Shell Exploration & Production - Oil & Gas UK

Shell Exploration & Production 

Share Fair 

November 2006

Shell Exploration & Production Disclaimer statement statement 

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

businesses of Royal Dutch Shell. 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 Royal Dutch 

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’’, ‘‘intend’’, ‘‘may’’, ‘‘plan’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘probably’’, ‘‘project’’, ‘‘will’’, 

‘‘seek’’, ‘‘target’’, ‘‘risks’’, ‘‘goals’’, ‘‘should’’ and similar terms and phrases. There are a number of factors that could affect 

the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the 

forward-looking statements included in this Report, including (without limitation): (a) price fluctuations in crude oil and 

natural gas; (b) changes in demand for the Group’s products; (c) currency fluctuations; (d) drilling and production results; 

(e) reserve estimates; (f) loss of market and industry competition; (g) environmental and physical risks; (h) risks associated 

with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of 

such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) 

legislative, fiscal and regulatory developments including potential litigation and regulatory effects arising from 

recategorisation of reserves; (k) economic and financial market conditions in various countries and regions; (l) political 

risks, project delay or advancement, approvals and cost estimates; and (m) changes in trading conditions. All forwardlooking 

statements contained in this presentation are expressly qualified in their entirety by the cautionary statements 

contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Each 

forward-looking statement speaks only as of the date of this presentation, November 2006. Neither Royal Dutch Shell 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 document. 

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

SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation 

tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in 

this presentation, such as “oil in place" that the SEC's guidelines strictly prohibit us from including in filings with the SEC. 

U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575 and disclosure in our Forms 

6-K file No, 1-32575, available on the SEC website www.sec.gov. You can also obtain these forms from the SEC by calling 

1-800-SEC-0330.


Here today… 

Presenters 

Iain Middleton Supply Chain Manager - Projects 

Alastair Reid Supply Chain Team Leader – Projects 

One to One Sessions 

Jonathan Cavanagh Supply Chain Engineer - Services 

Graeme Watson Global Category Manager - Wells


Agenda 

• Shell Group 

• Shell Global Exploration and Production 

• Shell Global Exploration and Production - Projects 

• Shell Exploration and Production in Europe 

• Shell Exploration and Production – Supply Chain 

Management 

• Selling to Shell 

• Contact Us

Shell Shell Exploration & Production 

& Production 

The Shell Group


The Shell Group at a Glance 

• Operating in more than 140 countries 

• Worldwide 109,000 employees 

• Gross sales proceeds $379 billion 

• Net income $25 billion 

• Capital investment $17 billion 

• Cash generation $35.5 billion 

• Hydrocarbon production 3.5 million boe/day 

• Worlds largest fuel retail network with 45,000 service stations 

• Listed on the Stock Exchanges of Amsterdam, London, New York 

2 

Source: Annual Report 2005 

Shell in the World


The Shell Group 

Oil 

Products 

Renewables 

Chemicals 

Gas 

& Power 

Exploration 

& 

Production 

Shell in the World 

Africa 

Americas 

EUROPE 

Asia Pacific 

Russia 

Middle East


Executive Committee 

Peter Voser 

Chief Financial Officer 

Linda Cook 

Executive Director 

Gas & Power 

Jeroen van der Veer 

Chief Executive 

Malcolm Brinded 


Exploration & Production 

Rob Routs 


Downstream (Oil Products & Chemicals) 

Shell in the World


The way we do business… 

A principled approach 

to business is the key to 

our long term success 

Which is based on our 

Core Values of: 

•Integrity 

•Honesty 

• 

•Respect for people

Shell Shell Exploration & Production & Production 

UKOOA 

Oil and Gas 

Conference 

Tom Botts – key 

messages


Tom Botts – Key Messages 

What is threatening competitiveness of UKCS? 

• Fast changing global environment 

• Sustained High Oil Price 

• Higher Supply Costs (UKCS is now in the bottom quartile for cost structure) 

• Resource Constraints 

• Cost of resources to maintain aging infrastructure 

• UKCS regulation changes


Tom Botts – Key Messages 

How can we ensure a bright future for the UKCS? 

• We need to develop and deploy new Technology 

• Be careful and diligent in our Asset Integrity and Safety Performance 

• Continue to work collectively and develop our regional/global relationships 

– Governments; HSE; DTI etc 

• UKOOA and Supply Chain working together closer together in today's 

environment 

• Continue to look outwards to North Sea, European and Global Connections 

• Shell establishing Aberdeen Centre of Excellence


Campus Tullos 

• Dynamic, innovative, open 

centre of excellence 

• Building knowledge 

expertise & technology for 

Global export from 

Aberdeen to a connected 

global industry


Technology 

Maximising the value of Oil and Gas recovery through 

Our People, Our Approach and Our Cutting Edge 

Technologies 

• Reservoir imaging 

• Through Tube Drilling 

• Expandable Tubulars 

• Smart Fields 

• Land Rig 

• Monotower 

• Subsea Gas Compression

Shell Shell Exploration & Production 


Shell Exploration 

& Production



• Active in 38 countries 

• Investing over 19 bn USD in 2006, 

• 75 percent upstream 

- 

• Employs approximately 18,000 people 

• Using cutting edge technology to find and 

produce oil and natural gas, mostly 

carried out with joint venture partners



AMERICAS 

EPW 

EUROPE 

EPE 

AFRICA 

EPG 

MIDDLE EAST 

EPM 

ASIA PACIFIC 

EPA 

RUSSIA/CIS 

EPR

Copyright 2005 SIEP B.V. Shell Exploration & Production EPT-EI P0 


EP Projects Global Model 


Houston 

EPP Locations locations 

Project worksites 

Project Work Sites 

Aberdeen 

New Orleans 

Rijswijk


EP Projects Leadership Team 

Greg Davis 

Human Resources 

Robert Patterson 

Deepwater Projects 

Robin Hutchinson 

Project Management 

Services 

Jeff Edwards 

HSEQ & Sustainable 

Development 

John Bell 

Vice President Technical, 

Projects 

Martin Bailey 

Non Deepwater 

Projects 

John Stubbs 

Project Assurance 

Mike Clubb 

Operations Readiness 

& Assurance 

Harry Benham 

Contracting and 

Procurement 

Hans van Nues 

VP Finance, Projects


EP Funnel - Key Projects 2006-2012 

2009 Outlook by theme 

3.8 – 4.0 mboe/d 

~15% 

~5% 

~40% 

Peace River 

AOSP Debottlenecking 

AOSP Expansion 1 

~40% 

Great White 

Deimos 

Ursa Waterflood 

BC-10 

BS-4 

Ormen Lange 

Skarv 

Statfjord LL 

Groningen LT 

Gbaran/Ubie Phase 1 

H-Block 

Gbaran/Ubie Phase 2 

Erha + Extensions 

Bosi 

Bonga SW 

Afam power 

Olokola LNG 

NLNG T7 

Kashagan 450 

PLNG Changbei 

Qatar Pearl GTL 

Qatargas 4 LNG 

Harweel 

Existing oil and gas Unconventional oil 

New Material oil 

Onstream 2006-2008 

Integrated gas 

Sakhalin II 

Gumusut 

E11 Hub Stage 2 

Gorgon LNG T1-2 

Angel 

Pohokura


Technically complex business 

Remote Locations 

Oman 

Gulf of Mexico Sakhalin Island, Russia 

Swamps of Nigeria


Positioning for the future 

Existing Oil: Nelson 

More Integrated Gas: Sakhalin 

New Material Oil: Bonga 

More Unconventional Oil: Canada


Shell Exploration 


In Europe


EP Europe 

E P 

E u r o p e 

• 1 Management team 

• 1 Business plan 

• 1 Strategy 

• Aligned policies 

• Aligned procedures 

• Integrated support team


Recent Changes in our Leadership 

• John Hollowell, 

– has replaced Greg Hill as VP Production, EP Europe. 

• John Gallagher 

– has replaced Kieron McFadyen as VP Technical, EP Europe.


EP Europe Vision 

• To be the next generation E&P business in Europe 

• One networked seamless European organisation 

• Leveraging Global connectedness and local presence 

with Enterprise First values and behaviours 

• With people who want to work here 

• Unlocking value across borders 

• As the partner of choice 

SAFETY TAKES PRIORITY


Our Strategy 

Maximise this Core 

Area 

Bring Gas to Market 

Grow New Business


Supply Chain 

Management


EP Europe 

Supply Chain Management Organisation 


Supply Chain 

Manager 

Neil MacLean 

•Integrated Service Management 

•Engineering & Maintenance 

•Production Chemistry 

•Logistics 

Support 

Supply Chain 

Manager 

Alex de Jager 

Projects 

Supply Chain 

Manager 

Iain Middleton 

EPE Supply 

Chain Manager 

John Lickvar 

•Capital Projects 

•Subsea Inspection Repair & 

•Maintenance Services 

•Decommissioning activities 

Non Operated 

Ventures Supply 

Chain Manager 

Clive Bray 

Services 

Supply Chain 

Manager 

Marie Marsh 

•Facility Management 

•Information Management 

•Geology & Seismic 

•Human Resource 

•HS & E 

•Property & Lease 

Skill Pool 

Manager 

Chris Siotas 

Well Engineer 

Supply Chain 

Manager 

Jeff Prestwich 

•Drilling Rigs 

•Drilling Services 

•Drilling Chemicals & Fluids 

•Well Construction 

•Well Maintenance


EP Europe 

Contracts 

2,499 Current Contracts 

Services 

36% 

Well Engineering 

13% 

Projects 

15% 


36%


Decommissioning 

Feasibility Options 

Scope 

• 4 Topsides (25 kte-35kte) 

• 1 Steel jacket 

• 3 GBS 

• ~160 Wells 

• ~16 Pipelines 

• 2 Subsea Fields 

Duration ~10 years


EP Europe Operations 

Journey Toward Excellence 

Vision Set in Early 2004


EP Europe - ISC Overview 

Groningen 

Land 

GLT Maint MultiGas OMC 

GLT Proj 

Maintenance only 

Projects only 

P + M 

LOP(Projects) 

Norway/Brent “Central” “Mature” Onegas 

AKOP WGE 

Sigma 3 

AJS 

Supply infrastructure 

EPE gas/oil fields


Selling to Shell


Selling to Shell 

• Shell companies support free enterprise. They seek to 

compete fairly and ethically and within the framework of 

applicable competition laws; they will not prevent others 

from competing freely with them 

• Shell E&P in Europe are committed to explore Global, 

Regional and E&P wide solutions, with use of local 

contracts where appropriate


Our Value Proposition to Suppliers 

Relationships 

• It is our aim to work effectively with the industry, and where business needs justify and 

competitive supply assured, we build long-term relationships based on trust and clear, 

mutually agreed objectives. 

• We capture the efficiencies of dealing with suppliers, for example through standardising 

prequalification and terms & conditions. 

Collaboration 

• We work with suppliers in development and deployment of key technologies. 

• We actively promote the fair sharing of risk between supplier and operator, which is 

increasingly important as we venture into more technically and commercially challenging 

environments. 

Performance 

• Relationships with suppliers who perform to an excellent standard will be nurtured. 

• We measure performance and build differentiating performance into our contracting 

strategies.


EP Europe 

Expects from Vendors 

• Business Principles 

– Services and products 

delivered in accordance with 

Shell General Business 

Principles 

• HS&E & Quality 

– Aligned management systems 

and a very good 

performance track record 

• Mutual Indemnity 

Agreement 

– Undersign the deed 

• Financial 

– Satisfactory financial 

position to provide 

continuity in the market 

where it operates 

• Technical (product 

features / vendor 

business capabilities) 

– Meet requirements of 

(inter)national and if 

required specific Shell / 

E&P in Europe defined 

standards


Working towards full compliance with the Supply Chain 

Code of Practice to… 

Improve performance 

Eliminate unnecessary costs 

Add value 

Boost competitiveness 

In support of the Code, 

our preferred suppliers 

are registered with FPAL. 

For more information or to 

register go to 

www.FPAL.com

Shell Exploration & Production Nederland Aardolie Maatschappij BV A/S Norske Shell 

Supply Chain Management Policy Statement 

As part of our internal Supply Chain Management procedures we (the above companies) are 

committed to the use of the supply chain databases operated by First Point Assessment Ltd (FPAL) 

and Achilles JQS. These tools help to provide a fair and open procurement process and increase 

efficiency in the supply chain. 

We will actively encourage our existing and prospective supplier s to : 

• Register fully and accurately with FPAL or Achilles JQS. 

• Complete a Capability Profile (only for suppliers providing high value or critical goods 

• and services). 

• Actively participate in two way performance feedback. 

Our aim is to maintain positive relationships with our suppliers and continuously improve the 

performance and efficiency of the supply chain process both internally and externally.


www.shell.co.uk/supplychain 

• Contracting future plans 

– Updated Quarterly 

– Includes key contacts and 

timing per activity 

• Selling to Shell overview 

• Shell Group Business 

Principles 

• Supply Chain Management 

– key contacts


Contact Us …… 

For follow up please use our 

Contact List or contact: 

Shell email 

vicki.caveney@shell.com

Shell Exploration & Production

Shell Exploration & Production - Oil & Gas UK

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