Slide 1: Shell Insights: Upstream Strategy
OWA E S. AW SHELL INSIGHTS: UPSTREAM STRATEGY Royal Dutch Shell ple May 25, 2021 » A. #PoweringProgress
Slide 2: Cautionary Note
CAUTIONARY NOTE In this presentation, “operating expenses, “oss” ond “underyng costs” refer o “Undying operating expenses” ules sted otherwise, Undeyng operating exposes represent “operating expenses excluding identified items”. Operting expenses cons of th following lnsin the Consolidated Statement
Slide 3: The Shell Investment Case
THE SHELL INVESTMENT CASE GENERATING SHAREHOLDER VALUE Growing value through a dynamic portfolio and disciplined capital allocation POWERING PROGRESS Our strategy to accelerate the transition to netzero emissions, purposefully and profitably RESPECTING NATURE Protecting the environment, reducing was
Slide 4: Upstream: Critical for Shell's Energy Transition
SHELL UPSTREAM: CRITICAL FOR SHELL'S ENERGY TRANSITION UPSTREAM DELIVERING THE ENERGY OF TODAY GROWTH PILLAR: TRANSITION PILLAR: UPSTREAM PILLAR: THE FUTURE OF ENERGY ENABLING OUR STRATEGY FUNDING OUR STRATEGY / Marketing / Renewables and Energy Solutions / Integrated Gas _/ Chemicals and Products M
Slide 5: Upstream: Critical for Shell's Energy Transition – Funding the Energy of Tomorrow
SHELL UPSTREAM: CRITICAL FOR SHELL'S ENERGY TRANSITION WHILE FUNDING THE ENERGY OF TOMORROW WwW) Royal Dutch Shell | May 25, 2021 More than $75 billion Upstream CFFO delivery $ billion $ perboe 30 80 60 20 40 10 a : 0 0 2016 2017 2018 2019 2020 1 Upstream CFFO excluding working capital — Average Bre
Slide 6: Continuously Raising the Standards on Operating Responsibly
SHELL UPSTREAM: CRITICAL FOR SHELL'S ENERGY TRANSITION CONTINUOUSLY RAISING THE STANDARDS ON OPERATING RESPONSIBLY >$70 billion Payments to Governments fe) Fatalities in 2020 operated ventures 97% 24% >65% Local employees Women in Reduction in in 2020 Upstream senior routine flaring leadership since
Slide 7: Track Record of Performance Improvement
SHELL UPSTREAM: A LEADING AND DIFFERENTIATED UPSTREAM BUSINESS TRACK RECORD OF PERFORMANCE IMPROVEMENT Unit Development Cost Unit Operating Cost Controllable Availability $ per boe $ per boe % 51% “26% +5% 15 90 10 10 88 86 5 5 a | 0 0 82 2015 2016 «2017, «2018-2019: 2020 2015 2016 «2017. 2018-2019
Slide 8: Competitive and Diverse Portfolio
SHELL UPSTREAM: A LEADING AND DIFFERENTIATED UPSTREAM BUSINESS COMPETITIVE AND DIVERSE PORTFOLIO Highest total CFFO excl. WC Highest unit CFFO Most diverse portfolio Carbon competitive Upstream + Integrated Gas CFFO excl. WC Upstream + Integrated Gas CFFO per boe Upstream + Integrated Gas % producti
Slide 9: Upstream: A Winning Strategy
SHELL UPSTREAM: A WINNING STRATEGY SUSTAINING CASH DELIVERY WELL INTO THE 2030s More focused More resilient More competitive uc kazakhstan one BNowic Maric wg Brel Bical I Core postions = Prioritising 9 core positions that generate 80% of Upstream CFFO = Lean ventures: maximise value, develop into c
Slide 10: Attractive and Resilient Funnel of Opportunities
SHELL UPSTREAM: A WINNING STRATEGY ATTRACTIVE AND RESILIENT FUNNEL OF OPPORTUNITIES Pre-FEED >500kboe/d FEED >300kboe/d Whale Gato De Mato Mero 4 Fort Sumter Dover Sururu 1 Bonga South West HI Development Bonga North Tranche coc Warp cienyfaerrt COG Bonga LE & Timi Upgrade Jackdaw Shal Shales less =
Slide 11: Strong Upstream Exploration Program Focused on Deep Water and Atlantic Margin
SHELL UPSTREAM: A WINNING STRATEGY STRONG UPSTREAM EXPLORATION PROGRAM FOCUSED ON DEEP WATER AND ATLANTIC MARGIN BASINS = Upstream exploration budget of $1.5 billion BE per annum 4 i = Focusing exploration on core positions (>80% A spend) with an emphasis on Deep Water z (>70% spend) A - x 7 = De-is
Slide 12: Material and Resilient Cash Delivery
SHELL UPSTREAM: A WINNING STRATEGY MATERIAL AND Upstream CFFO $ billion 20 $55 15 10 Historical 5-year average HE Core fil Lean $/bbl Brent = Investing $7-9 billion per annum to deliver future Upstream cash flows = Upstream free cash flow neutral at $40/bbl = Total Shell oil production expected to d
Slide 13: Deep Water
UPSTREAM STRATEGY DEEP WATER SHELL INSIGHTS UPSTREAM STRATEGY 2021
Slide 14: Deep-Water Excellence
UPSTREAM STRATEGY - DEEP WATER DEEP-WATER EXCELLENCE Deep-water portfolio IB Core positions @ Emerging/frontier options = Core positions in Brazil and Gulf of Mexico; diversified development options = Fillthe-hub-strategy and de-risking current frontier positions = Leveraging industry technology and
Slide 15: Leveraging Significant Position and Synergy Value Among Leases
UPSTREAM STRATEGY - CASE EXAMPLE ee LEVERAGING SIGNIFICANT POSITION and synergy value among leases ADVANTAGES Strong operational performance Fn ‘Appbmiattox Deploying new subsea technologies Perdido Corridor Artificial Intelligence to optimise production ~~ Blacktip (Discovery) Investing to reduce G
Slide 16: Leader in Deep-Water Well Delivery
UPSTREAM STRATEGY - CASE EXAMPLE eT aes itrerentiate: rilling capabill LEADER IN DEEP-WATER WELL DELIVERY drivin cost comneticoteer Competitiveness Replication Well cost competitiveness at FID (2018-2020) Industry average Bestin Top Qn 3rd Ath class quartile. quartile quartile quartile @ | Shell dee
Slide 17: Shales
UPSTREAM STRATEGY SHALES SHELL INSIGHTS UPSTREAM STRATEGY 2021
Slide 18: Shales Transformation
UPSTREAM STRATEGY - SHALES SHALES TRANSFORMATION High-graded integrated portfolio Reflects portfolio changes since 2017 Groundbirch Fox Creek/ Gold Creek Rocky Mountain House/ Foothills BH Argentina @ Divestment Appalachia @ I Existing asset AERA Hil © Hoynesvlle @ Core Upstream Position Permi US Ca
Slide 19: High Quality Position and Execution in the Permian
UPSTREAM STRATEGY - CASE EXAMPLE HIGH QUALITY POSITION AND EXECUTION IN THE PERMIAN Among highest oil yields in Delaware Basin % 100 2015 2016 2017 2018 2019 2020 Peer range = Shell = Positioned in one of thickest formations = 8+ years of Tier | inventory WwW) Royal Dutch Shell | May 25, 2021 Signif
Slide 20: Flaring & GHG Emissions in Permian
UPSTREAM STRATEGY - CASE EXAMPLE FLARING & GHG EMISSIONS IN PERMIAN = Maintaining methane emissions intensity below 0.2% = No routine flaring since 2018 = Delivering material flaring reductions while increasing production by nearly 120% = Enhanced infrastructure, unit reliability, flowback managemen
Slide 21: Conventional Oil and Gas
UPSTREAM STRATEGY CONVENTIONAL OIL AND GAS SHELL INSIGHTS UPSTREAM STRATEGY 2021
Slide 22: Resilient and Material Cash Delivery
UPSTREAM STRATEGY - CONVENTIONAL OIL AND GAS RESILIENT AND MATERIAL CASH DELIVERY Conventional Oil and Gas portfolio = ey Select UK assets Kazakhstan G Select 2 Iraqi assets Egypt onshore PD Makhoizna (signed) t Nigeria mers Brunei @ Malampaya (signed) OML17 © BD0 (in progress) Malaysia Gabon onshor
Slide 23: A Thriving Upstream Business in the UK
UPSTREAM STRATEGY - CASE EXAMPLE A THRIVING UPSTREAM BUSINESS IN THE UK West of Shetlands Northern North Sea ec Cet Ze SY Y & Acorn wy / Ceo) c/ OZ a f Suse Central North Sea Ih rire ETHYLENE { =r Hants ah “af = ¢ / \ WwW) bl 2021 \ = More than 50% production increase since 2015 = Selective growth i
Slide 24: Maximising Value from Our Lean Positions
UPSTREAM STRATEGY - CASE EXAMPLE MAXIMISING VALUE FROM OUR LEAN POSITIONS é OMO l Q e 3 5 ity = Differentiated operating model for \ I Ge Lean positions A . More frontline autonomy, Overseen by small Operating principles with = Maximise value, develop into core . _. . hoe . decentralised decision su
Slide 25: The Shell Investment Case
THE SHELL INVESTMENT CASE GENERATING SHAREHOLDER VALUE Growing value through a dynamic portfolio and disciplined capital allocation POWERING PROGRESS Our strategy to accelerate the transition to netzero emissions, purposefully and profitably RESPECTING NATURE Protecting the environment, reducing was
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Slide 27: Portfolio & Major Projects
SHELL UPSTREAM PORTFOLIO & MAJOR PROJECTS Project Country Shell Peak production Shelk share % kboe/d operated Mero 1 [A] Brazil 20 180 Pierce post Depressurisation UK 93 30 v PowerNap USA 100 35 v Vito USA 63 100 4 UK @ tan Malaysia 30. 95 i Kazakhstan Mero 2 [A] Brazil 20 180 ; Mero 3 [A] Brazil 20
Slide 28: Diverse Resource Base
SHELL UPSTREAM AND INTEGRATED GAS DIVERSE RESOURCE BASE Commercial resources Billion boe 40 20 (0) ExxonMobil Shell BP Chevron Total Conventional Oil and Gas, Oil sands and others 1 Shales i Deep Water Wl LNG ond GTL = 2P and commercial 2C resource base >20 years of production = Largest share of hig
Slide 29: Operating Responsibly – Safety and Environment
SHELL UPSTREAM OPERATING RESPONSIBLY - SAFETY AND ENVIRONMENT Total Recordable Case Frequency Process safety events Hydrocarbon spills (TRCF) (Tier 1 + Tier 2) (onshore & offshore) Per million working hours Number of events Thousand tonnes 1.0 60 “ 7 SS 3 40 0.5 2 20 1 0.0 0 0 MW 2016 2017 2018 2019
Slide 30: Operating Responsibly – Carbon
SHELL UPSTREAM OPERATING RESPONSIVELY - CARBON Flaring and venting (Operated Assets, 100%) million tonnes CO,eq 10 8 — 0 2016 2017 2018 2019 2020 — Routine flaring — Total flaring and venting = On track to eliminate routine flaring by 2030. Achieved more than 65% reduction since 2016 = Nonoutine fla
Slide 31: Actively Reviewing Operational Response and Portfolio Options for Onshore Oil in Nigeria
SHELL UPSTREAM: NIGERIA ACTIVELY REVIEWING OUR OPERATIONAL RESPONSE AND PORTFOLIO OPTIONS FOR ONSHORE OIL IN NIGERIA = A focused operational response by SPDC JV has resulted in notable improvements on spills in 2020 WA = Despite interventions, sabotage and theft continues = Onshore footprint reduced
Slide 32: Environmental Performance: Spills
SHELL UPSTREAM: NIGERIA ENVIRONMENTAL PERFORMANCE: SPILLS More than 90% of spills related to sabotage Environmental management SPDC JV spills Thousand tonnes # spills 10 200 5 100 0 a | 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 I Volume of operational spills IE Volume of sabotage spills =
Slide 33: Definitions
DEFINITIONS Average Upstream The capital weighted average project forward-looking unlevered expected rate of return where NPV equals zero, calculated at FID for project IRRs pre-FID projects. For Upstream and Integrated Gas price assumption of $60 per barrel Brent real terms 2020. Break-even price T
Slide 34: Abbreviations
ABBREVIATIONS BEP Break-even price Capex Capital expenditure EGS) Carbon capture and storage CFFO excl. WC Cash flow from operations excluding working capital COG Conventional Oil and Gas DW Deep Water FEED Front End Engineering Design FID Final Investment Decision GHG Greenhouse gas emissions GTL G