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22 Shell Investors’ Handbook
Upstream
EUROPE
HIGHLIGHTS
� Production amounted to more than 0.8 million boe/d, which was around 25% of our
total 2011 production.
� After-tax earnings from oil and gas exploration and production operations of our
subsidiaries in the region were $3.3 billion. Our share of oil and gas exploration and
production earnings of equity-accounted investments was $1.5 billion.
� We are participating in the development of the Corrib project in Ireland, as well as
the Clair Phase 2 and Schiehallion Redevelopment projects in the UK.
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onshore consents have been withdrawn.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.