Shell Plc · LSE:SHEL
Shell — Royal Dutch Shell — Investor Day (November 2015)
73 slides from Shell's investor day presentation, Nov 4, 2015
Slide 1: Management Day Investor Handout
MANAGEMENT DAY INVESTOR HANDOUT ROYAL DUTCH SHELL 3-4 NOVEMBER 2015 Copyright of Royal Dutch Shell plc 3-4 November, 2015 1
Slide 2: Ben van Beurden, Chief Executive Officer
BEN VAN BEURDEN CHIEF EXECUTIVE OFFICER ROYAL DUTCH SHELL PLC Copyright of Royal Dutch Shell plc 3-4 November, 2015 2
Slide 3: Definitions & Cautionary Note
DEFINITIONS & CAUTIONARY NOTE NOT FOR RELEASE, PRESENTATION, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISIDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION. The information set out in this presentation is not intended to form
Slide 4: Agenda
AGENDA Plenary: Ben van Beurden – company update Simon Henry – LNG + deep water Harry Brekelmans – Projects & Technology John Abbott – Downstream Q&A Break-out panels: Upstream International + Integrated Gas: Andy Brown – Upstream International Director Maarten Wetselaar – EVP In
Slide 5: Summary
SUMMARY Integrated business + performance drive supporting results Pulling levers to manage returns in prolonged oil price downturn ‘Grow to simplify’: Shell + BG COMPETITIVE FINANCIAL CAPITAL EFFICIENCY PROJECT DELIVERY PERFORMANCE Copyright of Royal Dutch Shell plc 3-4 November, 2015 5
Slide 6: Integrated Business Driving Financial Performance
INTEGRATED BUSINESS DRIVING FINANCIAL PERFORMANCE Earnings + ROACE Cash flow $ billion % $ billion $ billion 30 15 50 25 40 20 20 10 30 15 20 10 10 5 10 5 0 0 0 0 2011 2012 2013 2014 15Q3 2011 2012 2013 2014 15Q3 4Q rolling 4Q rolling -10 -5 Upstream Corporate/Other CFFO CFFI Free cash flow (RHS) Do
Slide 7: Oil Price + Outlook
OIL PRICE + OUTLOOK Oil prices OPEC policy change and non-OPEC growth Brent in $ per barrel 120 Medium-term supply/demand fundamentals 90 remain positive 60 Global OPEC 30 policy Responding with urgency + determination financial crisis change 0 2004 2006 2008 2010 2012 2014 15Q3 Resilience i
Slide 8: Industry Downturn: Shell Response
INDUSTRY DOWNTURN: SHELL RESPONSE Strong balance sheet Asset sales Deliver new projects Gearing 12.7%; $20 billion 2014-15; Shell + BG AA- S&P, Aa1 Moody’s $30 billion planned 2016-18, Shell + BG growth projects Restructure portfolio Reduce operating costs Reduce capital investment Oil products, sha
Slide 9: Driving Lower Costs in Shell
DRIVING LOWER COSTS IN SHELL REDUCE OPERATING COSTS + CAPITAL INVESTMENT Operating costs + outlook Capital investment Project re-phasing / deferral $ billion $ billion Supply chain savings 50 60 -10% Dilutions + exits 40 -20% 25 20 0 0 2013 2014 15Q3 2015E 2013 2014 15Q3 2015E 2016E 4Q rolling
Slide 10: Managing Capital Investment
MANAGING CAPITAL INVESTMENT 2013 2014 2015 2016 2017+ Majnoon FFD FUTURE Carmon Creek OPPORTUNITIES SHALES Appomattox Vito DEEP WATER Bonga South West Arrow greenfield LNG Elba LNG Browse LNG INTEGRATED GAS Wheatstone LNG Abadi – redesign US GTL MLNG Dua JVA LNG Canada MLNG Dua PSC B
Slide 11: Reducing Costs
REDUCING COSTS EXAMPLES Heavy oil North America shales $ billion $ billion 4 -30% 6 -20% -35% 4 2 2 0 0 2014 2015E 2013 2014 2015E Capital investment Operating costs Capital investment Operating costs >$900 million cost reduction in 2015 $3.5 billion cost reduction since 2013 Structural operating
Slide 12: Asset Sales Add Focus
ASSET SALES ADD FOCUS Progressing divestments in 2015 despite weaker market Identified substantial options to drive $30 billion 2016-18 target Woodside 9.5% Haynesville + Pinedale Elba LNG Australia DS Italy DS UK retail Wheatstone LNG MLP Norway DS $ billion BC-10 dilution
Slide 13: MLP Structure Improves Capital Efficiency
MLP STRUCTURE IMPROVES CAPITAL EFFICIENCY SHELL MIDSTREAM PARTNERS IPO launched October 2014 26.2% distribution growth since first distribution Significant footprint of infrastructure assets in North America to fuel growth Shell committed to long-term success of the MLP $1 billion EBITDA d
Slide 14: Deliver New Projects
DELIVER NEW PROJECTS Top 10 Shell project start-ups 2014+ $ billion 10 Appomattox Bonga NW 5 0 Cardamom Clair ph2 -5 -10 Gorgon Gumusut-Kakap 2010 2010 2012 2012 2014 2014 2016 2016 2018 2018 2020 2020 Cash flow from operations Capex Free cash flow Kashagan ph1 MarsB High-margin production Capex
Slide 15: Shell + BG
SHELL + BG Further reduces our cash breakeven Enhanced free cash flow Enhances dividend potential + delivers buybacks Accelerates our strategy LNG & deep water leader Value uplift from Shell capabilities at larger scale ‘Grow to simplify’ Springboard to change Shell More resilient and mo
Slide 16: Synergies Update: Shell + BG
SYNERGIES UPDATE: SHELL + BG External verified synergies1 Corporate, administrative, SG&A $ billion organisation and IT operational efficiencies +40% Procurement Procurement spend 3 Marketing & Reduced costs 2 shipping 1 Exploration Reduced activity via BG combination 0 2018 2018 April annou
Slide 17: Synergies Update: Shell + BG
SYNERGIES UPDATE: SHELL + BG Example: Corporate costs Example: Procurement Optimisation SG&A Optimisation SG&A local spend in areas with Real estate and IT operational overlap Procurement Global scale Procurement Global scale Leverage Shell shared Increased scale service centres Marketing & Marketin
Slide 18: Grow Cash Flow + Free Cash Flow
GROW CASH FLOW + FREE CASH FLOW Synergies Asset sales Capital Growth investment 40% increase to ~$30 billion ~$35 billion in LNG + deep water $3.5 billion 2016-2018 2016 combined acceleration Reduced exploration Shell programmes Transaction attractive in a range of oil prices Impro
Slide 19: Dividend Track Record + Priorities for Cash
DIVIDEND TRACK RECORD + PRIORITIES FOR CASH Dividend track record Priorities for cash $ billion 12 1. Debt reduction 8 Dividend commitment: 2015 $1.88 per share 2. Dividends 2016 at least $1.88 per share 3. Buybacks + capital investment 4 0 2006 2009 2012 2015 Dividends announced Copyright of Royal
Slide 20: Cash Flow Management + Track Record
CASH FLOW MANAGEMENT + TRACK RECORD $ billion 45 $102 $106 $60 30 BG enhances Shell free cash flow per share 15 Improved dividend capacity + buyback potential 0 5-year average 3-year average 12-month average 2010-2014 2012-2014 15Q3 4Q rolling Cash flow from operations Cash used in investing act
Slide 21: Shell + BG: Preparing for Combination
SHELL + BG: PREPARING FOR COMBINATION SPRINGBOARD TO CHANGE SHELL Shell + BG integration planning Reorganising Shell Upstream Joint team established 15 June 2015 Today 1.1.2016 Upstream Upstream International 30-60-90 day plans Integrated Gas World-class integration Upstream Unconventional Ame
Slide 22: Longer Term Options
LONGER TERM OPTIONS Actions taken Heavy oil: Growth investment halted Profitability drive Shales: New International: portfolio restructuring ‘Unconventional Resources’ Americas: retained growth options organisation 1.1.16 Arctic: Alaska halted Permian Nigeria onshore: SPDC restructurin
Slide 23: Shell + BG: 'Grow to Simplify'
BG SHELL + BG: ‘GROW TO SIMPLIFY’ logo Longer term Review + reduce Simpler more focused company Deep water + Integrated Gas Higher profitability New scale + running room Focus + phased growth Predictable + structured growth funnel Engines Upstream High-grading + selective growth Asse
Slide 24: Simon Henry, Chief Financial Officer
SIMON HENRY CHIEF FINANCIAL OFFICER ROYAL DUTCH SHELL PLC Copyright of Royal Dutch Shell plc 3-4 November, 2015 24
Slide 25: Shell + BG: LNG + Deep Water
SHELL + BG: LNG + DEEP WATER LNG Deep water Nigeria LNG, 6 trains Mars and Mars B platforms, Gulf of Mexico – standard TLP designs Attractive returns Growth potential Shell capability and technology Upfront capital intensive, then low decline Ongoing capital spend to mitigate decline Gro
Slide 26: LNG Market Development
LNG MARKET DEVELOPMENT LNG import countries LNG regasification capacity Million tonnes per annum 1000 500 0 1990 2000 2005 2010 2015 2020 2025 2015 2020 Asia Pacific North America Middle East Europe South America North Africa Global LNG supply Million tonnes per annum Number of countries Long term
Slide 27: LNG Pricing
LNG PRICING 2014 Shell LNG sales + pricing linkage Regional gas prices Million tonnes per annum $/mmbtu 25 Short-term ‘spot’ 20 10-15% 30 15 10 Gas hubs 20-25% (e.g. NBP, HH) 5 0 20 2005 2007 2009 2011 2013 2015 Japan landed LNG price Henry hub (US) Term contracts National balancing point (UK) Brent
Slide 28: Integrated Gas: Track Record
INTEGRATED GAS: TRACK RECORD Financial performance Shell Shell + BG LNG growth $ billion % Equity LNG capacity in million tonnes per annum Repsol LNG Pluto LNG (Woodside share reduction) QG4 (MLNG Dua 12 Sakhalin Pearl GTL North Rankin expiry) 30% 45 8 20% 30 4 10% 15 0 0% 0 2009 2010 2011 2012 2013
Slide 29: LNG: Shell + BG
LNG: SHELL + BG IOC LEADERSHIP PORTFOLIO Combi- 2014* Shell BG nation Equity LNG UK liquefaction 26 7 33 Spain Sakhalin capacity (mtpa) Sabine Pass Cove Point Elba QG-4 Lake Charles LNG delivered Baja Egypt Hazira 34 11 45 Altamira volumes (mtpa) Nigeria Oman Singapore Equatorial Brunei Atlantic LNG
Slide 30: LNG: Portfolio + Options
LNG: PORTFOLIO + OPTIONS BG logo World-class, profitable LNG business Opportunity to high-grade development queue More predictable + structured growth Options FEED Under construction On stream capacity Abadi NLNG T7 Arrow Sakhalin T3 Browse Gorgon T4 Sunrise LNG Elba* LNG Canada Gorgon Prelude
Slide 31: Deep Water: Shell + BG
DEEP WATER: SHELL + BG LEADING IOC PORTFOLIO + TRACK RECORD Shell track record in project delivery Step change in Brazil Gulf of Mexico Potential to reshape portfolio + Malaysia/Brunei exploration Nigeria On stream Brazil Under development Exploration BG Shell deep water 15Q3 4Q rolling produc
Slide 32: Deep Water: Track Record
DEEP WATER: TRACK RECORD Shell deep water performance Deep water production $ billion % Thousand boe per day $ per barrel 8 24 480 120 6 18 360 90 4 12 240 60 2 6 120 30 0 0 0 0 2012 2013 2014 15Q3 2010 2011 2012 2013 2014 15Q3 4Q rolling 4Q rolling CFFO ROACE (RHS) Shell BG Brent (RHS) Malikai 1999
Slide 33: Deep Water: Portfolio + Options
DEEP WATER: PORTFOLIO + OPTIONS BG logo Leading positions in Brazil, Gulf of Mexico, Nigeria, Malaysia Improved predictability in development programme Platform to focus exploration Options FEED Under construction On stream Libra Libra pilot FPSO vessel Bonga North Vito Malikai Kaikias Stones
Slide 34: Reviewing and Reducing Exploration Activity
REVIEWING AND REDUCING EXPLORATION ACTIVITY Exploration expenditure Exploration positions $ billion 6 -40% 4 Shell BG Shell + BG 2 0 2009 2010 2011 2012 2013 2014 2015E 2018E Combination Near field exploration Frontier BG Heartlands Arctic Combination 2018 combined spend $3 billion Previous guid
Slide 35: Harry Brekelmans, Projects & Technology Director
HARRY BREKELMANS PROJECTS & TECHNOLOGY DIRECTOR ROYAL DUTCH SHELL PLC Copyright of Royal Dutch Shell plc 3-4 November, 2015 35
Slide 36: Projects & Technology: Priorities
PROJECTS & TECHNOLOGY: PRIORITIES HSSE - Goal zero No harm, no leaks Continued year-on-year improvement Improve capital efficiency $4 billion in 2015-16 Affordable technology Drives value creation Strengthen deployment Malikai, 60,000 boe/d, Shell 35% Copyright of Royal Dutch Shell plc 3-4
Slide 37: Safety: Asset Integrity and Process Safety
SAFETY: ASSET INTEGRITY AND PROCESS SAFETY Preventing + mitigating major safety events Process safety Control barriers Recovery measures Number of incidents 400 CONSEQUENCES 200 THREATS TOP EVENT 0 2012 2013 2014 '15 Year to date Tier 1 incidents Tier 2 incidents Goal Zero on safety Spills - operati
Slide 38: Project Delivery Track Record
PROJECT DELIVERY TRACK RECORD Upstream IPA cost benchmark 75 material project start-ups since 2011 Improving trend on cost performance Better Front End Loading for projects in Select phase 2010 2011 2012 2013 2014 ~75% projects delivered on cost 1Q 2Q 3Q 4Q Schedule performance continues t
Slide 39: Improve Competitiveness
IMPROVE COMPETITIVENESS DOWNSTREAM UPSTREAM DEEP WATER INTEGRATED GAS LONGER TERM ENGINE ENGINE SUPPLY CHAIN TRANSFORMATION COMPETITIVE SCOPING TRANSFORMATIONAL THEMES EFFICIENT EXECUTION AFFORDABLE TECHNOLOGY Goal Zero Capital Efficiency Affordable Technology Copyright of Royal Dutch Shell
Slide 40: Improve Capital Efficiency
IMPROVE CAPITAL EFFICIENCY 2015-16 ACTIONS Cancel/ defer projects Portfolio management Monetize / exit non-core Supply chain 2015-16 capital efficiency potential: $4 billion Competitive scoping Transform project/ well delivery Efficient execution Facilities Wells Affordable technology Other Dr
Slide 41: Deep Water Gulf of Mexico: Project Interventions
DEEP WATER GULF OF MEXICO: PROJECT INTERVENTIONS Stones FID 2013 Appomattox FID 2015 Vito FEED 2014 Vito Shell interest 51% Shell interest 100%, 50 kboe/d peak Shell interest 79%, 175 kboe/d peak Powernap Shell interest 50% FPSO 4-column host in Gulf of Mexico Re-examining development > $1 b
Slide 42: Deep Water Value Creation
DEEP WATER VALUE CREATION EUR actual versus first oil view 1994 Auger +183% % 300% 1996 Mars +274% 1990’s 1997 Ram Powell +102% Mars + Mars B 1999 Ursa +179% 2001 Brutus +78% 200% Ursa Perdido 2005 Bonga +151% Auger 2000’s 2009 BC-10 +130% Bonga 100% 2010 Perdido +168% Ram Powell BC-10 Brutus 2010’s
Slide 43: Supply Chain Transformation
SUPPLY CHAIN TRANSFORMATION EXTRACTING VALUE IN THE SUPPLY CHAIN 40% demand driven 40% specification driven 20% price driven Planning, scheduling, efficiency + Design, equipment and scope Contract rates + unit prices utilisation specifications Demand management Standardisation Leverage scale,
Slide 44: Supply Chain Transformation: Rig Strategy and Rates
SUPPLY CHAIN TRANSFORMATION RIG STRATEGY AND RIG RATES Ultra deep water rig rates Rig strategy Thousand $ per day Long term contracts provide competitive 600 advantage with new build / high specification units 500 Global procurement 400 Reduced deep water activity: 300 19 rigs under contract
Slide 45: Efficient Execution + Supply Chain Transformation
EFFICIENT EXECUTION + SUPPLY CHAIN TRANSFORMATION Shell operated wells top-quartile performance Price positioning: Enterprise Framework Agreements Shell operated wells, $ billion % of total Shell operated wells spend EFA prices vs. range of quotes received from market 3 30% Linepipe 2 20% Control va
Slide 46: Affordable Technology
AFFORDABLE TECHNOLOGY Research & development – budget 2015 Strengthen core business – “SmartConnect” $1.1 billion Strengthen core assets Long range research Frontier energy/ chemicals innovation Remote assisted operations centre, New Orleans, USA R&D investment of ~$ 1.1 billion In-house develop
Slide 47: Prelude Floating LNG: Update
PRELUDE FLOATING LNG: UPDATE Geoje, South Korea 3.6 mtpa LNG + 1.7 mtpa NGLs Vessel All 14 topside modules installed All 6 turret modules installed In-field All wells drilled on schedule, 3 wells to complete and test Four 3 km subsea pipelines installed and tested Darwin supply base
Slide 48: Projects & Technology: Priorities
PROJECTS & TECHNOLOGY: PRIORITIES Goal zero No harm, no leaks Continued year-on-year improvement Improve capital efficiency $4 billion in 2015-16 Affordable technology Drives value creation Strengthen deployment Malikai, 60,000 boe/d, Shell 35% Copyright of Royal Dutch Shell plc 3-4 Novemb
Slide 49: John Abbott, Downstream Director
JOHN ABBOTT DOWNSTREAM DIRECTOR ROYAL DUTCH SHELL PLC Copyright of Royal Dutch Shell plc 3-4 November, 2015 49
Slide 50: Downstream Strategy
DOWNSTREAM STRATEGY Developing and sustaining competitive advantage through… Advantaged Improving our Differentiated Leveraging the feedstock + footprint Products + Brand supply Customer Offer Priority to improve our financial performance Continued focus on upgrading our portfolio Returns + fr
Slide 51: Downstream Macro
DOWNSTREAM MACRO Oil Products Chemicals Increasing competition from large complex Chemicals demand growth robust refineries Significant feedstock price movements 2015 improved refinery margins North America re-emerges as chemicals exporter Efficiency and mogas displacement in Growth op
Slide 52: Shell Downstream
SHELL DOWNSTREAM VALUE CHAINS Marketing Trading Refining Chemicals Restructured Refining enabling integrated value Global footprint Strong and growing maximization Improved returns returns Excess industry refinery capacity Trading advantage Working to improve refining returns Diffe
Slide 53: Downstream Financial Drivers
DOWNSTREAM FINANCIAL DRIVERS Earnings Capital employed $ billion $45 billion as at 15Q3 10 8 Refining and Trading 6 Marketing 4 Chemicals 2 0 2012 2013 2014 15Q3 4Q rolling Refining and Trading Chemicals Marketing Cash flow + ROACE $ billion % 20 20 Priority to improve financial performance 15 15
Slide 54: Improving Our Downstream Footprint
IMPROVING OUR DOWNSTREAM FOOTPRINT ~60 PERFORMANCE UNITS DRIVING ACCOUNTABILITY Portfolio change Asset sales $ billion Selective Growth: Chemicals 4 China LNG for transport Australia DS Premium fuels + lubes Italy DS 3 Fix: Refinery crude flexibility Stanlow refinery MLP others
Slide 55: Reducing Refining Capacity
REDUCING REFINING CAPACITY Refining capacity Retain competitive sites Million barrels per day # of refineries Refinery capacity in thousand barrels per day (100%) 4 60 600 ~ -20% 3 45 Increase value chain 2 30 500 integration Improve profitability 1 15 400 Increased scale and 0 0 2005 2010 201
Slide 56: Improving Our Manufacturing Profitability
IMPROVING OUR MANUFACTURING PROFITABILITY 2015 PROJECTS North America - Scotford NW Europe – Pernis and Singapore – Bukom and Jurong Rhineland Scotford, Canada Pernis, The Netherlands Pulau Bukom, Singapore Hydrocracker debottlenecking Crude and feedstock flexibility Ethylene cracker complex (
Slide 57: Chemicals Performance + Potential
CHEMICALS PERFORMANCE + POTENTIAL Regionally balanced Shift to advantaged Chemicals returns portfolio feedstock $ billion 2 18% 12% 2014 2007 2014 1 6% North America Advantaged liquids Generic liquids 0 0% Europe Advantaged gas Generic gas 2008 2009 2010 2011 2012 2013 2014 15Q3 4Q Asia Pacific & Mi
Slide 58: Marketing: Investing in Selective Growth
MARKETING: INVESTING IN SELECTIVE GROWTH Marketing China retail Brazil biofuels + retail % billion liters % billion liters % 24 6 16 25 20 18 12 4 12 8 20 10 2 6 4 0 0 0 15 0 2012 2013 2014 15Q3 2012 2013 2014 15Q3 4Q rolling 4Q rolling ROACE Fuels volume sold Fuels volume sold ROACE ROACE (RHS) I
Slide 59: Downstream: New Investment Potential
DOWNSTREAM: NEW INVESTMENT POTENTIAL Capital investment $ billion 8 6 Capital discipline and project delivery Making our manufacturing sites more 4 competitive 2 Selective investment in growth: marketing + Chemicals 0 2011 2012 2013 2014 2015E 2015E Non-growth Oil Products Growth Chemicals 201
Slide 60: Downstream Competitive Landscape
DOWNSTREAM COMPETITIVE LANDSCAPE Downstream ROACE Oil products ROACE % 15Q3 % 20% 4Q rolling 20 10% 10 0% 0 2011 2012 2013 2014 15 Q2 2011 2012 2013 2014 15Q3 4Q rolling 4Q rolling Shell Peers Chemicals ROACE Brand % Global brand preference 30% 20% 20% 15Q3 15% 4Q rolling 10% 10% 5% 0% 2011 2012 201
Slide 61: Ben van Beurden, Chief Executive Officer
BEN VAN BEURDEN CHIEF EXECUTIVE OFFICER ROYAL DUTCH SHELL PLC Copyright of Royal Dutch Shell plc 3-4 November, 2015 61
Slide 62: Continued Drive to Improve Financial Performance
CONTINUED DRIVE TO IMPROVE FINANCIAL PERFORMANCE Cash flow from operations Free cash flow $ billion $ billion 60 40 30 40 20 20 10 0 0 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 -10 15Q3 15Q3 Shell Peer group 4Q rolling 4Q rolling ROACE - underlying % 30 20 10 Driving competitive performanc
Slide 63: Summary
SUMMARY Integrated business + performance drive supporting results Pulling levers to manage returns in prolonged oil price downturn ‘Grow to simplify’: Shell + BG COMPETITIVE FINANCIAL CAPITAL EFFICIENCY PROJECT DELIVERY PERFORMANCE Copyright of Royal Dutch Shell plc 3-4 November, 2015 63
Slide 64: Questions & Answers
QUESTIONS & ANSWERS Q&A ROYAL DUTCH SHELL 3-4 NOVEMBER 2015 Copyright of Royal Dutch Shell plc 3-4 November, 2015 64
Slide 65: Back Up
BACK UP ROYAL DUTCH SHELL 3-4 NOVEMBER 2015 Copyright of Royal Dutch Shell plc 3-4 November, 2015 65
Slide 66: North America Resources Plays
NORTH AMERICA RESOURCES PLAYS Focus on 4 key basins Western Canada Gas Integration value with LNG Canada Reduced spending Western Canada LRS Reviewing options Best in class Duvernay land position Moving to development in select areas LRS growth in Permian and Duvernay Canada LNG / Ap
Slide 67: Permian Delaware Basin
PERMIAN DELAWARE BASIN LOW COST, EARLY WOLFCAMP ENTRY NEW MEXICO Production growth Thousand boe per day 40 +45% 30 20 10 TEXAS 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2013 2014 2015 Oil/ Liquids Associated gas Wolfcamp well cost improvement SHELL LEASES $ million 20 ~300,000 net acres -55% >5,000 well l
Slide 68: Deep Water Gulf of Mexico
DEEP WATER GULF OF MEXICO COMPETITIVE PERFORMANCE AND PORTFOLIO Production Appomattox Thousand boe per day Drilling Kaikias ~175 kboe/d potential moratorium 300 ~650 million boe resources >100 million boe resources 200 Attractive tie-back option Shell 79% (operator) 100 Shell 100% (opera
Slide 69: Deep Water Project Delivery
DEEP WATER PROJECT DELIVERY 2014 START-UPS AND PERFORMANCE Bonga NW Gumusut-Kakap Thousand boe per day, Shell share Thousand boe per day, Shell share Shutdown FPSO to start 50 50 Maintenance up gas facilities 40 40 Start-up FPSO 30 30 Early production through Kikeh 20 20 tie-back 10 10 0 0 2014 2015
Slide 70: LNG Supply and Demand Dynamics
LNG SUPPLY AND DEMAND DYNAMICS LNG demand LNG supply* N.A. LNG export development million tonnes per annum million boe/d million tonnes per annum million boe/d million tonnes per annum 500 500 FID 400 10 400 10 Brownfield 300 300 Floating Greenfield 200 5 200 5 100 100 Canada US 0 0 0 0 2000 2005 20
Slide 71: Oil Sands
OIL SANDS Shell unit operating costs Driving down cash unit costs $ per barrel 60 Significant integration value with Downstream Scotford refinery -30% 40 Improved AOSP reliability 20 Quest CCS start-up in Q3 2015 0 2010 2011 2012 2013 2014 15Q3 year to date Cash operating cost excl. energy D
Slide 72: Downstream Performance Units
DOWNSTREAM PERFORMANCE UNITS COMPETITIVE FINANCIAL PERFORMANCE ~60 Performance units Example of performance unit Drive bottom line focus Rheinland GtL Oils & waxes refinery Address underperforming assets Lubes Supply Retail NL Chain Capital allocation Divestment of non-core positions Special
Slide 73: Downstream HSSE and Operating Performance
DOWNSTREAM HSSE AND OPERATING PERFORMANCE Focus on HSSE continues Energy intensity Injuries – TRCF/million working hours million working hours Index year 2000 2 400 105 100 1 200 95 90 0 0 85 2011 2012 2013 2014 15Q3 2003 2005 2007 2009 2011 2013 year to date Working hours TRCF Refinery Chemicals Op