Full publication: PDF (92 pages), XLS (95 tables) - Reports - Shell

BUILDING AN ENERGY FUTURE 

INVESTORS’ HANDBOOK 

ROYAL DUTCH SHELL PLC FINANCIAL AND 

OPERATIONAL INFORMATION 2007–2011

BUILDING AN 

ENERGY FUTURE 

GLOBAL ENERGY DEMAND IS 

RISING AND SO ARE CONSUMER 

EXPECTATIONS – MORE PEOPLE 

WANT ENERGY FROM CLEANER 

SOURCES. AT SHELL WE WORK WITH 

OTHERS TO UNLOCK NEW ENERGY 

SOURCES AND SQUEEZE MORE 

FROM WHAT WE HAVE. WE DO THIS 

IN RESPONSIBLE AND INNOVATIVE 

WAYS. IN BUILDING A BETTER ENERGY 

FUTURE WE ALL HAVE A PART TO PLAY. 

SHELL IS DOING ITS PART. 

KEY TO SYMBOLS 

web or email address 

QR code. Scan this code with the 

QR reader app on your smartphone 

and get a hyperlink to the mobile 

internet 

CONTENTS 

1 Introduction from the CEO 

SUMMARY REVIEW 

2 Our businesses 

3 Highlights 2011 

5 Strategy and outlook 

8 Key projects under construction 

10 Market overview 2007–2011 

11 Results 2007–2011 

UPSTREAM 

12 Highlights 

14 Exploration 

16 Options for future growth 

18 Integrated gas 

20 Production 

21 Proved reserves 

22 Europe 

23 Africa 

24 Asia (including Middle East 

and Russia) 

27 Oceania 

28 Americas 

DOWNSTREAM 

31 Highlights 

32 Refining 

33 Supply and distribution 

33 Business to Business (B2B) 

34 Retail 

35 Lubricants 

36 Chemicals 

37 Portfolio actions 

37 Trading 

ALTERNATIVE ENERGY 

38 Biofuels 

39 Wind 

PROJECTS & TECHNOLOGY 

40 Delivering projects 

41 Innovative technology 

41 R&D expenditure 

42 Safety 

42 Contracting and procurement 

CORPORATE SEGMENT 

43 Treasury 

43 Headquarters and central functions 

43 Risk and insurance 

MAPS 

44 Europe 

46 Africa 

48 Asia 

52 Oceania 

53 Americas 

CONSOLIDATED DATA 

56 Employees 

57 Consolidated financial data 

UPSTREAM DATA 

65 Upstream earnings 

67 Oil and gas exploration and 

production activities earnings 

69 Oil sands 

70 Proved oil and gas reserves 

73 Oil, gas, synthetic crude oil and 

bitumen production 

76 Acreage and wells 

78 LNG and GTL 

DOWNSTREAM DATA 

79 Oil products and refining locations 

81 Oil sales and retail sites 

82 Chemicals and manufacturing 

locations 

ADDITIONAL INVESTOR 

INFORMATION 

84 Share information 

85 Dividends 

86 Bondholder information 

87 Financial calendar 

89 Addresses 

89 Abbreviations 

ABOUT THIS PUBLICATION 

This Investors’ Handbook contains detailed information about our annual financial 

and operational performance over varying timescales from 2007 to 2011 . Wherever 

possible, the facts and figures have been made comparable. The information in this 

publication is best understood in combination with the narrative contained in our 

Annual Report and Form 20-F 2011. 

All information from this and our other reports is available for online reading and 

downloading at: 

http://reports.shell.com

INTRODUCTION FROM THE CEO 

My colleagues on both the Board of 

Directors and the Executive Committee 

recognise how important it is to keep 

shareholders informed of Shell’s 

latest developments and we regularly 

communicate with them on strategy and 

performance. To aid investors in their 

analysis of Royal Dutch Shell, we publish 

this Investors’ Handbook: a compilation 

of five years’ worth of financial and 

operational information. 

But any analysis of the Company’s potential 

return must first be put into context. The 

current macroeconomic environment is 

uncertain and the global economy is 

likely to see continued high volatility in the 

coming years. Energy markets have been 

affected by unprecedented geopolitical 

events, such as the earthquake in Japan, 

the eurozone debt crisis and the Arab 

Spring. At the same time, rapid economic 

development in non-OECD countries 

is creating robust structural growth in 

energy demand. By 2030 global oil and 

gas demand could be 40% greater than 

it is today. This growth equates to seven 

times the current North Sea production. 

To meet that future demand will require a 

huge industry investment. The declining 

production of many traditional petroleum 

provinces makes the challenge all the 

more difficult. The industry has to grow 

production from new fields to more than 

offset the natural production declines of 

the old. 

As a result, intense competition exists for 

access to upstream resources and new 

downstream markets. But we believe our 

technology, project-delivery capability 

and operational excellence will remain 

key differentiators for Shell. As energy 

projects become more complex and more 

technically demanding, we believe our 

engineering expertise will be a deciding 

factor in the growth of our businesses. 

Innovation and a competitive mindset will 

also be crucial to our success. 

We have delivered the strategic drivers 

that made it possible for us to reach our 

latest performance targets: cost reduction, 

continual operational improvements and 

16 successful project start-ups. Those 

achievements allowed us to offer some 

$10.5 billion of dividends in 2011, which 

is the largest dividend in our sector and 

more than 10% of the entire dividend 

payout of the FTSE 100. Our improving 

financial position also allows for a 

measured increase in both our investment 

levels and cash returns to shareholders 

in 2012. Over time, our performance is 

reflected in the returns we generate for our 

shareholders not only in terms of dividends 

we pay but also in the value of Royal Dutch 

Shell shares. 

Shell has built up a substantial portfolio 

of options for the next wave of production 

growth up to the end this decade. This 

portfolio has been designed to capture 

energy price upside and manage Shell’s 

exposure to industry challenges, such as 

cost inflation and political risk. We see 

significant opportunities in both greenfield 

exploration and established resource 

positions in the Gulf of Mexico, North 

American tight gas, liquids-rich shales and 

Australian LNG. Shell is working to mature 

these opportunities into viable projects, with 

an emphasis on financial returns. Our net 

spending in 2012 is expected to be $30 

billion to support our growth programme 

for the medium term, with over 60 new 

projects under construction or in design. 

This investment is based on new cash-flow 

targets of up to $200 billion excluding 

working capital for 2012–15 assuming 

$100 oil prices, improved US gas prices 

and downstream environment from 2011. 

I hope you will find plenty of support for 

these encouraging plans in the Investors’ 

Handbook. 

Peter Voser 

Chief Executive Officer 

Shell Investors’ Handbook 

www.shell.com/intro_handbook_video 

1

2 Shell Investors’ Handbook 

Summary review 

SUMMARY REVIEW 

OUR BUSINESSES 

UPSTREAM INTERNATIONAL 

Upstream International manages the 

Upstream businesses outside the Americas. 

It searches for and recovers crude oil and 

natural gas, liquefies and transports gas, 

and operates the upstream and midstream 

infrastructure necessary to deliver oil and 

gas to market. Upstream International also 

manages Shell’s LNG and GTL businesses. 

Its activities are organised primarily within 

geographical units, although there are 

some activities that are managed across 

the businesses or provided through support 

units. 

UPSTREAM AMERICAS 

Upstream Americas manages the Upstream 

businesses in North and South America. 

It searches for and recovers crude oil and 

natural gas, transports gas and operates 

the upstream and midstream infrastructure 

necessary to deliver oil and gas to market. 

Upstream Americas also extracts bitumen 

from oil sands that is converted into 

synthetic crude oil. Additionally, it manages 

the US-based wind business. It comprises 

operations organised into business-wide 

managed activities and supporting 

activities. 

$28.6 BILLION 

EARNINGS ON A CURRENT 

COST OF SUPPLIES BASIS 

2% 

OF THE WORLD’S 

OIL PRODUCTION 

13.1% 

RATIO OF NET DEBT 

TO TOTAL CAPITAL 

DOWNSTREAM 

Downstream manages Shell’s 

manufacturing, distribution and marketing 

activities for oil products and chemicals. 

These activities are organised into globally 

managed classes of business, although 

some are managed regionally or provided 

through support units. Manufacturing 

and supply includes refining, supply 

and shipping of crude oil. Marketing 

sells a range of products including fuels, 

lubricants, bitumen and liquefied petroleum 

gas (LPG) for home, transport and industrial 

use. Chemicals produces and markets 

petrochemicals for industrial customers, 

including the raw materials for plastics, 

coatings and detergents. Downstream also 

trades Shell’s flow of hydrocarbons and 

other energy-related products, supplies 

the Downstream businesses, governs 

the marketing and trading of gas and 

power and provides shipping services. 

Additionally, Downstream oversees Shell’s 

interests in alternative energy (including 

biofuels but excluding wind) and CO 2 

management. 

$23.5 BILLION 

NET CAPITAL INVESTMENT 

3.2 MILLION 

BARRELS OF OIL EQUIVALENT 

PRODUCED A DAY 

3% 


GAS PRODUCTION 


Projects & Technology manages the 

delivery of Shell’s major projects and drives 

the research and innovation to create 

technology solutions. It provides technical 

services and technology capability 

covering both Upstream and Downstream 

activities. It is also responsible for providing 

functional leadership across Shell in the 

areas of safety and environment, and 

contracting and procurement. 

$1.1BILLION 

R&D EXPENDITURE 

7.7% 


LNG SALES 

48% 

SHARE OF PRODUCTION 

THAT IS NATURAL GAS

HIGHLIGHTS 2011 

FIRST 

QUARTER 

SECOND 

QUARTER 

THIRD 

QUARTER 

FOURTH 

QUARTER 

Deep-water oil discovery in Brunei 

Brunei Shell Petroleum confirmed a significant new 

oil discovery in the waters of the south-east Asian 

sultanate. The discovery, named Geronggong, is 

situated in the 3rd Offshore Acreage Area, about 

100 km offshore Brunei. 

Sale of Stanlow refinery to Essar Oil 

Shell agreed to sell its Stanlow refinery in the UK and 

certain associated local marketing businesses to Essar 

Oil (UK) Ltd for a total consideration of some $1.2 

billion (including some $0.9 billion for working capital). 

Expansion of oil-sands upgrader 

Shell successfully started the production from its Scotford 

Upgrader Expansion project in Canada. The 100 

thousand barrels-per-day expansion boosts upgrading 

capacity at Scotford to 255 thousand barrels per day of 

heavy oil from the Athabasca oil sands. 

Global cooperation agreement with CNPC 

Shell and China National Petroleum Company (CNPC) 

announced their shared intent to pursue mutually 

beneficial cooperation opportunities internationally as 

well as in China. 

Launch of biofuels JV Raízen 

Shell and Cosan launched Raízen, a multibillion-dollar 

joint venture that will become a leading producer of a 

low-carbon biofuel: ethanol made from sugar cane. 

Proposed acquisition of Bow Energy 

Arrow Energy Holdings Pty Ltd (Arrow) made proposal 

to Bow Energy Ltd (Bow Energy) to acquire all of the 

issued capital in Bow Energy. 

New PSCs in Malaysia 

Petronas and Shell Malaysia signed a heads of 

agreement for two 30-year production-sharing contracts 

(PSCs) for enhanced oil recovery projects offshore 

Sarawak and Sabah. 

Final approval of Iraq natural-gas JV 

The Iraqi cabinet approved an agreement with Shell 

and Mitsubishi Corporation forming a joint venture to 

gather raw gas from three major oil fields. 



Agreement to divest African downstream 

businesses 

Shell agreed to divest the majority of its shareholding in 

most of its African downstream businesses to Vitol and 

Helios Investment Partners for a total consideration of 

some $1 billion. Shell retains equity in two new jointventure 

companies that will continue to market Shell 

fuels and lubricants in Africa. 

Final investment decision on Prelude FLNG 

Shell decided to move forward with its game-changing 

Prelude floating LNG (FLNG) project in Australia. 

Final investment decision on development of 

deep-water field in Gulf of Mexico 

Shell announced a significant investment to develop 

its major Cardamom oil and gas field in the deep 

waters of the Gulf of Mexico. The Cardamom project 

is expected to produce 50 thousand boe/d at peak 

production. 

First cargo of Pearl GTL products 

The Pearl gas-to-liquids (GTL) plant, located in Ras 

Laffan Industrial City in Qatar, sold its first commercial 

shipment of GTL Gasoil. 

Deep-water oil discovery in French Guiana 

Shell confirmed a notable oil discovery in the Guyane 

Maritime permit approximately 150 km offshore French 

Guiana. 

Agreement to develop petrochemical complex 

in Qatar 

Qatar Petroleum and Shell agreed to develop a worldscale 

petrochemical complex in Ras Laffan Industrial 

City, Qatar. 

Inauguration of Pearl GTL Project 

The Emir of Qatar officially inaugurated the Pearl 

gas-to-liquids (GTL) project, the largest GTL plant in the 

world and the largest energy project in Qatar. 

3

4 


Summary review



STRATEGY AND 

OUTLOOK 

Meeting the growing demand for 

energy worldwide in ways that minimise 

environmental and social impact is a 

major challenge for the global energy 

industry. We are committed to improving 

energy efficiency in our own operations, 

supporting customers in managing their 

energy demands, and continuing to 

research and develop technologies that 

increase efficiency and reduce emissions in 

liquids and natural gas production. 

We leverage our diverse and global 

business portfolio and customer focused 

businesses built around the strength of the 

Shell brand. 

STRATEGY 

Our strategy seeks to reinforce our position 

as a leader in the oil and gas industry in 

order to provide a competitive shareholder 

return, while helping to meet global 

energy demand in a responsible way. 

Safety and corporate environmental and 

social responsibility are at the heart of our 

activities. 

Intense competition exists for access to 

upstream resources and to new downstream 

markets. But we believe our technology, 

project-delivery capability and operational 

excellence will remain key differentiators 

for our businesses. We expect around 80% 

of our capital investment in 2012 to be in 

our Upstream businesses. 

5



UPSTREAM 

In Upstream we focus on exploration for 

new liquids and natural gas reserves and 

on developing major new projects where 

our technology and know-how add value to 

the resource holders. The implementation of 

our strategy will see us actively managing 

our portfolio around three themes in 

Upstream: 

� building our resource base through 

global exploration, focused acquisitions 

and exits from non-core portfolio positions; 

� accelerating the extraction of value from 

our resources, with profi table production 

growth, top-quartile project delivery and 

operational excellence; and 

� differentiating ourselves from our 

competition through integrated gas 

leadership, technology and partnerships. 

DOWNSTREAM 

In our Downstream businesses, our emphasis 

remains on sustained cash generation from 

our existing assets and selective investments 

in growth markets. The implementation of 

our strategy will see us actively manage our 

assets around three themes in Downstream: 

��operational excellence and cost 

effi ciency, to maximise the uptime and 

operating performance of our asset base, 

and to reduce costs and complexity; 

� refocusing our refi ning portfolio on the 

most effi cient facilities – those that best 

integrate with crude supplies, marketing 

outlets and local petrochemical plants; and 

� selective growth in countries such as 

China, India and Brazil, which have high 

growth potential, while maintaining or 

increasing our margins in our core countries. 

This includes researching, developing and 

marketing biofuels. 

CONVERTING RESOURCES TO PRODUCTION 

billion boe 

35 

30 

25 

20 

15 

10 

5 

0 

-5 

2008 2009 

On-stream 

Under construction 

Study 

Production 

2010 2011 

Long-term upside 


Our commitment to technology and 

innovation continues to be at the core of 

our strategy. As energy projects become 

more complex and more technically 

demanding, we believe our engineering 

expertise will be a deciding factor in the 

growth of our businesses. Our key strengths 

include the development and application 

of technology, the financial and projectmanagement 

skills that allow us to deliver 

large field development projects, and the 

management of integrated value chains. 

OUTLOOK 

We have defined three distinct layers for 

Shell’s strategy development: performance 

focus and continuous improvement; growth 

delivery; and maturing next-generation 

project options for the longer term. 

PERFORMANCE FOCUS AND 

IMPROVEMENT 

We will work on continuous improvements 

in operating performance, with an 

emphasis on health, safety and 

environment, asset performance and 

operating costs. Asset sales are a core 

element of our strategy – improving our 

capital efficiency by focusing investment 

on the most attractive growth opportunities. 

Shell has sold a substantial portion of its 

non-core assets in the last years. Asset sales 

of up to $3 billion are expected in 2012 as 

Shell exits from further non-core positions. 

We have initiatives underway that are 

expected to improve Shell’s integrated 

Downstream businesses, focusing on the 

most profitable positions and growth 

potential. Shell announced exits from 

800 thousand b/d of non-core refining 

capacity and from selected retail and other 

marketing positions in 2009–2011, and 

has taken steps to improve the quality of its 

Chemicals assets. 

DIVESTMENTS 2009–2011 

Upstream 

Downstream 

Total $17 billion 

ACQUISITIONS 2009–2011 

GROWTH DELIVERY 

We are planning a net capital investment 

of some $30 billion in 2012 – an increase 

from 2011 levels – as Shell invests for longterm 

growth. This amount relates largely 

to investments in some 17 new projects for 

which final investment decisions were taken 

in 2010–2011. They are part of a portfolio 

of more than 60 new growth projects that 

are under construction or being assessed 

for future investment. Going forward, 

annual spending will be driven by the 

timing of investment decisions and the nearterm 

macroeconomic outlook. 

In early 2012, Shell defined a set of 

ambitious financial and operating targets 

for profitable growth. These targets are 

driven by Shell’s performance in maturing 

new projects for final investment decision 

and by project start-ups. 

Cash flow from operations (CFFO), 

excluding working capital movements, was 

$136 billion for 2008–2011. We expect 

aggregate cash flow from operations, 

excluding working capital movements, 

for 2012–2015 to be 30-50% higher, 

GROUP CAPITAL INVESTMENT 

$ billion 

35 

30 

25 

20 

15 

10 

5 

0 

Upstream 

Downstream 

Total $15 billion 

2009–11 average 

Downstream 

Europe (Upstream) 

Americas (Upstream) 

Asia��aci�c (Upstream) 

Africa, Middle East, CIS (Upstream)

FINANCIAL FRAMEWORK 

assuming that the Brent oil price is in the 

range of $80-100 per barrel and that 

conditions improve for North American 

natural gas prices and downstream margins 

relative to 2011. 

In Upstream we have the potential to reach 

an average production of some 4.0 million 

boe/d in 2017–2018, compared with 3.2 

million boe/d in 2011. This production 

potential will be driven by the timing of 

investment decisions and the near-term 

macroeconomic outlook, and assumes some 

250 thousand boe/d of expected asset 

sales and licence expiries. In Downstream 

we are adding new refining capacity in 

the USA and making selective growth 

investments in marketing. 

200 

100 

50 

0 

PAY-OUT 

� Dividend linked to business results 

� Scrip dividend with buyback offset 

� ~$10.5 billion in 2011 

SUSTAINED CASH FLOW GROWTH [A] 

�� 

150 

�� 

2008–11 

�� 

�� 

�� 

�� 

2012–15 

�� 

[A] CFFO outlook assumes improved US gas and downstream 

environment from 2011. CFFO excludes working capital 

movements. 

MATURING NEXT-GENERATION 

PROJECT OPTIONS 

Shell has built up a substantial portfolio 

of options for a next wave of growth. This 

portfolio has been designed to capture 

energy price upside and manage Shell’s 

exposure to industry challenges from cost 

inflation and political risk. Key elements 

of this opportunity set are in global 

exploration and established resource 

positions in the Gulf of Mexico, North 

American tight gas, liquids-rich shales and 

Australian LNG. These projects are part of 

a portfolio that has the potential to underpin 

production growth to the end of this 

decade. Shell is working to mature these 

projects, with an emphasis on financial 

returns. 

GROUP PRODUCTION OUTLOOK 

% 

100 

75 

50 

25 

0 

CASH PERFORMANCE 

� +30-50% CFFO 2012–2015 versus 

2008–2011 [A] 

� �rowth free cash �ow 

� CFFO drives investment and pay-out 

BALANCE SHEET 

� 0-30% gearing through cycle 

� Balance sheet underpins investment 

� Capital employed grows steadily 

2011 2017 

Americas Traditional 

�� Integrated gas 

Europe 

Middle East, Africa, CIS 

2011 

2017 

Tight/shale oil 

and gas 

Deep water 

Heavy oil/EOR 

OIL AND GAS PRODUCTION [A] 

million boe/d 

4.0 

3.5 

3.0 

INVESTMENT 

� ~$30 billion net capex 2012 

� �ffordability� pro�tability� portfolio 

2.5 

2009 2010 2011 

Production and potential 

2010–11 asset sales 

Future asset sales and licence expiries 

[A] Production outlook at $80/b Brent. 



[A] CFFO outlook at $80-100/b Brent and assumes improved US gas and downstream environment from 2011; CFFO excludes working capital movements. 

2017–18 

average 

7



KEY PROJECTS UNDER CONSTRUCTION 

KEY EY E 

SCHIEHALLION 

REDEVELOPMENT 

CLAIR PH2 

CORRIB 

AOSP 

DEBOTTLENECKING 

NORTH AMERICAN 

TIGHT GAS 

MAJNOON FCP 

EAGLE FORD PORT ARTHUR 

MARS B, W. BOREAS & S. DEIMOS BAB 

CARDAMOM 

HARWEEL 

�� Traditional Tradi 

io 

oil oi 

and andd gas ga 

�� Integrated I eg 

ated 

gas 

� Deep D Deep 

water wwater 

a er 

�� Tight/shale Ti T gh 

t / h ha 

l oil oill 

and an 

d gas ggas 

as 

� Heavy H Heavy 

oil/EOR 

i / EO 

� Refi ning/Chemicals 

KEY PROJECTS – POST FINAL INVESTMENT DECISION 

Start-up Project Country 

BONGA NW 

BC-10 PH2 

Shell interest 

(%) 

KASHAGAN PH1 

SAS 

AMAL STEAM 

SABAH GAS 

KEBABANGAN 

WHEATSTONE LNG 

GREATER WESTERN FLANK PH1 

Peak production 

100% (kboe/d) 

LNG 100% 

GUMUSUT-KAKAP 

PRELUDE FLNG 

NORTH RANKIN 2 

GORGON LNG T1-3 

capacity (mtpa) Category 

2012–2013 Amal Steam Oman 34 20 Heavy oil/EOR 

Shell 

operated 

AOSP Debottlenecking Canada 60 10 Heavy oil/EOR � 

Bab Thamama G and Bab Habshan-2 United Arab Emirates 9.5 80 Traditional oil and gas 

BC-10 Phase 2 Brazil 50 35 Deep water � 

Eagle Ford USA 100 45 Tight/shale oil and gas � 

Gumusut-Kakap Malaysia 33 135 Deep water � 

Harweel Oman 34 40 Heavy oil/EOR 

Kashagan Phase 1 Kazakhstan 17 300 Traditional oil and gas 

Majnoon FCP Iraq 45 >30[A] Traditional oil and gas � 

North American Tight Gas USA/Canada Various ~125[B] Tight/shale oil and gas � 

North Rankin 2 Australia 21 280 Integrated gas 

Port Arthur Refi nery Expansion USA 50 Refi ning/Chemicals � 

SAS United Arab Emirates 9.5 115 Traditional oil and gas 

2014–2015 Bonga North West Nigeria 55 45 Deep water � 

Cardamom USA 100 50 Deep water � 

Corrib Ireland 45 45 Traditional oil and gas � 

Gorgon LNG T1-3 Australia 25 440 15 Integrated gas 

Mars B, W. Boreas & S. Deimos USA 72 100 Deep water � 

Sabah Gas Kebabangan (KBB) Malaysia 30 130 Deep water 

2016+ Clair Phase 2 UK 28 120 Traditional oil and gas 

Greater Western Flank Phase 1 Australia 21 110 Integrated gas 

Prelude FLNG Australia 67.5 110 3.6[C] Integrated gas � 

Schiehallion Redevelopment UK 36 130 Traditional oil and gas 

Wheatstone LNG Australia 6.4 260 8.9 Integrated gas 

[A] Shell entitlement at $80/b. 

[B] Shell share (subject to investment pace). 

[C] Not including 1.7 mtpa NGLs.

KEY PROJECT S UPDATE 

AOSP DEBOTTLENECKING 

(Shell interest 60%; Shell operated) 

The Athabasca Oil Sands Project (AOSP) 

extracts bitumen from the Muskeg River 

and Jackpine mines in the province of 

Alberta, Canada, and synthesises from it 

a crude oil at the Scotford Upgrader near 

Edmonton. The successful start-up of an 

expansion project in 2011 has increased 

the AOSP’s mining and upgrading capacity 

to 255 thousand boe/d. The focus will 

now be to improve operating efficiencies 

and reliability further, thereby adding 

more processing capacity with low capital 

investment and low business risk. This 

“debottlenecking” opportunity, which will 

be developed over the next 10 years, is 

expected to increase production by as much 

as 85 thousand boe/d while reducing unit 

costs. In 2011, we took the final investment 

decision on the first 10 thousand boe/d 

capacity-increasing increment. 

BONGA NORTH WEST 


The Bonga North West project is Shell’s 

first brownfield subsea tieback in Nigerian 

deep water. The project connects newly 

discovered oil and gas fields to the existing 

Bonga floating production, storage and 

offloading unit. All engineering contracts 

have been awarded and the project is in 

the execution phase. Production is expected 

to come on-stream in 2014, reaching a 

peak of 45 thousand boe/d. 

CARDAMOM DEEP 


The Cardamom Deep field lies below 

the Auger and Cardamom fields in the 

deep waters of the Gulf of Mexico. Shell 

discovered the Cardamom reservoir in 

2010 using advanced seismic technology 

that was able to produce improved 

images versus traditional seismic methods. 

Furthermore, the Cardamom appraisal well 

was with the first deep-water exploration 

plan to be approved by the Bureau of 

Ocean Energy Management, Regulation 

and Enforcement after the BP Deepwater 

Horizon incident. The field is expected to 

produce a peak of 50 thousand boe/d 

through wells connected to the existing 

Auger platform, some directly and others 

via a new subsea tie-back system. The wells 

will be drilled over the next two years, 

following the final investment decision in 

2011. 

CLAIR PHASE 2 

(Shell interest 28%) 

The second phase of the Clair development 

involves drilling 36 wells and the design, 

fabrication and installation of two fixed 

platforms connected by a bridge. Drilling 

and production facilities will be situated 

on one platform, and utilities and living 

quarters will be on the other. The new 

facilities, located west of the Shetland 

Islands, are being designed for 40 years of 

production. The final investment decision 

was announced in 2011. Installation 

is scheduled for 2015, with production 

expected to come on-stream in 2016. Peak 

production is expected to be 120 thousand 

boe/d. 

GUMUSUT-KAKAP 


The Gumusut-Kakap field is the first deepwater 

opportunity for Shell in Malaysia. 

Lying in water 1,200 m deep, the field is 

being developed on the basis of a semisubmersible 

platform with a production 

capacity of 150 thousand boe/d of oil from 

19 subsea wells. The oil will be exported 

via a 200 km pipeline to a new terminal at 

Kimanis, Sabah. The gas associated with 

the oil production will be re-injected into the 

reservoir to help improve the oil recovery. 

MARS B 

(Shell interest 71.5%; Shell operated) 

The Mars B project will help boost production 

from the Mars field and bring on-stream two 

other nearby fields – West Boreas and South 

Deimos. The fields are located in water depth 

of around 900 m in the Gulf of Mexico. The 

Mars B project includes the construction 

of a new tension-leg platform – the second 

at the Mars field and the sixth of its type 

for Shell in the Gulf of Mexico. Production 

from the new platform, called Olympus, 

is expected to start around 2015; peak 

production will be 100 thousand boe/d. 

The Mars field has been one of Shell’s most 

important fields over the last 15 years. Yet 

by the end of 2011, the field still contained 

around 1.1 billion boe. The Mars B project 

extends the life of the field to at least 2050. 

We plan to start development drilling at the 

site of the Olympus TLP with the Noble Bully 

One drillship in spring 2012, having taken 

the final investment decision in September 

2011. 



NORTH AMERICAN TIGHT GAS AND 

LIQUIDS-RICH SHALES 

(Shell interests various; Shell operated) 

We have an industry-leading portfolio of 

tight-gas and liquids-rich shale resources in 

the USA and Canada. Our main regions 

of operation in the USA are: Eagle Ford, 

Texas; Marcellus, Pennsylvania and 

New York; Haynesville, Louisiana; and 

Pinedale, Wyoming. In Canada they are: 

Groundbirch, British Colombia; and Deep 

Basin and Foothills in Alberta. Production 

from these assets was about 220 thousand 

boe/d in 2011 and could reach more than 

400 thousand boe/d (2.3 bcf/d) by 2015. 

PRELUDE FLNG 

(Shell interest 67.5%; Shell operated) 

In 2011 Shell took its first final investment 

decision to move ahead with building a 

floating liquefied natural gas (FLNG) facility. 

Total production capacity will be 3.6 mtpa of 

LNG, 1.3 mtpa of condensate and 0.4 mtpa 

of LPG. The floating processing and storage 

facility will be moored above an offshore 

gas field, liquefying the gas produced from 

the field. Ocean-going carriers will offload 

the liquefied natural gas, as well as other 

liquid by-products, for delivery to market. 

Located more than 200 km offshore Western 

Australia, the Prelude FLNG facility will be 

the largest offshore facility in the world, 

measuring 488 m by 74 m and weighing 

around 600,000 tonnes when fully loaded. 

Shell has moved forward rapidly to bring 

this project to reality; first production of LNG 

is expected some 10 years after the Prelude 

gas field has been discovered. 

SCHIEHALLION 

(Shell interest 36%) 

The Schiehallion Redevelopment Project 

“Quad 204” will replace an existing 

floating production, storage and offloading 

unit (FPSO) with a newly built one. In so 

doing, the project extends the expected 

life (2023–2047) of the Schiehallion and 

Loyal deep-water fields west of the Shetland 

Islands, enabling continued production 

from the existing wells. The new FPSO will 

be capable of exporting as much as 130 

thousand boe/d and store in excess of 900 

thousand boe. The final investment decision 

for the project was announced in 2011. 

The FPSO installation is scheduled in 2015, 

and production is expected to come onstream 

in 2016. 

9



MARKET OVERVIEW 2007–2011 

SHELL REALISED PRICES YEAR AVERAGE 

Oil and NGL ($/b) 

2011 2010 2009 2008 2007 

SUBS EAI SUBS EAI SUBS EAI SUBS EAI SUBS EAI 

Europe 106.77 103.97 73.35 83.24 55.53 56.97 89.28 86.33 68.45 73.12 

Asia 103.73 62.81 76.21 44.27 57.50 36.53 95.92 49.78 67.49 53.53 

Oceania 92.38 99.74[A] 67.90 78.05[A] 50.47 56.16[A] 85.92 99.99[A] 72.70 78.29[A] 

Africa 111.70 79.63 61.45 98.52 72.92 

North America – USA 104.93 109.49 76.36 74.27 57.25 56.24 97.95 89.74 66.49 64.45 

North America – Canada 70.72 53.23 39.26 67.07[B] 50.27[B] 

South America 100.44 97.76 69.99 63.57 57.76 58.00 79.42 82.25 63.09 71.21 

Total 105.74 73.01 75.74 52.42 57.39 42.49 92.75 63.59 67.99 59.23 

Natural gas ($/thousand scf) 

Europe 9.40 8.58 6.87 6.71 7.06 8.17 9.46 10.87 7.24 8.54 

Asia 4.83 8.37 4.40 6.55 3.61 4.26 4.67 7.06 3.46 3.15 

Oceania 9.95 10.09 8.59 8.79[A] 5.29 3.94[A] 2.96 4.13[A] 2.22 1.81[A] 

Africa 2.32 1.96 1.71 1.67 1.20 

North America – USA 4.54 8.91 4.90 7.27 4.36 5.02 9.61 12.15 7.23 9.85 

North America – Canada 3.64 4.09 3.73 7.71 5.90 

South America 2.81 0.99 3.79 3.18 4.37 3.58 

Total 5.92 8.58 5.28 6.81 4.83 6.73 6.85 9.63 5.14 6.83 

Other ($/b) 

North America – Bitumen 76.28 66.00 50.00 

North America – Synthetic crude oil 91.32 71.56 56.23 

North America – Minable oil sands 88.98 61.97 

[A] Estimate based on publicly available data. 

[B] Includes bitumen. 

OIL AND GAS MARKER INDUSTRY PRICES 

$/b $/MMBtu 

120 

110 

100 

90 

80 

70 

60 

50 

2007 

Brent 

WTI 

2008 2009 

Henry Hub ($/MMBtu) 

JCC 

2010 

2011 

10 

9 

8 

7 

6 

5 

4 

3 

REFINING MARKER INDUSTRY GROSS MARGINS 

$/b 

18 

16 

14 

12 

10 

8 

6 

4 

2 

0 

2007 2008 2009 

US West Coast margin 

US Gulf Coast coking margin [A] 

Rotterdam complex margin [B] 

Singapore 

2010 

[A] US Gulf Coast margin up to and including 2009. 

[B] Rotterdam Brent up to and including 2009. 

2011 

CHEMICAL MARGINS 

$/tonne 

800 

700 

600 

500 

400 

300 

200 

100 

0 

2007 

US ethane 

2008 2009 

Western Europe naphtha 

East Asia naphtha 

2010 

2011[A] 

[A] Based on available market information at the end of the year.

RESULTS 2007–2011 

REVENUE 

$ million 

BASIC EARNINGS PER SHARE 

$ 

355,782 

458,361 

5.00 4.98 

4.27 

278,188 

2.04 

368,056 

3.28 

470,171 

2007 2008 2009 2010 2011 

2007 2008 2009 2010 2011 

INCOME ATTRIBUTABLE TO 

ROYAL DUTCH SHELL PLC SHAREHOLDERS 

$ million 

31,331 30,918 

26,277 

12,518 

20,127 

2007 2008 2009 2010 2011 

TOTAL EQUITY 

$ million 

125,968 

128,866 

138,135 

149,780 

171,003 

2007 2008 2009 2010 2011 

CASH FLOW FROM OPERATING ACTIVITIES [A] 

$ million 

40,667 

35,983 

23,820 

[A] Excludes working capital movements. 

33,279 

43,242 

2007 2008 2009 2010 2011 

DIVIDENDS PAID TO 

ROYAL DUTCH SHELL PLC SHAREHOLDERS 

$ million 

9,001 

9,516 



SUMMARY OF RESULTS $ MILLION 

2011 2010 2009 2008 2007 

Upstream 24,455 15,935 8,354 26,506 18,094 

Downstream (CCS basis) 4,289 2,950 258 5,309 8,588 

Corporate and non-controlling interest (119) (242) 1,192 (449) 882 

CCS earnings 28,625 18,643 9,804 31,366 27,564 

Estimated CCS adjustment for Downstream 2,293 1,484 2,714 (5,089) 3,767 

Income attributable to shareholders 30,918 20,127 12,518 26,277 31,331 

Identifi ed items 3,938 570 (1,749) 2,956 2,259 

CCS earnings excluding identifi ed items 24,687 18,073 11,553 28,410 25,305 

Basic CCS earnings per share ($) 4.61 3.04 1.60 5.09 4.39 

Estimated CCS adjustment per share ($) 0.37 0.24 0.44 (0.82) 0.61 

Basic earnings per share ($) 4.98 3.28 2.04 4.27 5.00 

Basic earnings per ADS ($) 9.96 6.56 4.08 8.54 10.00 

Cash fl ow from operating activities 36,771 27,350 21,488 43,918 34,461 

Cash fl ow from operating activities per share ($) 5.92 4.46 3.51 7.13 5.50 

Dividend per share ($) 1.68 1.68 1.68 1.60 1.44 

Dividend per ADS ($) 3.36 3.36 3.36 3.20 2.88 

10,526 

10,196 

10,453 

2007 2008 2009 2010 2011 

Cash dividend (2010: $9,584 mln; 2011: $6,877 mln) 

Equivalent value of shares issued under Scrip Dividend 

Programme (2010: $612 mln; 2011: $3,576 mln) 

11

12 Shell Investor to s’ Han Handbo dbook ok 

Upstream am 

UPSTREAM 

HIGHLIGHTS 

� Produced 3.2 million boe/d of oil and gas. 

� Sold 18.8 million tonnes of LNG. 

� Added 1.2 billion boe proved reserves (excluding the year’s production). 

� Discovered notable fields offshore French Guiana (Zaedyus, with more than 300 million 

boe potential on a 100% basis) and offshore Australia (Vos, Satyr and Acme West). 

� Brought on-stream three major projects – Qatargas 4, Pearl GTL and AOSP Expansion 

Phase 1. 

� Took 12 final investment decisions: Prelude, North West Shelf – Greater West 

Flank Phase 1 and Wheatstone LNG in Australia; Clair Phase 2 and Schiehallion 

Redevelopment in the UK; Sabah Gas Kebabangan in Malaysia; AOSP 

Debottlenecking, Cardamom and four tight-gas final investments decisions in North 

America. 

� Acquired a 30% interest in the Masela production-sharing contract in Indonesia for 

some $0.9 billion, thereby acquiring a stake in the Abadi field. 

� Signed an agreement with the China National Petroleum Corporation to establish a 

50:50 well-manufacturing joint venture. 

� Acquired Bow Energy through Arrow Energy LNG for some $0.3 billion (Shell share 

of funding). 

� Divested interests in several Upstream assets, including the Rio Grande Valley south 

Texas assets in the USA; the natural gas transport infrastructure joint venture Gassled 

in Norway; Pecten Cameroon Company LLC; and Oil Mining Leases 26 and 42 and 

related facilities in Nigeria. 

KEY STATISTICS 

Upstream earnings ($ million) 

2011 2010 2009 2008 2007 

Upstream International 19,697 15,205 7,209 19,298 12,453 

Upstream Americas 4,758 730 1,145 7,208 5,641 

Total Upstream earnings ($ million) 24,455 15,935 8,354 26,506 18,094 

of which Integrated gas 7,279 5,727 1,785 4,093 3,144 

Total Upstream earnings excluding identifi ed items 

($ million) 20,600 14,442 8,488 23,019 16,623 

Upstream cash fl ow from operations ($ million) [A] 33,281 24,526 18,445 35,448 25,870 

Liquids production (thousand b/d) [B][C] 1,551 1,637 1,600 1,693 1,818 

Natural gas production (million scf/d) [B] 8,986 9,305 8,483 8,569 8,214 

Synthetic oil production (thousand b/d) [B] 115 72 80 – – 

Mined oil sands production (thousand b/d) [B] – – – 78 81 

Total production (thousand boe/d) [B][D] 3,215 3,314 3,142 3,248 3,315 

Equity LNG sales volume (million tonnes) 18.8 16.8 13.4 13.1 13.2 

Upstream net capital investment ($ million) 19,083 21,222 22,326 28,257 13,555 

Upstream capital employed ($ million) 126,437 113,631 98,826 83,997 71,711 

Upstream employees (thousands) 27 26 23 22 22 

[A] Excludes net working capital movements. 

[B] Available for sale. 

[C] Includes bitumen production. 

[D] Natural gas volumes are converted to oil equivalent using a factor of 5,800 scf per barrel. 

UPSTREAM EARNINGS [A] 

$ billion 

25 

20 

15 

10 

5 

0 

PRODUCTION 

million boe/d million tonnes 

4 

3 

2 

1 

0 

2007 

2008 2009 

Excluding integrated gas 

Integrated gas 

�� 

2007 

Liquids 

Gas 

2008 

LNG sales volumes 

(million tonnes) 

2009 

2010 

2010 

2011 

2011 

20 

15 

10 

5 

0

She Sh She Shell ll l In Inve ves es e tor tors’ s’ s Ha Han Haan dbo db dbo book ok 

Ups U tr tre ream a 

13


Upstream 

EXPLORATION 

Our exploration strategy is designed to 

deliver new resources that grow production, 

creating substantial value to Shell. We have 

extensive acreage in high-potential basins 

around the world and have had significant 

success discovering resources in them. 

We draw on our extensive geological 

knowledge, deploy innovative 

technologies, get early access to new 

licences and focus on material opportunities 

– both near existing infrastructure and 

in promising new basins and plays. We 

continue to focus on cost-efficiency and 

making early decisions regarding a 

prospect’s potential. 

DISCOVERIES 

Our exploration performance has been 

robust. Over the past five years, we have 

added discovered resources averaging 

more than 1.9 billion boe per year. 

Between 2009 and 2011 we added 7 

billion boe including tight-gas resources. 

During 2011, we participated in 417 

successful exploration and appraisal 

wells drilled outside proved fields. They 

comprised 30 conventional and 161 tightgas 

and tight-oil wells, and 226 appraisal 

wells near known fields. New proved 

reserves have been allocated to 197 of 

these wells. 

Eleven notable new discoveries and 

appraisals were made during 2011. These 

are in Australia, Canada, China, French 

Guiana, Nigeria, the UK and the USA. 

TECHNOLOGY 

Shell continues to build on a strong 

legacy of innovative technology for 

exploration in deep water, near existing 

fields or infrastructure and – increasingly 

– in new tight-gas and liquids-rich shale 

opportunities. Our research centres develop 

concepts, algorithms and tools that are 

integrated with leading-edge technologies 

from the external market to enable the 

identification, appraisal and development 

of hydrocarbons in deeper and more 

complex geological settings with lower risk 

and cost. 

We are a leader in the acquisition of 

seismic data in deep water by means of 

wide-azimuth surveys and ocean-bottom 

sensors. These technologies, when 

combined with proprietary processing 

algorithms, interpretation software and 

ever-greater computing power, allow 

us to create sharper seismic images of 

rock formations. We can then locate 

drilling targets in the formations more 

accurately. For onshore seismic acquisition 

in support of tight-gas and liquids-rich 

shale opportunities, we are developing 

innovative fibre-optic and magneto-electric 

sensor systems. 

Advances in onshore well technology, such 

as Shell’s proprietary light land rig and 

lower drilling costs, allow us to develop 

and produce resources that were previously 

uneconomic. We have extended the 

concept of a light drilling rig to offshore 

operations, where we also have taken 

advantage of automation to reduce the rig 

crew’s exposure to hazards. 

We have an outstanding safety record 

in drilling deep-water wells. We brought 

that expertise into the establishment of 

the Marine Well Containment Company, 

which provides containment systems for 

deep-water wells in the US Gulf of Mexico. 

In the shallower waters of Alaska, we will 

have a dedicated oil-spill capping and 

containment system designed to deal with 

Arctic conditions. 

We are locating and draining previously 

stranded hydrocarbons near our existing 

offshore field infrastructure with recordsetting 

wells that extend laterally for 

several miles from the drilling rig. We 

are also developing new techniques to 

understand and predict the distribution of 

heterogeneities in tight gas and liquidsrich 

shale reservoirs. This will enable us 

to confidently identify productive “sweet 

spots”. 

ACREAGE ADDITIONS 

Since 2007, Shell has acquired exploration 

rights to some 360,000 km 2 . In 2011 

alone, we secured rights to more than 

140,000 km 2 of new exploration acreage 

including approximately 12,000 km 2 of 

positions in liquids-rich shales. Recent 

significant additions are specified below. 

ALBANIA 

In February 2012, Shell signed an 

agreement with Petromanas Energy to 

become a partner in two onshore blocks. 

This agreement is subject to governmental 

approvals. 

ARGENTINA 

In 2011, Shell became partner in 

three blocks in the Neuquen Basin. The 

transactions were formally approved in 

January 2012. 

AUSTRALIA 

In November 2011, Shell and Woodside 

Petroleum Ltd (Woodside) were awarded 

three blocks in the Canning Basin in the 

offshore North West Shelf. The area covers 

about 23,000 km 2 . Through the acquisition 

of Bow Energy by Arrow Energy LNG, Shell 

also added acreage to its Queenslandbased 

coalbed-methane joint venture with 

PetroChina. 

BRUNEI 

In June 2011, Shell became partner in the 

offshore Block CA2, which has an area of 

about 5,000 km 2 . 

CANADA 

During 2011, Shell acquired additional 

liquids-rich shale acreage in British 

Columbia and Alberta. In January 2012, 

Shell was also the successful bidder for four 

deep-water blocks offshore Nova Scotia. 

The blocks were awarded in March 2012. 

CHINA 

In January 2012, Shell signed an 

agreement with Ivanhoe Energy to acquire 

its interest in the Zitong block in the 

Sichuan Basin. This agreement is subject to 

governmental approvals. 

COLOMBIA 

Shell was awarded Block 27 in the middle 

Magdalena Basin, and it additionally 

farmed into Blocks 28 and 3. 

FRENCH GUIANA 

In February 2012, French authorities 

ratified Shell’s entry into the Guyane 

Maritime block comprising about 

25,000 km 2 of deep-water acreage, and 

Shell assumed operatorship. 

MALAYSIA 

In March 2012, Shell signed exploration 

PSCs and joint operating agreements in 

offshore Sarawak for Blocks 2B and SK318 

adding some 9,200 km 2 to our Malaysia 

position. 

NEW ZEALAND 

In August 2011, Shell became partner 

in two blocks in the deep-water Great 

South Basin with a total size of about 

32,000 km 2 .

PHILIPPINES 

In October 2010, Shell signed a farm-in 

agreement to acquire a 45% interest in 

Service Contract 54 – block B, offshore 

north-west Palawan. The acreage covers an 

area of around 3,200 km 2 . The transaction 

was formally approved in January 2011. 

RUSSIA 

In October 2011, Shell won the bid for the 

onshore East Talotinsky licence in the Timan 

Pechora area. 

SOUTH AFRICA 

In February 2012, Shell was awarded a 

deep-water exploration block in the Orange 

Basin offshore South Africa. The area is 

about 37,000 km 2 . 

TANZANIA 

In September 2011, Shell became 

partner in deep-water Blocks 5 and 6 

offshore Tanzania. The total area is about 

15,000 km 2 . 

TURKEY 

In November 2011, Shell signed two 

agreements with Türkiye Petrolleri Anonim 

Ortaklığı (TPAO), the state-owned oil 

company, to become an exploration 

partner both onshore and offshore. The 

onshore exploration is to be conducted in 

the south-east of the country; the offshore 

EXPLORATION ION ON 

PERFORMANCE 

PPERFORMANCE 

ERFORMANC 

ALASKA 

KEY 

� 2007 – March MMarch arch 

2012 22012 

0 2 acreage aacreage 

crea 

g ge 

access ces 

� 2011 discovery covery ove 

� 2011 appraisal praisal ra 

sal 

success ucc 

s 

GUYANA 

COLOMBIA 

exploration area lies in the deep waters 

of the Mediterranean south-west of the 

country. The offshore acreage amounts 

to about 16,000 km 2 . The agreements 

are pending ratification by the Turkish 

government. 

UKRAINE 

In September 2011, Shell was awarded 

an exploration contract, adding two blocks 

to an area specified in an earlier joint 

activity agreement with the state-owned gas 

producer. 

USA 

Shell acquired additional liquids-rich 

shale and shale-gas acreage in Colorado, 

Kansas, Ohio and Texas. 

GREENLAND 

NORTH AMERICAN TIGHT GAS 

NOVA SCOTIA 

ITALY 

GULF OF MEXICO 

ALBANIA 

GERMANY UKRAINE 

RUSSIA 

TURKEY 

TUNISIA 

EGYPT 

IRAQ 

JORDAN QATAR 

FRENCH GUIANA 

BRAZIL 

ARGENTINA 

NORWAY 

UK SWEDEN 

NIGERIA 

GABON 

DISCOVERED RESOURCES POTENTIAL 

billion boe 

2.5 

2.0 

1.5 

1.0 

0.5 

0 

TANZANIA 

SOUTH AFRICA 

2007 2008 2009 

Traditional oil and gas 

Integrated gas 

Tight/shale oil and gas 

RUSSIA 

CHINA 


Upstream 

PHILIPPINES 

BRUNEI 

MALAYSIA 

AUSTRALIA 

2010 

NEW ZEALAND 

2011 

15


Upstream 

OPTIONS FOR 

FUTURE GROWTH 

Shell has a strong portfolio of pre-FID 

options that can support production growth 

up to 2020. We have 36 projects in the 

concept-selection or design phase, around 

half of which are to be operated by Shell. 

The projects include not only traditional 

exploration and production activities, but 

they also involve deep water, LNG, tight 

gas, liquids-rich shale and heavy oil. In 

total, these projects represent some 12 

billion boe of resources. The main areas 

of potential growth are the deep-water 

fields in the Gulf of Mexico, tight-gas 

and liquids-rich shale resources (mainly 

in North America) and LNG projects in 

Oceania. 


We are drilling at least five exploration 

wells in the Gulf of Mexico in 2012. Shell’s 

2017–2018 production potential in the 

Gulf of Mexico is around 350 thousand 

boe/d. The field-development priorities 

are hub-based projects at the Vito and 

Appomattox discoveries. We aim to take 

the final investment decision on those 

projects before 2015, with start-up a few 

years later. 

AUSTRALIAN AND INDONESIAN LNG 

We are assessing future options in Australia 

and Indonesia totalling around 10 mtpa by 

2020. 

The Arrow LNG project (Shell share 50%) 

is based on coalbed methane, with two 

liquefaction trains having a combined 

capacity of 8 mtpa in the first phase. The 

purchase of Bow Energy in 2011 will 

allow us to meet the current two train 

requirements and subsequently develop 

future expansion. 

Shell has a 20% stake in Browse and a 

34% stake in the Greater Sunrise floating 

LNG project, both of which are operated 

by Woodside. In 2011, Shell also entered 

the 2.5 mtpa Abadi floating LNG project in 

Indonesia with a 30% stake. 

KEY 

� Existing production hub 

� Under construction 

� 2011 FID 

� Options 

GLOBAL TIGHT-GAS AND LIQUIDS-RICH 

SHALES 

Worldwide, Shell has approximately 

50,000 km2 (12 million acres) of land 

holdings containing tight-gas or shale 

resources. Some 12,000 km2 (3 million 

acres) of liquids-rich shales were added in 

2011 at a cost of around $2 billion. 

Total global spending in these plays in 

2012 will be some $6 billion. Development 

spending on North American tight gas will 

be around $3 billion for 2012 – similar to 

what it was in 2011. Those figures are at 

the low end of our spending range of $3-5 

billion per year, reflecting the weak price 

of natural gas. We will also spend some 

$2 billion on exploration and appraisal of 

tight-gas and liquids-rich shale resources 

this year, with a focus on maturing our new 

liquids-rich portfolio. 

0 200 km 

PLUTO O (WOODSIDE) D 

WHEATSTONE E N 

GORGON G N 

0 1,000 00 km 

CARDAMOM C 

DEEP 

GULF G OF MEXICO 

PERDIDO 

BROWSE B 

USA 

MARS B, W. W BOREAS, S. DEIMOS M 

AUGER 

NORTH H WEST SHELF S 

Dampier e 

GREATER EATER SUNRISE S 

Derby D 

Broome m 

BRUTUS U 

HOLSTEIN L 

CAESAR/TONGA R 

STONES N 

PRELUDE D FLNG 

AUSTRALIA R 

Appraisal and development of new liquidsrich 

shale acreage could provide up to 250 

thousand boe/d potential in 2017–2018. 

We are moving to develop our Eagle Ford 

liquids-rich position, following a successful 

appraisal there in 2011. This forms part 

of a more than $1 billion development 

spending programme on North American 

liquids-rich shales in 2012. 

NAKIKA A 

MARS 

URSA 

VITO 

ABADI A FLNGG 

www.shell.com/tightgas_video 

APPOMATTOX 

A 

APPOMATTOX 

� ~100 kboe/d hub potential 

� Appraisal drilling underway 

� > 250 million boe resources 

� Shell 80% (operator) 

VITO 

� ~100 kboe/d potential 

� >200 million boe resources 


ARROW ARW ENERGY N LNG N NG 

STONES 

� 45 kboe/d potential 


ABADI FLNG 

� Inpex 60% 

� Shell 30% 

� EMPI 10% 

� 2012 FEED 

ARROW ENERGY LNG 

� Bow Energy acquisition 

� Shell/PetroChina 50:50

TIGHT GAS AND LIQUIDS-RICH SHALES ACREAGE 

KEY 

� Tight gas 

� Liquids-rich shales potential ntial tial 

POTENTIAL 2014–2020 START-UPS 

Phase Project Country 


(%) 

Peak production 

100% (kboe/d) 

LNG 100% 

capacity (mtpa) Category 

Concept Abadi FLNG Phase 1 Indonesia 30 65 2.5 Integrated gas 


operated 

selection AOSP Debottlenecking Canada 60 55 Heavy oil/EOR � 

Appomattox USA 80 100 Deep water � 

Basrah Gas Company Rehab & 

Rejuvenation 

Iraq 44 0 Traditional oil and gas 

BC-10 Massa Phase 3 Brazil 50 20 Deep water � 

Bonga North Nigeria 55 200 Deep water � 

Bosi Field Development Nigeria 44 130 Deep water 

Carmon Creek Expansion Phase 2 Canada 100 40 Heavy oil/EOR � 

Geronggong Brunei 50 Deep water 

Gorgon T4 Expansion Australia 25 250 5 Integrated gas 

Majnoon FFD/West Qurna FFD [A] Iraq 45/15 100-200 Traditional oil and gas � 

Nigeria NLNG Train 7 Nigeria 26 220 8.4 Integrated gas 

Pearls – Khazar Kazakhstan 55 50 Traditional oil and gas 

Greater Sunrise LNG Australia 34 120 4.1 Integrated gas 

Tukau Timur Malaysia 50 40 Integrated gas 

Vito USA 55 100 Deep water � 

Zabazaba Nigeria 50 135 Deep water 

Zaedyus French Guiana 45 Deep water 

Design AOSP Debottlenecking Canada 60 20 Heavy oil/EOR � 

Arrow Energy LNG Australia 50 170 8 Integrated gas 

Bonga South West Nigeria 44 200 Deep water � 

Bokor Phase 3 Malaysia 40 30 Traditional oil and gas 

Browse (BCT) LNG Australia 20 310 >10 Integrated gas 

Carmon Creek Expansion Phase 1 Canada 100 40 Heavy oil/EOR � 

Erha North Phase 3 Nigeria 44 40 Deep water 

Forcados Yokri Integrated Project Nigeria 30 100 Traditional oil and gas � 

Fram UK 28 35 Traditional oil and gas � 

Gbaran Ubie Phase 2 Nigeria 30 200 Integrated gas � 

Linnorm Norway 30 50 Traditional oil and gas � 

Malikai Malaysia 35 60 Deep water � 

North American tight gas USA/Canada Various >400[B] Tight/shale oil and gas Various 

North American liquids-rich shales USA/Canada Various ~175[B] Tight/shale oil and gas 

Rabab Harweel Integrated Project Oman 34 40 Heavy oil/EOR 

Stones USA 35 45 Deep water � 

Southern Swamp AG Nigeria 30 85 Traditional oil and gas � 

Tempa Rossa Italy 25 45 Traditional oil and gas 

[A] Shell entitlement at $80/b. 

CANOL 

MONTNEY 

[B] Shell share (subject to investment pace). 

GROUNDBIRCH 

DEEP BASIN 

FOOTHILLS 

BAKKEN 

PINEDALE 

NIOBRARA 

MONTEREY 

WOLFCAMP 

EAGLE FORD 

UTICA 

MARCELLUS 

MISSISSIPPI LIME 

HAYNESVILLE 

COLOMBIA 

ARGENTINA 

GERMANY 

UKRAINE 

TURKEY 

EGYPT 

OMAN 

CHINA 


Upstream 

17


Upstream 

INTEGRATED GAS 

Shell integrated gas projects that came 

on-stream over the past few years include 

Pearl GTL, Pluto LNG Train 1 (Woodside), 

Qatargas 4 and Sakhalin-2. The Prelude 

floating LNG project as well as the Greater 

Western Flank Phase 1, Gorgon, North 

Rankin 2 and Wheatstone projects are 

currently under construction and are 

expected to come on-stream within the next 

few years. 

Shell has also started considering GTL and 

LNG options to monetise natural gas in 

North America. These would be projects 

that involve the entire natural gas value 

chain and so play very much to Shell’s 

strengths as an integrated player, but they 

are still in very early stages of assessment. 

Integrated gas earnings are part of the 

Upstream segment and incorporate LNG 

(including LNG marketing and trading) and 

GTL operations. In addition, the associated 

upstream oil and gas production activities 

from the projects Sakhalin-2, North West 

Shelf, Pluto LNG Train 1 (Woodside), 

Qatargas 4 and Pearl GTL are included in 

integrated gas earnings, as well as power 

GLOBAL BAL B AL 

LNG LLNG 

NG 

PORTFOLIO 

PPORTFOLIO 

ORTFO 

I [A] A] 

KEY 

�� LNG NG 

– 

i in n o operation p pe 

at 

o 

�� LNG NG 

– 

under uunder 

nde 

construction 

cconstruction 

o t uc 

io 

�� Regasifi fication 

– in operation 

[A] As of March 2012. 

generation and coal gasification activities. 

In 2011, integrated gas accounted for 

around 30% of our Upstream earnings. 

LNG 

Our expertise in the LNG industry is based 

on the more than 45 years of technical 

advice that we have provided for gas 

liquefaction plants around the world – 

including the world’s first commercial plant, 

GLOBAL LNG CAPACITY GROWTH 

mtpa 

50 

25 

0 

Current 

On-stream 

Under construction 

Options 

Gorgon 

T1-3 

NIGERIA LNG 

Wheatstone 

and Prelude 

Others 

~2020+ 

which came on-stream in 1964 in Algeria. 

LNG is fast becoming a truly global 

commodity and will continue its rapid 

expansion in the years ahead, with global 

demand potentially doubling in the next 

decade. This will be driven by the growing 

gas import needs of China, India, the 

Middle East and Europe – but also by new 

importers such as Malaysia, the Philippines, 

Singapore, Thailand and Vietnam. 

LNG LEADERSHIP [A] 

year-end mtpa 

30 

20 

10 

0 

QATARGAS 4 

MALAYSIA LNG 

Shell ExxonMobil Chevron 

2011 

2017 

BG 

[A] Projects in operation or under construction. 

OMAN LNG AND QALHAT LNG 

BRUNEI LNG 

Total 

SAKHALIN-2 

PRELUDE FLNG 

PLUTO (WOODSIDE) 

GORGON WHEATSTONE 

NORTH WEST SHELF 

BP

At Shell, we are proud of our leadership 

in this sector of the industry. In recent 

years, ventures in which Shell participated 

have supplied as much as 30% of global 

LNG. We have around 21 mtpa of Shellshare 

liquefaction capacity currently in 

operation in Australia, Brunei, Malaysia, 

Nigeria, Oman, Qatar and Russia. 

Qatargas 4, a joint venture between 

Qatar Petroleum (70%) and Shell (30%), 

was brought on-stream in early 2011 

with a single mega train delivering 

approximately 7.8 mtpa of LNG and a 

peak production of 280 thousand boe/d. 

The project opened up new markets for 

Qatari LNG in China and Dubai, with 

agreements signed in 2008. 

Our total LNG sales volume in 2011 

was 18.8 million tonnes – up 12% from 

2010. This increase mainly reflected the 

increase in sales volumes from Qatargas 

4. Sales volumes were also higher from 

Nigeria LNG, helped by a stable gas 

supply, and from the Sakhalin-2 project, 

where production reached 10 mtpa. 

These increases were partly offset by 

the reduction in the Shell share of LNG 

production from Woodside Petroleum 

Ltd – the result of Shell’s sale of part 

of its shareholding in the company in 

November 2010. 

During 2011, total LNG sales contracts 

were signed for some 6 mtpa. These longterm 

contracts of up to 25 years are linked 

to oil prices and will be fulfilled by Shell’s 

global LNG portfolio. At an oil price of 

$110 per barrel the contracts would deliver 

revenues of around $100 billion on an 

undiscounted basis. 

Three LNG projects are currently under 

construction in Australia, totalling around 

7 mtpa: Prelude FLNG (Shell interest 

67.5%), Gorgon Trains 1-3 (25%) and 

Wheatstone (6.4%). We are also assessing 

an additional 15 mtpa in future options with 

projects involving Arrow Energy, Gorgon 

Train 4 and the Browse and Greater Sunrise 

fields offshore Australia as well as the 

Abadi field of Indonesia. 

FLOATING LNG 

We believe that floating liquefied natural 

gas (FLNG) will write the next chapter in 

the history of the industry. In the coming 

years, Shell will start to produce and 

liquefy natural gas at sea, enabling the 

development of gas resources ranging from 

clusters of smaller and more remote offshore 

fields to potentially larger fields. FLNG can 

open up new business opportunities for 

countries looking to develop their natural 

gas resources. 


Upstream 

www.shell.com/preludefl ng_video 

In May 2011, Shell announced the world’s 

first final investment decision to build an 

FLNG facility. The facility will be used to 

develop the Prelude gas field, 200 km 

off Australia’s north-west coast (see also 

page 9). 

LNG FOR TRANSPORT 

LNG has the potential to provide real 

economic and environmental benefits for 

operators of fleets of large, heavy-duty 

trucks, ships and trains. As a transport fuel, 

it lowers emissions of sulphur, particulates 

and nitrogen oxides, and the energy 

density of LNG means that it can offer the 

distance range that operators need. The 

potential cost advantage in using gas rather 

than oil products can reduce the payback 

time for investment in infrastructure, and 

LNG used in trucks and other heavy duty 

vehicles can mean quieter traffic, which 

� The Prelude FLNG facility will be the largest offshore facility in the world. 

19


Upstream 

is particularly important for working at 

night. Several manufacturers are already 

supplying LNG-powered engines for a 

range of vehicles. As a fuel for ships, LNG 

is not a new idea. Ocean-going LNG 

carriers have been using it for more than 

45 years. Shell has been a pioneer in such 

shipping, with an excellent track record in 

terms of the safe storage and handling of 

LNG. 

We see the main growth opportunities in 

the near term to be in road transport and 

coastal or inland shipping. Increasingly 

stringent emissions regulations, abundant 

supplies of competitively priced natural gas, 

and the sheer scale and pace of demand 

for fuel are driving these opportunities. 

In 2011, Shell took the final investment 

decision on the Green Corridor project. It 

will develop a retail infrastructure for the 

supply of LNG along a busy truck route in 

the province of Alberta, Canada. The LNG 

will be supplied from a 0.3 mtpa plant 

near Calgary based on Shell’s innovative 

low-cost Moveable Modular Liquefaction 

System. 

GTL 

Almost 40 years ago, Shell began 

researching how to convert natural gas 

into liquid fuels, lubricants and chemical 

feedstocks. In 1993, this gas-to-liquids 

(GTL) technology became a commercial 

reality when the Shell Middle Distillate 

Synthesis plant started up in Bintulu, 

Malaysia. All in all, Shell has filed more 

than 3,500 patents covering all stages of 

the GTL process. 

We used our proprietary technology and 

operational experience with GTL to build 

Pearl, Shell’s and Qatar Petroleum’s massive 

plant in Qatar. Ten times bigger than the 

Bintulu plant, Pearl is the world’s largest 

GTL plant and one of the largest industrial 

developments in the world. 

Both trains of the Pearl project have started 

production, with the first commercial gasoil 

shipment from Train 1 having taken place in 

June 2011. At peak production capacity, 

Pearl will take 320 thousand boe/d of 

gas and turn it into 140 thousand boe/d 

of GTL products and 120 thousand boe/d 

of natural gas liquids and ethane. This 

amounts to almost 8% of Shell’s worldwide 

production, making it the company’s 

main engine for growth for 2012. Over 

its lifetime, Pearl will process about three 

billion boe from the world’s largest single 

non-associated gas field, the North Field, 

which contains more than 900 tcf of gas. 

PRODUCTION 

In 2011, hydrocarbon production available 

for sale averaged 3,215 thousand boe/d, 

which was 3% lower than in 2010 and 2% 

higher than in 2009. Excluding production 

lost from divestments, 2011 production was 

approximately the same as it was in 2010. 

Production in 2011 was mainly driven by 

new projects coming on-stream, notably 

Qatargas 4 LNG and Pearl GTL in Qatar, 

the Athabasca Oil Sands Project expansion 

in Canada and the continued ramp-up of 

the Gbaran-Ubie project in Nigeria. New 

start-ups and the continuing ramp-up of 

fields more than offset the impact of field 

declines and the effect of higher prices on 

production-sharing contract entitlements, 

but were further offset by lower demand 

due to warm weather in Europe in the 

fourth quarter of 2011 and increased 

maintenance activities compared with 

2010. 

� Workers at the Pearl GTL plant, Qatar.

PROVED RESERVES 

In 2011, Shell added 1,205 million boe 

of SEC proved oil and gas reserves before 

accounting for the year’s production. At 

the end of the year, total proved oil and 

gas reserves excluding non-controlling 

interest were 14,250 million boe (10,304 

million boe for Shell subsidiaries and 

3,946 million boe for equity-accounted 

investments). Reserve life (an estimate of 

how many years it would take to exhaust 

the current proved reserves at the current 

level of production) has increased from 10 

years at the end of 2007 to approximately 

12 years at the end of 2011. 

The Reserves Replacement Ratio for 

Shell subsidiaries and equity-accounted 

investments was 99% in 2011 (and 165% 

over the last three years). Excluding 

acquisitions, divestments and price effects, 

MAJOR JOR JO R RESERVES RRESERVES 

ESERVES 

ADDITIONS AADDITIONS 

DD 

TIONS 

2007 2007–2011 

2011 

CANADA 

USA 

BRAZIL 

NORWAY 

UK 

DENMARK 

NETHERLANDS GERMANY 

NIGERIA 

QATAR 

OMAN 

MALAYSIA 

CHINA 

BRUNEI 

AUSTRALIA 

RUSSIA 

PROVED OIL AND GAS RESERVES ATTRIBUTABLE TO ROYAL DUTCH SHELL PLC SHAREHOLDERS BILLION BOE 

2011 2010 2009 2008 2007 

Organic reserves additions 1.5 [ A] 1.6[ A] 3.2[ A] 1.1[ B] 1.5[B] 

Production 1.2 1.2 1.2 1.2 1.2 

Total proved reserves 14.2 14.2 14.1 11.9 11.9 

[A] Excluding acquisitions, divestments and year-average price impact. 

[B] Excluding acquisitions, divestments and year-end price impact. 

the ratio was 127% in 2011 and 175% in 

the period 2009–2011. 

The largest crude-oil proved reserves 

additions in 2011 were from field 

performance studies for development 

activities in Europe (140 million barrels, 

primarily Italy and the UK) and Africa (128 

million barrels). An extension of mining 

operations in Alberta, Canada also added 

significantly to proved reserves (116 million 

barrels). The main increase in natural gas 

reserves came from: field extensions and 

discoveries associated with LNG integrated 

projects in Australia (1,471 billion scf); 

revisions and reclassifications in Denmark, 

Norway, Ireland and the UK that resulted 

from better production performance and 

development activities (990 billion scf); 

and extensions and discoveries related 

to development drilling in Canada (816 

billion scf). 


Upstream 

Proved reserves can be either developed 

or undeveloped. Subsidiaries’ proved 

oil-equivalent reserves at the end of 2011 

were divided into 63% developed and 

37% undeveloped. For the Shell share of 

equity-accounted investments the proved oilequivalent 

reserves were divided into 76% 

developed and 24% undeveloped. 

21


Upstream 

EUROPE 

HIGHLIGHTS 

� Production amounted to more than 0.8 million boe/d, which was around 25% of our 

total 2011 production. 

� After-tax earnings from oil and gas exploration and production operations of our 

subsidiaries in the region were $3.3 billion. Our share of oil and gas exploration and 

production earnings of equity-accounted investments was $1.5 billion. 

� We are participating in the development of the Corrib project in Ireland, as well as 

the Clair Phase 2 and Schiehallion Redevelopment projects in the UK. 

KEY FIGURES 

2011 % of total 

Total production (thousand boe/d) [A] 815 25% 

Liquids production (thousand b/d) [A] 239 16% 

Natural gas production (million scf/d) [A] 3,338 37% 

Gross developed and undeveloped acreage (thousand acres) 15,704 6% 

Proved oil and gas reserves excluding non-controlling interest (million boe) [B] 3,409 24% 

[A] Available for sale. 

[B] Includes proved reserves associated with future production that will be consumed in operations. 

DENMARK 

We hold a non-operating 46% interest 

in a producing concession covering the 

majority of our activities in Denmark. The 

concession was granted in 1962 and will 

expire in 2042. Our interest will reduce to 

36.8% in July 2012, when the government 

enters the partnership with a 20% interest 

and the government profit share of 20% is 

abolished. 

IRELAND 

We are the operator of the Corrib Gas 

project (Shell interest 45%), which is 

currently under development. In 2011, 

we received all three consents for the 

planning and construction of an onshore 

pipeline. The legal challenges to the 

onshore consents have been withdrawn. 

The construction of the onshore pipeline 

will commence in 2012 and will take 

at least two years to complete. At peak 

production, Corrib is expected to supply a 

significant portion of the country’s natural 

gas demand. 

THE NETHERLANDS 

Shell has interests in various assets through 

its participation in Nederlandse Aardolie 

Maatschappij B.V. (NAM), a 50:50 joint 

� Schoonebeek gas fi eld, the Netherlands. 

venture between Shell and ExxonMobil 

formed in 1947. NAM is the largest 

hydrocarbon producer in the Netherlands. 

An important part of NAM’s gas production 

comes from its onshore Groningen gas 

field, in which the Dutch government has a 

40% financial interest, with NAM holding 

the remaining share. Shell also has a 30% 

interest in the Schoonebeek oil field, where 

production restarted in 2011 after a 15year 

hiatus. The field’s redevelopment was 

made possible by enhanced oil recovery 

technology. 

NORWAY 

We are a partner in over 20 production 

licences on the Norwegian continental 

shelf and are the operator in eight of 

these, including the Draugen oil field (Shell 

interest 26.2%) and the Ormen Lange 

gas field (Shell interest 17.1%). We hold 

interests in the Troll field (Shell interest 

8.1%), the Gjøa field (Shell interest 12%), 

the Kvitebjørn field (Shell interest 6.5%), 

and have further interests in the Valemon 

field development and various other 

potential development assets. In 2011, we 

divested our interests in the Gassled naturalgas 

transport infrastructure joint venture for 

a consideration of $0.7 billion. 

UNITED KINGDOM 

We operate a significant number of 

our interests in the UK Continental Shelf 

on behalf of a 50:50 joint venture with 

ExxonMobil. Most of our UK oil and gas 

production comes from the North Sea. The 

northern sector and central sectors of the 

North Sea contain a mixture of oil and gas 

fields, and the southern sector contains 

mainly gas fields. We hold various nonoperating 

interests in the Atlantic Margin 

area, principally in the West of Shetlands 

area. In 2011, we took the final investment 

decision for the Clair development and the 

Schiehallion redevelopment projects. 

REST OF EUROPE 

Shell also has interests in Austria, Germany, 

Greece, Hungary, Italy, Slovakia, Spain 

and Ukraine.

AFRICA 

HIGHLIGHTS 

� Production amounted to nearly 0.5 million boe/d, which was around 15% of our total 

2011 production. 


subsidiaries in the region were $4.1 billion. 

� We are participating in the development of the Bonga North West project in Nigeria. 

KEY FIGURES 




Natural gas production (million scf/d) [A] 840 9% 





EGYPT 

We have a 50% interest in the Badr 

El-Din Petroleum Company (Bapetco), a 

joint venture with the Egyptian General 

Petroleum Corporation. Bapetco carries out 

field operations in the West Desert, where 

we have interests in the BED, NEAG, NEAG 

Extension, West Sitra, Sitra, Obaiyed and 

Alam El Shawish West concession areas. 

In addition, we have interests in the 

offshore North West Demiatta concession 

and two BP-operated offshore concessions: 

North Damietta Offshore and North Tineh 

Offshore. 

GABON 

We have interests in eight onshore mining 

concessions and three offshore exploration 

concessions. Two of the non-operated 

concessions (Coucal and Avocette) have 

been converted into PSCs as of January 

1, 2011. A Shell-operated exploration 

concession – in the deep-water Igoumou 

Marin block – has entered the second 

exploration period, but is currently 

suspended pending the resolution of a 

geographical boundary dispute. 

NIGERIA 

Security in Nigeria remained relatively 

stable during 2011. Shell-share production 

in Nigeria was some 385 thousand 

boe/d in 2011 compared with some 400 

thousand boe/d in 2010. 

Onshore 

The Shell Petroleum Development Company 

of Nigeria Ltd (SPDC) is the operator of 

a joint venture (Shell interest 30%) that 

holds over 30 Niger Delta onshore oil 

mining leases (OMLs), which expire in 

2019. To provide funding, Modified Carry 

Agreements are in place for certain key 

projects and a bridge loan was drawn 

down by the Nigerian National Petroleum 

Company (NNPC) in 2010. 

The Gbaran-Ubie integrated oil and gas 

project (Shell interest 30%) came on-stream 

in 2010 in Bayelsa State and achieved peak 

gas production of 1 billion scf/d in early 

2011. Gas from Gbaran-Ubie is delivered to 

power plants for domestic use and to Nigeria 

LNG Ltd (NLNG) for export. Oil production 

has reached some 45 thousand b/d. 


Upstream 

In Nigeria Shell sold its 30% interest 

in oil mining leases 26 and 42 and 

related facilities in the Niger Delta for a 

consideration of some $0.5 billion. The 

assignment of its interests in respect of 

OMLs 34 and 40 is still awaiting requisite 

consents for completion. 

Offshore 

The main offshore deep-water activities are 

carried out by Shell Nigeria Exploration 

and Production Company (Shell interest 

100%) with interests in three deep-water 

blocks. Shell operates two of the blocks 

including the Bonga field 120 km offshore. 

Deep-water offshore activities are typically 

governed through PSCs with NNPC. 

Additionally, SPDC holds an interest in six 

shallow-water offshore leases, of which five 

expired on November 30, 2008. However, 

SPDC satisfied all the requirements of the 

Nigerian Petroleum Act, to be entitled to an 

extension. 

LNG 

Shell has a 25.6% interest in Nigeria LNG 

(NLNG), which operates six LNG trains 

with a total capacity of 21.6 mtpa. NLNG 

continued production at near full capacity 

during 2011, mainly as a consequence of 

improved gas supply due to stable security 

and the start-up of the Gbaran-Ubie project. 

REST OF AFRICA 

Shell also has interests in Algeria, Ghana, 

Libya, South Africa, Tanzania, Togo and 

Tunisia. 

� Welder at the Gbaran-Ubie project, Nigeria. 

23


Upstream 

ASIA (INCLUDING MIDDLE EAST AND RUSSIA) 

HIGHLIGHTS 






� We are participating in the development of eight projects in the region: Harweel and 

Amal in Oman; SAS and Bab Thamama G and Bab Habshan-2 in the United Arab 

Emirates; Gumusut-Kakap and Sabah Gas Kebabangan in Malaysia; Kashagan 

Phase 1 in Kazakhstan; and Majnoon FCP in Iraq. Shell also signed an agreement 

with the government of Iraq to establish the Basrah Gas Company and acquired a 

30% interest in the Indonesian Masela block, which contains the Abadi FLNG field. 

KEY FIGURES 


Total production (thousand boe/d) [A] 1,070 33% 







BRUNEI 

Shell and the Brunei government are 50:50 

shareholders in Brunei Shell Petroleum 

Company Sendirian Berhad (BSP). BSP 

holds long-term oil and gas concession 

rights onshore and offshore Brunei, and 

sells most of its natural gas production to 

Brunei LNG Sendirian Berhad (BLNG, Shell 

interest 25%). BLNG was the first LNG plant 

in the Asia-Pacific region and sells most of 

the LNG on long-term contracts to buyers in 

Japan and South Korea. 

We also have a 35% interest in the Block B 

concession, where gas and condensate 

are produced from the Maharaja Lela 

Field, a 12.5% interest in exploration Block 

CA-2 and a 53.9% operating interest in 

exploration Block A. 

CHINA 

Shell operates the onshore Changbei tightgas 

field under a PSC with PetroChina. The 

two parties have also agreed to appraise 

and develop tight gas in the Jinqiu block 

of the central Sichuan Province under a 

30-year PSC, which expires in 2040. 

The Jinqiu project achieved first gas in 

September 2011. Also in Sichuan, Shell 

and PetroChina are assessing shale-gas 

opportunities in the Fushun block. The 

two parties are additionally assessing 

opportunities in coalbed methane in the 

Ordos Basin, where Shell has an agreement 

to evaluate resources in Daning. 

Shell is also a partner of the Hangzhou city 

ring joint venture that develops, operates 

and manages a high-pressure natural gas 

pipeline system. 

INDONESIA 

In 2011, Shell agreed to acquire a 30% 

participating interest in the offshore Masela 

block from Inpex Masela, the operator. The 

Masela block contains the Abadi gas field. 

The operator has selected an FLNG concept 

for the field’s first development phase. The 

transaction was formally approved by the 

Indonesian government on December 1, 

2011. 

IRAN 

Shell ceased its upstream activities in Iran 

in 2010 as a direct consequence of the 

international sanctions imposed on Iran, 

including the US Comprehensive Iran 

Sanctions, Accountability and Divestment 

Act of 2010. 

IRAQ 

We hold a 20-year technical service 

contract, which expires in 2030, for 

the development of the Majnoon oil 

field and operate the field with a 45% 

interest. The other Majnoon shareholders 

are Petronas (30%) and the Iraqi state 

partner (25%), represented by the Missan 

Oil Company. Located in southern Iraq, 

Majnoon is one of the world’s largest oil 

fields. The Iraqi government estimates it 

to have about 38 billion barrels of oil in 

place. The first phase of the development is 

planned to bring production to some 175 

thousand b/d from the start level of 45 

thousand b/d, when the contract entered 

into effect in March 2010. We also hold a 

15% interest in the West Qurna 1 field, as 

part of the ExxonMobil-led consortium. At 

the end of 2011, production was some 370 

thousand b/d. According to both contracts’ 

provisions, Shell’s equity entitlement 

volumes will be lower than the Shell interest 

implies. 

In November 2011, Shell signed an 

agreement with the government of Iraq 

to establish a joint venture between Shell 

(44%), the South Gas Company (51%) 

and Mitsubishi Corporation (5%). The joint 

venture will be called Basrah Gas Company 

(BGC). BGC will gather, treat and process 

raw gas produced from the Rumaila, Zubair 

and West Qurna 1 fields. Currently, an 

estimated 700 million scf/d of gas is flared 

because of a lack of infrastructure to collect 

and process it. The processed natural 

gas and associated products, such as 

condensate and LPG, will be sold primarily 

to the domestic market with the potential to 

export any surplus. 

KAZAKHSTAN 

We have a 16.8% interest in the offshore 

Kashagan field, where the North Caspian 

Operating Company is the operator on 

behalf of the shareholders. This shallowwater 

field covers an area of approximately 

3,400 km 2 . Phase 1 development of 

the field is expected to lead to plateau 

production of some 300 thousand boe/d, 

increasing further with additional phases of 

development. NC Production Operations 

Company, a joint venture between 

Shell and KazMunaiGas, will manage 

production operations. 

We are also a 55% partner in the Pearls 

production-sharing contract, which covers 

an area of some 900 km 2 in the north 

Caspian Sea. The block contains two oil 

discoveries, which are currently under 

appraisal. 

The Caspian Pipeline Consortium (Shell 

interest 5.4%) exports production from west 

Kazakhstan to the Black Sea. The pipeline 

is 1,510 km long and has been operational

since October 2001. A pipeline expansion 

project is underway. 

MALAYSIA 

We have been operating in Malaysia 

since 1910. As contractor to Petronas, 

we produce oil and gas located offshore 

Sarawak and Sabah under 14 PSCs, in 

which our interests range from 30% to 80%. 

In Sabah we operate four producing 

offshore oil fields with interests ranging 

from 50% to 80% as part of the 2011 

North Sabah enhanced oil recovery (EOR) 

PSC and the SB1 PSC. We also have 

additional interests ranging from 35% 

to 50% in PSCs for the exploration and 

development of five deep-water blocks, 

which include the unitised Gumusut-Kakap 

field (Shell interest 33%) and the Malikai 

field (Shell interest 35%). Both fields are 

currently being developed with Shell as 

the operator. We have a 21% interest in 

the Siakap North/Petai field operated 

by Murphy Oil Corporation and a 30% 

interest in the Kebabangan field operated 

by the Kebabangan Petroleum Operating 

Company. 

In Sarawak we are the operator of 18 gas 

fields with interests ranging from 37.5% 

to 70%. Nearly all of the gas produced is 

supplied to Malaysia LNG in Bintulu where 

we have a 15% interest in each of the Dua 

and Tiga LNG plants. We also have a 40% 

interest in the 2011 Baram Delta EOR PSC 

and a 50% interest in Block SK-307. 

In 2011, we signed a heads of agreement 

with Petronas for two 30-year PSCs for 

enhanced oil recovery projects offshore 

Sarawak and Sabah. These PSCs replace 

the existing 2003 Baram Delta and 

1996 North Sabah PSCs. The heads of 

agreement specifies work activities and 

new investment from Shell and its joint 

venture partner to increase the average 

recovery factor of the fields in the PSC and 

extend their productive life beyond 2040. 

We also operate a GTL plant (Shell interest 

72%), which is adjacent to the LNG 

facilities in Bintulu. Using Shell technology, 

the plant converts natural gas into highquality 

middle distillates and other specialty 

products. 

OMAN 

We have a 34% interest in Petroleum 

Development Oman (PDO). PDO is the 

operator of an oil concession expiring in 

2044. It currently produces about 550 

thousand b/d. 

We also participate in the development 

of the Mukhaizna oil field (Shell interest 

17%) where steam flooding, an enhanced 

oil recovery method, is being applied on a 

large scale. 

We have a 30% interest in Oman LNG, 

which mainly supplies Asian markets under 

long-term contracts. We also have an 11% 

indirect interest in Qalhat LNG, another 

Oman-based LNG supplier. 

QATAR 

Pearl GTL in Qatar is the world’s largest 

gas-to-liquids project. Shell provides 

100% of the funding under a development 

and production-sharing contract with the 

government of Qatar. The fully integrated 

project includes production, transport and 

processing of some 1.6 billion scf/d of 

well-head gas from Qatar’s North Field with 

�� Operators in the central control room, Pearl GTL, Qatar. 

www.shell.com/pearlgtl_video 


Upstream 

25


Upstream 

installed capacity around 140 thousand 

boe/d of high-quality liquid hydrocarbon 

products and 120 thousand boe/d of 

natural gas liquids and ethane. By the 

end of 2011, Train 1 was ramping up 

production and Train 2 had started up. 

Shell has a 30% interest in Qatargas 4, 

which comprises integrated facilities to 

produce some 1.4 billion scf/d of natural 

gas from Qatar’s North Field, an onshore 

gas-processing facility and an LNG train 

with a collective production capacity of 7.8 

mtpa of LNG and 70 thousand boe/d of 

natural gas liquids. The train delivered first 

LNG in January 2011 and has ramped up to 

full production during the year with the LNG 

shipped mainly to markets in the Middle 

East, Europe, Asia and North America. 

Shell also holds a 75% equity interest in 

Block D under the terms of an exploration 

and production-sharing contract with 

Qatar Petroleum, representing the national 

government. Shell is the operator, with 

PetroChina holding a 25% interest. 

RUSSIA 

We have a 27.5% interest in Sakhalin-2, 

which is one of the world’s largest 

integrated oil and gas projects. Located in a 

subarctic environment, the project reached 

planned plateau production of some 

360 thousand boe/d in 2010, supplying 

around 9.6 mtpa of LNG from two trains. 

After optimisation of the LNG plant, 

production from the two trains reached 10 

mtpa in 2011. Additionally, we have a 

50% interest in the Salym fields in western 

Siberia, where production averaged some 

165 thousand boe/d during 2011. 

We also hold interests in two exploration 

and production licences in Russia, one 

for the East Talotinskiy area in the Nenets 

Autonomous District and the other for the 

Barun-Yustinsky block in Kalmykia. 

SYRIA 

Shell holds a 65% interest in Syria Shell 

Petroleum Development B.V. (SSPD), a 

venture between Shell and China National 

Petroleum Corporation. SSPD holds a 31.3% 

interest in Al Furat Petroleum Company 

(AFPC), a Syrian joint-stock company, which 

performs operations under SSPD contracts. 

In compliance with international sanctions 

on Syria, including European Council 

Decision 2011/782/CFSP, in December 

2011 Shell suspended all exploration and 

production activities in Syria. 

UNITED ARAB EMIRATES 

In Abu Dhabi we hold a concessionary 

interest of 9.5% in the oil and gas 

operations run by Abu Dhabi Company 

for Onshore Oil Operations (ADCO). The 

licence expires in 2014. We also have a 

15% interest in the licence of Abu Dhabi 

Gas Industries Limited (GASCO), which 

expires in 2028. GASCO exports propane, 

butane and heavier liquid hydrocarbons 

that it extracts from the wet natural gas 

associated with the oil produced by ADCO. 

REST OF ASIA (INCLUDING MIDDLE EAST 

AND RUSSIA) 

Shell also has interests in Azerbaijan, 

India, Japan, Jordan, Kuwait, Philippines, 

Saudi Arabia, Singapore, South Korea and 

Turkey. 

� LNG plant with oil export terminal, Sakhalin, Russia.

OCEANIA 

HIGHLIGHTS 






� We are participating in the development of five key projects in Australia: North 

Rankin; Gorgon LNG Trains 1-3; North West Shelf Gas – Greater Western Flank 

Phase 1; Prelude FLNG; and Wheatstone LNG. 

KEY FIGURES 




Natural gas production (million scf/d) [A] 715 8% 





AUSTRALIA 

We have interests in offshore production 

and exploration licences in the North 

West Shelf (NWS) and Greater Gorgon 

areas of the Carnarvon Basin, as well as 

in the Browse Basin and Timor Sea. Some 

of these interests are held directly and 

others indirectly through a shareholding of 

approximately 23% in Woodside Petroleum 

Ltd (Woodside). Woodside is the operator 

of Pluto LNG. 

Woodside is also the operator on behalf of 

six joint-venture participants of the NWS 

gas, condensate and oil fields, which 

produced 512 thousand boe/d in 2011. 

Shell provides technical support for the 

NWS development. In December 2011, 

the NWS joint venture announced the final 

investment decision on the Greater Western 

Flank Phase 1 project. 

We also have a 50% interest in Arrow 

Energy Holdings Pty Limited (Arrow), 

a Queensland-based joint venture with 

PetroChina. Arrow owns coalbed-methane 

assets, a domestic power business, and 

the site for a proposed LNG plant on Curtis 

Island, near Gladstone. In 2011, Arrow 

entered into an agreement to acquire all 

the shares of coalbed-methane company 

Bow Energy Ltd (Bow) for a Shell share 

consideration of approximately $0.3 

billion. The acquisition of Bow contributes to 

Arrow’s opportunity to expand the proposed 

8 mtpa LNG project on Curtis Island. In 

December 2011, the transaction received 

final government and shareholder approval, 

and it was completed in January 2012. 

The Gorgon LNG project (Shell interest 

25%) involves the development of the 

largest gas discoveries to date in Australia, 

beginning with the offshore Gorgon (Shell 

interest 25%) and Jansz/Io fields (Shell 

interest approximately 20%). It includes the 

construction of a 15 mtpa LNG plant on 

Barrow Island. Construction activities on 

Barrow Island continued in 2011. 

We are the operator of a permit in the 

Browse Basin in which two separate gas 

fields were found – Prelude in 2007 and 

Concerto in 2009. In 2011, we announced 

the final investment decision to develop 

these fields on the basis of our innovative 

floating liquefied natural gas (FLNG) 

technology. This technology enables gas 

to be processed offshore, reducing the 

development’s costs and minimising its 

environmental impact. The Prelude FLNG 

project is expected to produce some 110 

thousand boe/d of natural gas and natural 

gas liquids, delivering some 3.6 mtpa 

of LNG, 1.3 mtpa of condensate and 

0.4 mtpa of liquefied petroleum gas (LPG). 

Shell also has rights to the gas of the 

nearby Crux field (AC/P23) and operates 

the AC/P41 block (Shell interest 75%), 

where the Libra-1 gas discovery was made 

in 2008. 


Upstream 

We are also a partner in the Browse joint 

venture (Shell interest approximately 

20%) covering the Torosa, Brecknock 

and Calliance gas fields. In 2010, as 

required by the Retention Lease, the jointventure 

participants began planning the 

development of the Browse resources on 

the basis of an LNG plant at James Price 

Point on the Dampier Peninsula of Western 

Australia. 

In the Timor Sea Shell holds interests in the 

large Greater Sunrise and Evans Shoal 

gas fields (Shell interest approximately 

34% and 32.5%, respectively). The joint 

venture partners have selected FLNG as 

the preferred development concept for 

Greater Sunrise. The development is subject 

to approval from both the Australian and 

Timor Leste governments. 

Shell also holds 6.4% interest in the 

Wheatstone LNG project which includes 

construction of two LNG trains with a 

combined capacity of 8.9 mtpa. The final 

investment decision for the Wheatstone 

LNG project was announced in 2011. 

NEW ZEALAND 

We have an 83.8% interest in the offshore 

Maui gas field, a 50% interest in the 

onshore Kapuni gas field and a 48% 

interest in the offshore Pohokura gas field. 

The gas produced is sold domestically, 

mainly under long-term contracts. Shell 

has interests in other exploration licence 

areas in the Taranaki Basin. In 2011, we 

acquired a 50% interest in two exploration 

licences in the Great South Basin. 

27


Upstream 

AMERICAS 

HIGHLIGHTS 






� We are participating in the development of five projects in North and South 

America: AOSP Debottlenecking; Parque das Conchas (BC-10) Phase 2; Eagle Ford; 

Cardamom; Mars B; as well as various tight-gas projects. 

KEY FIGURES 





Synthetic crude oil production (thousand b/d) [A] 115 100% 

Bitumen production (thousand b/d) [A] 15 100% 





NORTH AMERICA 

CANADA 

In total, we hold over 2,000 mineral 

leases in Canada (mainly in Alberta and 

British Columbia). We produce and market 

natural gas, NGL, sulphur, synthetic crude 

oil and bitumen. Bitumen is a very heavy 

crude oil produced through conventional 

methods as well as through enhanced oilrecovery 

methods, such as those based on 

heating the reservoirs. Synthetic crude oil 

is produced by mining bitumen-saturated 

sands, extracting the bitumen from the 

sands, and transporting it to a processing 

facility where hydrogen is added to 

produce a wide range of feedstock for 

refineries. 

Gas 

Half of our Canadian gas production 

comes from the Foothills region of Alberta. 

We own and operate four natural gas 

processing and sulphur-extraction plants 

in southern and south-central Alberta and 

are among the world’s largest producers 

and marketers of sulphur. Additionally, 

we hold a 31.3% interest in the Sable 

Offshore Energy project, a natural gas 

complex offshore eastern Canada, and 

have a 20% non-operating interest in an 

early stage deep-water exploration asset 

off the east coast of Newfoundland. We 

also hold a number of exploration licences 

in the Mackenzie Delta. Shell continued 

to develop tight and shale gas fields in 

west-central Alberta and east-central 

British Columbia during 2011, through 

drilling programmes and investment in 

infrastructure facilitating new production. 

Shell holds rights to approximately 3,200 

km 2 (800,000 acres) in these tight-gas 

areas. 

Synthetic crude oil 

We operate the Athabasca Oil Sands 

Project (AOSP) in north-east Alberta as 

part of a joint venture (Shell interest 60%). 

The bitumen is transported by pipeline 

for processing at the Scotford Upgrader, 

which is operated by Shell and located 

in the Edmonton area of central Alberta. 

AOSP’s bitumen production capacity is 255 

thousand boe/d, following an expansion 

project completed in 2010. In 2011, the 

expansion of the Scotford Upgrader was 

completed, delivering first commercial 

production in May and allowing it to 

process 255 thousand boe/d. In addition, 

we took the final investment decision on a 

debottlenecking project for AOSP, which 

is expected to add an additional 10 

thousand boe/d at peak production. This 

project is the first of several debottlenecking 

opportunities for AOSP. We also signed 

agreements with the governments of 

Alberta and Canada to secure some $0.9 

billion in funding for the Quest Carbon 

Capture and Storage (CCS) project (Shell 

interest 60%), which is expected to capture 

and permanently store more than one mtpa 

of CO 2 from the Scotford Upgrader. 

Shell also holds a number of other minable 

oil sands leases in the Athabasca region 

with expiry dates ranging from 2012 to 

2020. By completing a certain minimum 

level of development prior to their expiry, 

leases may be extended. 

Bitumen 

We produce and market bitumen in the 

Peace River area of Alberta, and have a 

steam-assisted gravity drainage project 

in operation near Cold Lake, Alberta. 

Additional heavy oil resources and 

advanced recovery technologies are under 

evaluation on about 1,200 km 2 (300,000 

acres) in the Grosmont oil sands area, also 

in northern Alberta. 

LNG 

In 2011, Shell announced investment in the 

Green Corridor LNG-for-transport project 

(Shell interest 100%). Pending regulatory 

approval, the Green Corridor project 

includes a 0.3 mtpa LNG production 

facility. 

UNITED STATES 

We produce oil and gas in the Gulf of 

Mexico, heavy oil in California and 

primarily onshore tight gas in Louisiana, 

Pennsylvania, Texas and Wyoming. The 

majority of our oil and gas production 

interests are acquired under leases granted 

by the owner of the minerals underlying the 

relevant acreage (including many leases 

for federal onshore and offshore tracts). 

Such leases usually run on an initial fixed 

term that is automatically extended by the 

establishment of production for as long as 

production continues, subject to compliance 

with the terms of the lease (including, in the 

case of federal leases, extensive regulations 

imposed by federal law). 

Gulf of Mexico 

The Gulf of Mexico is the major production 

area, accounting for a little over 50% 

of Shell’s oil and gas production in 

the USA. We hold approximately 600 

federal offshore leases in the Gulf, about 

one third of which are producing. Our 

share of production in the Gulf of Mexico 

averaged over 180 thousand boe/d in 

2011. Key producing assets are Auger, 

Brutus, Enchilada, Holstein, Mars, NaKika, 

Perdido, Ram Powell and Ursa.

The 2010 drilling moratorium in the 

Gulf of Mexico, and new regulatory 

requirements following the BP Deepwater 

Horizon incident, resulted in deferment of 

various Shell exploration and development 

programmes. Those deferments continued 

to affect the operational flexibility and 

delivery timing of our Gulf of Mexico 

business in 2011. Since the lifting of the 

moratorium, Shell has met all deep-water 

regulatory permitting and environmental 

assessment requirements for key projects. 

Although the new regulatory regime has 

resulted in a longer permitting process, 

the number of permits we secured in 2011 

is approximately the same as in 2009 

and is aligned with 2011 activity plans. 

Additionally, all Shell rigs are compliant 

with new regulatory mandates and are 

conducting operations. 

Shell also announced a multibillion-dollar 

investment to develop its major Cardamom 

oil and gas field in the deep waters of the 

Gulf of Mexico. The Cardamom project 

(Shell interest 100%) is expected to produce 

50 thousand boe/d at peak production. 

Onshore 

We hold some 3,400 km 2 (850,000 acres) 

of mostly contiguous tracts of land in the 

Marcellus shale, centred on Pennsylvania 

in the north-east USA. We additionally 

have some 1,100 km 2 (270,000 acres) 

of mineral rights in the Eagle Ford shale 

formation in south Texas. Not only did we 

conduct 3D seismic surveys there in 2011, 

but we also had five rigs drill a total of 43 

wells. We also have other ongoing multi- 

rig drilling programmes at the Pinedale 

Anticline in Wyoming (35,000 acres) and 

in the Haynesville tight-gas formation of 

north-west Louisiana (200,000 acres). 

Furthermore, we are actively appraising our 

acreage in multiple liquids-rich US plays, 

including the Niobrara and Utica shales 

and the Mississippi Limestone. 

California 

We hold a 51.8% interest in Aera Energy 

LLC (Aera), an exploration and production 

company with assets in the San Joaquin 

Valley and Los Angeles Basin areas of 

southern California. Aera operates more 

than 15,000 wells, producing about 140 

thousand boe/d of heavy oil and gas, and 

accounting for approximately 30% of the 

state’s production. 

Alaska 

We hold over 410 federal leases for 

exploration in the Beaufort and Chukchi 

seas in Alaska. Following an adverse 

Environmental Appeals Board ruling on 

Environmental Protection Agency air 

permits at the end of 2010, we cancelled 

our 2011 Alaska exploratory drilling 

programme. We therefore focused on 

obtaining the permits required for drilling in 

2012, receiving conditional approvals from 

the Bureau of Ocean Energy Management, 

Regulation and Enforcement for the 

Beaufort and Chukchi Seas Exploration 

Plans. We also received an air permit for 

the Discoverer r drillship to work in both the 

Beaufort and Chukchi seas. 

REST OF NORTH AMERICA 

Shell also has interests in Mexico and 

exploration interests offshore Greenland. 

SOUTH AMERICA 


Upstream 

BRAZIL 

We are the operator of several producing 

fields offshore Brazil. They include the 

Bijupirá and Salema fields (Shell interest 

80%) and the Parque das Conchas (BC-10) 

field (Shell interest 50%). We also have 

interests in offshore development and 

exploration blocks in the Campos, Santos 

and Espirito Santo basins with interests 

ranging from 17.5% to 80%. We operate 

one of these blocks (BM-S-54), as well as 5 

blocks in the São Francisco area. In 2011, 

as part of a portfolio review, we divested 

our 20% participating interest in Block 

BM-S-8 and our 40% interest in Block BS-4, 

both in the Santos basin offshore Brazil. 

The BS-4 divestment received regulatory 

approval in March 2012. 

We also hold an 18% interest in Brazil 

Companhia de Gas de São Paulo 

(Comgás), a natural gas distribution 

company in the state of São Paulo. 

FRENCH GUIANA 

Shell has a 45% interest in the offshore 

Zaedyus field. 

REST OF SOUTH AMERICA 

Shell also has interests in Argentina, 

Colombia, Guyana and Venezuela. 

� Athabasca Oil Sands Project (AOSP), Canada. 

29


Downstream

DOWNSTREAM 

HIGHLIGHTS 

� Made good progress in delivering strategic goals; improved many aspects of 

operating performance. 

� Delivered a concentrated portfolio ahead of schedule. 

� Kept expansion of the Port Arthur site on track for completion in 2012. Once 

complete, the site will have doubled in size to become North America’s largest 

refinery with planned capacity of some 600 thousand b/d. 

� Moved into biofuels production with the start-up of our Raízen joint venture in Brazil. 

The joint venture produces and commercialises ethanol and power from sugar cane 

and distributes a variety of transportation and industrial fuels through a combined 

distribution and retail network in Brazil. With annual production capacity of more 

than two billion litres, Raízen is one of the world’s largest ethanol producers. 

� Was named the number-one global lubricant supplier by the consultancy Kline & 

Company for the fifth consecutive year. 

� Secured our 1,000th retail site in China. Overall, 271 new sites were secured in 

2011 and the total number of secured sites reached 1,011 by the end of the year. 

� Developed promising new leads to expand Chemicals: Signed the heads 

of agreement with Qatar Petroleum for proposals to develop a world-scale 

petrochemical complex in Qatar; announced an investment decision to build a 

500-tonne per year demonstration unit to manufacture diphenyl carbonate; and 

announced our intent to explore the opportunity to build a cracker in the North East of 

the USA. 

KEY STATISTICS 

Downstream CCS earnings ($ million) 

2011 2010 2009 2008 2007 

Oil products 2,235 1,439 (58) 5,153 6,906 

Chemicals 2,054 1,511 316 156 1,682 

Total Downstream earnings ($ million) [A] 4,289 2,950 258 5,309 8,588 

Total Downstream earnings excluding identifi ed items 

($ million) 4,274 3,873 1,940 5,744 8,289 

Downstream cash fl ow from operations ($ million) [B] 8,746 8,138 5,839 1,750 13,150 

Total oil products sales (thousand b/d) 6,196 6,460 6,156 6,568 6,625 

Chemicals sales volumes (thousand tonnes) 18,831 20,653 18,311 20,327 22,555 

Refi nery intake (thousand b/d) 2,845 3,197 3,067 3,388 3,779 

Oil products refi nery availability (%) 92 92 93 91 91 

Petrochemicals manufacturing plant availability (%) [C] 89 94 92 94 93 

Downstream net capital investment ($ million) 4,342 2,358 6,232 3,104 2,682 

Downstream capital employed ($ million) 71,976 67,287 62,632 54,050 65,042 

Downstream employees (thousands) 51 59 62 64 69 

[A] With effect from 2010, Downstream segment earnings are presented on a current cost of supplies (CCS) 

basis. Comparative information is consistently presented. 

[B] Excludes working capital movements. 

[C] The calculation of chemical plant availability for 2011 is based on a methodology to bring better alignment 

for our Downstream assets. On this basis, 2010 and 2009 fi gures would be 92% and 91% respectively. 

CCS EARNINGS [A] 

$ billion 

9 

8 

7 

6 

5 

4 

3 

2 

1 

0 

AVAILABILITY AND SALES VOLUMES 

�� 

100 

80 

60 

40 

20 

0 

2007 2008 

Oil products 

Chemicals 

�� 

2007 2008 2009 

�� 

�� 

�� 

�� 

Sh She he hell ll I In Inves ves es esto tor to tor to toor o s’ s Ha Han an a dbo db dbo db ok o 

Dow D nst nstrea ream 

2009 

2010 

2010 

2011 

2011 

25 

20 

15 

10 

5 

0 

31 3


Downstream 

REFINING 

We have interests in more than 30 refining 

sites worldwide. Together, they processed 

2.8 million barrels of crude oil a day 

in 2011 into a wide range of products, 

including gasoline, diesel, heating oil, 

aviation fuel, marine fuel, lubricants, 

liquefied petroleum gas, sulphur and 

bitumen. Around 35% of our refining 

capacity is in Europe, 30% in the Americas 

and 30% in Asia-Pacific. 

REFINING CAPACITY [A] 

million b/d Shell share 

5 

4 

3 

2 

1 

0 

REFINERY INERY 

RY 

PORTFOLIO 

PPORTFOLIO 

ORTFOL 

KEY 

2002 2006 

Europe and Other 

Americas 

�� 

2009 

[A] Subject to successful completion of announced deals. 

� ≥ 

100,000 100 100, 

000 

b/d b/ 

� < 100,000 100 100, 

000 

b/d b/ 

� To o be b bbe 

divested ddi 

divested ves 

e d or oor 

r converted cconverted 

onv 

t d 

into int terminal ermi al l 

� Shell hell helll interest interet t ≤ ≤ 30% 

30% 0 

We focus on energy-efficiency 

improvements at our refineries and 

chemicals plants. Those improvements 

have contributed to a reduction in their 

greenhouse gas emissions. Achieving even 

greater efficiency will help us deliver more 

profitability – so too will greater operational 

reliability. The average availability of our 

refineries – a measure of their operational 

excellence – was 92% in 2011. 

A key part of our strategy is to divest noncore 

assets while selectively investing in 

REFINERY SCALE 

kb/d 

250 

200 

150 

100 

50 

0 

2002 2006 

�� 

2009 

2011 

2012E 

high-growth markets, especially in the East. 

We aim to create a Downstream portfolio 

that is more focused on larger, integrated 

refining sites that are better able to respond 

to tighter fuel specifications and growth 

opportunities. 

The Port Arthur refinery in Texas, USA, will 

have a prominent place in that portfolio. Part 

of the joint venture Motiva Enterprises (Shell 

interest 50%) is currently in the finishing 

stages of an expansion project that will make 

it the largest refinery in our portfolio. The 

expanded refinery will have a total capacity 

of some 600 thousand b/d and be capable 

of handling most grades of crude oil. New 

technology will also lower most emissions 

from the refinery on a per-barrel basis. 

Including the Port Arthur expansion, we 

have reduced our refining capacity by 15% 

between 2009 and 2012. The capacity 

reduction amounts to around 800 thousand 

b/d, most of it located in Europe, where the 

market has been in oversupply. Since 2002, 

capacity has been reduced by around a 

third. We have retained the larger and more 

integrated refineries and petrochemical 

plants, and the current portfolio is positioned 

for optimisation across the entire value 

chain. Major asset sales have been 

completed, but we will continue to review 

the portfolio regularly and improve it further 

where necessary.

SUPPLY AND 

DISTRIBUTION 

A network of some 150 distribution 

facilities with more than 1,500 storage 

tanks in around 25 countries serves to 

deliver feedstocks to our refineries and 

chemical plants as well as finished products 

to our Marketing businesses and customers 

worldwide. We move products in Europe, 

the USA and other parts of the world 

through 9,000 km of onshore and offshore 

pipelines. Our global fleet of around 2,600 

Shell-owned or contracted trucks travels 

around 860,000 km every day, making a 

delivery somewhere in the world every 13 

seconds. 

Through various means, we have 

systematically reduced the cost and time 

of deliveries. We have adopted fuelsaving 

driving techniques, made larger 

deliveries and made the best use of vehicle 

availability. We also continue to look at 

opportunities to manage stock levels more 

efficiently in response to changes in market 

conditions. 

A large refinery can process many different 

crude oils through various distillation and 

treatment processes to end up with a wide 

range of different products. We optimise 

refinery runs to meet demand in many 

regions. We assess the value of crude 

oils, maximise refinery margins, optimise 

transport and forecast demand, thereby 

balancing regional supply and demand. 

BUSINESS TO 

BUSINESS (B2B) 

We sell fuels and specialty products and 

services to a broad range of commercial 

customers. 

Shell Aviation provides fuel every 

day for around 7,000 aircraft at over 

800 airports in more than 30 countries. 

On average, it refuels a plane every 12 

seconds. Customers range from private 

pilots to the largest global airlines. Shell 

Aviation was named Best Aviation Fuel 

Provider in the Emerging Markets Aviation 

Awards in 2010 and 2011. More than 

400 customers voted for Shell Aviation on 

both occasions, recognising the business’s 

safe and reliable supply of products and 

services to customers in emerging markets. 

Shell marine activities provides 

lubricants, fuels and related technical 

services to the shipping and boating 

industries. We supply over 100 grades of 

lubricants and 20 different types of fuel 

for marine vessels powered by diesel, 

steam-turbine and gas-turbine engines. We 

serve more than 15,000 customer vessels 

worldwide, ranging from large oceangoing 

tankers, containerships and dry bulk 

carriers to offshore drilling rigs and small 

fishing boats. 

Shell Commercial Fuels provides 

transport, industrial and heating fuels 

and related services to more than 15,000 


Downstream 

customers in more than 20 countries. Our 

Commercial Road Transport business 

supplies road haulage and bus companies 

worldwide through a global network of sites 

and offers payment services through Shell’s 

card system. 

Shell also provides specialities products 

and services related to the bitumen residue 

from crude-oil refining and sulphur derived 

from the processing of natural gas and 

crude oil. Every day, on average we supply 

to some 1,600 customers worldwide 

around 11,000 tonnes of bitumen – enough 

to repave 350 km of road. We are one 

of the largest premium grade bitumen 

supplier in China and the only international 

bitumen supplier for China’s high-speed 

railway sector. We have developed 

innovative bitumen products that can be 

mixed and laid at temperatures lower than 

conventional asphalt to reduce energy use 

and carbon dioxide emissions. 

Shell has also developed innovative 

sulphur-based products such as Shell 

Thiopave, a paving material that can 

prolong road life; Shell Thiocrete, a very 

durable, fast setting concrete; and Shell 

Thiogro, a new family of fertilisers for 

sulphur-responsive soils. 

Shell Gas (LPG) provides liquefied 

petroleum gas and related services to retail, 

commercial and industrial customers for 

cooking, heating, lighting and transport. 

� Supplying fuel for the service station at Beaconsfi eld, UK. 

33


Downstream 

RETAIL 

Our branded fuel retail network is the 

world’s largest, with around 43,000 

service stations in more than 80 countries. 

Our experience in fuel development, 

over more than 100 years, underpins our 

position today as a leading provider of 

innovative fuels. Differentiated fuels with 

BRANDED RETAIL SITES 

thousand, per year-end 

50 

40 

30 

20 

10 

0 

2007 2008 

Americas 

�� 

Europe 

Other 

2009 

2010 

2011 

COUNTRIES UNTRIES UNTR ES 

WITH WWITH 

ITH 

SHELL SSHELL 

HELL 

RETAIL RE RETAIL TAIL BRANDED BRAND BRANDED D PRESENCE 

unique formulations designed to improve 

performance are available in more than 60 

countries under the Shell V-Power brand. 

In 2009, we launched Shell FuelSave. It is 

now available in 15 countries. Our FuelSave 

programme aims to inform motorists of 

driving techniques and car-care tips that 

can help them get the most out of the Shell 

fuel they buy. Shell also sells Shell Fuel 

Economy for petrol and diesel in more than 

20 countries. 

Shell has a close technical partnership 

with Scuderia Ferrari. Our fuel has helped 

Ferrari to achieve 10 Formula One World 

Constructors’ and 12 World Championship 

Drivers’ titles. This partnership enables our 

scientists and engineers to develop cuttingedge 

fuel technologies for the racetrack that 

can then be transferred to road fuels for the 

benefit of our customers. 

We continued to invest in selected retail 

markets, such as those of the UK and China. 

In 2011 we acquired 253 retail sites in 

the UK, primarily in central and south-east 

England. In Brazil we launched a joint 

venture (Shell interest 50%) with Cosan 

called Raízen for the production of ethanol, 

sugar and power, as well as the supply, 

distribution and retailing of transport fuels. 

This move supports Shell’s growth platform 

for our retail and commercial fuels business 

in Brazil.

LUBRICANTS 

For the fifth consecutive year, the 

consultancy Kline & Company has named 

Shell the number-one global lubricant 

supplier. With more than 13% share of 

the market in volume terms, we sell more 

lubricants than any other company in the 

world (source: Kline & Company, 2011). 

We make and sell a wide variety of 

lubricants to meet customer needs across 

a range of applications. These include 

consumer motoring, heavy-duty transport, 

mining, power generation and general 

engineering. Shell’s portfolio of lubricant 

brands includes Pennzoil, Quaker State, 

Shell Helix, Shell Rotella, Shell Tellus and 

Shell Rimula. Shell also owns Jiffy Lube ® 

franchised service centres, with more 

than 2,000 franchised service centres in 

North America, serving approximately 

24 million customers each year. Jiffy Lube 

pioneered the fast oil change industry in 

1979 by establishing the first drive-through 

service bay, providing customers with fast, 

professional service for their vehicles. 

Our lubricants are marketed in 

approximately 100 countries. We have 

LUBRICANT RICANT R CANT 

PORTFOLIO 

PPORTFOLIO 

ORTFOLI 

KEY 

� Lubricants ubricants ubi 

br 

cants 

oil oilbl 

-blending blending ble 

di ding 

plants pl 

t 

� Base oil manufacturing plants 

leading positions in both mature and 

emerging markets. Shell is the top supplier 

by volume in the USA – the world’s largest 

lubricant market – and the top international 

supplier by volume in China – the world’s 

fastest growing lubricant market. 

We continue to expand in emerging 

markets. We have an oil-blending plant 

in Zhuhai, Guangdong Province, China. 

Associated with this, we opened Shell’s 

first Lubricants Technical Service Centre in 

Zhuhai in August 2011. The construction of 

Shell’s largest grease manufacturing plant 

is ongoing on this same site. Shell was also 

the first international oil company to build 

an oil-blending plant in Russia. 

We have leading lubricants research 

centres in Germany, Japan (in a joint 

venture with Showa Shell), the UK and the 

USA. 

We invest significantly in technology and 

work closely with our customers to develop 

innovative lubricants. Our focus is on 

developing products and services for our 

clients that provide both superior protection 

and efficiency. One of the ways we push 

the boundaries of lubricant technology is 

by working closely with top motor racing 


Downstream 

teams, such as Scuderia Ferrari. These 

technical partnerships enable us to expand 

our knowledge of lubrication science and 

transfer cutting-edge technology from the 

racetrack to our commercial products. 

35


Downstream 

CHEMICALS 

We produce and sell petrochemicals to 

some 1,100 major industrial customers 

worldwide, with the top 20 customers 

accounting for about 42% of our thirdparty 

sales proceeds. Our range of 

petrochemicals includes base chemicals, 

such as ethylene, propylene and aromatics; 

and first-line derivatives, such as styrene 

monomer, propylene oxide, solvents, 

detergent alcohols, and ethylene oxide. 

Our customers, many of them leading 

companies in their own fields, use these 

products to make everyday items, such 

as plastics, detergents, textiles, medical 

equipment and computers. All in all, we 

sold almost 19 million tonnes of bulk 

petrochemicals in 2011. 

We also produce additives for fuel and 

lubricants, and catalysts for refinery and 

petrochemical markets. Shell catalysts 

have steadily improved the production of 

ethylene oxide, an important building block 

for synthetic fabrics, plastic bottles and 

antifreeze. More efficient ethylene oxide 

production has the benefit of lowering CO 2 

emissions. 

Shell petrochemical alcohols are the basis 

of more concentrated household laundry 

detergents that clean clothes at lower 

temperatures. Compared with traditional 

powders, they not only require less 

detergent per wash but also have lower 

packaging, shipping-weight and shelf 

space requirements. Washing laundry at 

colder temperatures can help consumers to 

save energy. 

Over many decades we have developed 

the proprietary technologies, processes 

and catalysts that enable Shell to enjoy 

a powerful competitive advantage in our 

core petrochemical markets. Our OMEGA 

technology is considered the most efficient 

technology currently available in the world 

for converting ethylene to ethylene oxide, 

which is used to make a wide range of 

industrial and consumer products, such as 

polyester films and fibres, engine coolants 

and antifreeze. OMEGA uses about 20% 

less steam and 30% less waste water 

than a traditional thermal conversion 

MEG plant with the same capacity. The 

technology also produces significantly less 

carbon dioxide per tonne of MEG than 

conventional processes. 

In Singapore, we are building a 

demonstration unit to manufacture the 

chemical ingredient diphenyl carbonate, a 

versatile and growing engineering plastic 

used in a wide variety of applications, from 

optical media, household items, automotive 

components to electronics and sheeting/film. 

TOTAL CHEMICALS PRODUCT SALES [A] 

million tonnes 

25 

20 

15 

10 

5 

0 

2007 2008 2009 2010 

Base chemicals 

First-line derivatives and others 

2011 

[A] Excludes volumes sold by equity-accounted investments, 

chemical feedstock trading and by-products. 

We will continue to focus on the synergies 

among our chemical plants, refineries and 

Upstream businesses to increase the supply 

of the best available feedstock for our 

crackers. 

Our Chemicals strategy is based on 

selective growth at existing sites through 

increases in capacity, improvements 

in efficiency and integration, and 

strengthening our feedstock sources. 

It is also based on securing integrated 

� MEG storage and facility at the Shell Eastern Petrochemicals Complex (SEPC), Singapore.

growth projects with partners and 

developing technologies to convert gas to 

chemicals. 

In 2011 we signed a heads of agreement 

with Qatar Petroleum for the joint 

development of a proposed major 

petrochemical complex whose feedstock 

would come from natural gas projects in 

Qatar. We are working with the Qataris 

and Petrochina to develop a potential 

integrated refinery and petrochemicals 

complex in China. We are also developing 

plans to build a proposed world-scale 

ethylene cracker with integrated 

polyethylene derivative units in the 

Appalachian region in the North East of 

the USA. 

PORTFOLIO 

ACTIONS 

In the Marketing businesses we continued 

to invest in selected retail markets, such 

as those in the UK and China, and in our 

growing Lubricants businesses in Asia. 

In the UK we acquired 253 retail sites, 

primarily in central and south-east England. 

We signed a heads of agreement with 

Qatar Petroleum for the joint development 

of a proposed major petrochemical 

complex whose feedstock would come 

from natural gas projects in Qatar. The 

complex will include a world-scale steam 

cracker. It will also include a mono-ethylene 

glycol plant of up to 1.5 mtpa capacity 

and higher-olefin plant of 0.3 mtpa 

capacity, both based on Shell proprietary 

technologies. Shell will have a 20% equity 

interest in the project and Qatar Petroleum 

will have the remaining 80%. 

We sold our 272 thousand b/d Stanlow 

refinery in the UK for a total consideration 

of $1.2 billion (including some $0.9 

billion for working capital). The sale also 

included certain associated local marketing 

businesses, Chemicals Manufacturing 

(excluding the higher olefins plant and 

alcohols units) and access rights to specific 

distribution terminal assets. 

We announced the divestment of our 

Downstream businesses in Africa (excluding 

South Africa) for a total consideration of 

some $1 billion. In 2011, we completed 

the sale of the businesses in Cape Verde, 

Madagascar, Mali, Mauritius, Morocco, 

Senegal and Tunisia. The businesses in the 

remaining countries under consideration for 

divestment are expected to be sold during 

the course of 2012. We also launched 

Vivo Energy (Shell interest 20%) and Vivo 

Lubricants (Shell interest 50%). Under the 

agreements, these entities will continue to 

market Shell fuels and lubricants, which are 

available in 14 African countries under the 

Shell brand. 

In Chile we sold our Downstream business 

for a total consideration of $0.6 billion. 

The deal included all of Shell’s Retail, 

Commercial Fuels, Bitumen and Chemicals 

businesses, as well as related supply 

and distribution infrastructure. The Retail 

network of about 300 sites will continue 

to be Shell branded through a trademark 

licence agreement. 

Additional businesses and activities 

deemed non-core were divested as part 

of the ongoing strategy to refocus our 

Downstream portfolio. 

TRADING 

Shell Trading is the business name of 

a global organisation comprising a 

network of separate companies that sell 

crude oil to a wide range of customers 


Downstream 

within and outside Shell. The companies 

also trade natural gas, LNG and power 

around the world. Their supply portfolio 

includes the largest equity share of LNG 

of any international oil company. These 

companies share knowledge and best 

practice, use common systems and controls, 

and manage the risks associated with 

international trading in a competitive 

environment. Shell Trading supports Shell’s 

Upstream and Downstream businesses by 

trading natural gas, LNG, electrical power, 

crude oil, refined products, chemical 

feedstocks and environmental products. It 

also manages a shipping fleet of more than 

50 ocean-going vessels. 

Shell Trading companies operate out 

of a variety of locations, including 

Dubai, Houston, London, Rotterdam and 

Singapore. Two major Shell Trading units 

concentrate their dealings in Europe and 

North America. Shell Energy Europe 

markets and trades gas, power and 

carbon dioxide throughout Europe, serving 

around 7,000 customers. Together with its 

subsidiaries, Shell Energy North America 

trades and markets Shell’s North American 

natural gas production, benefitting from 

access to power generation and gas 

storage assets. 

� Downstream Shell Shipping and Trading staff, Shell Centre, London. 

37


Alternative energy 

ALTERNATIVE 

ENERGY 

BIOFUELS 

The international market for biofuels is 

growing, driven largely by the introduction 

of new energy policies in Europe and the 

USA that call for more renewable, lowercarbon 

fuels for transport. Today, biofuels 

make up around 3% of the global road 

transport fuel mix. This could rise to 9% by 

2030. Sustainable biofuels are expected 

to play an increasingly important role in 

helping to meet customers’ fuel needs and 

reduce CO 2 emissions. 

Shell has a 30-year history of biofuel 

development and investment. Producing, 

buying, trading, storing, blending and 

distributing biofuels are now part of 

our usual business. We believe we are 

one of the world’s largest distributors of 

biofuels, and we continue to build capacity 

in conventional biofuels that meet our 

corporate and social responsibility criteria.

In 2011, Shell and Cosan launched the 

Raízen biofuels joint venture (Shell interest 

50%) in Brazil for the production of ethanol, 

sugar and power, as well as the supply, 

distribution and retailing of transport 

fuels. With an annual production capacity 

of more than 2 billion litres per year of 

ethanol from sugar cane, Raízen is one of 

the world’s largest ethanol producers. This 

deal marks Shell’s first move into the mass 

production of biofuels. Ethanol produced 

from sugar cane in Brazil is the most 

sustainable and cost-competitive of today’s 

biofuels. It can reduce net CO 2 emissions 

by up to 70% compared with gasoline. 

We recognise the sustainability challenges 

associated with some biofuels. For that 

reason, we are working to ensure that 

the feedstocks and conversion processes 

for the biofuels we purchase today are 

as sustainable as possible. In 2007, 

we introduced environmental and 

social clauses into the contracts for the 

bio-components that we purchase for 

blending. And we monitor how well our 

suppliers adhere to those clauses. We 

are also working with non-governmental 

organisations, policymakers and industry 

coalitions to develop and promote 

robust global standards for ensuring the 

sustainability of biofuels production. 

Advanced biofuels, which are based on 

new conversion processes for feedstock 

such as crop waste or inedible plants, offer 

the potential for improved CO 2 reductions 

and improved fuel characteristics. Shell was 

one of the first energy companies to invest 

in advanced biofuels and we continue to 

invest in them. They will take time to reach 

commercial scale and government support 

will be required to accelerate their speed of 

development. 

Our Projects & Technology organisation 

has a dedicated team working on biofuelrelated 

research at four centres in the UK, 

the USA, the Netherlands and India. Its 

efforts are complemented by agreements 

with experts in academic institutions across 

the world. 

Shell also has technical partnerships with 

the leading biotechnology companies 

exploring new production techniques for 

advanced biofuels. With the Canadian 

firm Iogen Energy we are developing 

technology that uses enzymes to break 

down the cellulose in, for example, wheat 

and barley straw. The cellulose is converted 

to sugars which are then fermented and 

distilled into ethanol. Through Raízen, our 

research programme with Codexis in the 

USA is developing natural enzymes into 

super-enzymes that speed up the conversion 

of biomass to ethanol. Those of Virent, in 

contrast, are based on the direct conversion 

of organic sugars into gasoline or gasolineblend 

components. 

WIND 

Shell Wind Energy has strong operational 

and development capabilities with 10 

joint-venture projects – eight in the USA and 

two in Europe (Shell share approximately 

50%). The projects’ generating capacity 

totals about 1,000 megawatts – enough 

electricity to meet the annual requirements 

of 300,000 homes. If supplied by 

conventional power plants, that amount 

of electricity would have necessitated the 

emission of 3 million tonnes of CO 2 . 

Almost 900 MW of our total capacity come 

from 722 wind turbines of the eight US 

projects. The biggest single one, the 264 

MW Mount Storm wind project in West 

Virginia, began operations in 2008. Our 

European wind projects are located in 

Germany and the Netherlands. All in all, 

the European operations involve a total 

of 38 wind turbines with an aggregate 

capacity of 111 MW. 

INSTALLED WIND CAPACITY 

MW, Shell share 

600 

500 

400 

300 

200 

100 

0 

2007 

USA 

Europe 

2008 

2009 

2010 

2011 


Alternative energy 

www.shell.com/raizen_cosan_video 

39

40 4 Sh She Sh She Sh She Sh S he hhe 

ell ll l l In I ve ves ve ves ve ves ve ves vestor es estor 

to tor to tor to tor ors’ s’ s Han Ha H an andbo ndbo 

db dbo d bo b bo ok okk 

Pro Pr Pro Pr Pro P ro rojec 

je jec je jec je jec je jec j ec e ec ts s & &T & &T & T 

T Tech 

ec ech ec ech ec ecc no nol n nno nol ol oolog 

l og ogy og ogy og ogy og ogy o gy gyy 

PROJECTS & 

TECHNOLOGY 

The delivery of Shell’s strategic objectives 

depends on its capability to build large 

and complex projects reliably and safely, 

on time and on budget. The Projects 

& Technology (P&T) organisation has 

that capability. It executes projects and 

provides a range of technical services in 

both Upstream and Downstream. It also 

drives the research and innovation to create 

the technology that will be needed in the 

future. Furthermore, it provides functional 

leadership in contracting and procurement 

as well as in safety. In total, more than 

8,000 people work in P&T, of whom 

roughly 600 have PhDs. 

DELIVERING 

PROJECTS 

Specialist P&T teams manage complex 

mega projects from concept to commission, 

often in challenging environments. Our 

Cardamom field in the Gulf of Mexico, for 

example, sits under more than 800 m of 

water and another 7,600 m of rock, and is 

expected to produce 50 thousand boe/d. 

Our massive Prelude floating facility is 

expected to produce, liquefy, store and 

offload 110 thousand boe/d of Australian 

natural gas entirely out of sight of land.

Shell’s growth profile has recently been 

dominated by three large upstream projects: 

Pearl GTL, Qatargas 4 and the Athabasca 

Oil Sands Project expansion. Despite their 

particular environmental and engineering 

challenges, they have all been successfully 

delivered and are now on-stream. 

P&T teams also undertake downstream 

projects. At several refineries around the 

globe they have implemented technology 

that improves the refinery’s efficiency 

and enables it to use a wider range 

of feedstock. In Port Arthur, Texas, for 

instance, an expansion project will turn 

the refinery there into the largest in North 

America. P&T also works with local teams 

to deliver more routine projects that require 

extra support or expertise. 

We are constantly looking for opportunities 

to simplify and standardise project execution, 

with the aim of improving efficiency and 

reducing costs. In 2011, Shell created a 

global community of project managers to 

facilitate resourcing and build up expertise 

through the sharing of best practices. The 

Shell Project Academy invigorates this 

global community. It provides an accredited 

competence development programme that 

makes our project staff capable of delivering 

sustained top-quartile performance. 

INNOVATIVE 

TECHNOLOGY 

In a fast-changing and highly competitive 

world, technological innovation is a key 

differentiator for Shell. We continue to 

invest in technology for our Downstream 

business across the range of its activities 

– from refining to chemicals. For example, 

our technology leadership in lubricants – 

as a portfolio of more than 150 patent 

series attests – provides a key competitive 

advantage to help create some of the most 

advanced oils and greases. 

Our cutting-edge technology continues to 

deliver powerful catalysts and proprietary 

processes to help give us a competitive 

edge in core petrochemical markets. Our 

catalysts, for example, lie at the heart of 

some of the most efficient manufacturing 

units for ethylene oxide and mono-ethylene 

glycol. And a new process chemistry 

we are developing has the potential 

to create a more sustainable route to 

diphenyl carbonate: a key raw material for 

polycarbonates, which substitutes for glass 

in many products. 

As we enter a new wave of growth 

based on deep-water projects and the 

development of tight, shale and coalbedmethane 

resources, drilling is becoming 

a key determinant of Shell’s success. Shell 

already has a strong performance record 

there. For several years running, it has 

been ranked first in benchmarking studies 

of the Independent Project Analysis Institute 

and in the top quartile in terms of cost 

competitiveness. As we further develop our 

drilling operations, we are commissioning 

state-of-the-art rigs and well technologies 

that comply with the highest industry 

standards for safety and the environment. 

We also lead the industry in the use of 

“underbalanced” drilling. Such drilling 

results in higher inflow rates after the well 

is completed. That extra flow is particularly 

important in “tight” gas reservoirs, where 

– even under the best of circumstances – the 

gas moves through the rock a thousand times 

slower than it would through conventional 

reservoirs. The successful development of 

tight-gas fields also depends critically on 

drilling costs. Here too we have developed 

ways to save money without compromising 

safety or putting the environment at undue 

risk. Our soft-torque rotary drilling system, 

for instance, dampens the uncontrolled 

twisting of drill pipe, making it possible to 

finish wells quicker and with fewer drill-bit 

changes. 

We persist in pursuing technological 

breakthroughs across the spectrum 

of our businesses: from novel seismic 

acquisition technology to enhanced 

oil-recovery methods, from advanced 

biofuels to ultralow-friction lubricants. We 

also work on technologies to reduce the 

environmental footprint of our operations 

and products. These are applied, for 

example, in carbon capture and storage 

schemes to reduce CO 2 and other emissions 

or in energy-efficiency programmes for our 

refineries or for our customers. 

The development of Shell technology 

is intrinsically linked to our strategic 

objectives and based on the needs of our 

customers. It is driven by a single integrated 

R&D organisation that complements 

in-house development of proprietary 

technologies with external scientific and 

technological partnerships. This partnering, 

which sometimes involves openly sharing 

results, helps to ensure a healthy influx of 


Projects & Technology 

WELL MANUFACTURING SYSTEM 

We aim to further improve our drilling 

efficiency and control costs through 

innovative automation. In 2011, we 

reached an agreement with China National 

Petroleum Corporation (CNPC) to develop 

jointly a well manufacturing system that can 

repeatedly drill and complete standardised 

wells in a automated manner. Such a system 

will help us unlock resources that so far had 

been uneconomic to develop. 

A new Shell technology – SCADAdrill – 

will play an important role in the well 

manufacturing system. SCADAdrill is the 

control software that enables computerised 

drilling to proceed autonomously, with 

continual self-adjustment of the bit 

trajectory. In this way, well engineers can 

be kept away from the worksite hazards as 

drilling proceeds faster and more reliably. 

The Shell/CNPC venture expects to build 

nine of these automated rigs in 2012 and 

offer support services on a world-wide 

basis. We expect the venture to spend 

about $1 billion, employ 700 staff and 

have more than 40 rigs operational by 

2015. 

www.shell.com/well_manufacturing_video 

new ideas and to speed up technology 

developments. 

R&D EXPENDITURE 

Technology and innovation provide ways 

for Shell to stand apart from its competitors. 

They help our current businesses perform, 

and they make our future businesses 

possible. Over the last five years our spend 

on R&D averaged more than $1 billion 

annually – more than any other international 

energy company. In 2011, R&D 

expenditures were $1.1 billion, compared 

with $1.0 billion in 2010 and $1.1 billion in 

2009. We also anticipate spending figures 

in the same range in the coming years. 

41


Projects & Technology 

Sustained investment in our key business 

technologies pays off. Some 30 years 

ago we started working on chemicals for 

enhanced oil recovery that include polymer 

solutions like the one that is being injected 

since early 2010 into the Marmul field in 

Oman. There it is expected to boost oil 

recovery by some 10% or more. Shell has 

also pioneered deep-water exploration 

and production over the decades, recently 

producing oil and gas through the Perdido 

platform in the Gulf of Mexico. Perdido is 

moored in water deeper than that of any 

other vertical-access platform, tapping 

fields under more than 2,450 metres 

(8,000 feet) of water. 

SAFETY 

Sustaining our licence to operate depends 

on maintaining the safety and reliability of 

our operations. We manage the hazards 

of our businesses through rigorous controls 

and compliance systems combined with 

a safety-focused culture. Our global 

standards and operating procedures define 

the controls and physical barriers we 

require to prevent incidents. For example, 

our wells are designed and executed under 

the protection of two barriers to minimise 

the risk of an uncontrolled release of 

hydrocarbons. We regularly inspect, test 

and maintain these barriers to ensure they 

are meeting our standards. 

In order to reinforce the safety of our 

operations around the world after the BP 

Deepwater Horizon incident in 2010, we 

undertook a review of operating practices, 

RESEARCH & DEVELOPMENT EXPENDITURE 

$ billion 

6 

4 

2 

0 


Other majors 

Cumulative 2007–2011 

testing frequencies, training protocols and 

safety procedures. We have made some 

adjustments to our safety and technical 

procedures including: the introduction 

of an advanced well-control class in our 

mandatory well engineering training 

program; the completion of a new real-time 

well control tool; and the introduction of 

revised procedures for casing and tubing 

design as well as for cement casing. 

We also reviewed and updated our 

requirements for asset integrity and process 

safety. 

We continue to build the safety culture 

among our employees and contractors. We 

hold an annual global safety day to give 

workers time to reflect on how to prevent 

accidents. We expect everyone working 

for us to intervene and stop work that may 

appear to be unsafe. Everyone working for 

us has to comply with our 12 mandatory 

Life-Saving Rules. If employees break these 

rules, they will face disciplinary action up to 

and including termination of employment. 

If contractors break them, they can be 

removed from the worksite. 

CONTRACTING 

AND PROCUREMENT 

To gain a competitive advantage within the 

oil and gas industry, Shell must leverage its 

overall buying power. We must also remain 

vigilant and nimble in a volatile economy 

in order to mitigate business risks and 

unlock business opportunities. And we must 

develop mutually beneficial relationships 

TOTAL RECORDABLE CASE FREQUENCY [A] 

injuries million working hours 

5 

4 

3 

2 

1 

0 

01 02 03 04 05 06 07 08 

Injuries p/million working hours 

Working hours 

09 

[A] Employees and contractors per million working hours; 

Shell-operated facilities. 

10 

11 

900 

800 

700 

600 

500 

400 

with suppliers, governments, technical 

partners and the various communities that 

neighbour its operations. 

Shell’s Contracting and Procurement 

(C&P) organisation is responsible for 

nearly everything that Shell subsidiaries 

buy across the full scope of activities in 

the Upstream, Downstream and Projects 

& Technology Businesses. This currently 

amounts to over $60 billion in annual 

spend. C&P’s specialised knowledge helps 

Shell subsidiaries focus on what and how 

much should be bought and at what price. 

The priority is on getting the most value out 

of our purchases, not just the lowest cost. 

By putting its global internal demand for 

goods and services into one contractual 

package on the external marketplace, 

Shell gains leverage in terms of safety, 

quality of goods and services, costs and 

technical innovation. The selection of 

preferred suppliers enables a far closer 

oversight of delivery and performance, 

better mechanisms for quality control and 

significantly lower prices. Such contractmanagement 

improvements, coupled 

with increasingly efficient operations and 

collaborative relationships with suppliers, 

saved more than $1 billion per year in 

2010 and 2011. 

The C&P organisation also analyses the 

market, enabling it to be forward-looking 

in its support of sourcing strategies. In 

addition, C&P has a key role in ensuring 

Shell seeks to work with contractors and 

suppliers who contribute to sustainable 

development and are economically, 

environmentally and socially responsible. 

PROCUREMENT: LOW COST COUNTRIES 

number of suppliers $ billion 

300 

225 

150 

75 

0 

2008 2009 2010 

�� 

�� 

�� 

2011 

4 

3 

2 

1 

0

CORPORATE SEGMENT 

The Corporate segment covers the nonoperating 

activities supporting Shell. It 

includes Shell’s treasury organisation, 

its headquarters and central functions as 

well as its risk management and selfinsurance 

activities. All finance income 

and expense, as well as related taxes and 

exchange-rate effects, are included in the 

Corporate segment earnings rather than 

in the earnings of the Business segments. 

The Corporate segment earnings also 

include functional costs that have not been 

allocated to the other segments. 

TREASURY 

The holdings and treasury organisation 

manages many of the Corporate entities 

and is the point of contact between Shell 

and the external capital markets. It is 

centralised in London and supported by 

regional centres in Singapore and Rio 

de Janeiro. Its daily operations include 

liquidity management, advising and 

financing subsidiaries and joint ventures, 

arranging the efficient investment of any 

surplus funds, transacting foreign exchange 

and managing Shell’s bank account 

infrastructure. The treasury organisation 

maintains Shell’s credit ratings and debt 

platforms, issues short- and long-term 

capital-market instruments and executes the 

Royal Dutch Shell dividend, scrip and share 

buyback programmes. 

HEADQUARTERS 

AND CENTRAL 

FUNCTIONS 

Headquarters and central functions render 

services to the Businesses (Upstream 

Americas, Upstream International, 

Downstream, Projects & Technology) as 

well as other functions. They also provide 

support for the shareholder-related activities 

of Royal Dutch Shell. The services they 

render cover the areas of finance, human 

resources, legal advice, information 

technology, real estate, communications, 

health, security and government relations. 

They also assist the Chief Executive Officer 

and the Executive Committee. The central 

functions have been increasingly supported 

by business service centres located 

around the world. These centres process 

transactions, manage data and produce 

statutory reports, among other services. 

The majority of the headquarters and 

central-function costs are recovered from the 

Business segments. Those costs that are not 

recovered are retained in Corporate. 

RISK AND 

INSURANCE 

The BP Deepwater Horizon incident was a 

harsh reminder of the vital importance of 

effective risk management in the oil and 

gas industry. At Shell, we aim to drive 

down the total cost of risk by using robust 

methodologies and processes to assess, 

mitigate and manage risk. They include 

the valuation of risks so that this can be 

properly taken into account in decision 

making. It also requires the causes of 

losses experienced to be analysed and 

understood so that they can be reduced in 

the future. To support this, Shell’s insurable 

risks are mainly aggregated and retained 

within insurance subsidiaries, which 

means that Shell self-insures most of its 

risk exposures. The insurance subsidiaries 

form a key part of the Shell’s approach to 

risk management. They provide insurance 

coverage to Shell entities, up to $1.15 

billion per event, generally limited to 

Shell’s percentage interest in the relevant 

entity. The type and extent of the coverage 

is equal to that which is otherwise 

commercially available in the third-party 

insurance market. 


Corporate segment 

43


Maps 

MAPS 

EUROPE 

ITALY UKRAINE 

SAN MARINO 

G.R17-22.NP 

ITALY 

ROME 

TYRRHENIAN SEA 

PALERMO 

0 100 200 300 400 km 

{ Shell oil projects 

{ Shell gas projects 

SLOVENIA 

{ Terminal 

NAPLES 

" 

" 

" " 

" 

" " 

Val d'Agri 

CROATIA 

Tempa Rossa 

BOSNIA AND 

HERZEGOVINA 

ADRIATIC SEA 

IONIAN SEA 

2011 discoveries from core exploration activities 

MONTENEGRO 

KIEV 

0 50 100 150 200 km 

Shell oil pipeline 

Shell gas pipeline 

UKRAINE 

KHERSON 


KHARKIV 

Dnieper-Donetsk 

RUSSIA 

SEA OF AZOV

NORTH- WEST EUROPE 

ICELAND 

Corrib 

" 

" 

" 

CELTIC SEA 

Dooish 

Bellanaboy Bridge 

IRELAND 

" 

NORTH 

ATLANTIC OCEAN 

Benbecula 

DUBLIN 

0 100 200 300 400 km 

Loyal 

" 

" " 

" 

Clair 

Schiehallion 

" 

" 

St. Fergus 

" 

" 

UNITED KINGDOM 

Brent South 

Sullom Voe 

" 

Easington 

Beryl 

Bacton 

" " 

" " 

" 

" 

" 

" 

" " 

" 

Kingfisher 

Goldeneye 

LONDON 

" " 

" " 

" " 

" 

" 

" " 

" " 

" 

"" " 

" 

" " 

" " " 

" 

" " 

" 

" " 

" 

" 

" 

"" " " 

" 

" 

" 

" 

" " 

" 

" 

" " 

" 

" 

" " 

" 

" " 

" 

" 

" 

" " 

" " " 

" " " 

" 

" " " " 

" 

" " 

" 

" 

" 

" 

" 

" 

" " " 

" 

" 

" 

" " 

" 

" 

" 

" " 

" " 

"" " """ 

" 

" 

" " 

" 

" 

"" " 

" 

" 

" 

" " 

" 

" 

" 

" " 

" 

" 

" 

" 

" " 

"" " 

" 

" " 

" 

" 

" 

" 

" 

" 

" 

" 

" 

" 

" 

" " " " 

""" 

" " 

" 

" 

" 

" " 

" 

" " " 

" " 

" 

" " 

" "" 

" 

" " 

" 

" " " 

" 

" " 

" " 

" 

" 

" 

" 

" 

" "" 

" 

" 

" 

" 

" 

" 

" 

" 

" 

" 

" " 

" 

" " 

" 

" 

" 

" " 

" 

" 

" 

"" 

" 

" " 

" 

" 

" 

" 

" 

" 

" 

" 

" 

" 

" 

" 

" 

" " 

"" 

" 

" 

" 

" 

" 

" " 

" 

" "" 

" " 

" 

" 

" " " 

" 

" 

" " 

" 

" 

" 

" 

" 

" " " " "" 

" 

" 

" 

" 

" 

" " 

" 

" 

" 

" " " 

" 

" 

" 

" 

"" 

" " 

" 

" 

" 

" " 

" 

" 

" " " 

" 

" " 

" 

" 

" " 

" 

" 

" 

"" 

" " " " 

" 

" 

" " 

" 

" 

" "" 

" 

" 

" " " 

" 

" 

" " 

" " 

" 

" " 

"" 

" 

" 

" 

" " 

" Callantsoog Den Helder 

IJmuiden " AMSTERDAM 

NETHERLANDS 

Hoek van Holland " 

Maasvlakte " 

FRANCE 

Linnorm 

Ormen Lange 

Asterix 

NORTH SEA 

Blija-South 

Heinenoord 

BELGIUM 

Troll 

BRUSSELS 

" 

Gjøa 

Kvitebjorn 

Halfdan 

Nyhamna 

Hasselmus 

Draugen 

NORWAY 

LUXEMBOURG 

LUXEMBOURG 

" 

Metslawier-South 

DENMARK 

Nybro 

Groningen 

Schoonebeek 

" 

" " 

" 

" " " 

" 

" 

" " " 

" 

" 

" 

" 

" 

" 

" 

" 

" 

" 

" " 

" 

" 

" " " 

" " " 

" 

" 

" 

" 

" 

" " 

" 

" 

" 

OSLO 

" 

GERMANY 


Maps 

SWEDEN 

COPENHAGEN 

BERLIN 

45


Maps 

AFRI CA 

EGYPT 

LIBYA 

0 50 100 150 200 km 

NIGERIA 

BIGHT OF BENIN 

" 

Bobo 

OPL322 

" 

" 

" 

" 

OML133 

" Erha-N 

Bosi " 

" Erha 

OML118 

Bonga 

Bonga-SW 

" 

" 

0 50 100 150 200 km 



" 

" 

" 

{ Terminal 

Obaiyed J2 

" " 

" 

MATRUH 

" 

" 

West Sitra 

" " 

" 

" " 

" 

" 

" 

" " 

" 

" " 

" " 

" " 

" " " " " 

" 

" 

" 

" 

" " 

" 

" " 

" 

" 

" 

" 

" 

" 

" " 

" " 

" 

" " 

" 

" 

" 

" 

Gbetiokun 

" 

" 

" 

" 

" 

" 

" 

" 

" " 

" 

" 

" 

" 

" 

"" 

" " 

" 

" 

" 

" 

" 

" 

" 

" " 

" " 

" 

" 

" 

" 

" 

" 

" 

" 

" 

" 

" 

" 

" 

" 

" " 

" 

" 

" 

" 

" 

" 

" 

" 

" 

" 

"" 

" 

" 

" 

" 

" 

" " 

" 

" 

" 

" 

" 

" 

" 

" 

" 

" 

" 

" 

" " " " 

" 

" 

" 

" 

" 

" 

" 

" 

" 

" 

" " 

" 

" 

" 

" 

" 

" " 

" 

" 

" 

" 

" 

" 

" 

" 

" " 

" 

" 

" 

" 

" 

" 

" 

" 

" 

" 

" 

" 

" 

" 

" 

" " " 

"" 

" 

" 

" 

" 

" 

" 

" " 

" 

" 

" 

" 

" " 

" 

" 

" " 

" 

" 

" 

" 

" 

" 

" " 

" 

" " 

" 

" 

" 

" 

" 

" 

" " 

" 

" " " 

" " "" 

" 

" 

" 

" 

" " " 

" 

" 

" 

" 

" 

" 

" 

" 

" 

" 

" 

" " 

" 

" 

" 

" 

" " 

" 

" 

" 

" 

" 

" 

" 

" 

" 

" 

" 

" 

" 

" 

" " 

" 

" 

" 

" 

" 

" 

" 

" 

" 

" 

" 

" 

" 

" 

" 

" " 

" 

WARRI " 

Utorogu 

" " Assa 

Zarama 

" 

" 

" 

" 

" Ubie 

" 

" 

" 

" 

" " " " 

" " 

" 

" 

" 

" 

EJA 

Kolo Creek 

Afam 

" 

" 

" 

" 

EA " 

Nun River " 

" 

" 

Soku " 

Santa 

" OML11 " 

Tologbene " 

" 

Barbara " 

" 

" 

" 

" 

Cawthorne 

" 

" 

Channel 

" 

OML77 

HA 

" 

Kalaekule 

OML74 " " OML72 

" 

Forcados-Yokri 

OML79 

MEDITERRANEAN SEA 

NEAG-C91 

" " 

AESW C1-A 


" 

" 

" " 

Zabazaba 

" AL HAMRA 

NE Abu Gharadig 

" 

" 

EGYPT 

" 

"" 

OPL245 

" 

" 

JK 

" Ngolo 

OML135 

" 

Doro Bolia 

" 

Etan 

ALEXANDRIA 

" 

" 



NEAG2 C5 E 

" 

TANTA 

EL FAIYUM 

N.Damietta Offshore"A" 

N.Tineh Offshore 

CAIRO 

NIGERIA 

OML71 


PORT SAID 

OML13 

" 

" 

" 

SUEZ 

CALABAR 

CAMEROON 

MALABO 

EQUATORIAL GUINEA 

BIGHT OF 

BIAFRA

GABON 

SAO TOME 

AND 

PRINCIPE 

SÃO TOMÉ 

AND PRÍNCIPE 

SOUTH 


Damier 

Avocette 

M'Boukou 

Toucan 

BC 9 

0 50 100 150 200 km 

TANZANIA 

Igoumou Marin 

BCD 10 

DODOMA 

TANZANIA 

0 100 200 300 400 km 

PORT GENTIL 

LIBREVILLE 

Ozigo 

Awoun 

" 

"" 

" 

" 

" 

" 

KENYA 

MOZAMBIQUE 

" 

" 

Gamba 

EQUATORIAL 

GUINEA 

LAMBARENE 

Koula 

Coucal 

Rabi 

Atora 

Bende-M'Bassou 

Totou 

Gamba-Ivinga 

MAYUMBA 

GABON 

Block 5-6 

INDIAN OCEAN 

CONGO 

LIBYA AND TUNISIA 

ALGERIA 

TUNESIA 

Raf Raf 

Azmour 

TUNIS 

0 100 200 300 400 km 

Mellitah " 

TRIPOLI 

ITALY 


Maps 

MEDITERRANEAN 

SEA 

" 

Ras Lanuf 

Zueitina 

" " Brega 

GREECE 

BENGHAZI 

NC212 NC211-NC215 

LIBYA 

Area 89 

NC211C 

47


Maps 

ASIA 

IRA Q, QATAR, UNITED ARAB EMIRATES, SAUDI ARABIA AND OMAN 

IRAQ 

Majnoon 

West Qurna 

KUWAIT 

RIYADH 

SAUDI ARABIA 

0 100 200 300 400 km 



{ Terminal 

THE GULF 

YEMEN 

Ras Laffan" 

DOHA 

QATAR 


Qatar Gas 3/4 

" Qatargas 4 

" 

BAHRAIN 

" Pearl GTL 

Block D 

ABU DHABI 

" Al Dabb'iya 

" Rumaitha 

" Ruwais " Bab 

" 

" 

Bida Al Qemzan 

Sahil 

" Bu Hasa 

" Huwaila " Asab 

" 

Budour NE 

Birba 

Sakhiya-21 

Ghafeer 


" 

" 

" 

" 

Lekhwair-724 

Mazkhour-5 

Kidan 


RAYSUT 

UNITED ARAB 

EMIRATES 

" 

" 

" 

" 

" 

" 

" 

" " 

" " " 

" 

" 

" 

" 

" 

Thayfut 

" " 

" 

" 

" " 

" 

" 

" 

" 

" 

" 

" 

" " 

" " " 

" 

" " 

" " 

" 

" 

" 

" 

" 

" 

" 

" " 

" 

" 

" 

" " 

" 

" 

" 

" 

" " 

" 

" 

" 

"" " 

" 

Nimr 

" 

" 

" 

" 

" 

" 

"" 

" " 

" " 

" 

" 

" 

" 

" 

IRAN 

Ufuq 

Lekhwair 

Dafiq 

Musallim 

Saih Rawl 

Marmul 

Qaharir 

Rahab 

" 

" " 

" " " 

" " 

" 

" 

SUHAR 

Zauliyah 

Wafra 

Simsim 

Amal 


Bahaa 

Natih 

Fahud 

Burhaan 

Al Ghubar 

OMAN 

Qarn Alam 

GULF OF OMAN 

MUSCAT 

SUR 

ARABIAN SEA

SYRIA AND TURKEY [A] 

ANTALYA 

Antalya Licences 

0 50 100 150 200 km 

JORDAN 

MEDITERRANEAN 

SEA 

EGYPT 

0 25 50 75 100 km 

CYPRUS 

MEDITERRANEAN SEA 

ISRAEL 

North West 

Oil Shale 

AMMAN 

TURKEY 

LEBANON 

SYRIA 

Central Oil Shale 

DAMASCUS 

SYRIA 

BLOCK XV 

" 

" 

" 

" 

" " " 

" " " 

"" " "" " 

" 

" 

" " 

" 

" " " 

" " " " 

" 

BLOCK XIII 

(Amouria) 

JORDAN SAUDI ARABIA 

South Oil Shale 


Maps 

Dadas Licences 

" 

IRAQ 

[A] In compliance with international sanctions, Shell has suspended activities in Syria. 

IRAQ 

49


Maps 

RUSSIA – SALYM RUSSIA – SAKHALIN 

GEORGIA 

ARMENIA 

Talotinsky East 

0 100 200 300 400 km 

KAZAKHSTAN 

Barun-Yustinskiy 

RUSSIA 

CASPIAN SEA 

AZERBAIJAN 

0 100 200 300 400 km 



{ Terminal 

RUSSIA 

KHANTY-MANSIYSK 

Kashagan 

Kashagan SW 

KAZAKHSTAN 

" 

Khazar " " 

Auezov 

West Salym 

Zhuravl 

Upper Salym 

ATYRAU 

" 

" 

Arman 

AKTAU 

" 

NEFTEYUGANSK 

" " 

" 

" 

" 

" 

Kalamkas Sea 

Vadelyp 

Kairan 

Aktote 

TURKMENISTAN 


A 

Onshore Processing 

Facility (OPF) 

KHOLMSK 

LNG Plant 

OKHA 

PA-B 

Onshore Processing 

Facility (OPF) 

Sakhalin 

" 

" 

NOGLIKI 

" " 

YUZHNO-SAKHALINSK 

Lunskoye 

RUSSIA Sakhalin 

0 50 100 150 200 km 

CHINA 

YINCHUAN 

Fushun 

" 

JinQiu 

0 100 200 300 400 km 



KHOLMSK 

CB207 

" 

Daning 

XI'AN 


OKHA 

PA-B 

Piltun-Astokhskoye 

Oil Export Terminal 

Piltun-Astokhskoye 

Lunskoye 

YUZHNO-SAKHALINSK 

LNG Plant " 

Oil Export Terminal 

Changbei BCG 

" 

North Shilou 

CHINA 

SEA OF 

OKHOTSK 

BEIJING 

Wuhu

BRUNEI AND EAST MALAYSIA 

" 

" 

" 

" " 

" 

" 

G7 

" 

F6 

F28 

F05E 

" 

E8 

" 

San Martin 

Malampaya 

SOUTH CHINA SEA 

" 

Destecado " 

SC 38A 

" 

SC 38B 

0 50 100 150 200 km 

" 

Ubah " 

SOUTH CHINA SEA " Kebabangan 

SULU SEA 

" 

Malikai 

Pisagan 

Petai 

" 

M1 

Saderi 

CA2 

" 

" 

" 

Geronggong " 

Gumusut 

" 

" Kakap 

Jintan 

Serai 

Fairley 

M4 

Fairley-Baram 

M3 

SW Ampa 

M3S " Bijan 

Baram 

F14 " 

Baronia 

F29 " Cili Padi 

F23 

" " 

" " " B11 

Beryl 

" " Selasih B12 Laila 

Salman 

Iron Duke Blk 12 

Magpie-E4 

" 

" 

MLJ2-07 Dp 

CW Block 52A 

E6 " 

" 

" 

"" 

" 

F13 

F13W 

Betty 

Bokor " 

BRUNEI 

E11 

Shallow Clastic 

D12 " 

E19NE 

" Bintulu 

0 50 100 150 200 km 

PHILIPPINES 

" 

" 

" 

" 

" 

" 

" 

" 

" 

" 

" 

" 

" 

" 

" 

" 

" 

" 

" 

" 

" " 

" 

" " 

" 

! 

" 

" 

" 

" 

" 

" 

" 

" 

" 

" 

" 

" 

" 

" 

" 

" 

Labuan 

" Champion 

" 

" Bugan 

" 

Mampak BANDAR SERI BEGAWAN 

BLNG 

" 

Depo1 

! MIRI 

SULU SEA 

BATANGAS 

PHILIPPINES 

SAN JOSE 

DE BUENAVISTA 

" Barton 

South Furious " 

Saint Joseph 

! KOTA KINABALU 

MALAYSIA 

INDONESIA 


Maps 

ND6 ND7 

CELEBES SEA 

PHILIPPINES 

51


Maps 

OCEANIA 

WEST AUSTRALIA AND INDONESIA 

Pluto Gorgon North West Shelf 

Angel 

Cossack 

Dixon 

Dockrell 

Echo/Yodel 

Gaea 

Goodwyn 

Goodwyn South 

Hermes 

Iago 

Lady Nora 

Lambert Deep/West 

North Rankin 

Pemberton 

Persephone 

Perseus 

Pueblo 

Sculptor-Rankin 

Searipple 

Tidepole 

Urania 

Wanaea 

Wilcox 

0 100 200 300 400 km 

EAST AUSTRALIA 

Achilles 

Acme 

Brederode 

Chandon 

Chrysaor 

Clio 

Dionysus 

Eendracht 

Eurytion 

Geryon 

Jansz 

Kentish Knock 

Keto 

Maenad 

Orthrus 

Sappho 

West Tryal Rock 

Yellowglen 

0 100 200 300 400 km 



Brecknock 

Calliance 

Concerto 

Crux 

Echuca Shoals 

Libra 

Prelude 

Torosa 

AUSTRALIA 

Queensland 

New South Wales 

{ Terminal 

" 

" 

" 

" " 

Vos 

Queensland CBM 

" 

" 

" " " " 

" 

" " " 

" 

" 

" " 

" 

" 

" " 

" 

" 

" 

" 

" " 

" 

" " " 

" 

" 

" " 

" Acme West 

" 

" 

DAMPIER 

Satyr 

CORAL SEA 

Pluto 

Gorgon 

EXMOUTH 

GLADSTONE 

Kogan North " 

Daandine 

Tipton West " 


BRISBANE 

" " 

NEW ZEALAND 

" 

INDONESIA 

North West Shelf 

WA-371-P 

" 

" 

WA-44-L 

BROOME 

" 

DERBY 

AUSTRALIA 

Western Australia 

TASMAN SEA 

NEW ZEALAND 

0 100 200 300 400 km 



DUNEDIN 

Great South Basin 


Greater Sunrise 

TIMOR SEA 

" 

" " 

" 

" 

NEW PLYMOUTH " 

" 

" 

" 

" 

Huntly Power Station " 

Maui 

CHRISTCHURCH 

" 

AUCKLAND 

Pohokura 

Kapuni 

WELLINGTON 

" 

Abadi 

Evans Shoal 

DARWIN 

Northern 

Territory 

PACIFIC OCEAN

AMERICAS 

NORTH-WEST USA 

Washington 

Oregon 

California 

Nevada 

LOS ANGELES 

0 150 300 450 600 km 

Eagle Ford 

" 

Piloncillo 

MEXICO 

0 50 100 150 200 km 

Idaho 

Utah 

CANADA 

UNITED STATES 

Montana 

" 

UNITED STATES 

Texas 

CODY 

Wyoming 

Pinedale 

SOUTH TEXAS AND GULF OF MEXICO 

ROCK SPRINGS 

Colorado 

GILLETTE 

Arizona New Mexico Texas 

HOUSTON 

Perdido 

Great White 

North Dakota 

South Dakota 

Nebraska 

" " 

" 

Kansas 

Silvertip 

Tobago 

Haynesville 

" " 

" 

" 

"" " 

" 

" " 

" " 

" " 

" 

PORT ARTHUR 

Elmer 

Enchilada 

Salsa 

Conger 

Antiqua 

Cardamom-Deep 

Auger 

Oregano 

Macaroni 

PENNSYLVANIA, NEW YORK AND OHIO 

Ohio 

Louisiana 

" 

2013-1HU 

" " 

" 

" 

" 

" 

NEW IBERIA 

Cougar 

Troika 

Habanero 

Llano 

Serrano 

" 

2013-1HM 

" 

" 

" 

BATON ROUGE 

" 

" 

" 

" 

" 

" 

" 


" " 

" 

" 

" " " " 

" " " " 

" 

" " 

" 

" " " " 

" " " " " 

" 

" " 

" 

HOUMA 

" 

Mississippi 

NEW ORLEANS 

Cognac " Ursa 

WD 143 " 

North 

West Boreas King 

Hickory " 

" 

Europa 

Mensa 

" 

"" " "" " 

" " Princess 

Popeye 

" 

Ursa 

Brutus 

Vito Crosby 

Glider 

Mars B Mars 

South Deimos 

Holstein 

Caesar 

Tonga 

Stones 

New York 

West Virginia Virginia 

0 50 100 150 200 km 

1401-2H 

CANADA 

UNITED STATES 

Pennsylvania 


Maps 

Kepler 

(NaKika) 

" 

" 

" 

" 

" 

" " 

" 

" 

Marcellus 

" 

Maryland 

Appalachia 

Alabama 

Florida 

Ram-Powell 

Ariel (NaKika) 

NaKika 

Appomattox 

Herschel 

Fourier 

Coulomb (NaKika) 

East Anstey 

(NaKika) 

D 

53


Maps 

ALASKA, YUKON AND NORTHWESTERN TERRITORIES NOVA SCOTIA 

CHUKCHI SEA 

NOME 

0 100 200 300 400 km 

UNITED STATES 

Alaska 

" 

Kaktovik 

ALBERTA AND BRITISH COLUMBIA 

PACIFIC OCEAN 

UNITED STATES 

0 100 200 300 400 km 



{ Terminal 

BEAUFORT SEA 

" Kitimat 

Yukon 

" Inuvik 

CANADA 

CANADA 

UNITED STATES 


Northwestern 

Territories 

Gundy 

" 

" 

" 

" 

Phosphate 

" 

" 

" 

" 

" 

" " 

" 

" 

" 

" 

" 

Peace River " 

" 

" " 

" " 

" 

" " 

" 

" " GRANDE PRAIRIE 

" 

" 

" 

" 

Groundbirch 

FORT ST. JOHN 

British Columbia Alberta 

" 

Marsh 

Clearwater 

Limestone 

Panther 

HALIFAX 

" 

" 

" " 

" " 

" 

" 

" 

" " 

" 

" 

" 

" " 

" 

" 

Jumping Pound 

" 

Nova Scotia 

Sable Island 

0 100 200 300 400 km 



" 

" " 

" 

" 

" 

" " 

" 

" 

Caroline " 

"" " 

" " 

" 

" " 

" " 

" 

" Burnt "" 

Timber " 

" " 

"" 

" 

" " 

Jumping Pound 

" 

" " 

" CALGARY 

" 

Seal 

Chipmunk 

" 

" " " 

" " Waterton 

CANADA 

" 

" 

UNITED STATES 

" 

" 

Scotford " 

EDMONTON 

Bakken 

Ells River 

Grosmont 

" 

" 

" 

" " " " 


Klappan Area 

CANADA 

Newfoundland 

NORTH ATLANTIC OCEAN 

" 

" 

Namur 

" " 

" 

" Muskeg River Mine 

" 

FORT MC MURRAY 

Designated oil sands areas 

" 

Saskatchewan 

Saskatch

GREENLAND 

0 100 200 300 400 km 

PANAMA 

0 100 200 300 400 km 

BAFFIN BAY 

COLOMBIA AND VENEZUELA 

VMM 27 

VMM 28 

COLOMBIA 

Gua-3 

BOGOTA 

Anu 

Napu 

VMM 3 

UPERNAVIK 

MARACAIBO 

Urdaneta Oeste 

CPE 2 

" 

CPE 4 

GREENLAND 

VENEZUELA 

Luna Llena 

CARACAS 

FRENCH GUIANA AND GUYANA 

TRINIDAD 

AND TOBAGO 

VENEZUELA 

MABARUMA 

GUYANA 

0 100 200 300 400 km 

BOLIVIA 

" " 

ARGENTINA 

Stabroek 

BRAZIL AND ARGENTINA 

PARAGUAY 

Macueta 

San Pedrito 

BUENOS AIRES 

0 200 400 600 800 km 

GEORGETOWN 

URUGUAY 

SURINAME 

BRAZIL 

BRAZIL 

BRASILIA 

PARAMARIBO 


Guyane Maritime 

FRENCH 

GUIANA 

Quindim 

Brigadeiro 

Pe de Moleque 

Argonauta 

RIO DE JANEIRO 

SAO PAULO 


Maps 

" 

Zaedyus 

" 

" 

CAYENNE 

" " 

SOUTH 


" 

MACEIO 

Gato do Mato 

Ostra 

Abalone 

Salema 

Bijupira 

55


Consolidated data 

CONSOLIDATED DATA 

EMPLOYEES 

EMPLOYEES BY SEGMENT (AVERAGE NUMBERS) THOUSANDS 

2011 2010 2009 2008 2007 

Upstream 27 26 23 22 22 

Downstream 51 59 62 64 69 

Corporate [A] 12 12 16 16 13 

Total 90 97 101 102 104 

[A] Corporate includes employees working in business service centres. 

EMPLOYEES BY GEOGRAPHICAL AREA 

(AVERAGE NUMBERS) THOUSANDS 

2011 2010 2009 2008 2007 

The Netherlands 8 8 9 9 10 

UK 7 7 8 8 8 

Other 10 13 14 15 17 

Europe 25 28 31 32 35 

Africa, Asia, Oceania 33 34 34 34 33 

USA 20 20 22 23 24 

Other Americas 12 15 14 13 12 

Total 90 97 101 102 104 

EMPLOYEE COSTS $ MILLION 

2011 2010 2009 2008 2007 

Remuneration 11,158 10,667 10,608 10,581 10,021 

Social law taxes 774 758 818 890 854 

Retirement benefi ts 1,804 1,980 2,679 (302) 98 

Share-based compensation 754 701 642 241 589 

Total 14,490 14,106 14,747 11,410 11,562 

EMPLOYEES BY COUNTRY (AVERAGE NUMBERS) THOUSANDS 

2011 2010 2009 2008 2007 

Argentina 2 3 3 3 3 

Australia 2 2 3 3 3 

Brazil 1 2 2 2 2 

Canada 8 8 6 6 6 

China/Hong Kong 4 4 4 4 4 

France 1 1 1 2 3 

Germany 4 5 5 5 6 

India 3 3 2 1 1 

Malaysia 6 6 7 7 7 

Morocco 1 1 1 1 1 

The Netherlands 8 8 9 9 10 

Nigeria 2 2 2 2 2 

Norway 1 1 1 1 1 

Philippines 4 4 3 3 1 

Poland 2 2 2 1 1 

Qatar 1 1 1 1 [A] 

Russia [A] [A] [A] [A] 1 

Singapore 3 3 3 3 2 

South Africa 1 2 2 2 1 

Thailand [A] 1 1 1 2 

UK 7 7 8 8 8 

USA 20 20 22 23 24 

81 86 88 88 89 

As percentage of total (%) 90 89 87 86 8 6 

Total 90 97 101 102 104 

[A] Fewer than 500 employees.

CONSOLIDATED FINANCIAL DATA 



CONSOLIDATED STATEMENT OF INCOME $ MILLION 

2011 2010 2009 2008 2007 

Revenue 470,171 368,056 278,188 458,361 355,782 

Share of profi t of equity-accounted investments 8,737 5,953 4,976 7,446 8,234 

Interest and other income 5,581 4,143 1,965 5,133 5,760 

Total revenue and other income 484,489 378,152 285,129 470,940 369,776 

Purchases 370,044 283,176 203,075 359,587 262,255 

Production and manufacturing expenses 26,458 24,458 25,301 25,565 23,219 

Selling, distribution and administrative expenses 14,335 15,528 17,430 16,906 16,449 

Research and development 1,125 1,019 1,125 1,230 1,167 

Exploration 2,266 2,036 2,178 1,995 1,822 

Depreciation, depletion and amortisation 13,228 15,595 14,458 13,656 13,180 

Interest expense 1,373 996 542 1,181 1,108 

Income before taxation 55,660 35,344 21,020 50,820 50,576 

Taxation 24,475 14,870 8,302 24,344 18,650 

Income for the period 31,185 20,474 12,718 26,476 31,926 

Income attributable to non-controlling interest 267 347 200 199 595 

Income attributable to Royal Dutch Shell plc shareholders 30,918 20,127 12,518 26,277 31,331 

CCS EARNINGS $ MILLION 

2011 2010 2009 2008 2007 

Income attributable to Royal Dutch Shell plc shareholders 30,918 20,127 12,518 26,277 31,331 

Estimated CCS adjustment for Downstream (2,293) (1,484) (2,714) 5,089 (3,767) 

CCS earnings 28,625 18,643 9,804 31,366 27,564 

EARNINGS PER SHARE $ 

2011 2010 2009 2008 2007 

Basic earnings per share 4.98 3.28 2.04 4.27 5.00 

Diluted earnings per share 4.97 3.28 2.04 4.26 4.99 

SHARES MILLION 

2011 2010 2009 2008 2007 

Basic weighted average number of Class A and B shares 6,212.5 6,132.6 6,124.9 6,159.1 6,263.8 

Diluted weighted average number of Class A and B shares 6,221.7 6,139.3 6,128.9 6,171.5 6,283.8 

Shares outstanding at the end of the period 6,220.1 6,154.2 6,122.3 6,121.7 6,210.4 

57



CONSOLIDATED BALANCE SHEET (AT DECEMBER 31) $ MILLION 

Assets 

Non-current assets 

2011 2010 2009 2008 2007 

Intangible assets 4,521 5,039 5,356 5,021 5,366 

Property, plant and equipment 152,081 142,705 131,619 112,038 101,521 [ A] 

Upstream 119,789 109,67 7 97,208 80,302 68,493 

Downstream 31,467 32,205 33,513 30,876 31,945 

Corporate 825 823 898 860 1,083 

Equity-accounted investments 37,990 33,414 31,175 28,327 29,153 [ A] 

Investments in securities 5,492 3,809 3,874 4,065 3,461 

Deferred tax 4,732 5,361 4,533 3,418 3,253 

Pre-paid pension costs 11,408 10,368 10,009 6,198 5,559 

Trade and other receivables 9,256 8,970 9,158 6,764 5,760 

Current assets 

225,480 209,666 195,724 165,831 154,073 

Inventories 28,976 29,348 27,410 19,342 31,503 

Accounts receivable 79,509 70,102 59,328 82,040 74,238 

Cash and cash equivalents 11,292 13,444 9,719 15,188 9,656 

119,777 112,894 96,457 116,570 115,397 

Total assets 345,257 322,560 292,181 282,401 269,470 

Liabilities 

Non-current liabilities 

Debt 30,463 34,381 30,862 13,772 12,363 

Trade and other payables 4,921 4,250 4,586 3,677 3,893 

Deferred tax 14,649 13,388 13,838 12,518 13,039 

Retirement benefi t obligations 5,931 5,924 5,923 5,469 6,165 

Decommissioning and other provisions 15,631 14,285 14,048 12,570 13,658 

Current liabilities 

71,595 72,228 69,257 48,006 49,118 

Debt 6,712 9,951 4,171 9,497 5,736 

Trade and other payables 81,846 76,550 67,161 85,091 75,697 

Taxes payable 10,606 10,306 9,189 8,107 9,733 

Retirement benefi t obligations 387 377 461 383 426 

Decommissioning and other provisions 3,108 3,368 3,807 2,451 2,792 

102,659 100,552 84,789 105,529 94,384 

Total liabilities 174,254 172,780 154,046 153,535 143,502 

Equity 

Share capital 536 529 527 527 536 

Shares held in trust (2,990) (2,789) (1,711) (1,867) (2,392) 

Other reserves 8,984 10,094 9,982 3,178 14,148 

Retained earnings 162,987 140,179 127,633 125,447 111,668 [ A] 

Equity attributable to Royal Dutch Shell plc shareholders 169,517 148,013 136,431 127,285 123,960 

Non-controlling interest 1,486 1,767 1,704 1,581 2,008 [ A] 

Total equity 171,003 149,780 138,135 128,866 125,968 

Total liabilities and equity 345,257 322,560 292,181 282,401 269,470 

[ A] In March 2007, Shell acquired the non-controlling interests in Shell Canada for a cash consideration of $7.1 billion. This was refl ected as a decrease in non- 

controlling interest and in retained earnings of $1,639 million and $5,445 million respectively. In April 2007, Shell sold half of its interest in Sakhalin-2 for $4.1 

billion reducing its interest from 55% to 27.5% . As a result of this transaction, Sakhalin- 2 has been accounted for as an associated company rather than as a 

subsidiary with effect from April 2007. The main impact on the Consolidated Balance Sheet was a decrease of $15.7 billion in property, plant and equipment and 

$6.7 billion in non-controlling interest, and an increase in equity-accounted investments of $3.7 billion.

CONSOLIDATED STATEMENT OF CASH FLOWS $ MILLION 

Cash fl ow from operating activities 

2011 2010 2009 2008 2007 

Income for the period 31,185 20,474 12,718 26,476 31,926 

Adjustment for 

Current taxation 23,009 16,384 9,297 24,452 20,076 

Interest expense (net) 1,164 842 1,247 1,039 550 

Depreciation, depletion and amortisation 13,228 15,595 14,458 13,656 13,180 

Net gains on sale of assets (4,485) (3,276) (781) (4,071) (3,349) 

(Increase)/decrease in net working capital (6,471) (5,929) (2,331) 7,935 (6,206) 

Share of profi t of equity-accounted investments (8,737) (5,953) (4,976) (7,446) (8,234) 

Dividends received from equity-accounted investments 9,681 6,519 4,903 9,325 6,955 

Deferred taxation and decommissioning and other provisions 1,768 (1,934) (1,925) (1,030) (773) 

Other (949) (10) (1,879) (549) (801) 

Net cash from operating activities (pre-tax) 59,393 42,712 30,731 69,787 53,324 

Taxation paid (22,622) (15,362) (9,243) (25,869) (18,863) 

Cash fl ow from operating activities 36,771 27,350 21,488 43,918 34,461 

Cash fl ow from investing activities 

Capital expenditure (26,301) (26,940) (26,516) (35,065) (24,576) 

Investments in equity-accounted investments (1,886) (2,050) (2,955) (1,885) (1,852) 

Proceeds from sale of assets 6,990 3,325 1,325 4,737 8,566 [A] 

Proceeds from sale of equity-accounted investments 468 3,591 1,633 2,062 1,012 

Proceeds from sale/(purchases) of securities (net) 90 (34) (105) 224 1,055 

Interest received 196 136 384 1,012 1,225 

Net cash used in investing activities (20,443) (21,972) (26,234) (28,915) (14,570) 

Cash fl ow from fi nancing activities 

Net (decrease)/increase in debt with maturity period within three months (3,724) 4,647 (6,507) 4,161 (455) 

Other debt 

New borrowings 1,249 7,849 19,742 3,555 4,565 

Repayments (4,649) (3,240) (2,534) (2,890) (2,796) 

Interest paid (1,665) (1,312) (902) (1,371) (1,235) 

Change in non-controlling interest 8 381 62 40 (6,757)[A] 

Cash dividends paid to: 



Royal Dutch Shell plc shareholders (6,877) (9,584) (10,526) (9,516) (9,001) 

Non-controlling interest (438) (395) (191) (325) (203) 

Repurchases of shares (1,106) – – (3,573) (4,387) 

Shares held in trust: net (purchases)/sales and dividends received (929) 187 27 525 876 

Net cash used in fi nancing activities (18,131) (1,467) (829) (9,394) (19,393) 

Currency translation differences relating to cash and cash equivalents (349) (186) 106 (77) 156 

(Decrease)/increase in cash and cash equivalents (2,152) 3,725 (5,469) 5,532 654 

Cash and cash equivalents at January 1 13,444 9,719 15,188 9,656 9,002 

Cash and cash equivalents at December 31 11,292 13,444 9,719 15,188 9,656 

[ A] In March 2007, Shell acquired the non-controlling interests in Shell Canada for a cash consideration of $7.1 billion. This was refl ected as a decrease in non- 

controlling interest and in retained earnings of $1,639 million and $5,445 million respectively. In April 2007, Shell sold half of its interest in Sakhalin-2 for $4.1 

billion, reducing its interest from 55% to 27.5% . As a result of this transaction, Sakhalin-2 has been accounted for as an associated company rather than as a 

subsidiary with effect from April 2007. The main impact on the Consolidated Balance Sheet was a decrease of $15.7 billion in property, plant and equipment and 

$6.7 billion in non-controlling interest, and an increase in equity accounted investments of $3.7 billion. 

59



QUARTERLY EARNINGS BY BUSINESS SEGMENT $ MILLION 

Upstream* [A] 

2011 2010 

Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year 

Europe 863 1,035 1,261 1,922 5,081 1,487 910 745 1,186 4,328 

Asia-Pacifi c 1,139 1,539 1,806 1,223 5,707 1,068 770 1,551 2,826 6,215 

Other 1,852 2,287 2,320 2,450 8,909 928 1,257 1,424 1,053 4,662 

Upstream International 3,854 4,861 5,387 5,595 19,697 3,483 2,937 3,720 5,065 15,205 

Upstream Americas 1,904 1,200 684 970 4,758 932 333 (567) 32 730 

Total 5,758 6,061 6,071 6,565 24,455 4,415 3,270 3,153 5,097 15,935 

* of which integrated gas [B] 759 2,160 2,437 1,923 7,279 960 813 1,280 2,674 5,727 

Downstream (CCS basis) 

Oil products 685 1,347 827 (624) 2,235 430 1,081 10 (82) 1,439 

Chemicals 485 536 653 380 2,054 313 390 315 493 1,511 

Total 1,170 1,883 1,480 (244) 4,289 743 1,471 325 411 2,950 

Corporate and non-controlling interest 

Interest and investment income/(expense) (194) (160) (152) (118) (624) (98) (39) (107) (65) (309) 

Currency exchange gains/(losses) 92 126 (270) (25) (77) (63) (160) 50 215 42 

Other – including taxation 201 175 168 243 787 (15) 87 205 81 358 

Corporate 99 141 (254) 100 86 (176) (112) 148 231 91 

Non-controlling interest (102) (90) (51) 38 (205) (85) (100) (105) (43) (333) 

Total (3) 51 (305) 138 (119) (261) (212) 43 188 (242) 

CCS earnings 6,925 7,995 7,246 6,459 28,625 4,897 4,529 3,521 5,696 18,643 

Estimated CCS adjustment for Downstream 1,855 667 (270) 41 2,293 584 (136) (58) 1,094 1,484 

Income attributable to Royal Dutch Shell plc shareholders 8,780 8,662 6,976 6,500 30,918 5,481 4,393 3,463 6,790 20,127 

[A] Europe: Europe. Asia-Pacifi c: East Asia and Oceania. Other: Africa, Middle East and Commonwealth of Independent States. Americas: North and South America. 

[B] Integrated gas is part of the Upstream segment. It incorporates liquefi ed natural gas, including LNG marketing and trading, and gas-to-liquids operations, as 

previously reported in the Gas & Power segment. In addition, the associated upstream oil and gas production activities from projects where there are integrated fi scal 

and ownership structures across the value chain are included in integrated gas. These include the North West Shelf, Pearl, Qatargas 4 and Sakhalin-2 projects, which 

were on-stream in 2011. Power generation and coal gasifi cation activities are also included in integrated gas. 

QUARTERLY IDENTIFIED ITEMS BY BUSINESS SEGMENT [A] $ MILLION 

Upstream* [B] 

2011 2010 

Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year 

Europe (162) 85 171 450 544 16 (49) 339 (19) 287 

Asia-Pacifi c (38) 482 381 152 977 – 6 453 1,927 2,386 

Other 221 27 132 544 924 (50) 11 102 (20) 43 

Upstream International 21 594 684 1,146 2,445 (34) (32) 894 1,888 2,716 

Upstream Americas 1,099 47 (48) 312 1,410 144 42 (1,178) (231) (1,223) 

Total 1,120 641 636 1,458 3,855 110 10 (284) 1,657 1,493 

* of which integrated gas [C] (319) 535 534 111 861 9 42 405 2,023 2,479 

Downstream (CCS basis) 

Oil products (479) 796 (317) 34 34 (35) 365 (1,128) 10 (788) 

Chemicals (4) 6 (21) – (19) – (54) – (81) (135) 

Total (483) 802 (338) 34 15 (35) 311 (1,128) (71) (923) 

Corporate and non-controlling interest 

Corporate – – (53) 76 23 – – – – – 

Non-controlling interest – – – 45 45 – – – – – 

Total – – (53) 121 68 – – – – – 

CCS earnings impact 637 1,443 245 1,613 3,938 75 321 (1,412) 1,586 570 

[A] Identifi ed items generally relate to events with an impact of more than $50 million on earnings and are shown to provide additional insight into segment earnings and 

income attributable to shareholders. A detailed description of Shell’s identifi ed items per quarter can be found in the Quarterly Results Announcements. 

[B] Europe: Europe. Asia-Pacifi c: East Asia and Oceania. Other: Africa, Middle East and Commonwealth of Independent States. Americas: North and South America. 

[C] Integrated gas is part of the Upstream segment. It incorporates liquefi ed natural gas, including LNG marketing and trading, and gas-to-liquids operations, as 

previously reported in the Gas & Power segment. In addition, the associated upstream oil and gas production activities from projects where there are integrated fi scal 

and ownership structures across the value chain are included in integrated gas. These include the North West Shelf, Pearl, Qatargas 4 and Sakhalin-2 projects, which 

were on-stream in 2011. Power generation and coal gasifi cation activities are also included in integrated gas.



QUARTERLY EARNINGS BY BUSINESS SEGMENT $ MILLION 

2009 2008 2007 

Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year 

1,461 209 362 724 2,756 1,748 1,240 3,213 2,608 8,809 1,386 1,009 472 2,952 5,819 

751 722 566 575 2,614 1,021 1,290 1,031 1,140 4,482 748 649 665 1,015 3,077 

320 471 467 581 1,839 1,470 1,638 1,833 1,066 6,007 927 963 1,531 136 3,557 

2,532 1,402 1,395 1,880 7,209 4,239 4,168 6,077 4,814 19,298 3,061 2,621 2,668 4,103 12,453 

(348) 689 148 656 1,145 2,100 2,689 2,570 (151) 7,208 1,260 1,466 1,433 1,482 5,641 

2,184 2,091 1,543 2,536 8,354 6,339 6,857 8,647 4,663 26,506 4,321 4,087 4,101 5,585 18,094 

511 441 473 360 1,785 881 1,044 1,217 951 4,093 798 806 692 848 3,144 

1,077 (257) 1,163 (2,041) (58) 1,195 1,075 2,303 580 5,153 1,478 2,929 1,628 871 6,906 

(74) (18) 129 279 316 201 (142) 116 (19) 156 480 494 360 348 1,682 

1,003 (275) 1,292 (1,762) 258 1,396 933 2,419 561 5,309 1,958 3,423 1,988 1,219 8,588 

21 25 59 255 360 110 81 178 (41) 328 583 158 122 12 875 

(46) 379 160 151 644 (62) 27 (264) (351) (650) 46 20 57 82 205 

158 144 (17) 21 306 98 93 43 19 253 172 (1) 234 (98) 307 

133 548 202 427 1,310 146 201 (43) (373) (69) 801 177 413 (4) 1,387 

(23) (24) (47) (24) (118) (105) (89) (120) (66) (380) (148) (131) (110) (116) (505) 

110 524 155 403 1,192 41 112 (163) (439) (449) 653 46 303 (120) 882 

3,297 2,340 2,990 1,177 9,804 7,776 7,902 10,903 4,785 31,366 6,932 7,556 6,392 6,684 27,564 

191 1,482 257 784 2,714 1,307 3,654 (2,455) (7,595) (5,089) 349 1,111 524 1,783 3,767 

3,488 3,822 3,247 1,961 12,518 9,083 11,556 8,448 (2,810) 26,277 7,281 8,667 6,916 8,467 31,331 

QUARTERLY IDENTIFIED ITEMS BY BUSINESS SEGMENT [A] $ MILLION 

2009 2008 2007 

Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year 

233 (389) 49 (76) (183) (161) (373) 1,737 906 2,109 (93) 19 (62) 1,317 1,181 

65 70 46 (256) (75) – 47 (67) 35 15 – – – 145 145 

97 – (15) (33) 49 – 132 193 430 755 126 136 122 (827) (443) 

395 (319) 80 (365) (209) (161) (194) 1,863 1,371 2,879 33 155 60 635 883 

(65) 204 (203) 139 75 84 (8) 505 27 608 110 245 66 167 588 

330 (115) (123) (226) (134) (77) (202) 2,368 1,398 3,487 143 400 126 802 1,471 

80 (6) 125 (232) (33) – 35 104 91 230 110 473 1 145 729 

(186) (611) 576 (1,429) (1,650) – (269) 477 (383) (175) (176) 205 121 177 327 

(19) (67) (40) 94 (32) – (206) (32) (22) (260) – – 18 (46) (28) 

(205) (678) 536 (1,335) (1,682) – (475) 445 (405) (435) (176) 205 139 131 299 

162 (17) (42) (36) 67 – – – (96) (96) 404 55 – 30 489 

– – – – – – – – – – – – – – – 

162 (17) (42) (36) 67 – – – (96) (96) 404 55 – 30 489 

287 (810) 371 (1,597) (1,749) (77) (677) 2,813 897 2,956 371 660 265 963 2,259 

61



ADDITIONAL SEGMENTAL INFORMATION $ MILLION 

Upstream 

2011 2010 2009 2008 2007 

Segment earnings 24,455 15,935 8,354 26,506 18,094 

Including: 

Exploration 2,266 2,036 2,178 1,995 1,822 

Depreciation, depletion and amortisation 8,827 11,144 9,875 9,906 9,913 

Share of profi t of equity-accounted investments 7,127 4,900 3,852 7,521 5,446 

Production and manufacturing expenses 15,606 13,697 13,958 13,763 13,122 

Selling, distribution and administrative expenses 1,276 1,512 2,206 2,030 2,015 

Cash fl ow from operations 30,579 24,872 19,935 38,681 27,363 

Less: Net working capital movements (2,702) 346 1,490 3,233 1,493 

Cash fl ow from operations excluding net working capital movements 33,281 24,526 18,445 35,448 25,870 

Capital employed 126,437 113,631 98,826 83,997 71,711 

Downstream 

Segment CCS earnings 4,289 2,950 258 5,309 8,588 

Including: 

Depreciation, depletion and amortisation 4,251 4,254 4,399 3,574 3,106 

Share of profi t of equity-accounted investments 1,577 948 661 834 2,406 

Production and manufacturing expenses 10,547 10,592 11,829 12,225 10,546 

Selling, distribution and administrative expenses 12,920 13,716 14,505 14,451 13,858 

Cash fl ow from operations 4,921 1,961 4,056 8,607 5,468 

Less: Net working capital movements (3,825) (6,177) (1,783) 6,857 (7,682) 


Capital employed 71,976 67,287 62,632 54,050 65,042 

Corporate 

Segment earnings 86 91 1,310 (69) 1,387 

Cash fl ow from operations 1,271 517 (2,503) (3,370) 1,630 

Less: Net working capital movements 56 (98) (2,039) (2,155) (17) 

Cash fl ow from operations excluding net working capital movements 1,215 615 (464) (1,215) 1,647 

Capital employed 9,765 13,194 11,710 14,088 7,3 14 

Shell group 

CCS earnings 28,830 18,976 9,922 31,746 28,069 

Non-controlling interest (205) (333) (118) (380) (505) 

CCS earnings (after non-controlling interest) 28,625 18,643 9,804 31,366 27,564 

Cash fl ow from operations 36,771 27,350 21,488 43,918 34,461 

Less: Net working capital movements (6,471) (5,929) (2,332) 7,935 (6,206) 


Capital employed 208,178 194,112 173,168 152,135 144,0 67

CAPITAL EMPLOYED [A] (AT DECEMBER 31) $ MILLION 

Upstream 

NET CAPITAL INVESTMENT $ MILLION 

Capital expenditure 

Upstream 

2011 2010 2009 2008 2007 

Europe 1,731 1,892 3,117 2,689 2,669 

Asia-Pacifi c 5,683 2,794 2,010 1,720 1,458 

Other 4,133 5,128 6,792 9,069 8,390 


Upstream Americas 9,134 12,509 8,345 15,469 6,700 

Total Upstream 20,681 22,323 20,264 28,947 19,217 

Downstream 

Oil products 4,845 3,714 3,994 3,796 3,601 

Chemicals 634 809 1,985 2,081 1,344 

Total Downstream 5,479 4,523 5,979 5,877 4,945 

Corporate 141 94 273 241 414 

Total capital expenditure 26,301 26,940 26,516 35,065 24,576 

Exploration expense 1,462 1,214 1,186 1,447 1,115 

Leases and other adjustments [A] 1,402 358 1,078 47 (471) 

New equity in equity-accounted investments 1,466 1,646 1,270 1,294 1,472 

New loans to equity-accounted investments 420 404 1,685 591 380 

Total capital investment 31,051 30,562 31,735 38,444 27,072 

Proceeds from divestments [B] 

Upstream 4,280 4,487 1,625 3,909 7,807 

Downstream 3,206 2,401 1,278 2,932 2,613 

Corporate 62 (6) (50) 182 213 

Total 7,548 6,882 2,853 7,023 10,633 

Total net capital investment * 23,503 23,680 28,882 31,421 16,439 

* Comprising 

2011 2010 2009 2008 2007 

Europe 10,682 10,588 9,767 7,615 11,227 

Asia-Pacifi c 23,372 16,578 13,352 10,035 9,932 

Other 41,427 38,772 35,779 32,164 25,699 


Upstream Americas 50,956 47,693 39,928 34,183 24,853 

Downstream 

Oil products 59,176 55,302 50,751 44,146 54,471 

Chemicals 12,800 11,985 11,881 9,904 10,571 

Corporate 9,765 13,194 11,710 14,088 7,314 

Total 208,178 194,112 173,168 152,135 144,067 

[A] Consists of total equity, current debt and non-current debt. 

Upstream** 19,083 21,222 22,326 28,257 13,555 



Downstream 4,342 2,358 6,232 3,104 2,682 

Oil products 3,793 1,714 4,638 1,343 1,315 

Chemicals 549 644 1,594 1,761 1,367 

Corporate 78 100 324 60 202 

Total 23,503 23,680 28,882 31,421 16,439 

** Of which integrated gas 4,537 2,890 5,119 6,999 1,460 

[A] Includes fi nance leases and other adjustments related to timing differences between the recognition of assets and associated underlying cash fl ows. 



[B] Includes proceeds from the sale of assets, equity-accounted investments and securities, as shown in the Consolidated statement of cash fl ows (see page 59). 

63



FIXED ASSETS [A] (AT DECEMBER 31) $ MILLION 

Upstream 

DEPRECIATION, DEPLETION AND AMORTISATION $ MILLION 

Upstream 

FINANCIAL RATIOS 

Return on average capital employed 

Income for the period adjusted for interest expense, less tax for the period, 

2011 2010 2009 2008 2007 

as % of the average capital employed 15.9 11.5 8.0 18.3 23.7 

Return on sales 

Income attributable to Royal Dutch Shell plc shareholders plus non- 

controlling interest as % of sales proceeds (including sales taxes, etc.) 5.6 4.6 3.5 4.8 7.3 

Return on equity 

Income attributable to Royal Dutch Shell plc shareholders as % of average 

net assets (i.e. equity attributable to Royal Dutch Shell plc shareholders 

and non-controlling interest) 19.3 14.0 9.4 20.6 26.0 

Current ratio 

Current assets : current liabilities 1.2 1.1 1.1 1.1 1.2 

Long-term debt ratio 

Non-current debt as % of capital employed less current debt 15.1 18.7 18.3 9.7 8.9 

Total debt ratio 

Non-current debt plus current debt as % of capital employed 17.9 22.8 20.2 15.3 12.6 

Gearing ratio at December 31 

2011 2010 2009 2008 2007 

Europe 1,519 2,732 2,746 3,113 3,319 

Asia-Pacifi c 1,222 1,063 1,091 1,426 1,193 

Other 1,603 1,445 1,507 1,944 2,397 



Downstream 

2011 2010 2009 2008 2007 

Europe 14,327 16,119 18,478 16,550 20,270 

Asia-Pacifi c 27,536 20,536 16,307 13,094 12,775 

Other 44,913 42,868 38,637 32,886 26,921 



Downstream 

Oil products 39,711 37,072 38,166 35,002 38,907 

Chemicals 11,735 11,799 11,642 10,486 9,958 

Corporate 2,180 2,120 2,403 2,205 2,438 

Total 200,085 184,967 172,024 149,451 139,501 

[A] Comprises intangible assets, property, plant and equipment, equity-accounted investments and investments in securities. 

Oil products 3,408 3,444 3,469 2,686 2,440 

Chemicals 843 810 930 888 666 

Corporate 150 197 184 176 161 

Total 13,228 15,595 14,458 13,656 13,180 

TAXATION 

2011 2010 2009 2008 2007 

Current taxation ($ million) 23,009 16,384 9,297 24,452 20,076 

Deferred taxation ($ million) 1,466 (1,514) (995) (108) (1,426) 

Total ($ million) 24,475 14,870 8,302 24,344 18,650 

As percentage of income before taxation (%) 44 42 39 48 37 

Net debt as % of total capital 13.1 17.1 15.5 5.9 6.3

UPSTREAM DATA 

UPSTREAM EARNINGS 

2011 $ MILLION 


[A] Asia : East Asia and Oceania. 

[B] Other: Africa, Middle East and Commonwealth of Independent States. 

Upstream Upstream 



Upstream data 

Europe Asia [A] Other [B] International Americas Total 

Revenue (third party and inter-segment) 26,263 11,125 33,451 70,839 20,852 91,691 

Share of profi t of equity-accounted investments 1,527 1,111 3,121 5,759 1,368 7,127 

Interest and other income 42 841 1,052 1,935 2,214 4,149 

Total revenue and other income 27,832 13,077 37,624 78,533 24,434 102,967 

Purchases 9,687 2,190 4,605 16,482 5,606 22,088 

Production and manufacturing expenses 2,775 1,735 4,606 9,116 6,490 15,606 

Taxes other than income tax 390 835 1,553 2,778 239 3,017 

Selling, distribution and administrative expenses 1,010 83 22 1,115 161 1,276 

Research and development 505 15 – 520 162 682 

Exploration 313 413 584 1,310 956 2,266 

Depreciation, depletion and amortisation 1,519 1,222 1,603 4,344 4,483 8,827 

Interest expense 356 53 149 558 198 756 

Earnings before taxation 11,277 6,531 24,502 42,310 6,139 48,449 

Taxation 6,196 824 15,593 22,613 1,381 23,994 

Earnings after taxation 5,081 5,707 8,909 19,697 4,758 24,455 

Cash fl ow from operations 6,680 6,343 9,421 22,444 8,135 30,579 

Less: Net working capital movements (876) (133) (2,225) (3,234) 532 (2,702) 

Cash fl ow from operations excluding net working capital movements 7,556 6,476 11,646 25,678 7,603 33,281 


Revenue (third party and inter-segment) 21 ,379 7 ,893 22 ,950 52 ,222 15 ,976 68 ,198 

Share of profi t of equity-accounted investments 1 ,378 1 ,099 1 ,509 3 ,986 914 4 ,900 

Interest and other income 37 3 ,153 166 3 ,356 260 3 ,616 

Total revenue and other income 22 ,794 12 ,145 24 ,625 59 ,564 17 ,150 76 ,714 

Purchases 7 ,379 1 ,175 2 ,602 11 ,156 2 ,936 14 ,092 

Production and manufacturing expenses 2 ,981 1 ,539 3 ,635 8 ,155 5 ,542 13 ,697 

Taxes other than income tax 303 567 1 ,069 1 ,939 254 2 ,193 

Selling, distribution and administrative expenses 989 90 12 1 ,091 421 1 ,512 

Research and development 416 5 – 421 199 620 

Exploration 335 337 342 1 ,014 1 ,022 2 ,036 

Depreciation, depletion and amortisation 2 ,732 1 ,063 1 ,445 5 ,240 5 ,904 11 ,144 


Earnings before taxation 7 ,315 7 ,332 15 ,392 30 ,039 718 30 ,757 

Taxation 2 ,987 1 ,117 10 ,730 14 ,834 (12) 14 ,822 

Earnings after taxation 4 ,328 6 ,215 4 ,662 15 ,205 730 15 ,935 

Cash fl ow from operations 5 ,096 5 ,269 8 ,158 18 ,523 6 ,349 24 ,872 

Less: Net working capital movements (347) 472 (135) (10) 356 346 

Cash fl ow from operations excluding net working capital movements 5 ,443 4 ,797 8 ,293 18 ,533 5 ,993 24 ,526 

65


Upstream data 





Share of profi t of equity-accounted investments 1,485 740 983 3,208 644 3,852 

Interest and other income 75 379 82 536 116 652 


Purchases 7,341 1,187 1,500 10,028 1,618 11,646 


Taxes other than income tax 322 316 506 1,144 124 1,268 


Research and development 415 – – 415 219 634 

Exploration 273 276 660 1,209 969 2,178 



Earnings before taxation 5,745 3,068 8,482 17,295 1 17,296 

Taxation 2,989 454 6,643 10,086 (1,144) 8,942 



Less: Net working capital movements 894 (84) (372) 438 1,052 1,490 




Europe Asia [A] Other[B] 

International Americas Total 


Share of profi t of equity-accounted investments 2,582 1,433 2,065 6,080 1,441 7,521 

Interest and other income 2,304 690 446 3,440 684 4,124 

Total revenue and other income 33,865 12,173 27,744 73,782 26,171 99,953 

Purchases 7,164 2,553 1,910 11,627 5,231 16,858 




Research and development 481 – – 481 295 776 

Exploration 416 185 388 989 1,006 1,995 




Taxation 8,469 1,015 12,991 22,475 2,688 25,163 



Less: Net working capital movements 1,466 314 1,737 3,517 (284) 3,233 




Europe Asia [A] Other[B] International Americas Total 


Share of profi t of equity-accounted investments 1,767 897 1,612 4,276 1,170 5,446 

Interest and other income 1,815 399 19 2,233 805 3,038 


Purchases 4,725 1,333 1,831 7,889 4,059 11,948 

Production and manufacturing expenses 3,257 997 4,301 8,555 4,493 13,048 



Research and development 439 – – 439 427 866 

Exploration 178 259 408 845 977 1,822 


Interest expense 300 18 74 392 79 471 


Taxation 4,982 643 8,298 13,923 1,784 15,707 



Less: Net working capital movements (174) (110) 63 (221) 1,714 1,493 

Cash fl ow from operations excluding net working capital movements 6,568 4,215 7,224 18,007 7,863 25,870

OIL AND GAS EXPLORATION AND PRODUCTION ACTIVITIES 

EARNINGS 

Shell subsidiaries 


Revenue 


Revenue 

North America South 

Europe Asia Oceania Africa USA Other [B] America Total 

Third parties 4,100 2,755 1,674 2,215 3,547 487 121 14,899 

Sales between businesses 8,572 10,672 980 8,225 3,153 4,101 1,356 37,059 

Total 12,672 13,427 2,654 10,440 6,700 4,588 1,477 51,958 

Production costs excluding taxes 2,186 1,106 287 1,244 1,700 2,257 209 8,989 

Taxes other than income tax [A] 303 333 284 1,019 100 – 154 2,193 

Exploration expense 335 275 110 294 730 167 125 2,036 

Depreciation, depletion and amortisation 2,690 748 436 1,192 1,858 3,178 636 10,738 

Other income/(costs) (1,144) (2,748) 2,479 497 (528) (1,324) 72 (2,696) 

Earnings before taxation 6,014 8,217 4,016 7,188 1,784 (2,338) 425 25,306 

Taxation charge/(credit) 2,915 6,752 524 4,564 542 (614) 132 14,815 

Earnings after taxation 3,099 1,465 3,492 2,624 1,242 (1,724) 293 10,491 

Revenue 58.55 73.72 53.86 59.47 50.85 60.72 62.26 60.81 

Production costs excluding taxes 10.10 6.07 5.82 7.09 12.90 29.87 8.81 10.52 

Taxes other than income tax [A] 1.40 1.83 5.76 5.80 0.76 – 6.49 2.57 

Exploration expense 1.55 1.51 2.23 1.67 5.54 2.21 5.27 2.38 

Depreciation, depletion and amortisation 12.43 4.11 8.85 6.79 14.10 42.06 26.81 12.57 

Other income/(costs) (5.28) (15.09) 50.30 2.82 (4.01) (17.52) 3.03 (3.15) 

Earnings before taxation 27.79 45.11 81.50 40.94 13.54 (30.94) 17.91 29.62 

Taxation charge/(credit) 13.47 37.07 10.63 25.99 4.11 (8.12) 5.56 17.34 

Earnings after taxation 14.32 8.04 70.87 14.95 9.43 (22.82) 12.35 12.28 

[A] Includes cash paid royalties to governments outside North America. 

[B] Comprises Canada and Greenland. 


Upstream data 



Third parties 5,038 4,227 1,823 3,143 3,369 342 96 18,038 

Sales between businesses 10,379 14,495 1,160 10,986 4,016 6,710 1,570 49,316 

Total 15,417 18,722 2,983 14,129 7,385 7,052 1,666 67,354 


Taxes other than income tax [A] 390 588 300 1,499 59 – 180 3,016 


Depreciation, depletion and amortisation 1,473 1,008 351 1,181 2,427 1,575 352 8,367 

Other income/(costs) (1,670) (3,242) (331) 1,071 797 (2,080) 504 (4,951) 

Earnings before taxation 9,353 12,257 1,437 10,574 2,946 308 1,262 38,137 

Taxation charge/(credit) 6,048 9,748 (15) 6,511 714 165 471 23,642 

Earnings after taxation 3,305 2,509 1,452 4,063 2,232 143 791 14,495 

Revenue 83.64 99.60 65.91 82.19 65.91 78.54 82.99 83.01 

Production costs excluding taxes 12.17 6.92 8.53 8.45 17.89 33.18 12.45 13.08 




Other income/(costs) (9.06) (17.25) (7.31) 6.23 7.11 (23.17) 25.11 (6.10) 

Earnings before taxation 50.74 65.21 31.75 61.51 26.29 3.43 62.86 47.00 

Taxation charge/(credit) 32.81 51.86 (0.33) 37.87 6.37 1.84 23.46 29.14 

Earnings after taxation 17.93 13.35 32.08 23.63 19.92 1.59 39.40 17.86 

$/BOE 

$/BOE 

67


Upstream data 


Revenue 



Third parties 2,945 2,449 1,001 1,613 3,055 348 119 11,530 

Sales between businesses 8,271 8,170 877 5,524 2,774 3,334 486 29,436 

Total 11,216 10,619 1,878 7,137 5,829 3,682 605 40,966 


Taxes other than income tax [A] 322 185 172 465 56 – 68 1,268 


Depreciation, depletion and amortisation 2,730 937 307 1,233 2,440 1,999 124 9,770 

Other income/(costs) (1,064) (2,458) (463) (444) (653) (1,075) (72) (6,229) 

Earnings before taxation 4,098 5,71 8 563 3,178 404 (1,532) (25) 12,404 

Taxation charge/(credit) 2,886 4,74 4 69 2,370 (458) (572) (126) 8,913 

Earnings after taxation 1,212 974 494 808 862 (960) 101 3,491 

Revenue 48.96 55.94 38.51 53.95 42.37 47.95 42.54 49.44 




Depreciation, depletion and amortisation 11.92 4.94 6.29 9.32 17.74 26.03 8.72 11.79 

Other income/(costs) (4.64) (12.95) (9.50) (3.37) (4.74) (14.00) (5.06) (7.52) 

Earnings before taxation 17.89 30.12 11.54 24.02 2.94 (19.95) (1.76) 14.97 

Taxation charge/(credit) 12.60 24.99 1.41 17.91 (3.33) (7.45) (8.86) 10.76 

Earnings after taxation 5.29 5.13 10.13 6.11 6.27 (12.50) 7.10 4.21 


Revenue 


$/BOE 


Third parties 6,210 3,764 170 3,104 5,219 1,131 479 20,077 

Sales between businesses 13,771 13,001 1,440 8,429 5,235 1,573 371 43,820 

Total 19,981 16,765 1,610 11,533 10,454 2,704 850 63,897 

Production costs excluding taxes 2,383 1,331 157 1,207 1,294 750 161 7, 283 

Taxes other than income tax [A] 501 639 258 882 101 – 90 2, 471 

Exploration expense 414 131 143 300 680 180 147 1,995 

Depreciation, depletion and amortisation 3,102 1,299 220 1,595 2,166 880 74 9,336 

Other income/(costs) (440) (2,107) 8 (20) (76) (330) (41) (3,006) 

Earnings before taxation 13,141 11,258 840 7,529 6,137 564 337 39,806 

Taxation charge/(credit) 8,391 9,098 205 4,505 2,044 11 287 24,541 

Earnings after taxation 4,750 2,160 635 3,024 4,093 553 50 15,265 

Revenue 77.53 88.66 34.99 71.91 77.05 63.69 56.79 75.50 


Taxes other than income tax [A] 1.94 3.38 5.61 5.50 0.74 – 6.01 2.92 


Depreciation, depletion and amortisation 12.04 6.87 4.78 9.95 15.96 20.73 4.94 11.03 

Other income/(costs) (1.70) (11.17) 0.17 (0.11) (0.57) (7.77) (2.75) (3.54) 

Earnings before taxation 50.99 59.54 18.25 46.95 45.23 13.28 22.51 47.04 

Taxation charge/(credit) 32.56 48.12 4.45 28.09 15.06 0.25 19.17 29.00 

Earnings after taxation 18.43 11.42 13.80 18.86 30.17 13.03 3.34 18.04 



$/BOE


Revenue: 

OIL SANDS UNIT OPERATING COSTS $/B 

2011 2010 2009 2008 2007 

Mining and upgrader cash operating costs [A] 43.00 47 .74 32.49 38.15 28.92 

Depreciation, depletion and amortisation costs 10.21 6 .99 4.88 5.68 4.42 

Total unit costs 53.21 54 .73 37.37 43.83 33.34 

[A] Unit cash operating cost defi ned as: operating, selling and general expenses plus cash costs items included in cost of goods sold excluding pre-development and 

centrally allocated costs divided by synthetic crude sales volumes excluding blend stock. 



Third parties 3,750 2,961 226 1,108 3,099 1,322 192 12,658 

Sales between businesses 11,654 9,097 1,352 8,955 5,765 1,021 501 38,345 

Total 15,404 12,058 1,578 10,063 8,864 2,343 693 51,003 

Production costs excluding taxes 2,433 1,313 131 1,312 1,242 655 158 7, 244 

Taxes other than income tax [A] 401 342 165 829 74 – 67 1,8 78 


Depreciation, depletion and amortisation 3,311 893 350 2,168 2,183 514 13 9,432 

Other income/(costs) 107 (1,529) 90 (1,670) (398) (708) (44) (4,152) 

Earnings before taxation 9,188 7,840 839 3,739 4,292 220 357 26,475 

Taxation charge/(credit) 4,961 6,499 139 2,332 1,488 (66) 19 15,372 

Earnings after taxation 4,227 1,341 700 1,407 2,804 286 338 11,103 

Revenue 57.84 66.12 31.76 58.47 56.24 55.19 48.64 57.65 





Other income/(costs) 0.42 (8.38) 1.82 (9.70) (2.53) (16.68) (3.09) (4.70) 

Earnings before taxation 34.50 42.99 16.89 21.73 27.23 5.18 25.06 29.92 

Taxation charge/(credit) 18.63 35.64 2.80 13.55 9.44 (1.56) 1.34 17.37 

Earnings after taxation 15.87 7.35 14.09 8.18 17.79 6.74 23.72 12.55 



Shell share of equity-accounted investments 

2011–2007 $ MILLION 

OIL SANDS 


2011 Europe Asia Oceania [B] Africa USA Canada America Total 

Third party revenue 5,688 11,021 1,271 – 2,807 – 318 21,105 

Production costs excluding taxes 353 932 247 – 457 – 41 2,030 

Taxes other than income tax [A] 2,990 4,358 74 – 1 27 – 89 7,638 

Exploration expense 13 60 89 – 8 – – 1 70 

Depreciation, depletion and amortisation 237 1,250 246 – 211 – 35 1,979 

Other income/(costs) 349 (30) (141) – 103 – (108) 173 

Earnings before taxation 2,444 4,391 474 – 2,107 – 45 9,461 

Taxation 940 1,983 174 – 765 – 45 3,907 

Earnings after taxation 1,504 2,408 300 – 1,342 – – 5,554 

2010 1,394 1,085 518 – 818 – – 3,815 

2009 1,509 552 283 – 7 67 – (203) 2,908 

2008 2,519 467 535 – 1,281 3 165 4,970 

2007 1,667 597 238 – 929 7 145 3,583 


[B] Includes Shell’s ownership of Woodside Petroleum Ltd (24% from November 2010, previously 34%), a publicly listed company on the Australian Securities Exchange. 

We have limited access to data; accordingly the numbers are estimated. 


Upstream data 

$/BOE 

69


Upstream data 

PROVED OIL AND GAS RESERVES 

The tables present oil and gas reserves on a 

net basis which means that they include the 

reserves relating to (i) the Shell subsidiaries 

excluding the reserves attributable to 

non-controlling interest holders in our 

subsidiaries and (ii) the Shell share of equity- 

accounted investments. Proven minable oil 

sands reserves are reported separately for 

2007–2008. As a result of SEC rule changes, 

these proven minable oil sands reserves have 

been converted to synthetic crude oil proved 

reserves and from 2009 onwards these are 

included in the proved oil and gas reserves. 

Moreover, from 2009 onwards bitumen 

proved reserves are reported separately. In 

previous years, the bitumen proved reserves 

were included in the reported proved oil and 

gas reserves in Canada. 

PROVED CRUDE OIL AND NATURAL GAS LIQUIDS, SYNTHETIC CRUDE OIL AND BITUMEN RESERVES FOR SHELL 

SUBSIDIARIES AND EQUITY-ACCOUNTED INVESTMENTS [A][B][C] (AT DECEMBER 31) MILLION BARRELS 

2011 2010 2009 2008 2007 

Europe 754 617 526 491 641 

Asia 1,664 2,080 1,830 1,562 1,604 

Oceania 209 109 135 124 126 

Africa 718 737 725 590 562 

North America – USA 

North America – Canada 

838 843 710 588 672 

Oil and NGL 35 35 38 48 119 

Synthetic crude oil 1,680 1,567 1,599 

Bitumen 55 51 57 

South America 82 89 57 32 39 

Total including year-average/end price effects 6,035 6,128 5,677 3,435 3,763 

PROVED NATURAL GAS RESERVES FOR SHELL SUBSIDIARIES AND EQUITY-ACCOUNTED INVESTMENTS [A][B][C][D] 

(AT DECEMBER 31) THOUSAND MILLION SCF 

2011 2010 2009 2008 2007 

Europe 15,401 15,566 15,835 15,732 16,481 

Asia 16,943 18,194 19,797 18,791 16,224 

Oceania 7,094 6,149 6,632 3,100 2,686 

Africa 2,791 2,981 3,033 1,759 1,741 

North America – USA 3,259 2,745 2,323 2,402 2,480 

North America – Canada 2,045 1,308 1,172 1,231 923 

South America 110 160 243 303 334 

Total including year-average/end price effects 47,643 47,103 49,035 43,318 40,869 

PROVEN MINABLE OIL SANDS RESERVES (AT DECEMBER 31) MILLION BARRELS 

2008 2007 

Total including year-end price effects 997 1,111 

TOTAL PROVED OIL AND GAS RESERVES [A][B][C][E][F] (AT DECEMBER 31) MILLION BOE 

2011 2010 2009 2008 2007 

Europe 3,409 3,301 3,256 3,203 3,48 3 

Asia 4,585 5,217 5,243 4,802 4,40 1 

Oceania 1,432 1,169 1,278 659 589 

Africa 1,200 1,250 1,249 893 862 

North America – USA 1,400 1,316 1,111 1,002 1,100 

North America – Canada 2,123 1,879 1,896 1,257 1,388 

South America 101 117 99 84 97 

Total including year-average/end price effects 14,250 14,249 14,132 11,900 11,920 

Year- average/end price effects (235) (198) 260 19 (183) 

[A] 2009–2011 includes proved reserves associated with future production that will be consumed in operations. These volumes were not included in previous years. 

[B] Total attributable to Royal Dutch Shell plc shareholders. 

[C] Year-end price effect for 2007 and 2008; year-average price effect for 2009–2011. 

[D] These quantities have not been adjusted to standard heat content. 

[E] Natural gas volumes are converted to oil equivalent using a factor of 5,800 scf per barrel. Rounding difference may occur in estimate of gas reserves conversion from 

scf to boe. 

[F] Proven minable oil sands included for 2007–2008.

Changes 

The tables present changes in the reserves 

of (i) Shell subsidiaries without deduction of 

the reserves attributable to non-controlling 

interest holders in our subsidiaries and 

(ii) the Shell share of equity-accounted 

investments. Changes in proven minable 

oil sands reserves are reported separately 

for 2007–2008. As a result of SEC rule 

changes, these proven minable oil sands 

reserves have been converted to synthetic 

crude oil proved reserves and from 2009 

onwards these are included in the proved 

oil and gas reserves. 

PROVED CRUDE OIL AND NATURAL GAS LIQUIDS, SYNTHETIC CRUDE OIL AND BITUMEN RESERVES CHANGES 

FOR SHELL SUBSIDIARIES AND EQUITY-ACCOUNTED INVESTMENTS [A][C] (AT DECEMBER 31) MILLION BARRELS 

2011 2010 2009 2008 2007 

Revisions and reclassifi cations 190 856 1,205 [B] 242 164 

Improved recovery 34 66 42 54 59 

Extensions and discoveries 326 161 617 51 225 

Purchases of minerals in place – 59 – 4 – 

Sales of minerals in place (37) (57) (1) (65) (206) 

Total additions including year-average/end price effects 513 1,085 1,863 286 242 

Production (611) (626) (616) (619) (663) 

PROVED NATURAL GAS RESERVES CHANGES FOR SHELL SUBSIDIARIES AND EQUITY-ACCOUNTED 

INVESTMENTS [A][C][D] (AT DECEMBER 31) THOUSAND MILLION SCF 

2011 2010 2009 2008 2007 

Revisions and reclassifi cations 899 829 4,688 4,184 1,388 

Improved recovery 3 42 1 – 1 

Extensions and discoveries 3,504 1,288 4,326 968 3,636 

Purchases of minerals in place – 237 16 448 1 

Sales of minerals in place (394) (743) – (19) (5,275) 

Total additions including year-average/end price effects 4,012 1,653 9,031 5,581 (249) 

Production (3,485) (3,573) (3,315) (3,137) (2,998) 

PROVEN MINABLE OIL SANDS RESERVES CHANGES (AT DECEMBER 31) MILLION BARRELS 

2008 2007 

Revisions and reclassifi cations (85) 6 

Extensions and discoveries – – 

Total additions including year-end price effects (85) 6 

Production (29) (29) 

TOTAL PROVED OIL AND GAS RESERVES CHANGES [A][C][E][F] (AT DECEMBER 31) MILLION BOE 

2011 2010 2009 2008 2007 

Revisions and reclassifi cations 345 999 2,01 3 [B] 878 409 

Improved recovery 35 73 42 54 59 

Extensions and discoveries 930 383 1,36 3 219 853 

Purchases of minerals in place – 100 3 81 – 

Sales of minerals in place (105) (185) (1) (68) (1,115) 

Total additions including year-average/end price effects 1,205 1,370 3,420 1,164 206 

Year-average/end price effects (235) (198) 260 19 (183) 

Total additions excluding year-average/end price effects 

Total additions excluding acquisitions and divestments and excluding 

1,440 1,568 3,160 1,145 389 

year-average/end price effects 1,545 1,753 3,161 1,213 1,504 

Production (1,212) (1,242) (1,187) (1,189) (1,210) 

[A] 2009–2011 includes proved reserves associated with volumes consumed in operations. These volumes were not included in previous years. 

[B] Excludes the 997 million barrels of previously booked proven minable oil sands reserves. 

[C] Year-end price effect for 2007 and 2008; year-average price effect for 2009–2011. 

[D] These quantities have not been adjusted to standard heat content. 

[E] Natural gas volumes are converted to oil equivalent using a factor of 5,800 scf per barrel. Rounding difference may occur in estimate of gas reserves conversion from 

scf to boe. 

[F] Proven minable oil sands included for 200 7–2008. 


Upstream data 

71


Upstream data 

Changes by region 2011 

The tables present changes in the reserves 

of (i) Shell subsidiaries without deduction of 

the reserves attributable to non-controlling 

interest holders in our subsidiaries and 

(ii) the Shell share of equity-accounted 

investments. As a result of SEC rule 

changes, proven minable oil sands reserves 

have been converted to synthetic crude oil 

proved reserves and from 2009 onwards 

these are included in the proved oil and gas 

reserves. Moreover, from 2009 onwards 

bitumen proved reserves are reported 

separately. 

PROVED CRUDE OIL AND NATURAL GAS LIQUIDS, SYNTHETIC CRUDE OIL AND BITUMEN RESERVES CHANGES FOR 

SHELL SUBSIDIARIES AND EQUITY-ACCOUNTED INVESTMENTS [A] (AT DECEMBER 31) MILLION BARRELS 


Europe Asia Oceania Africa USA Canada America Total 

Oil and Oil and Oil and Oil and Oil and Oil and Synthetic 

Oil and 

NGL NGL NGL NGL NGL NGL crude oil Bitumen NGL All products 

Revisions and reclassifi cations 143 (210) 23 128 43 3 42 9 9 190 

Improved recovery – 2 – – 31 – – – 1 34 

Extensions and discoveries 81 20 96 1 5 4 116 – 3 326 

Purchases of minerals in place – – – – – – – – – – 

Sales of minerals in place 

Total additions 

– – (1) (29) (7) – – – – (37) 

including year- average price effects 224 (188) 118 100 72 7 158 9 13 513 

Production (87) (233) (18) (119) (77) (7) (45) (5) (20) (611) 

NATURAL GAS RESERVES CHANGES FOR SHELL SUBSIDIARIES AND EQUITY-ACCOUNTED INVESTMENTS [A][B] THOUSAND MILLION SCF 



Revisions and reclassifi cations 1,062 (550) (230) 90 399 155 (27) 899 

Improved recovery – – – – 3 – – 3 

Extensions and discoveries 31 407 1,485 71 694 816 – 3,504 

Purchases of minerals in place – – – – – – – – 

Sales of minerals in place 


(4) (120) (30) (21) (214) (5) – (394) 

including year- average price effects 1,089 (263) 1,225 140 882 966 (27) 4,012 

Production (1,254) (1,002) (280) (329) (368) (229) (23) (3,485) 

TOTAL PROVED RESERVES CHANGES FOR SHELL SUBSIDIARIES AND EQUITY-ACCOUNTED INVESTMENTS [ A][ C] MILLION BOE 



Oil, NGL 

and gas 

Oil, NGL 

and gas 

Oil, NGL 

and gas 

Oil, NGL 

and gas 

Oil, NGL 

and gas 

Oil, NGL 

and gas 

Synthetic 

crude oil Bitumen 

Oil, NGL 

and gas All products 

Revisions and reclassifi cations 326 (304) (17) 144 112 29 42 9 4 345 

Improved recovery – 2 – – 32 – – – 1 35 

Extensions and discoveries 86 90 352 13 125 145 116 – 3 930 

Purchases of minerals in place – – – – – – – – – – 

Sales of minerals in place (1) (21) (6) (32) (44) (1) – – – (105) 


including year- average price effects 411 (233) 329 125 225 173 158 9 8 1,205 

Year- average price effect (235) 

Production (303) (406) (66) (176) (141) (46) (45) (5) (24) (1,212) 

Reserves replacement ratio excluding acquisitions and divestments and year-average price effects 127% 

Total additions excluding acquisitions and divestments and including year-average price effects 108% 

Reserves replacement ratio including acquisitions and divestments and year-average price effects 99% 

[A] Includes proved reserves associated with volumes consumed in operations. These volumes were not included in previous years. 

[B] These quantities have not been adjusted to standard heat content. 

[C] Natural gas volumes are converted to oil equivalent using a factor of 5,800 scf per barrel. Rounding difference may occur in estimate of gas reserves conversion from 

scf to boe.

OIL, GAS, SYNTHETIC CRUDE OIL AND BITUMEN PRODUCTION 

CRUDE OIL AND NATURAL GAS LIQUIDS PRODUCTION AVAILABLE FOR SALE [A][B] THOUSAND B/D 

Europe 

2011 2010 2009 2008 2007 


Denmark 88 – 98 – 107 – 114 – 126 – 

Italy 35 – 33 – 30 – 32 – 35 – 

Norway 37 – 48 – 62 – 67 – 69 – 

UK 71 – 98 – 110 – 154 – 183 – 

Other 3 5 3 5 3 5 3 5 4 6 

Total Europe 234 5 280 5 312 5 370 5 417 6 

Asia 

Brunei 2 76 3 77 2 76 1 80 2 90 

Malaysia 40 – 40 – 39 – 38 – 42 – 

Oman 200 – 199 – 195 – 192 – 191 – 

Russia – 117 – 117 – 106 – 70 – 51 

United Arab Emirates – 144 – 135 – 127 – 146 – 146 

Other 40 20 29 1 42 1 51 1 56 1 

Total Asia 282 357 271 330 278 310 282 297 291 288 

Oceania 

Australia 20 18 18 29 18 35 17 39 25 33 

Other 10 – 12 – 12 – 12 – 13 – 

Total Oceania 30 18 30 29 30 35 29 39 38 33 

Africa 

Gabon 44 – 34 – 29 – 30 – 31 – 

Nigeria 262 – 302 – 231 – 266 – 287 – 

Other 20 – 20 – 24 – 22 – 24 – 

Total Africa 326 – 356 – 284 – 318 – 342 – 

North America 

USA 141 70 163 74 195 78 190 82 238 86 

Other 18 – 20 – 20 – 46[C] – 47 [C] – 

Total North America 159 70 183 74 215 78 236 82 285 86 

South America 

Brazil 45 – 53 – 24 – 23 – 22 – 

Other 1 9 1 7 1 9 1 11 1 9 

Total South America 46 9 54 7 25 9 24 11 23 9 

Total oil production 1,077 459 1,174 445 1,144 437 1,259 434 1,396 422 

[A] Includes natural gas liquids. Royalty purchases are excluded. Refl ects 100% of production attributable to subsidiaries except in respect of PSCs, where the fi gures 

shown represent the entitlement of the subsidiaries concerned under those contracts. 

[B] Other comprises countries where 2011 production was lower than 20 thousand b/d or where specifi c disclosures are prohibited. 

[C] Includes bitumen production. 


Upstream data 

73


Upstream data 

NATURAL GAS PRODUCTION AVAILABLE FOR SALE [A][B] MILLION SCF/D 

Europe 

2011 2010 2009 2008 2007 


Denmark 256 – 328 – 335 – 406 – 369 – 

Germany 253 – 267 – 311 – 333 – 390 – 

The Netherlands – 1,767 – 1,997 – 1,639 – 1,741 – 1,518 

Norway 618 – 643 – 593 – 492 – 357 – 

UK 403 – 541 – 561 – 678 – 663 19 

Other 41 – 38 – 31 – 29 – 34 – 

Total Europe 1,571 1,767 1,817 1,997 1,831 1,639 1,938 1,741 1,813 1,537 

Asia 

Brunei 52 524 55 497 44 473 51 499 47 506 

China 174 – 253 – 257 – 231 – 106 – 

Malaysia 763 – 807 – 886 – 874 – 865 – 

Russia – 382 – 359 – 192 – – – – 

Other 363 246 209 – 217 – 205 – 192 – 

Total Asia 1,352 1,152 1,324 856 1,404 665 1,361 499 1,210 506 

Oceania 

Australia 373 167 404 204 383 216 345 215 339 203 

Other 175 – 202 – 218 – 216 – 230 – 

Total Oceania 548 167 606 204 601 216 561 215 569 203 

Africa 

Nigeria 707 – 587 – 292 – 552 – 584 – 

Other 133 – 137 – 163 – 145 – 167 – 

Total Africa 840 – 724 – 455 – 697 – 751 – 

North America 

USA 961 6 1,149 4 1,055 6 1,048 5 1,124 6 

Canada 570 – 563 – 530 – 406 – 402 – 

Total North America 1,531 6 1,712 4 1,585 6 1,454 5 1,526 6 

Total South America 51 1 61 – 81 – 98 – 93 – 

Total gas production 5,893 3,093 6,244 3,061 5,957 2,526 6,109 2,460 5,962 2,252 

[A] Refl ects 100% of production attributable to subsidiaries except in respect of PSCs, where the fi gures shown represent the entitlement of the subsidiaries concerned 

under those contracts. 

[B] Other comprises countries where 2011 production was lower than 150 million scf/d or where specifi c disclosures are prohibited.

TOTAL PRODUCTION AVAILABLE FOR SALE [A][B][C] THOUSAND BOE/D 

Europe 

2011 2010 2009 2008 2007 


Denmark 132 – 155 – 164 – 184 – 190 – 

Germany 47 – 49 – 57 – 60 – 71 – 

Italy 42 – 40 – 35 – 37 – 41 – 

The Netherlands – 310 – 349 – 287 – 305 – 268 

Norway 144 – 159 164 – 152 – 131 – 

UK 140 – 191 – 207 – 271 – 297 – 

Other – – – – – – – – – 3 

Total Europe 505 310 594 349 627 287 704 305 730 271 

Asia 

Brunei 11 166 12 163 10 157 10 166 10 177 

China 30 – 48 – 56 – 54 – 35 – 

Malaysia 172 – 179 – 192 – 189 – 191 – 

Russia – 183 – 179 – 139 – 70 – 51 

United Arab Emirates – 144 – 135 – 127 – 146 – 146 

Other 302 62 260 1 263 1 264 1 263 1 

Total Asia 515 555 499 478 521 424 517 383 499 375 

Oceania 

Australia 84 47 88 65 85 72 77 76 83 68 

New Zealand 40 – 47 – 49 – 49 – 53 – 

Total Oceania 124 47 135 65 134 72 126 76 136 68 

Africa 

Gabon 44 – 34 – 29 – 30 – 31 – 

Nigeria 384 – 403 – 281 – 361 – 388 – 

Other 43 – 44 – 53 – 47 – 53 – 

Total Africa 471 – 481 – 363 – 438 – 472 – 

North America 

USA 307 71 361 74 377 79 370 83 432 87 

Canada 116 – 117 – 111 – 116 [D] – 116[D] – 

Total North America 423 71 478 74 488 79 486 83 548 87 

South America 

Brazil 46 – 54 – 27 – 29 – 28 – 

Others 9 9 10 7 12 9 12 11 11 9 

Total South America 55 9 64 7 39 9 41 11 39 9 

Total oil and gas production 2,093 992 2,251 973 2,172 871 2,312 858 2,424 810 

Synthetic oil production 115 – 72 – 80 – – – – – 

Bitumen production 15 – 18 – 19 – – – – – 

Mined oil sands production – – – – – – 78 – 81 – 

Grand total 2,223 992 2,341 973 2,271 871 2,390 858 2,505 810 

[A] Natural gas volumes are converted to oil equivalent using a factor of 5,800 scf per barrel. 

[B] Includes natural gas liquids. Royalty purchases are excluded. Refl ects 100% of production attributable to subsidiaries except in respect of PSCs, where the fi gures 

shown represent the entitlement of the subsidiaries concerned under those contracts. 

[C] Other comprises countries where 2011 production was lower than 25 thousand b/d or where specifi c disclosures are prohibited. 

[D] Includes bitumen production. 


Upstream data 

75


Upstream data 

ACREAGE AND WELLS 

OIL AND GAS ACREAGE [A][B] (AT DECEMBER 31) THOUSAND ACRES 

2011 2010 

Developed Undeveloped Developed Undeveloped 

Gross Net Gross Net Gross Net Gross Net 

Europe 9,016 2,586 6,688 2,376 8,983 2,550 8,165 3,265 

Asia [C] 27,268 9,810 48,554 25,779 27,496 9,970 41,781 22,800 

Oceania 1,798 500 67,907 26,326 2,274 553 81,748 24,413 

Africa 6,060 2,465 20,706 15,364 6,701 2,424 23,327 17,079 

North America – USA 1,592 984 7,815 6,140 1,568 952 7,003 5,834 

North America – Other [D] 1,101 757 31,573 23,849 1,002 664 31,501 21,489 

South America 162 76 20,655 8,905 162 76 15,878 6,588 

Total 46,997 17,178 203,898 108,739 48,186 17,189 209,403 101,468 

NUMBER OF PRODUCTIVE WELLS [A][B] (AT DECEMBER 31) 

2011 2010 

Oil Gas Oil Gas 

Gross Net Gross Net Gross Net Gross Net 

Europe 1,454 427 1,317 430 1 ,464 412 1 ,341 443 

Asia [E] 7,361 2,352 289 162 7 ,236 2 ,382 298 164 

Oceania 48 5 557 212 39 4 608 211 

Africa 883 357 98 65 1 ,180 447 89 59 

North America – USA 14,993 7,607 3,449 2,222 15 ,322 7 ,771 3 ,884 2 ,457 

North America – Canada 476 406 1,115 906 433 370 1,007 764 

South America 67 33 7 2 73 34 6 1 

Total 25,282 11,187 6,832 3,999 25 ,747 11 ,420 7 ,233 4 ,099 

NUMBER OF NET PRODUCTIVE WELLS AND DRY HOLES DRILLED [A] (AT DECEMBER 31) 

Exploratory 

2011 2010 

Productive Dry Productive Dry 

Europe 1 1 4 4 

Asia 23 97 27 31 

Oceania 32 2 33 2 

Africa 6 5 15 5 

North America – USA 20 2 80 5 

North America – Canada 70 4 64 8 

South America 3 1 4 1 

Total 155 112 227 56 

Development 

Europe 12 1 20 1 

Asia 196 8 269 4 

Oceania – – 3 – 

Africa 23 2 11 – 

North America – USA 347 2 388 – 

North America – Canada 102 1 34 – 

South America 1 – 1 – 

Total 681 14 726 5 

[A] Including equity-accounted investments. 

[B] The term “gross” relates to the total activity in which Shell subsidiaries and equity-accounted investments have an interest. The term “net” refers to the sum of 

the fractional interests owned by Shell subsidiaries plus the Shell share of equity-accounted investments’ fractional interest. 

[C] In compliance with international sanctions, Shell has suspended activities in Syria. Gross and net developed acreage decreased by 477,000 and 309,000 acres 

respectively, with a corresponding increase in undeveloped acreage. 

[D] Comprises Canada and Greenland. Greenland acreage at December 31, 2010, has been reclassifi ed from Europe to North America – Other. 

[E] In compliance with international sanctions, Shell has suspended activities in Syria. Gross and net productive oil wells decreased by 241 and 155 respectively.

OIL AND GAS ACREAGE [A][B] (AT DECEMBER 31) THOUSAND ACRES 

2009 2008 2007 

Developed Undeveloped Developed Undeveloped Developed Undeveloped 

Gross Net Gross Net Gross Net Gross Net Gross Net Gross Net 

Europe 9,045 2,592 9,770 3,653 9,646 2,785 8,924 3,038 10,253 2,894 10,384 3,007 

Asia 30,969 11,108 78,382 40,547 31,252 11,260 74,749 36,811 32,677 11,971 76,890 32,269 

Oceania 2,276 568 82,945 24,326 2,146 552 79,548 23,052 2,013 516 82,560 20,791 

Africa 7,393 2,615 27,096 18,656 7,314 2,582 26,959 20,289 7,568 2,709 38,203 24,079 

North America – USA 1,030 597 6,250 5,027 1,009 593 6,238 4,973 1,067 620 4,825 3,542 

North America – Other 966 628 26,712 19,448 1,025 707 27,792 19,546 803 544 27,409 19,200 

South America 126 59 18,081 7,178 115 53 4,387 1,877 114 54 4,387 1,877 

Total 51,805 18,167 249,236 118,835 52,507 18,532 228,597 109,586 54,495 19,308 244,658 104,765 

NUMBER OF PRODUCTIVE WELLS [A][B] (AT DECEMBER 31) 

2009 2008 2007 

Oil Gas Oil Gas Oil Gas 

Gross Net Gross Net Gross Net Gross Net Gross Net Gross Net 

Europe 1,544 423 1,343 446 1,569 422 1,323 440 1,638 427 1,334 452 

Asia 6,751 2,250 207 99 6,043 2,038 200 95 5,652 1,906 178 85 

Oceania 39 6 566 122 42 9 319 60 31 7 116 34 

Africa 1,150 415 80 53 1,163 420 79 49 1,028 374 71 47 

North America – USA 15,425 7,835 1,640 1,170 15,505 7,828 1,412 1,037 15,493 7,825 1,040 765 

North America – Canada 446 382 947 713 429 365 888 665 360 303 339 262 

South America 72 32 12 5 68 29 12 5 67 29 12 6 

Total 25,427 11,343 4,795 2,608 24,819 11,111 4,233 2,351 24,269 10,871 3,090 1,651 

NUMBER OF NET PRODUCTIVE WELLS AND DRY HOLES DRILLED [A] (AT DECEMBER 31) 

Exploratory 

2009 2008 2007 

Productive Dry Productive Dry Productive Dry 

Europe 6 3 9 3 10 1 

Asia 38 10 27 4 41 7 

Oceania 24 3 6 2 3 8 

Africa 8 4 13 4 11 6 

North America – USA 49 2 13 4 23 3 

North America – Canada 32 19 41 46 50 10 

South America 1 – 3 1 1 1 

Total 158 41 112 64 139 36 

Development 

Europe 15 – 7 1 18 1 

Asia 260 3 210 1 185 2 

Oceania 27 – 3 – 3 – 

Africa 12 1 17 1 22 – 

North America – USA 424 1 475 1 475 2 

North America – Canada 45 – 59 – 42 – 

South America 5 – 2 – 2 – 

Total 788 5 773 4 747 5 

[A] Including equity-accounted investments. 

[B] The term “gross” relates to the total activity in which Shell subsidiaries and equity-accounted investments have an interest, and the term “net” relates to the sum of 

the fractional interests owned by Shell subsidiaries plus the Shell share of equity-accounted investments’ fractional interest. 


Upstream data 

77


Upstream data 

LNG AND GTL 

LNG REGASIFICATION TERMINALS (AT DECEMBER 31, 2011) 

Project name Location Shell capacity rights (mtpa) Capacity right period Status Shell interest (%) Start-up date 

Altamira Tamaulipas, Mexico 3.3 from 2006 In operation Leased 2006 

Barcelona Barcelona, Spain 0.9 2010–2034[A] In operation Leased 1969 

Costa Azul Baja California, Mexico 2.7 2008–2028 In operation Leased 2008 

Cove Point Lusby, MD, USA 1.8 2003–2023 In operation Leased 2003 

Elba Expansion Elba Island, GA, USA 4.2 2010–2035 In operation Leased 2010 

Elba Island Elba Island, GA, USA 2.8 2006–2036 In operation Leased 2006 

Hazira Gujarat, India 2.2 from 2005 In operation 74 2005 

Hazira Expansion (under construction) Gujarat, India 1.5 from 2013 In operation 74 2013 

[A] Capacity rights have a cancellation notice period of three months. 

LNG LIQUEFACTION PLANTS IN OPERATION 

(AT DECEMBER 31, 2011) 

Shell interest, direct 100% capacity 

Location and indirect (%) [A] (mtpa)[B] 

Australia North West Shelf Karratha 21 16.3 

Brunei LNG Lumut 25 7.8 

Malaysia LNG (Dua and Tiga) Bintulu 15 17.3[C] 

Nigeria LNG Bonny 26 21.6 

Oman LNG Sur 30 7.1 

Qalhat (Oman) LNG Sur 11 3.7 

Qatargas 4 Ras Laffan 30 7.8 

Sakhalin LNG Prigorodnoye 27.5 9.6 

[A] Interest may be held via indirect shareholding. 

[B] As reported by the operator. 

[C] Our interests in Dua and Tiga plants are due to expire in 2015 and 2023 

respectively. 

SHELL SHARE OF LNG SALES VOLUMES MILLION TONNES 

2011 2010 2009 2008 2007 

Australia 3.1 3.4 3.2 2.6 2.6 

Brunei 1.7 1.7 1.6 1.8 1.9 

Malaysia 2.4 2.4 2.2 2.3 2.3 

Nigeria 5.0 4.5 2.9 4.2 4.2 

Oman 2.0 2.0 2.1 2.2 2.2 

Qatar 1.7 – – – – 

Sakhalin 2.9 2.8 1.4 – – 

Total 18.8 16.8 13.4 13.1 13.2 

LNG LIQUEFACTION PLANTS UNDER CONSTRUCTION 

(AT DECEMBER 31, 2011) 

Shell interest, direct 100% capacity 

Location 

and indirect (%) 

(mtpa)[A] 

Australia Pluto 1 Karratha 21.2[B] 4.3 

Gorgon Barrow Island 25.0 15.0 

Prelude Offshore Australia 100.0 3.6 

Wheatstone Onslow 6.4 8.9 

[A] As reported by the operator. 

[B] Based on 90% Woodside shareholding in the Pluto 1 plant. 

GTL PLANTS (AT DECEMBER 31, 2011) 

Shell interest 100% capacity 

Country 

(%) 

(b/d) 

Bintulu Malaysia 72 14,700 

Pearl Qatar 100 140,000

DOWNSTREAM DATA 

OIL PRODUCTS AND REFINING LOCATIONS 

The tables below reflect Shell subsidiaries, the 50% Shell interest 

in Motiva in the USA and instances where Shell owns the crude 

OIL PRODUCTS REFINERY AVAILABILITY % 

2011 2010 2009 2008 2007 

Average worldwide 92 92 93 91 91 

COST OF CRUDE OIL PROCESSED OR CONSUMED [A] $/B 

2011 2010 2009 2008 2007 

Total 104.71 77.22 58.96 94.05 71.83 

CRUDE DISTILLATION CAPACITY [B] THOUSAND B/CALENDAR DAY [C][ D] 

2011 2010 2009 2008 2007 

Europe 1,243 1,501 1,519 1,601 1,815 

Asia-Pacifi c 861 855 853 861 871 

Americas 1,064 1,155 1,185 1,154 1,185 

Other 82 82 82 82 82 

Total 3,251 3,594 3,639 3,698 3,953 

OIL PRODUCTS – CRUDE OIL PROCESSED [E] THOUSAND B/D [C] 

2011 2010 2009 2008 2007 

Europe 1,058 1,306 1,323 1,428 1,721 

Asia-Pacifi c 731 729 593 790 847 

Americas 985 1,007 1,013 1,073 1,107 

Other 200 222 214 203 214 

Total 2,974 3,264 3,143 3,494 3,889 

REFINERY PROCESSING INTAKE [F] THOUSAND B/D [C] 

2011 2010 2009 2008 2007 

Crude oil 2,652 2,939 2,819 3,122 3,497 

Feedstocks 193 258 248 266 282 

2,845 3,197 3,067 3,388 3,779 

Europe 1,041 1,314 1,330 1,481 1,731 

Asia-Pacifi c 666 650 532 656 748 

Americas 1,075 1,158 1,141 1,178 1,237 

Other 63 75 64 73 63 

Total 2,845 3,197 3,067 3,388 3,779 

REFINERY PROCESSING OUTTURN [ G] THOUSAND B/D [C] 

2011 2010 2009 2008 2007 

Gasolines 993 1,224 1,179 1,229 1,363 

Kerosines 339 354 341 375 366 

Gas/ diesel oils 977 1,074 1,025 1,145 1,190 

Fuel oil 252 315 279 315 348 

Other products 385 442 432 471 593 

Total 2,946 3,409 3,256 3,535 3,860 

[A] Includes Upstream margin on crude oil supplied by Shell and equity-accounted investment exploration and production companies. 

[B] Shell average operating capacity for the year, excluding mothballed capacity. 

[C] One barrel per day is equivalent to approximately 50 tonnes a year, depending on the specifi c gravity of the crude oil. 

[ D] Calendar day capacity is the maximum sustainable capacity minus capacity loss due to normal unit down time. 

[E] Including natural gas liquids; includes processing for others and excludes processing by others. 

[F] Includes crude oil, natural gas liquids and feedstocks processed in crude oil distillation units and in secondary conversion units. 

[G] Excludes “own use” and products acquired for blending purposes. 


Downstream data 

or feedstock processed by a refinery. Other equity-accounted 

investments are only included where explicitly stated. 

79



SHELL INTEREST BY REFINING LOCATION AND CAPACITY DATA [A] (AT DECEMBER 31, 2011) 

Europe 

Location Asset class 


Crude distillation 

interest % [C] capacity 

Thousand b/calendar day, 100% capacity[B] 

Thermal cracking/ 

visbreaking/coking 

Catalytic 

cracking 

Hydro- 

cracking 

Czech Republic Kralupy [D] 16 59 – 24 – 

Litvinov [D] 16 101 14 – 30 

Denmark Fredericia � 100 63 40 – – 

Germany Harburg � 100 108 14 15 – 

Miro [D] 32 310 65 89 – 

Rheinland �� 100 327 57 – 79 

Schwedt [D] 38 220 47 50 – 

The Netherlands Pernis �� 90 404 45 48 81 

Norway Mongstad [D] � 21 205 23 56 – 

Asia-Pacifi c 

Australia Clyde 100 79 – 35 – 

Geelong � 100 118 – 38 – 

Japan Mizue (Toa) [D] �� 18 60 23 38 – 

Yamaguchi [D] � 13 110 – 25 – 

Yokkaichi [D] �� 26 193 – 55 – 

Malaysia Port Dickson � 51 107 – 39 – 

Pakistan Karachi [D] 30 43 – – – 

Philippines Tabangao � 67 96 31 – – 

Singapore Pulau Bukom �� 100 462 63 34 55 

Turkey Batman [D] 1 20 – – – 

Americas 

Izmir [D] 1 218 18 14 17 

Izmit [D] 1 217 – 13 24 

Kirikale [D] 1 107 – – 15 

Argentina Buenos Aires �� 100 100 18 20 – 

Canada 

USA 

Other 

Alberta Scotford � 100 92 – – 62 

Ontario Sarnia � 100 71 5 19 9 

California Martinez � 100 145 42 65 37 

Louisiana Convent [D] � 50 227 – 82 45 

Norco [D] � 50 230 25 107 34 

Texas Deer Park �� 50 312 79 63 53 

Port Arthur [D] � 50 275 52 81 – 

Washington Puget Sound �� 100 135 23 52 – 

Saudi Arabia Al Jubail [D] �� 50 292 85 – 45 

South Africa Durban [D] � 38 165 23 34 – 

[A] Excludes mothballed capacity. 

[B] Calendar day capacity is the maximum sustainable capacity minus capacity loss due to normal unit downtime. 

[C] Shell interest rounded to nearest whole percentage point; Shell share of production capacity may differ. 

[D] Indicates refi ning location is not operated by Shell. 

� Integrated refi nery and chemical complex. 

� Refi nery complex with cogeneration capacity. 

��Refi nery complex with chemical unit(s).

OIL SALES AND RETAIL SITES 

OIL PRODUCT SALES VOLUMES [A] THOUSAND B/D 

Europe 

2011 2010 2009 2008 2007 

Gasolines 467 505 520 531 603 

Kerosines 261 299 267 294 269 

Gas/diesel oils 876 953 1,003 1,148 1,176 

Fuel oil 227 205 210 343 316 

Other products 192 227 242 249 259 

Total 2,023 2,189 2,242 2,565 2,623 

Asia-Pacifi c 

Gasolines 315 308 303 298 305 

Kerosines 164 172 159 166 168 

Gas/Diesel oils 423 370 337 330 338 

Fuel oil 273 301 187 196 181 


Total 1,395 1,375 1,200 1,181 1,168 

Americas 

Gasolines 1,136 1,128 1,107 1,091 1,136 

Kerosines 265 270 246 256 241 


Fuel oil 91 90 130 117 118 


Total 2,189 2,260 2,156 2,248 2,246 

Other 

Gasolines 156 174 141 131 134 

Kerosines 93 86 69 76 78 


Fuel oil 60 75 77 86 89 


Total 589 636 558 574 588 

Total product sales [B][C] 

Gasolines 2,074 2,115 2,071 2,051 2,178 

Kerosines 783 827 741 792 756 

Gas/diesel oils 1,996 2,099 2,031 2,254 2,295 

Fuel oil 651 671 604 742 704 

Other products 692 748 709 729 692 

Total 6,196 6,460 6,156 6,568 6,625 

[A] Excludes deliveries to other companies under reciprocal sale and purchase 

arrangements, which are in the nature of exchanges. Sales of condensate and 

natural gas liquids are included. 

[B] Certain contracts are held for trading purposes and reported net rather than 

gross. The effect in 2011 was a reduction in oil product sales of approximately 

925 thousand b/d (2010: 934 thousand b/d; 2009: 739 thousand b/d; 

2008: 698 thousand b/d; 2007: 805 thousand b/d). 

[C] Export sales as a percentage of total oil sales amounted to 26.0% in 2011 

(2010: 24.1%; 2009: 20.0%; 2008: 20.7%; 2007: 19.6%). 



SALES BY PRODUCT AS PERCENTAGE 

OF TOTAL PRODUCT SALES % 

2011 2010 2009 2008 2007 

Gasolines 33.5 32.7 33. 7 31.2 32.9 

Kerosines 12.6 12.8 12.0 12.1 11.4 

Gas/ diesel oils 32.2 32.5 33.0 34.3 34.7 

Fuel oil 10.5 10.4 9.8 11.3 10.6 

Other products 11.2 11.6 11.5 11.1 10.4 

Total 100.0 100.0 100.0 100.0 100.0 

BRANDED RETAIL SITES YEAR-END NUMBER 

2011 2010 2009 2008 2007 

Europe 10,417 10,863 11,406 11,605 11,575 

Asia-Pacifi c 9,489 9,784 9,624 10,115 10,040 

Americas 21,005 20,141 20,691 20,500 21,115 

Other 2,001 2,028 2,191 2,385 2,430 

Total 42,912 42,816 43,912 44,605 45,160 

81



CHEMICALS AND MANUFACTURING LOCATIONS 

CHEMICALS MANUFACTURING PLANT AVAILABILITY [A] % 

2011 2010 2009 2008 2007 

Average worldwide 89 94 92 94 93 

[A] The calculation of chemical plant availability for 2011 is based on a methodology to bring better alignment for our Downstream assets. On this basis, 2010 and 

2009 fi gures would be 92% and 91% respectively. 

CHEMICALS SALES VOLUMES [A] THOUSAND TONNES 

Europe 

2011 2010 2009 2008 2007 

Base chemicals 4,006 4,507 4,610 5,531 5,892 

First-line derivatives and others 2,689 2,795 2,776 2,941 3,016 

Total 6,695 7,302 7,386 8,472 8,908 

Asia-Pacifi c 

Base chemicals 2,027 2,209 1,837 1,726 2,063 

First-line derivatives and others 3,111 3,415 2,518 2,585 2,752 

Total 5,138 5,624 4,355 4,311 4,815 

Americas 



Total 6,598 7,083 6,094 6,930 8,181 

Other 

Base chemicals 229 461 323 160 53 

First-line derivatives and others 171 183 153 454 598 

Total 400 644 476 614 651 

Total product sales 



Total 18,831 20,653 18,311 20,327 22,555 

[A] Excludes volumes sold by equity-accounted investments, chemical feedstock trading and by-products. 

ETHYLENE CAPACITY [A][B] 

2011 2010 2009 2008 2007 

Europe 1,659 1,878 1,880 1,880 1,935 

Asia-Pacifi c 1,556 1,565 681 950 950 

Americas 2,212 2,212 2,255 2,631 2,965 

Other 366 366 366 366 366 

Total 5,793 6,021 5,182 5,827 6,216 

[A] Excludes volumes sold by equity-accounted investments, chemical feedstock trading and by-products. 

[B] Includes the Shell share of equity-accounted investments’ capacity entitlement (offtake rights), which may be different from nominal equity interest. Nominal capacity is 

quoted as at December 31. 

CHEMICAL PRODUCTS AND THEIR MAJOR APPLICATIONS 

Product group Some typical end uses 

Base chemicals: 

ethylene, propylene and aromatics 

Feedstock for petrochemical derivatives typically used for: 

polyethylene fi lm for packaging, carrier bags, polypropylene for moulded plastic buckets, food 

containers, polyvinyl chloride (PVC) for drainpipes 

Ethylene oxide/glycols (EO/G) Brake fl uids, polyethylene terephthalate (PET) plastics, polyester, packaging, antifreeze 

Higher olefi ns and derivatives (HODer) Sunscreen, shower gel, automobile interiors, wire insulation, detergents 

Styrene monomer Polystyrene, fridge insulation, tyres, food containers, crash helmets, fi lm scenery 

Propylene oxide and derivatives Insulation, foam for bedding and car interiors, engineering plastics, aeroplane de-icers, cosmetics 

Solvents Pharmaceuticals, paints, mining and metalworking fl uids, adhesives, inks, hand sanitisers 

Phenol Plywood, kitchen worktops, fi breglass boats, car parts, CDs, circuit boards

SHELL SHARE PRODUCTION CAPACITY BY CHEMICAL MANUFACTURING PLANT LOCATION [A] 

(AT DECEMBER 31, 2011) THOUSAND TONNES/YEAR 

Europe 

Location Ethylene Styrene monomer Ethylene glycol Higher olefi ns[B] Additional products[C] 

Germany Rheinland 270 – – – A 

The Netherlands Moerdijk 974 789 155 – A, I 

UK Mossmorran [D] 415 – – – – 

Asia-Pacifi c 

Stanlow [D] – – – 330 I 

China Nanhai [D] 475 320 175 – A, I, P 

Japan Yamaguchi [D] – – – 11 A 

Singapore Jurong Island [E] 281 720 880 – A, I, P, O 

Americas 

Pulau Bukom 800 – – – A, I 

Canada Scotford – 450 450 – A, I 

USA Deer Park 836 – – – A, I 

Other 

Geismar – – 375 920 I 

Norco 1,376 – – – A 

Saudi Arabia Al Jubail [D] 366 400 – – A, O 

Total 5,793 2,679 2,035 1,261 

[A] Includes joint-venture plants, with the exception of the Infi neum additives joint ventures. 

[B] Higher olefi ns are linear alpha and internal olefi ns (products range from C6-C2024). 

[C] A: Aromatics/ lower olefi ns. 

I: Intermediates. 

P: Polyethylene, polypropylene. 

O: Other. 

[D] Plant not operated by Shell. 

[E] Combination of 100% Shell owned plants and joint ventures (Shell and non-Shell operated). 

OTHER CHEMICALS LOCATIONS 

Europe 

Location Products[A] 

Germany Harburg I 

Karlsruhe A 

Schwedt A 

The Netherlands Pernis A, I, O 

Asia-Pacifi c 

Australia Geelong A, I 

Japan Kawasaki A, I 

Yokkaichi A 

Malaysia Bintulu I 

Port Dickson A 

Philippines Tabangao I 

Americas 

Argentina Buenos Aires I 

Canada Sarnia A, I 

USA Martinez O 

Other 

Mobile A 

Puget Sound O 

South Africa Durban I 

[A] A: Aromatics/ lower olefi ns. 

I: Intermediates. 

O: Other. 



83


Additional investor information 

ADDITIONAL INVESTOR 

INFORMATION 

SHARE INFORMATION 

The following table shows the high, low and year-end prices of the 

Company’s registered ordinary shares : 

� of €0.07 nominal value on the London Stock Exchange; 

� of €0.07 nominal value on Euronext Amsterdam; and 

� in the form of ADSs on the New York Stock Exchange (ADSs do 

not have a nominal value). 

SHARE PRICES 

High 

€ 

Low 

€ 

Euronext Amsterdam 

Class A shares 

Year -end 

€ 

High 

$ 

New York Stock Exchange 

Low 

$ 

Class A ADSs 

Year -end 

2007 31.35 23.72 28.75 88.31 62.71 84.20 

2008 29.63 16.25 18.75 88.73 41.62 52.94 

2009 21.46 15.27 21.10 63.75 38.29 60.11 

2010 25.28 19.53 24.73 68.54 49.16 66.78 

2011 28.40 20.12 28.15 77.96 57.97 73.09 

High 

pence 

Low 

pence 

London Stock Exchange 

Class B shares 

Year -end 

pence 

High 

$ 

$ 

New York Stock Exchange 

Low 

$ 

Class B ADSs 

Year -end 

2007 2,173 1,600 2,090 87.94 62.20 83.00 

2008 2,245 1,223 1,726 87.54 41.41 51.43 

2009 1,897 1,315 1,812 62.26 37.16 58.13 

2010 2,149 1,550 2,115 68.32 47.12 66.67 

2011 2,476 1,768 2,454 78.75 58.42 76.01 

RDSA VERSUS EURONEXT 100 

Value of hypothetical €100 Holding 

€175 

€150 

€125 

€100 

€75 

HISTORICAL TSR PERFORMANCE OF ROYAL DUTCH SHELL PLC 

Growth in the value of a hypothetical €100 holding and £100 holding over five years. Euronext 100 and FTSE 100 comparison based on 30 trading day average values. 

€50 

Dec 06 

Dec 07 

Dec 08 

Dec 09 

Dec 10 

RDSA 

Euronext 100 

Dec 11 

RDSB VERSUS FTSE 100 

Value of hypothetical £100 Holding 

£175 

£150 

£125 

£100 

£75 

£50 

Dec 06 

Dec 07 

Dec 08 

Dec 09 

Dec 10 

RDSB 

FTSE 100 

Dec 11 

$

DIVIDENDS 

POLICY 

Shell’s policy is to grow the US dollar dividend through time in line 

with our view of Shell’s underlying earnings and cash flow. When 

setting the dividend, the Board of Directors looks at a range of 

factors, including the macro environment, the current balance sheet 

and future investment plans. In addition, we may choose to return 

cash to shareholders through share buybacks, subject to the capital 

requirements of Shell. In September 2010, we introduced a Scrip 

Dividend Programme which enables shareholders to increase their 

shareholding by choosing to receive new shares instead of cash 

dividends, if approved by the Board. 

SCRIP DIVIDEND PROGRAMME 

In September 2010, Royal Dutch Shell introduced a Scrip 

Dividend Programme which enables shareholders to increase their 

shareholding by choosing to receive new shares instead of cash 

dividends, if approved by the Board. Only new Class A shares 

are issued under the programme, even to shareholders who hold 

Class B shares. When the programme was introduced, the Dividend 

Reinvestment Plans provided by Equiniti and Royal Bank of Scotland 

N.V. were withdrawn; the dividend reinvestment feature of the plan 

provided by The Bank of New York Mellon was likewise withdrawn. 

Joining the Scrip Dividend Programme has the following 

implications for shareholders: 

� Shareholders will increase the number of shares in the Royal 

Dutch Shell without having to buy shares in the market, avoiding 

brokerage costs. 

� Shareholders residing in certain countries may gain a significant 

tax advantage. In particular, dividends paid out as shares 

by Royal Dutch Shell will not be subject to Dutch dividend 

withholding tax and will not generally be taxed upon receipt 

by a UK shareholder or a Dutch corporate shareholder. Note, 

however, that the tax consequences of electing to receive new 

Class A shares in place of a cash dividend depend on individual 

circumstances. 

� Full details regarding the Scrip Dividend Programme 

and its taxation consequences can be found at 

www.shell.com/scrip 

CLASS A AND B SHARES $ 

2011 2010 2009 2008 2007 

Q1 0.42 0.42 0.42 0.40 0.36 

Q2 0.42 0.42 0.42 0.40 0.36 

Q3 0.42 0.42 0.42 0.40 0.36 

Q4 0.42 0.42 0.42 0.40 0.36 

Total 1.68 1.68 1.68 1.60 1.44 

CLASS A SHARES € [A] 

2011 2010 2009 2008 2007 

Q1 0.29 0.32 0.32 0.26 0.26 

Q2 0.29 0.32 0.30 0.26 0.26 

Q3 0.32 0.31 0.28 0.31 0.25 

Q4 0.32 0.30 0.30 0.30 0.24 

Total announced in respect of the year 1.22 1.25 1.21 1.13 1.02 

Amount paid during the year 1.20 1.25 1.21 1.07 1.03 

[A] Euro equivalent, rounded to the nearest euro cent. 

CLASS B SHARES PENCE [A] 

2011 2010 2009 2008 2007 

Q1 25.71 27.37 28.65 20.05 18.09 

Q2 25.77 26.89 25.59 20.21 17.56 

Q3 27.11 26.72 25.65 24.54 17.59 

Q4 26.74 25.82 26.36 27.97 18.11 

Total announced in respect of the year 105.33 106.80 106.25 92.77 71.35 


[A] Pound sterling equivalent. 



CLASS A AND B AD Ss $ 

2011 2010 2009 2008 2007 

Q1 0.84 0.84 0.84 0.80 0.72 

Q2 0.84 0.84 0.84 0.80 0.72 

Q3 0.84 0.84 0.84 0.80 0.72 

Q4 0.84 0.84 0.84 0.80 0.72 

Total announced in respect of the year 3.36 3.36 3.36 3.20 2.88 


SCRIP ISSUANCE CLASS A SHARES NUMBER OF SHARES IN MILLION 

2011 2010 

Q1 31.1 – 

Q2 23.9 – 

Q3 22.3 – 

Q4 27.3 18.3 

Total issu ance 104.6 18.3 

85



BONDHOLDER INFORMATION 

Publicly traded bonds were issued by Shell 

International Finance BV and guaranteed 

by Royal Dutch Shell plc. Shell International 

Finance BV is a 100% subsidiary of Royal 

Dutch Shell plc. 

BOND MATURITY PROFILE 

$ million equivalent 

6,000 

5,000 

4,000 

3,000 

2,000 

1,000 

0 

12 

13 14 15 16 17 18 19 20 

USD 

EUR 

38 40 

PUBLICLY TRADED BONDS, CURRENT OUTSTANDING 

CREDIT RATINGS (AT 31 DECEMBER 2011) 

Short-term 

S&P Moody’s 

Settlement Maturity Currency Million Coupon Listing ISIN 

22 Mar 2007 22 Mar 2017 USD 750 5.20% New York US822582AC66 

22 May 2007 22 May 2017 EUR 1,500 4.63% London XSO301945860 

11 Dec 2008 15 Dec 2038 USD 2,750 6.38% New York US822582AD40 

09 Feb 2009 09 Feb 2016 EUR 1,250 4.50% London XS0412968876 

23 Mar 2009 21 Mar 2014 USD 2,500 4.00% New York US822582AF97 



22 Sep 2009 22 Sep 2015 USD 1,000 3.25% New York US822582AH53 

22 Sep 2009 22 Sep 2019 USD 2,000 4.30% New York US822582AJ10 

25 Mar 2010 25 Mar 2013 USD 2,000 1.88% New York US822582AL65 

25 Mar 2010 25 Mar 2020 USD 1,250 4.38% New York US822582AM49 

25 Mar 2010 25 Mar 2040 USD 1,000 5.50% New York US822582AN22 

24 Jun 2010 22 Jun 2012 USD 1,000 Floating New York US822582AP79 

28 Jun 2010 28 Jun 2015 USD 1,750 3.10% New York US822582AQ52 

rating 

Long-term 

rating Outlook 

Short-term 

rating 

Long-term 

rating Outlook 

Royal Dutch Shell plc A-1+ AA Stable P-1 Aa1 Stable 

Debt of Shell International Finance BV A-1+ AA Stable P-1 Aa1 Stable

FINANCIAL CALENDAR 

Financial year ends December 31, 2011 

Announcements 

Full year results for 2011 February 2, 2012 

First quarter results for 2012 April 26, 2012 

Second quarter results for 2012 July 26, 2012 

Third quarter results for 2012 November 1, 2012 

Dividend timetable [A] 

2011 Fourth quarter interim [B] 

Announced February 2, 2012 

Ex-dividend date February 15, 2012 

Record date February 17, 2012 

Scrip reference share price announcement date February 22, 2012 

Closing date for scrip election and currency election [C] March 2, 2012 

Euro and sterling equivalents announcement date March 9, 2012 

Payment date March 22, 2012 

2012 First quarter interim 

Announced April 26, 2012 

Ex-dividend date May 9, 2012 

Record date May 11, 2012 

Scrip reference share price announcement date May 16, 2012 

Closing date for scrip election and currency election [C] May 25, 2012 

Euro and sterling equivalents announcement date June 1, 2012 

Payment date June 21, 2012 

2012 Second quarter interim 

Announced July 26, 2012 

Ex-dividend date August 8, 2012 

Record date August 10, 2012 

Scrip reference share price announcement date August 15, 2012 

Closing date for scrip election and currency election [C] August 24, 2012 

Euro and sterling equivalents announcement date September 3, 2012 

Payment date September 20, 2012 

2012 Third quarter interim 

Announced November 1, 2012 

Ex-dividend date November 14, 2012 

Record date November 16, 2012 

Scrip reference share price announcement date November 21, 2012 

Closing date for scrip election and currency election [C] November 30, 2012 

Euro and sterling equivalents announcement date December 7, 2012 

Payment date December 20, 2012 

Annual General Meeting May 22, 2012 

[A] This timetable is the intended timetable as announced on 

October 27, 2011. 

[B] The Directors do not propose to recommend any further distribution 

in respect of 2011. 

[C] Different scrip and dividend currency election dates may apply to 

shareholders holding shares in a securities account with a bank or 

fi nancial institution ultimately holding through Euroclear Nederland. 

Such shareholders can obtain the applicable deadlines from their broker, 

fi nancial intermediary, bank or other fi nancial institution where they hold 

their securities account. A different scrip election date may also apply to 

registered and non-registered ADS holders. Registered ADS holders can 

contact The Bank of New York Mellon for the applicable deadline. Non- 

registered ADS holders can contact their broker, fi nancial intermediary, 

bank or other fi nancial institution for the applicable election deadline. 

Our INVESTOR & MEDIA app 

for iPhone, iPad and Android gives 

you our latest news. You’ll be able 

to access our most recent quarterly 

results, read annual publications 

including our sustainability report 

and investor fact sheet, watch videos 

and also download photographs of 

our activities around the world. 

shell.com/app_irmedia 



87



About this publication 

This publication contains forward-looking statements 

concerning the fi nancial condition, results of operations 

and businesses of Royal Dutch Shell plc (the Company). 

All statements other than statements of historical fact are, 

or may be deemed to be, forward-looking statements. 

Forward-looking statements are statements of future 

expectations that are based on management’s current 

expectations and assumptions and involve known and 

unknown risks and uncertainties that could cause actual 

results, performance or events to differ materially from 

those expressed or implied in these statements. Forward 

looking statements include, among other things, statements 

concerning the potential exposure of Shell to market risks 

and statements expressing management’s expectations, 

beliefs, estimates, forecasts, projections and assumptions. 

These forward-looking statements are identifi ed by their 

use of terms and phrases such as “anticipate”, “believe”, 

“could”, “estimate”, “expect”, “goals”, “intend”, “may”, 

“objectives”, “outlook”, “plan”, “probably”, “project”, 

“risks”, “scheduled”, “seek”, “should”, “target”, “will” and 

similar terms and phrases. Also included as forward- 

looking statements in this publication is our disclosure of 

reserves, proved oil and gas reserves, resources, and all 

future estimates of refi ning capacity, oil and gas production, 

capital investment and expenditure, cash from operations, 

dividends, share buybacks and investments. There are a 

number of factors that could affect the future operations of 

Shell and could cause those results to differ materially from 

those expressed in the forward-looking statements included 

in this publication, including (without limitation): (a) price 

fl uctuations in crude oil and natural gas; (b) changes in 

demand for Shell’s products; (c) currency fl uctuations; 

(d) drilling and production results; (e) proved reserves 

estimates; (f) loss of market share and industry competition; 

(g) environmental and physical risks; (h) risks associated 

with the identifi cation 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, fi scal and regulatory 

developments including regulatory measures as a result 

of climate changes; (k) economic and fi nancial market 

conditions in various countries and regions; (l) political 

risks, including the risks of expropriation and renegotiation 

of the terms of contracts with governmental entities, delays 

or advancements in the approval of projects and delays 

in the reimbursement for shared costs; and (m) changes 

in trading conditions. All forward-looking statements 

contained in this publication are expressly qualifi ed in their 

entirety by the cautionary statements contained or referred 

to in this section. Readers should not place undue reliance 

on forward-looking statements. Additional factors that 

may affect future results are contained in the Company’s 

20-F for the year ended December 31, 2011 (available 

at www.shell.com/investor and www.sec.gov). These 

factors also should be considered by the reader. Each 

forward-looking statement speaks only as of the date of this 

publication, April 27, 2012. Neither the Company nor any 

of its subsidiaries undertake any obligation to publicly 

update or revise any forward-looking statement as a result 

of new information, future events or other information. 

In light of these risks, results could differ materially from 

those stated, implied or inferred from the forward-looking 

statements contained in this publication. 

Please refer to the Annual Report and Form 20-F for the 

year ended December 31, 2011, for a description of certain 

important factors, risks and uncertainties that may affect the 

businesses of Shell. 

This publication has not been subject to audit. 

We use certain terms in this publication that US Securities 

and Exchange Commission’s guidelines strictly prohibit us 

from including in fi lings with the SEC. U.S. Investors are 

urged to consider closely the disclosure in our Form 20-F, 

File No 001-32575, available on the SEC website 

www.sec.gov. You can also obtain these forms from the 

SEC by calling 1-800-SEC-0330. 

The companies in which the Company directly and 

indirectly owns investments are separate entities. In this 

publication “Shell” is sometimes used for convenience 

where references are made to the Company and its 

subsidiaries in general. Likewise, the words “we”, “us” and 

“our” are also used to refer to subsidiaries in general or 

to those who work for them. These expressions are also 

used where no useful purpose is served by identifying 

the particular company or companies. “Subsidiaries” 

and “Shell subsidiaries” as used in this publication refer 

to companies over which the Company, either directly or 

indirectly, has control through a majority of the voting rights 

or the right to exercise control or to obtain the majority of 

the benefi ts and be exposed to the majority of the risks. The 

Consolidated Financial Statements consolidate the fi nancial 

statements of the Parent Company and all subsidiaries. 

The companies in which Shell has signifi cant infl uence but 

not control are referred to as “associates” and companies 

in which Shell has joint control are referred to as “jointly 

controlled entities”. Joint ventures are comprised of jointly 

controlled entities and jointly controlled assets. In this 

publication, associates and jointly controlled entities are 

also referred to as “equity-accounted investments”. 

The term “Shell interest” is used for convenience to indicate 

the direct and/or indirect ownership interest held by Shell 

in a venture, partnership or company, after exclusion of 

all third-party interests. (For example, Shell interest in 

Woodside Petroleum Ltd is 23%.) 

The term “reserves” in this publication means SEC proved oil 

and gas reserves. 

The term “resources” in this publication includes quantities 

of oil and gas not yet classifi ed as SEC proved oil and 

gas reserves. Resources are consistent with the Society of 

Petroleum Engineers 2P and 2C defi nitions. 

There can be no assurance that dividend payments will 

match or exceed those set out in this publication in the 

future, or that they will be made at all. 

The Financial Statements contained in this publication 

have been prepared in accordance with the provisions of 

the Companies Act 2006 and with International Financial 

Reporting Standards (IFRS) as adopted by the European 

Union. IFRS as defi ned above includes interpretations issued 

by the IFRS Interpretations Committee. 

To facilitate a better understanding of underlying business 

performance, the fi nancial results are also presented on an 

estimated current cost of supplies (CCS) basis as applied for 

the Downstream segment earnings. CCS earnings provide 

useful information concerning the effect of changes in the 

cost of supplies on Shell’s results of operations and are used 

to manage the performance of the Downstream segment . But 

they are not a measure of fi nancial performance under IFRS. 

Except as otherwise noted, the fi gures shown in this 

publication are stated in US dollars. As used herein all 

references to “dollars” or “$” are to the US currency. 

Internal segment reporting is on a global basis. For the 

main segments an analysis of certain data is provided in 

this publication between the USA and the world outside the 

USA. 

Assets and liabilities of non-US dollar subsidiaries are 

translated to US dollars at year-end rates of exchange, 

whilst their statements of income and cash fl ows are 

translated at quarterly average rates. Translation 

differences arising on consolidation are taken directly to a 

currency translation differences account within equity. Upon 

divestment or liquidation of an entity, cumulative currency 

translation differences related to that entity are taken to 

income. 

The maps in this publication are intended only to give an 

impression of the magnitude of Shell’s Upstream activities in 

certain parts of the world. The maps are not comprehensive 

and show primarily major projects and assets mentioned 

in this publication. The maps must not be considered 

authoritative, particularly in respect of delimitation of 

national, concession or other boundaries, nor in respect 

of the representation of pipeline routes and landfalls, fi eld 

sizes or positions. The maps mainly describe the situation as 

at December 31, 2011. 

This publication contains references to Shell’s website. These 

references are for the reader’s convenience only. Shell is not 

incorporating by reference any information posted on www. 

shell.com. 

Designed by Studio Dumbar 

Printed by Tuijtel under ISO 14001 

The printing of this document was 

carbon neutral: certified carbon-offset 

projects compensated for the CO 2 

emissions. 

www.natureoffice.com 

NL–001–810991

ADDRESSES 

REGISTERED OFFICE 

Royal Dutch Shell plc 

Shell Centre 

London SE1 7NA 

United Kingdom 

Registered in England 

and Wales 

Company number 4366849 

Registered with the Dutch 

Trade Register under 

number 34179503 

HEADQUARTERS 


Carel van Bylandtlaan 30 

2596 HR The Hague 

The Netherlands 

INVESTOR RELATIONS 


PO Box 162 

2501 AN The Hague 

The Netherlands 

+31 (0)70 377 4540 

or 

Shell Oil Company 

Investor Relations 

910 Louisiana Street, 4580B 

Houston, TX 77002 

USA 

+1 713 241 1042 

+1 713 241 0176 

ir-usa@shell.com 

www.shell.com/investor 

REPORT ORDERING 

+31 (0)888 800 844 

Annual Report/20-F service for 

US residents 

+1 888 301 0504 

SHARE REGISTRATION 

Equiniti 

Aspect House 

Spencer Road 

Lancing 

West Sussex BN99 6DA 

United Kingdom 

0800 169 1679 (UK) 

+44 (0)121 415 7073 

+44 (0)1903 833168 

holding and to change the way you 

receive yo ur company documents: 

www.shareview.co.uk 

AMERICAN DEPOSITARY SHARES 

(ADSS) 

The Bank of New York Mellon 

PO Box 358516 

Pittsburgh, PA 15252–8516 

USA 

+1 888 737 2377 (USA) 

+1 201 680 6825 (international) 

www.bnymellon.com/shareowner 

ABBREVIATIONS 

Currencies 

$ US dollar 

€ euro 

£ sterling 

Units of measurement 

acre approximately 0.4 hectares or 

0.004 square kilometres 

b(/d) barrels (per day) 

bcf/d billion cubic feet per day 

boe(/d) barrels of oil equivalent (per day); 

natural gas volumes are converted 

to oil equivalent using a factor of 

5,800 scf per barrel 

kb(/d) thousand barrels (per day) 

kboe/d thousand barrels of oil equivalent 

per day 

km kilometres 

km 2 square kilometres 

m metres 

MMBtu million British thermal units 

mtpa million tonnes per annum 

MW megawatts 

per day volumes are converted to a daily 

basis using a calendar year 

scf(/d) standard cubic feet (per day) 

tcf trillion cubic feet 

Products 

GTL gas to liquids 

LNG liquefi ed natural gas 

LPG liquefi ed petroleum gas 

MEG mono -ethylene glycol 

NGL natural gas liquids 

Miscellaneous 

AD S American Depositary Share 

CCS current cost of supp lies 

CFFO cash fl ow from operations 

CO 2 

carbon dioxide 

E expected 

EAI equity-accounted investments 

EOR enhanced oil recovery 

FEED front -end engineering and design 

FID fi nal investment decision 

FLNG fl oating liquefi ed natural gas 

JV joint venture 

OML oil mining lease 

PSC production-sharing contract 

R&D research and development 

SEC United States Securities and 

Exchange Commission 

SUBS Shell subsidiaries

OTHER SHELL PUBLICATIONS 

KEY ADVANTAGES 

� 

� 

� 

� 

� 

� 

� 

HTTP://REPORTS.SHELL.COM 

All information from our reports is available for 

online reading and for downloading as a PDF fi le. 

OPTIMISED SCREEN READING 

FIND-AS-YOU-TYPE SEARCH TOOL 

INTERACTIVE CHARTING 

EXCEL DOWNLOADS OF ALL TABLES 

VIDEO ENHANCEMENTS 

SIMPLE SWITCH BETWEEN REPORTS 

PAPER AND COST SAVINGS 

Annual Report and Form 

20-F for the year ended 

December 31, 2011 

A comprehensive operational 

and fi nancial report on our 

activities throughout 2011. 

Sustainability Report 

2011 

Report on our progress in 

contributing to sustainable 

development. 

Shell apps 

Apps that provide company 

news, interactive stories about 

innovation, service-station 

locations and other information. 

www.shell.com/mobile_and_apps

Full publication: PDF (92 pages), XLS (95 tables) - Reports - Shell

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?