80
70
MOG95
GASOIL
BRENT
TAPIS
60
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Figure 3: Crude and Product Prices, 2010
-4
-4
Jan Feb Mar
Jan Feb Mar
Apr
Apr
May Jun Jul Aug Sep Oct Nov
May Jun Jul Aug Sep Oct Nov
Jan Feb Mar
Figure 4:
Apr
Apr
May Jun Jul Aug Sep Oct Nov
May Jun Jul Aug Sep Oct Nov
(excludes stockholding impact)
Figure 4: SRC and Singapore Refining Margins, 2010
(excludes stockholding impact)
(excludes stockholding impact)
Dec
Dec
Dec
Dec
40.9 39.6
’06 ’07 ’08
Sales Volume Refinery Intake
Figure 6: SRC Sales Volume and Refinery
(million barrels)
’09 ’10
8%
Middle East
10
8
6
4
2
0
SRC Refining Margin
Singapore Marker Margin
Average Singapore
Marker Margin
Average SRC
Refining Margin
-2
-4
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec corporate eng_0205.indd 45
52%
Far East and Africa
(excluding
Malaysia)
Figure 7: SRC Sources of Supply, 2010
Figure 4: SRC and Singapore Refining Margins, 2010
(excludes stockholding impact)
7%
Tops
4%
Propylene
7%
LPG
6%
Jet Fuel
6%
LCO/HCO
40%
Malaysia
34%
Motor
Gasoline
7%
Tops
4%
4%
Propylene
Propylene
Propylene
6%
6%
Jet Fuel
6%
Jet Fuel
6%
6%
LCO/HCO
Figure 7: SRC Sources of Supply, 2010
Figure 7: SRC Sources of Supply, 2010
Figure 7: SRC Sources of Supply, 2010
Figure 7: SRC Sources of Supply, 2010
36% Gasoil
36% Gasoil
Figure 8:
Figure 8:
SRC Sales Turnover, 2010
SRC Sales Turnover, 2010
(by Product)
(by Product)
Figure 8: SRC Sales Turnover, 2010 (by Product)
Figure 8: SRC Sales Turnover, 2010 (by Product)
34%
34%
Motor
34%
Motor
Gasoline
13/04/11 4:32 PM
36% Gasoil
Figure 8: SRC Sales Turnover, 2010 (by Product)

46 Shell Refining Company
(Federation of Malaya) Berhad (3926-U)
(Incorporated in Malaysia)
Managing
Director’s
Review
(Continued)
Supply
Synergy and
Opportunities
Capturing
Distress
Crudes Optimising
Product
Logistics
Figure 9: Supply Optimisation
Ensuring
Product
Continuity
Beyond our achievements in Safety, Reliability and
LEAN, your Company continued to further refine our end-to-end operations with other strategies and initiatives that targeted cost savings, optimised our resources and improved product quality.
• Feedstock diversification and optimisation
Your Company included three new types of crude to the crude diet in 2010, crucial in optimising refining margins.
Opportunity was also taken to procure long-residue feedstock for processing in our Long Residue
Catalytic Cracking complex to maximise margin generation. Additionally, we leveraged Mogas blending components to optimise our gasoline blending capability.
With these diversification and optimisation strategies we increased margins by RM112 million.
• Optimising supply strategy and opportunities
Leveraging on the experience and capabilities of regional Shell companies, your Company benefited from the supply synergy and opportunities of an integrated supply logistics structure, as illustrated in Figure 9. This contributed to maximising supply robustness and gained us entry to the best outlets for our products.
• Costs optimisation
Your Company places prime importance in ensuring its cost competitiveness in the industry. Cost optimisation opportunities are aggressively seized including seeking stiffer competition for contracts bidding, renegotiating contracts for increased productivity and seeking alternative technology vendors, which resulted in significant savings for the refinery in an inflationary environment.
Since 2007, your Company has adopted a Business
Improvement model that has seen us maintaining high levels of operational performance while achieving improved efficiency and effectiveness year after year.
This stands us in good stead against a background of global economic challenges and market volatility.
We continue to stay focused on the six priority areas highlighted in Figure 10, with specific emphasis on process safety and reliability.
HSSE: Improving health, safety, security and environment performance
Product Quality: Ensuring that fit-for-purpose products are delivered to our customers everytime.
Reliability: Employing world class reliability and maintenance programmes to deliver high plant availability.
Cost: Managing costs by addressing primary components of the cost structure and effective contract management.
Energy/CO
2
: Developing long-term plans to maximise energy efficiency, and minimise our CO
2
footprint.
Margin: Enhancing margin capture to maximise profits from our assets.
Margin
HSSE
Energy/
Co
2
Product
Quality
Cost
Reliablity
Figure 10: Business Priorities corporate eng_0205.indd 46 13/04/11 4:32 PM

ANNUAL REPORT 2010 47 corporate eng_0205.indd 47
The awards and achievements we garnered throughout the year are testament to the continued improvements we achieved in fundamental areas. Your Company continued to be recognised for its exemplary standards in the areas of occupational safety and health performance throughout our business activities with our fourth consecutive achievement of the Grand Award from the Malaysian Society of Occupational Safety and
Health. We also continued to receive the Shell 2010
Manufacturing Executive Vice President’s Award in
Process Safety. In addition, for the eighth consecutive year, we clinched the Laboratory Excellence Award by the Malaysian Institute of Chemistry for demonstrating quality, safety, technical competency and a high standard of analytical services and industry.
A new feather was added to our cap when the Minority
Shareholder Watchdog Group (MSWG) recognised your Company as one of the Top 20 rated companies for its Corporate Governance index. Your Company received the Malaysian Corporate Governance
(MCG) Index Awards 2010 under “Best Corporate
Social Responsibility” Award and “Special Mention
(Achievement)” in Class A for its social responsibility performance and improved corporate governance respectively.
A detailed listing of our Awards and Achievements is presented on page 75.
13/04/11 4:32 PM

48 Shell Refining Company
(Federation of Malaya) Berhad (3926-U)
(Incorporated in Malaysia)
Managing
Director’s
Review
(Continued)
In our daily operations, your Company adheres to environmental standards specified by the Shell Group and fully complies with the Malaysian legislations and other related international conventions and protocols.
In 2010, the implementation of effective process optimisation and waste elimination initiatives yielded reduced waste, emissions and discharge. We achieved
100% recycling of spent catalysts generated in 2010 for use as raw feedstock in other industries, as compared to only 74% in 2009.
We continued to monitor and enhance the energy efficiency of the refinery as well as the discharge of effluent and effluent water to ensure that we adhere to or keep below legislative limits. In these areas, improvements compared to 2009 have been recorded.
In 2010, your Company also completed the holding basin upgrading project for treated effluent to prevent cross contaminants into the groundwater. This has resulted in a reduction of average oil in water concentration of 2.2 milligrams per litre (mg/l) compared to 5.9 mg/l in 2009 – well below the legislative limit of 10 mg/l and the limit of other parameters set by the newly implemented Environmental Quality (Industrial
Effluents) Regulations 2009 – Standard B. This treated effluent water is also used as means of firewater supply for your Company.
In addition, we manage the environmental impact of the effluent discharged to the sea by closely monitoring the seawater quality near the final discharged point and its surroundings. To date the monitoring results shows full compliance to the legislations.
A detailed report on our Environmental initiatives is presented on pages 68 to 71.
Our business success is directly linked to our people and their capability to meet current and future business challenges. As such your Company is committed to developing strategic human capital assets via investment in people development which is addressed in two ways – individual employee development within your
Company and pursuit of further education at external institutions.
In 2010, your Company allocated a total of RM700,000 for training purposes to create a learning environment that enables employees and the organisation to build the capabilities vital to winning performance. Structured and well-planned training modules comprising of technical focused training and soft skill focused training enable employees to acquire the right skills to do their jobs and meet business needs. We also continued our initiatives on the “Vendor Partnering Scheme” aimed at leveraging on more vendors to subsidise selected training programs. Trainings were more localised and with in-house facilitation whenever possible. We kept a close look out for opportunities whereby we could run courses which had “Cross-Department & Multi-Skilling” applications. As a result of these efforts, the total spend to run training programs for all our staff reduced significantly.
Work-life balance is also emphasised to develop an effective, dynamic organisation in which people feel supported, empowered and happy to work. To this end, we subscribe to the Shell charter which advocates flexible working practices and encourage employees to participate in competitive and recreational activities, a variety of which are organised by your Company throughout the year.
Extending our focus to the basics of a healthy lifestyle, we introduced a new programme called “Be Well”.
Based around nutrition, fitness and lifestyle, the
“Be Well” programme was developed to help Shell employees adopt and maintain a healthy lifestyle, and reduce health risks.
Themed “You are in Control”, the programme offered a series of activities including general health talk, weight reduction workshop, smoking cessation program and an interactive web-based self-health assessment. These activities were gradually rolled out between April and
August 2010 and conducted in various locations.
Reflecting the many faces of Malaysia, your Company continues to enhance workplace diversity by integrating the three pillars of Shell: honesty, integrity and respect.
We believe that diversity in our talent base and leadership helps us to better understand the needs of all of our stakeholders, and this will serve to make us more competitive.
A detailed report on our Workplace initiatives is presented on pages 62 to 67.
corporate eng_0205.indd 48 13/04/11 4:32 PM

ANNUAL REPORT 2010 49 corporate eng_0205.indd 49
The way forward is clear to us. Your Company is committed to maintaining our competitive edge through a continued focus on operational excellence, energising our business strategies to improve our performance on safety, business delivery and realigning our internal culture to adopt to changing market needs. The pursuit of strong asset integrity as well as people, health, safety, security, and environmental performance continue to be our major priorities. In ensuring astute financial management throughout our operations, we continue to proactively pursue cost optimisation and continuous improvement initiatives.
In 2011, your Company will undertake a statutory turnaround of the Long Residue Catalytic Cracker
(“LRCC”) unit. The Complex 1 and 2 units, comprising a crude distiller and a platformer, are scheduled for a concurrent shutdown. These meticulously planned activities are aimed at maintaining and enhancing the long-term reliability and integrity of your Company’s core prossessing assets. Detailed preparatory work has been completed and we will invest the effort and resources necessary to ensure that the statutory turnaround is successful.
Your Company is proactively upgrading processes and equipment to expand our capabilities and ensure further operational optimisation in the long run. Part of the
RM5.1 billion that Shell Malaysia is investing in its
Malaysian operations will be used for the construction of a new 6,000 tonnes per day diesel processing unit in the refinery, which will allow your Company to vary feedstock options, increase diesel production and improve refining margins. Such investments keep us in the forefront of the industry and continue to serve our shareholders well.
Having experienced the impact and results that improvements can deliver, the staff and management of your Company are committed to continue advancing our performance in improving safety, enhancing reliability, staying lean and optimising our refining margins with our resolute focus on operational excellence. We eagerly look forward to delivering another year of performance distinction.
Thank you.
Tuan Haji Rozano Bin Saad
Managing Director and Executive Director
13/04/11 4:32 PM