Shell PLC · LSE:SHEL
Shell — Royal Dutch Shell — Investor Day (2009)
34 slides from Shell's investor day presentation, 2009
Slide 1: Qatar Investor Visit 2009 – Shell Qatar
ROYAL DUTCH SHELL PLC QATAR INVESTOR VISIT 2009 SHELL QATAR ANDY BROWN Executive Vice President Shell Qatar
Slide 2: Shell in Qatar: A New Heartland for Shell
SHELL IN QATAR A NEW HEARTLAND FOR SHELL Ras Laffan Not to scale Al Khor Courtesy of Qatargas Qatargas 4 Doha QATAR Not to scale Shipping services to Nakilat Qatar Shell Research & Technology Centre Pearl Academy Pearl GTL 2
Slide 3: Significant Progress Since 2002
SIGNIFICANT PROGRESS SINCE 2002 Pearl Control room GTL opening Foundation stone laid QG4 FID SPA with Dubai SPA with DPSA PetroChina Research First patents Centre Nakilat Science Centre Heads of Master Service Agreement Agreement opened Framework Qatar FID agreement for DS Petroleum plant in China L
Slide 4: Pearl GTL & Qatargas 4 Schedule
PEARL GTL & QATARGAS 4 SCHEDULE PEARL GTL QATARGAS 4 Capital expenditure Capital expenditure 100% 100% First Onshore Utility Systems ~50,000 workers, Commissioned 70 nations Offshore Platform 2 million Topsides Installed Pearl village freight tonnes 50% opened delivered 50% Offshore jackets installe
Slide 5: Offshore Gas Development
OFFSHORE GAS DEVELOPMENT PEARL GTL & QATARGAS 4 DEVELOPMENT • 5 unmanned platforms • ~3 Bcf/day peak production of wet gas • Water depth of ~30 meters QatarGas 3/4 Pearl GTL Ras Laffan 0 100 KM Volumes on a 100% basis 5
Slide 6: Onshore Gas Infrastructure in Ras Laffan
ONSHORE GAS INFRASTRUCTURE IN RAS LAFFAN Qatargas Pearl Village PORT RASGAS ORYX Common facilities FUTURE DEVELOPMENTS 0 10 KM Pearl GTL 6
Slide 7: Shell's GTL Technology
ROYAL DUTCH SHELL PLC PEARL GAS-TO-LIQUIDS QATARGAS 4 SHELL’S GTL TECHNOLOGY
Slide 8: Gas-to-Liquids Technology
GAS-TO-LIQUIDS TECHNOLOGY CATALYTIC PROCESS TO CONVERT GAS TO OIL PRODUCTS GAS CONVERSION CHEMISTRY Stage 1 - Gasification Stage 2 - Synthesis Stage 3 – Refining Syngas Hydrocracking Catalyst Catalyts Hydrogen Carbon Fischer-Tropsch distillates (normal paraffines) Methane Oxygen monoxide (natural ga
Slide 9: Refinery & Pearl GTL Slates
REFINERY & PEARL GTL SLATES PEARL GTL SLATE BIASED TO MIDDLE DISTILLATES PEARL GTL MARGIN ADVANTAGE % of total output $/Bbl 100% LPG N-PARAFFIN CASH MARGIN NAPHTHA GASOLINE CASH COSTS KEROSENE NAPHTHA CASH MARGIN 50% KEROSENE REFINERY CRUDE FEEDSTOCK GAS OIL GAS OIL BASE OIL BASE OIL CASH COSTS 0% C
Slide 10: Industry Progress in GTL
INDUSTRY PROGRESS IN GTL Lab-scale Pilot plant Commercial plant World scale plant GTL.F1 GTL PATENTS • Industry developing various GTL technologies SHELL EXXON MOBIL • Long lead times IFP • Pearl GTL will be the first world-scale GTL plant CHEVRON SASOL CONOCO PHILLIPS BP 10
Slide 11: Shell: 30+ Years GTL Development
SHELL: 30+ YEARS GTL DEVELOPMENT 2009 1993 1983 1973 Pearl GTL Qatar 140,000 bbl/d Bintulu Malaysia current capacity Pilot plant 14,700 bbl/d Amsterdam Laboratory 3 bbl/d Amsterdam grams/d 11
Slide 12: Bintulu – Malaysia: GTL Plant
BINTULU – MALAYSIA: GTL PLANT 12
Slide 13: Shell GTL Technology: Bintulu, Malaysia
SHELL GTL TECHNOLOGY BINTULU, MALAYSIA EARNINGS TRACK RECORD OPERATING PEFORMANCE USD million NIAT – Malaysian GAAP Reliability % 300 100% 200 75% 100 0 50% '04 '05 '06 '07 '08 1993 1998 2003 2008 Shell share = 72% BINTULU PRODUCT SLATE % of total production • 14,700 bbl/d GTL train 100% WAXES • Pro
Slide 14: Shell Leadership in GTL Catalysts
SHELL LEADERSHIP IN GTL CATALYSTS STABLE CATALYST PROCESS CONTINUOUS CATALYST IMPROVEMENT Liquid selectivity % and relative reactor productivity Gas tubes with static catalyst 2nd Generation 2nd Generation 3rd Generation particles Bintulu retrofit Pearl GTL In design 100 1st Generation Bintulu desig
Slide 15: Scale-up from Bintulu to Pearl GTL
SCALE-UP FROM BINTULU TO PEARL GTL BINTULU PEARL GTL Train capacity 14,700 bbl/d 2 Trains of 70,000 bbl/d Not to scale Bintulu reactors: 3.6 kbbl/d capacity Pearl GTL reactors: 5.8 kbbl/d capacity Bintulu to Pearl GTL is a 5 x scale-up Lower scaling factors for critical components
Slide 16: Pearl GTL
ROYAL DUTCH SHELL PLC PEARL GAS-TO-LIQUIDS QATARGAS 4 PEARL GTL
Slide 17: Pearl GTL – Overview
PEARL GTL – OVERVIEW 0 500 M 17
Slide 18: Pearl Gas-to-Liquids
PEARL GAS-TO-LIQUIDS INTEGRATED GAS-TO-LIQUIDS PROJECT • 1.6 Bcf/d of Wet Gas: ~320 kboe/d • 120 kbbl/d NGLs/Ethane Sales Offshore products Platforms • 140 kbbl/d GTL products • Major construction complete Q4 2010 Natural Gas Liquids Feedgas preparation /Ethane • 2011 ramp-up ~12 months Ethane • ~$1
Slide 19: Pearl GTL Contract Partners
PEARL GTL CONTRACT PARTNERS CONTRACTOR OVERVIEW Feed Gas Liquid Storage Utilities Preparation Processing • Unique project scale + operating environment Buildings (CB&I) (JGC/KBR) (CHIYODA/HHI) Unit (STRABAG) (TOYO/HEC) • Multiple lump-sum contractors • Shell & Project Management Contractor (PMC) Eff
Slide 20: Pearl GTL: Global C&P in Action
PEARL GTL: GLOBAL C&P IN ACTION MAIN LOCATIONS United Kingdom • Shell coordination on global procurement • Utilities •Project Mgmt Japan • Over 2 million tonnes of freight material imported Germany • Feed Gas Prep. •Tanks • Air Separation • GTL Core France • Liquid Processing • Effluent Treatment So
Slide 21: Pearl GTL: A Major Engineering Feat
PEARL GTL: A MAJOR ENGINEERING FEAT MATERIAL STATISTICS MATERIAL CONCRETE STEEL REACTOR TUBES CABLES Material offloading Facility: 690,000 m3 Erected 2.5 Eiffel GTL synthesis reactor tubes ~13,000 km of cables: Doha Imported >2 mln freight Towers/month in pipe & end to end would stretch from to Hous
Slide 22: Pearl GTL Start-up Sequence
PEARL GTL START-UP SEQUENCE Offshore production kboe/d • Total ~800 operators, technicians & engineers preparing for commissioning of 2 trains • 8 hydrocarbon processes & 2,500 commissionable systems 300 • Sequential start-up of the two trains • Shell entitlement starts with 1st GTL product shipment
Slide 23: Pearl GTL Financial Structure
PEARL GTL FINANCIAL STRUCTURE Offshore DRY GAS Gas production GTL plant processing 1.6 bcf/d Qatar North Field 120 kboe/d NGLs + Ethane 140 kbbl/d Development & Production Sharing Agreement Offtake • No purchase price allocation for gas feedstock • Integrated operating cost ~$6/boe upstream producti
Slide 24: Pearl GTL HSSE Performance
PEARL GTL HSSE PERFORMANCE LARGE WORKFORCE, COMPLEX PROJECTS SAFETY RECORD • Pearl GTL workforce ~50,000 Lost time injury per million working hours 0.3 • Pearl Village 0.2 • Safety track record 0.1 0 2006 2007 2008 2009 PROJECT STAFF Korean Others Turkish Bangladeshi Thai Indian Pakistani New pictur
Slide 25: Qatargas 4
ROYAL DUTCH SHELL PLC PEARL GAS-TO-LIQUIDS QATARGAS 4 QATARGAS 4
Slide 26: Qatargas Operating Company Ltd
QATARGAS OPERATING COMPANY LTD (QATARGAS) Qatargas Operating Company Ltd • QG 3&4 managed as one project by a Joint Asset Development Team QG 1 QG 1 • Shell secondees Train 1-3 Train 1-3 3 x 3.3 MPTA 3 x 3.3MPTA QG 2 QG 2 Train 4-5 Train 4-5 2 x7.8 MTPA 2 x7.8 MTPA * * Train 5 only QG 3 QG 3 Train 6
Slide 27: Shell Contribution to Qatargas Excellence
SHELL CONTRIBUTION TO QATARGAS EXCELLENCE PROJECT OPERATIONS SHIPPING MARKETING Courtesy of Qatargas Courtesy of Qatargas Courtesy of Qatargas Joint Asset Development Qatargas Operating Nakilat SPA Delivery Team Company • Qatar Gas Transport • Dubai • 36 secondees • COO Operations company • China •
Slide 28: Qatargas 4
QATARGAS 4 • 1.4 Bcf/day Wet gas : ~280 kboe/d Offshore Platforms • 7.8 mtpa LNG Sales products • ~70 kbbl/d NGLs • Construction complete Q4 2010 QG3 QG4 • 2011 ramp-up • ~$2 billion development cost* • Tax & royalty contract Joint storage • 30% Shell, 70% Qatar Petroleum 8x Full integration from of
Slide 29: Qatargas 4 Construction
QATARGAS 4 CONSTRUCTION Sulphur Recovery Units Utilities Courtesy of Qatargas Train 6 Train 7 0 500 M Courtesy of Qatargas Courtesy of Qatargas 29
Slide 30: LNG Shipping
LNG SHIPPING NAKILAT SHIPPING DEAL • 25 year master service agreement with Shell • Operator of 25 LNG ships owned by Nakilat • Close involvement with charterers (Qatargas and Rasgas) and QP interest in terminals in UK and USA • Transition of operatorship to Nakilat after 2018 NAKILAT LNG SHIPS - KOR
Slide 31: Qatargas 4 Marketing
QATARGAS 4 MARKETING OVERVIEW OF QATARGAS 4 REGAS TERMINALS SHELL GROUP LNG SALES DESTINATIONS % Elba Island Dubai Jiangsu + 2011 2008 Est. DEDICATED TERMINALS OTHER SHELL TERMINALS NORTH AMERICA EUROPE ASIA PACIFIC/ QG4 SWITCHED AWAY FROM N. AMERICA MIDDLE EAST QG4 sales destinations % • Balancing
Slide 32: Production & Financial Impact
ROYAL DUTCH SHELL PLC PEARL GAS-TO-LIQUIDS QATARGAS 4 PRODUCTION & FINANCIAL IMPACT
Slide 33: Shell Qatar Production & Cash Flow Outlook
SHELL QATAR PRODUCTION & CASH FLOW OUTLOOK UPSTREAM PRODUCTION CASH FLOW Kboe/d $ Bln 400 6 $50/bbl $70/bbl $70/bbl $50/bbl 4 300 2 200 0 -2 100 -4 0 -6 2010 2015 2020 2025 2030 2005 2010 2015 2020 2025 2030 PEARL SHELL SHARE NET CASH FLOW SHELL (PEARL & QATARGAS 4) QATARGAS 4 Projects deliver decad
Slide 34: Shell in Qatar: Building a Community
SHELL IN QATAR BUILDING A COMMUNITY 34