Shell PLC · LSE:SHEL
Shell — UBS Oil and Gas Conference 2007
22 slides from Shell's conference presentation, Sep 25, 2007
Slide 1: Upstream Middle East: Delivery and Growth
UPSTREAM MIDDLE EAST: DELIVERY AND GROWTH LEVERAGING A STRONG PORTFOLIO Charles Watson EXECUTIVE VICE PRESIDENT GAS & POWER Middle East, North Africa and South Asia Dubai - UBS Oil and Gas conference 25 SEPTEMBER 2007
Slide 2: Disclaimer Statement
DISCLAIMER STATEMENT This presentation contains forward-looking statements concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking s
Slide 3: Leveraging a Strong Portfolio
LEVERAGING A STRONG PORTFOLIO INDUSTRY LANDSCAPE … SHELL STRATEGY Higher prices & costs PORTFOLIO SHIFT • New legacy assets New • Growth markets East ENERGY competitors CHALLENGE TECHNOLOGY • Unconventionals + exploration • Cleaner fuels, CO2 solutions Complex projects Managing risk Sustained invest
Slide 4: Shell in the Middle East
SHELL IN THE MIDDLE EAST MIDDLE EAST POSITIONS OIL & GAS PRODUCTION 13% : 453 kboe/d LNG CAPACITY (Shell equity including indirect interest) CAPITAL EXPENDITURE 18% : 2.5 mtpa 8% : $1.9 bln MIDDLE EAST 2006 REST OF THE WORLD 3
Slide 5: Long History and New Horizons
LONG HISTORY AND NEW HORIZONS 1908 IRAN 1939 ABU DHABI 1899 EGYPT 1937 OMAN 1935 QATAR 1930 MOROCCO 1927 IRAQ KIRKUK FIELD 1949 SYRIA 1948 KUWAIT 1945 SAUDI ARABIA 1940 LIBYA 1922 IRAQ 1951 ABU DHABI 1922 TUNISIA OIL DISCOVERY 1922 ALGERIA 1994 OMAN LNG 1985 AFPC 1982 BAPETCO 1980 PDO 1971 QATAR NOR
Slide 6: Shell in the Middle East – Upstream Business
SHELL IN THE MIDDLE EAST – UPSTREAM BUSINESS DIVERSE PRODUCTION MIX (kboe/d) Qatar Major GTL, LNG AFPC projects BREGA KIRTHAR 453 kboe/d QATARGAS 4 ADCO BAPETCO GASCO PEARL GTL PDO MUKHAIZNA OMAN LNG HAZIRA QALHAT LNG SYRIA ABU DHABI OMAN Libya Oman EGYPT PAKISTAN OTHERS Exploration PDO extension an
Slide 7: Technology and Performance
TECHNOLOGY AND PERFORMANCE SWELLABLE ELASTOMERS GAS TO LIQUIDS EOR CO2 SOLUTIONS SULPHUR SOLUTIONS LIQUEFIED NATURAL GAS SMART FIELDS® TECHNOLOGY 6
Slide 8: Partnerships and Relationships
PARTNERSHIPS AND RELATIONSHIPS • Fostering regional talent • International partnerships • Responsive to national aspirations 7
Slide 9: Strong Competitive Position
STRONG COMPETITIVE POSITION Upstream production MIDDLE EAST PRODUCTION (kboe/d – Entitlement) NEW PRODUCTION CAPACITY UNDER CONSTRUCTION 600 500 QARN ALAM 400 300 HARWEEL 2009-2011 200 START-UPS QATARGAS 4 100 PEARL 0 XOM SHELL BP TOTAL CHEVRON GAS OIL 8
Slide 10: Maintaining Production – Oman
MAINTAINING PRODUCTION – OMAN PETROLEUM DEVELOPMENT OMAN (34%) • 40 year oil production history Muscat Concession extended to 2044 LNG VENTURES Qarn Alam • Oman LNG Harweel • Qalhat LNG EOR GROWTH • 2 key projects under construction ENHANCED OIL RECOVERY - EOR 9
Slide 11: Oman EOR
OMAN EOR COMPLEX GEOLOGY AND RECOVERY • Clastics & Carbonates • Light & Heavy Oils 2 KEY PROJECTS UNDER CONSTRUCTION • Steam, Gas, Chemical • ~10% PDO production 2012+ SHELL TECHNOLOGY OMAN • Global EOR R&D centre 10
Slide 12: New Growth Hubs – Qatar
NEW GROWTH HUBS – QATAR LNG GTL • NORTH FIELD ~ 900 Tcf • MAJOR NEW GROWTH FOR SHELL NORTH • Qatargas 4 LNG FIELD • Pearl GTL Ras Laffan Doha 11
Slide 13: Qatar Pearl GTL
QATAR PEARL GTL PEARL GTL (Shell 100%) • Shell technology developed in Bintulu, Malaysia • 140 kb/d GTL products, ~120 kboe/d NGLS and ethane PEARL GTL • High quality fuels/lubes products 12
Slide 14: LNG Growth – Qatargas 4
LNG GROWTH – QATARGAS 4 QATARGAS 4 - 7.8 mtpa LNG capacity (Shell 30%) 13 QATAR GAS TRANSPORT COMPANY (Nakilat) - LNG fleet management
Slide 15: Global Gas Supply and Marketing
GLOBAL GAS SUPPLY AND MARKETING LIQUEFACTION CAPACITY (YEAR END, EQUITY SHARE), MTPA MARKETING OPTIMISATION EXAMPLE 25 20 ~Doubling capacity QG 4 to 2010 Sakhalin 15 10 5 0 2004 2005 2006 2007 2008 2009 2010 LNG SUPPLY BASE CASE SPOT CARGO MAJOR COMPETITORS (ExxonMobil, Chevron, BP, Total) CUSTOMER
Slide 16: Growing New Markets – India
GROWING NEW MARKETS – INDIA De lhi HBJ Pipeline GSPC Gujarat Petronet Maharashtra Hazira Dahej-Uran Mum ba i Pipeline RCF (Uran) Dabhol Kakinada Reliance Proposed Goa E-W Pipeline (1200km) 15
Slide 17: Regional Gas Demand Growing Fast
REGIONAL GAS DEMAND GROWING FAST REGIONAL DEMAND: 2015 STRONG GROWTH IN MIDDLE EAST GAS CONSUMPTION (Tcf/y) 25 OECD Europe 20 15 OECD Europe 10 5 0 Iran Saudi Arabia India Pakistan Egypt UAE Qatar Kuwait Oman Iraq Tunisia Libya Algeria OECD Europe 1 Tcf/y 2005 2015 16
Slide 18: Industry Gas Pipeline Opportunities
INDUSTRY GAS PIPELINE OPPORTUNITIES 2007 ~2020 IRAN IRAN QATAR QATAR UAE UAE SAUDI ARABIA SAUDI ARABIA OMAN OMAN EXISTING PIPELINES POTENTIAL 17
Slide 19: Exploration Potential
EXPLORATION POTENTIAL DIVERSE EXPLORATION PORTFOLIO EXPLORATION STRATEGY • Focus basins Tunisia Syria Egypt • Big cat potential Algeria Libya Saudi Arabia • Near field drilling Oman EXPLORATION ACTIVITY FOCUS 18
Slide 20: Exploration Potential – Libya
EXPLORATION POTENTIAL – LIBYA HIGHLIGHTS • Exploration and LNG entry in 2005 • ~ 20,000 km2 under-explored exploration acreage • Rejuvenation of Marsa Al Brega plant • Potential for new LNG Shell Interest (land) 19
Slide 21: Exploration Potential – Saudi Arabia
EXPLORATION POTENTIAL – SAUDI ARABIA • SRAK: explore and develop gas and NGLs • 7 wells committment • 210,000 km2 acreage in remote desert location 20
Slide 22: Summary
SUMMARY • Strategy + delivery on track • Key new growth projects under construction • Strong portfolio; Local reputation 21