SLIDE 1
Royal Dutch Shell November 1, 2018
Royal Dutch Shell November 1, 2018
Third quarter 2018 results Delivering a world-class investment case - - PowerPoint PPT Presentation
Third quarter 2018 results Delivering a world-class investment case - - PowerPoint PPT Presentation
Third quarter 2018 results Delivering a world-class investment case Royal Dutch Shell plc November 1, 2018 #makethefuture Royal Dutch Shell November 1, 2018 Jessica Uhl Chief Financial Officer Royal Dutch Shell Royal Dutch Shell November
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Royal Dutch Shell November 1, 2018 3
Definitions & cautionary note
Operating costs are defined as underlying operating expenses, which are operating expenses less identified items. Organic free cash flow is defined as free cash flow excluding inorganic capital investment and divestment
- proceeds. ROACE (Return on Average Capital Employed) is defined as the sum of CCS earnings attributable to shareholders excluding identified items for the current and previous three quarters, as a percentage of the
average capital employed for the same period. Capital employed consists of total equity, current debt and non-current debt. Capital investment comprises capital expenditure, exploration expense excluding well write-offs, new investments in joint ventures and associates, new finance leases and investments in Integrated Gas, Upstream and Downstream equity securities, all of which on an accruals basis. Divestments comprises proceeds from sale of property, plant and equipment and businesses, joint ventures and associates, and other Integrated Gas, Upstream and Downstream investments, reported in “Cash flow from investing activities (CFFI)”, adjusted onto an accruals basis and for any share consideration received or contingent consideration recognised upon divestment, as well as proceeds from the sale of interests in entities while retaining control (for example, proceeds from sale
- f interest in Shell Midstream Partners, L.P.). This presentation contains the following forward-looking Non-GAAP measures: Organic Free Cash Flow, Free Cash Flow, Capital Investment, CCS Earnings less identified items,
Operating Expenses, ROACE, Capital Employed and Divestments. We are unable to provide a reconciliation of the above forward-looking Non-GAAP measures to the most comparable GAAP financial measures because certain information needed to reconcile the above Non-GAAP measure to the most comparable GAAP financial measure is dependent on future events some which are outside the control of the company, such as oil and gas prices, interest rates and exchange rates. Moreover, estimating such GAAP measures with the required precision necessary to provide a meaningful reconciliation is extremely difficult and could not be accomplished without unreasonable effort. Non-GAAP measures in respect of future periods which cannot be reconciled to the most comparable GAAP financial measure are calculated in a manner which is consistent with the accounting policies applied in Royal Dutch Shell plc’s financial statements. The forward-looking break-even prices (BEP) presented are calculated based on all forward-looking costs associated from FID. Accordingly, this typically excludes exploration and appraisal costs, lease bonuses, exploration seismic and exploration team overhead costs. The forward-looking breakeven price is calculated based on our estimate of resources volumes that are currently classified as 2p and 2c under the Society of Petroleum Engineers’ Resource Classification System. As the projects are expected to be multi-decade producing the per barrel projection will not be reflected either in earnings or cash flow in the next five years. The financial measures provided by strategic themes represent a notional allocation of ROACE, capital employed, capital investment, free cash flow, organic free cash flow and underlying
- perating expenses of Shell’s strategic themes. Shell’s segment reporting under IFRS 8 remains Integrated Gas, Upstream, Downstream and Corporate.
The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate legal entities. In this presentation “Shell”, “Shell group” and “Royal Dutch Shell” are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to Royal Dutch Shell plc and subsidiaries in general or to those who work for them. These terms are also used where no useful purpose is served by identifying the particular entity or entities. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as used in this presentation refer to entities over which Royal Dutch Shell plc either directly or indirectly has control. Entities and unincorporated arrangements over which Shell has joint control are generally referred to as “joint ventures” and “joint operations”, respectively. Entities
- ver which Shell has significant influence but neither control nor joint control are referred to as “associates”. The term “Shell interest” is used for convenience to indicate the direct and/or indirect ownership interest held by Shell
in an entity or unincorporated joint arrangement, after exclusion of all third-party interest. This presentation contains forward-looking statements (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995) 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 statements are statements of future expectations that are based on management’s current
expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward- looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as “aim”, “ambition”, ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’, ‘‘goals’’, ‘‘intend’’, ‘‘may’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘plan’’, ‘‘probably’’, ‘‘project’’, ‘‘risks’’, “schedule”, ‘‘seek’’, ‘‘should’’, ‘‘target’’, ‘‘will’’ and similar terms and phrases. There are a number of factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this presentation, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions. No assurance is provided that future dividend payments will match or exceed previous dividend payments. All forward-looking statements contained in this presentation are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional risk factors that may affect future results are contained in Royal Dutch Shell’s 20-F for the year ended December 31, 2017 (available at www.shell.com/investor and www.sec.gov ). These risk factors also expressly qualify all forward-looking statements contained in this presentation and should be considered by the reader. Each forward-looking statement speaks only as of the date of this presentation, November 1, 2018. Neither Royal Dutch Shell plc nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this presentation. We may have used certain terms, such as resources, in this presentation that the United States Securities and Exchange Commission (SEC) strictly prohibits us from including in our filings with the SEC. U.S. investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website www.sec.gov.
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Royal Dutch Shell November 1, 2018 4
Summary
Divestments: headline. Methane emissions target covers all oil and gas assets for which Shell is the operator.
Key messages
Cash f
flow d deliv ivery
Cash flow from operations excluding working capital of $14.7 billion Free cash flow of $8 billion Fin
inancia ial framework
$25 billion share buyback programme ongoing 1st tranche completed, 2nd tranche of up to $2.5 billion announced Gearing further reduced to 23.1% Reshapin
ing the p portfolio io
Final investment decision on LNG Canada Divestments completed and announced >$30 billion Energy transit
itio ion & l lic icense to o
- perate
Target to maintain methane emissions intensity below 0.2% by 2025
Thrive in the energy transition World-class investment case Strong license to operate
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Royal Dutch Shell November 1, 2018 5
Portfolio & projects
LNG Canada
IRR defined as the discount rate that results in an NPV of zero for future after-tax cash flows expected from investment in upstream, midstream and trading, at LNG price of $8.5/MMBtu (Tokyo DES, real terms 2018).
Consistent with strategy and disciplined approach
to capital investment
LNG demand growth driven by Asia, supply gap
expected in early 2020s
Capital investment included within existing $25-30
billion guidance
Estimated integrated project IRR ~13% Upside with trains 3 & 4 Competitive cost of supply into Asia Support from local communities, First Nations and
Canadian Government Emergin ing LNG s supply-demand gap
Million tonnes per annum (DES)
LNG Canada – future sit ite vie iew Rig ight proje ject, , in in the rig ight place, , at the rig ight tim ime
100 200 300 400 500 600 2000 2005 2010 2015 2020 2025 2030 2035
LNG supply in operation LNG supply under construction Demand forecasts
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Royal Dutch Shell November 1, 2018 6
Portfolio & projects
Thriving in the Energy Transition
Source graph: Embassy of the USA – Beijing, China; National Bureau of Statistics of China; Beijing Gas Group Co. Ltd. 2018E based on H1 2018 extrapolation.
LNG Canada – competit itiv ive low carbon footprin int
BCM
Beij ijing – gas as a cleaner alternativ ive to c coal LNG resil ilie ient in in the Energy Transit itio ion Low upstream emissions in the Montney LNG plant clean power import Low CO2 LNG technology TransCanada methane principles Coastal Gas Link (CGL) efficient compression
British Columbia Alberta
Canada
μg/m3 Particulate matter PM2.5 (RHS) Beijing area gas demand 20 40 60 80 100 120 2 4 6 8 10 12 14 16 18 20 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018E
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Royal Dutch Shell November 1, 2018 7
Q3 2018
Other portfolio developments
Nig
igeria ia Epu near fie ield dis iscovery – 823 net feet of new hydrocarbon bearing pay
Brazil
il bid id round – awarded Saturno pre-salt block as operator, increasing Brazilian offshore acreage to 2.7 million acres
Maurit
itania entry – 23,675 square kilometres of new exploration acreage
Fir
irst productio ion from Lula Extreme South P-69 FPSO – with capacity to produce up to 150 thousand barrels of oil per day, Shell interest 25%
Start-up of solvent deasphalter unit
it in in Pernis is – increasing the production
- f cleaner transport fuels ahead of IMO 2020 regulation
Fir
irst ship ip-to to-ship LNG bunkerin ing – completed in port of Rotterdam
Denmark Upstream – announced sale for consideration of $1.9 billion Argentin
ina Downstream – completed sale for consideration of $0.9 billion
Shell’s interest in the Lula field is subject to unitisation agreements.
Portfolio & projects
Portfolio highlights
Exploration Project delivery Divestments
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Royal Dutch Shell November 1, 2018
Of which $7.5 billion organic free cash flow More than covers dividend, interest and share buybacks
Disciplined cash allocation Cash generation
8
Q3 2018
Financial highlights: summary
Dividend distributed to RDS shareholders; Buybacks: subject to further progress with debt reduction and oil price conditions. First tranche of $2 billion, of which $1.4 billion completed in Q3 2018, $0.6 billion in Q4 2018; Earnings and ROACE on CCS basis, excluding identified items.
Q3 2 2018 average Brent pric ice: : $7 $75/ 5/bbl bbl
$5.6 billion earnings
Net debt reduction Share buybacks Capital investment
$14.7 billion
Highest since Q2 2008 when Brent averaged >$120/bbl
for the quarter
$8.0 billion
Cash flow from operations
- excl. working
capital Free cash flow ROACE
7.1%
Returns
$1.7 billion
23.1% gearing
$2.0 billion $5.8 billion
Estimated to be ~$25 billion in 2018 First tranche completed in October Second tranche of up to $2.5 billion announced Intention to purchase $25 billion by the end of 2020
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Royal Dutch Shell November 1, 2018 9
Q3 2018
Financial highlights: earnings
Earnings and ROACE on CCS basis, excluding identified items.
$ billion
Earnin ings Q3 2017 to Q Q3 2018
$ b $ bil illion ion
Q3 3 20 2017 17 Q3 3 20 2018 18
Integrated Gas 1.3 2.3 Upstream 0.6 1.9 Downstream (CCS) 2.7 2.0 Corporate & non-controlling interest (0.4) (0.6) CCS earning earnings 4.1 .1 5. 5.6 CCS earnings, $ per share 0.50 0.68 ROACE ROACE (%) (%) 4.6 .6 7.1 .1
4.1 4.1 5.6 5.6 2.5 (0.1) 0.3 (0.8) (0.2) (0.1) 2 4 6 8
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Royal Dutch Shell November 1, 2018 10
Q3 2018
Financial highlights: cash flow
Dividend distributed to RDS shareholders.
$ billion
CFFO e excl. . workin ing g capit ital Q2 2018 to Q Q3 2018
11.6 11.6 14.7 14.7 0.6 0.6 0.8 0.5 0.6 4 8 12 16 $ b $ bil illion ion
Q2 2 20 2018 18 Q3 3 20 2018 18
Integrated Gas 3.0 3.3 Upstream 5.5 6.7 Downstream 1.0 1.0 Corporate 0.0 1.1 Cash flow from
- perations
9.5 12.1 Cash flow from operations
- excl. working capital
11.6 14.7 Cash flow from investing activities 0.0 (4.1) Fr Free ee cash ash flow flow 9.5 .5 8.0 .0 Dividend (3.9) (3.9) Interest paid (0.9) (0.9) Share buybacks
- (1.4)
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Royal Dutch Shell November 1, 2018 11 Earnings and ROACE on CCS basis, excluding identified items; Pricing assumption 2020: $60 per barrel real terms 2016, mid-cycle Downstream; Divestments: headline, cash proceeds in 2016, 2017 and Q1-Q3 2018: $24.3 billion (in CFFI), $2.1 billion related to Shell Midstream Partners, L.P. (in CFFF).
$ billion
- 5
5 15 25
- 5
5 15 25 2014 2015 2016 2017 18Q3 4Q rolling
Earnin ings & ROACE ( (4Q rollin ing)
$ billion
- 15
15 30 45 2014 2015 2016 2017 18Q3 4Q rolling
Cash flow (4Q rollin ing)
$ billion 15 20 25 30 50 55 60 65 70 75 80 16Q1 16Q2 16Q3 16Q4 17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3
Gearin ing
$20 billion earnings ROACE increased to 7.1% On track to deliver 10% ROACE in
2020
$29 billion free cash flow $17 billion organic free cash flow More than $30 billion divestments
completed or announced since 2016
On track to deliver 2020 outlook $8.3 billion of net debt reduction
since Q3 2017
Gearing reduced from 23.6% to
23.1% in the quarter
Line of sight to 20% gearing
Q3 2 2018 (4Q rollin ing) average Brent pric ice: : $69/ $69/bbl bbl
% %
Upstream ROACE (RHS) Downstream Integrated Gas Corporate + NCI CFFO CFFI FCF Net debt Gearing (RHS)
Q3 2018
Financial highlights: trend
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Royal Dutch Shell November 1, 2018 12
Outlook
Four powerful levers
2019 capital investment outlook excludes IFRS 16 impact; Divestments: headline, cash proceeds in 2016, 2017 and Q1-Q3 2018: $24.3 billion (in CFFI), $2.1 billion related to Shell Midstream Partners, L.P. (in CFFF); CFFO from new projects 2018 and 2020: compared with 2014, at $60 per barrel real terms 2016. Q3 2018 year-to-date at $72 per barrel average Brent.
$30 billion divestment programme:
▪ Argentina Downstream completed ▪ $28 billion completed to date ▪ Further $4 billion announced – including $1.9
billion for Denmark Upstream
>$5 billion per annum in 2019 and 2020 $25-30 billion per annum until 2020 Disciplined & efficient capital allocation Material savings post-FID 2018 full year outlook: ~$25 billion 2019 outlook: within the $25-30 billion range 4-quarters rolling underlying operating
expenses of $38.7 billion
Drive simplification, standardisation
and digitalisation
Leveraging the Shell Business Operations
shared services model Operatin ing expenses Capit ital in investment Div ivestments New proje jects
CFFO from new projects:
▪ $9 billion year-to-date ▪ +$10 billion by end 2018 ▪ +$15 billion by end 2020
New projects provide oil price upside
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Royal Dutch Shell November 1, 2018 13
Outlook
Projects delivery
Pricing assumption 2018E-2021E and 2018 YTD estimate: $60 per barrel real terms 2016. Brazil accumulations are subject to unitisation agreements.
$ billion
Cash contrib ibution ion from new proje jects Selected key proje jects Selected key proje jects to contrib ibute 2018-2020: :
▪ >400 kboe/d peak
production
▪ >$7 billion CFFO
2018E 2019E 2020E 10 20
2018 YTD estimate
Brazil (8 FPSOs) Gulf of Mexico (Cardamom, Mars, Stones, Kaikias) Malikai Gumusut Kakap Ph1 Brazil - Lula North (P-67) Appomattox Permian QCLNG Gorgon Prelude Kashagan Schiehallion redevelopment Clair Ph2
Nanhai China Chemicals Geismar AO4 Pernis SDA Scotford
Start-up up
Q3 2019 Q4 2018 Q4 2018 Q4 2018
Q4 2018 2017-2020
Deep- water Integrated Gas Conventional Oil & Gas Shales Chemicals Oil Products
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Royal Dutch Shell November 1, 2018
17 17 5 10 15 20 25 30 35 Q3 2018 4QR Normalisation to$60/bbl RT16 Q3 2018 4QR, normalised CFFO from key new projects 2020 outlook
14
Outlook
Organic free cash flow
2020 outlook at $60 per barrel real terms 2016, mid-cycle Downstream. Organic free cash flow normalised to stable $60 per barrel real terms 2016 oil price environment in 2020, assuming no working capital or margining movements. Price effect between current Brent price and 2020 outlook is indicative, calculated using rule-of-thumb.
$ billion
Organic ic free cash flow Q3 2 2018 to 2020 Outlook Focus on free cash flow growth On track to deliver 2020 outlook of $25-30
billion organic free cash flow
Normalised organic free cash flow excludes
effects of margining and working capital movements
New projects provide free cash flow growth
25-30 >7 (3) ~24 ~21
Organic free cash flow Working capital movement and IG margining
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Royal Dutch Shell November 1, 2018
Capit ital in investment Buybacks Divestment proceeds CFFO Surplus CFFO
15
Financial framework
Cash allocation
2019 capital investment outlook excludes IFRS 16 impact; 20% gearing as a proxy for AA equivalent credit metrics.
Intention to purchase $25 billion by the end of 2020 Subject to further progress with debt reduction and oil price
conditions
$25-30 billion p.a., organic & inorganic ~$25 billion in 2018 and within the range in 2019 $3.5-4 billion expected in 2018 23.1% as of Q3 2018 $3.9 billion cash payment in Q3 2018
Div ivid idend Interest Net debt reductio ion to 20% gearin ing
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Royal Dutch Shell November 1, 2018 16
Summary
Divestments: headline. Methane emissions target covers all oil and gas assets for which Shell is the operator.
Key messages
Cash f
flow d deliv ivery
Cash flow from operations excluding working capital of $14.7 billion Free cash flow of $8 billion Fin
inancia ial framework
$25 billion share buyback programme ongoing 1st tranche completed, 2nd tranche of up to $2.5 billion announced Gearing further reduced to 23.1% Reshapin
ing the p portfolio io
Final investment decision on LNG Canada Divestments completed and announced >$30 billion Energy transit
itio ion & l lic icense to o
- perate
Target to maintain methane emissions intensity below 0.2% by 2025
Thrive in the energy transition World-class investment case Strong license to operate
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Royal Dutch Shell November 1, 2018
Questions & Answers
Jessica Uhl Chief Financial Officer
Royal Dutch Shell November 1, 2018 17
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Royal Dutch Shell November 1, 2018
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Royal Dutch Shell November 1, 2018
0.5 1.1 0.9 2.6 2.6 2 4 6 8 Inventories - price effect Inventories - volume effect AP/AR movement Total working capital movement
19
RDS working capital movements
$ billion
Workin ing capit ital movements Q2 2018 to Q3 2018
$ billion
Workin ing capit ital movements Q3 2017 to Q3 2018 ~300 mil illio ion boe in in Downstream in inventory at end Q3 2018 – materia ially unchanged d from Q3 3 20 2017 17
5.6 0.6 1.3 7.5 7.5 2 4 6 8 Inventories - price effect Inventories - volume effect AP/AR movement Total working capital movement
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Royal Dutch Shell November 1, 2018
Outlook
Q4 2018 Outlook
Q4 4 – Q4 4 OUTLOOK: : Year-ago baseline reflects Shell’s earnings seasonality
Integrated gas
Production volumes: 0-40 thousand boe/d lower, mainly due to divestments
Liquefaction volumes: up to 0.3 million tonnes higher, mainly due to increased feed gas availability and lower maintenance
Upstream
Production volumes: 80-120 thousand boe/d higher, mainly due to lower maintenance activity and growth from new fields more than offsetting the impacts of field decline and divestments
Downstream
Refinery availability to increase, as a result of lower maintenance activity
Chemicals availability to increase, as a result of lower maintenance activity
Oil products sales volumes: 40-70 thousand boe/d lower, mainly as a result of the divestment of the Downstream business in Argentina 20 2018 18 OUTLOOK:
Corporate segment:
: net charge of $350-400 million in Q4, excluding the impact of currency exchange rate effects
IFRS 16: updates will be communicated in Q1 2019
20
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Royal Dutch Shell November 1, 2018
Q3 2018
Prices & margins
$/barrel
Shell oil il & g gas realis isatio ions
$/barrel
Industry refin inin ing margin ins
$/tonne
Industry chemic icals margin ins
1 2 3 4 5 6 20 40 60 80 17Q3 17Q4 18Q1 18Q2 18Q3 3 6 9 12 15 18 17Q3 17Q4 18Q1 18Q2 18Q3 200 400 600 800 1000 17Q3 17Q4 18Q1 18Q2 18Q3 US ethane Western Europe naphtha NE/SE Asia naphtha US West Coast US Gulf Coast coking Rotterdam complex Singapore Oil Gas (RHS)
21
$/mscf
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Royal Dutch Shell November 1, 2018
1.3 1.3 2.3 2.3
1.2 0.1 (0.2) (0.1) ~(0) 1 2 3
22
Q3 2018
Integrated Gas results
$ billion
Earnin ings Q3 2017 to Q Q3 2018
Environment Choice
Earnings on CCS basis, excluding identified items
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Royal Dutch Shell November 1, 2018
0.6 0.6 1.9 1.9 1.8 0.1 0.1 0.1 0.1 (0.8) (0.1) 1 2 3
23
Q3 2018
Upstream results
$ billion
Earnin ings Q3 2017 to Q Q3 2018
Environment Choice
Earnings on CCS basis, excluding identified items
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Royal Dutch Shell November 1, 2018
2.7 2.7 2.0 2.0 (0.3) (0.1) (0.1) (0.1) ~(0) 1 2 3
24
Q3 2018
Downstream results
Earnings on CCS basis, excluding identified items
$ billion
Earnin ings Q3 2017 to Q Q3 2018
$ billion
Earnin ings mix ix
5 10 2015 2016 2017 18Q3 4Q rolling Marketing Refining & Trading Chemicals
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Royal Dutch Shell November 1, 2018
Start-up Project Country Shell share % Peak production 100% kboe/d LNG 100% capacity mtpa Products Legend Th Theme Shell
- perated
2018-19 Appomattox United States 79 175
Deep water
P
Atapu South (P-70)* Brazil 25 150
Deep water Berbigão and Sururu SW (P-68)* Brazil 25 150
Deep water Clair Ph2 United Kingdom 28 120
Conventional oil + gas Forcados Yokri Integrated Project (FYIP) Nigeria 30 40
Conventional oil + gas
P
Geismar AO4 United States 100 425 ktpa AO
Chemicals
P
Gumusut-Kakap Ph2 Malaysia 29 50
Deep water
P
Lula North (P-67)* Brazil 25 150
Deep water Permian + Fox Creek ** United States & Canada various ~200
Shales
P
Prelude FLNG Australia 68 131 3.6 1.7 mtpa NGLs
Integrated Gas
P
Rabab Harweel Integrated Project Oman 34 35
Conventional oil + gas Southern Swamp AG Nigeria 30 40
Conventional oil + gas
P
Tempa Rossa Italy 25 50
Conventional oil + gas WDDM 9B Egypt 50 52
Conventional oil + gas 2020+ FPSO P-71* Brazil 25 150
Deep water Bakong / Gorek / Larak (SK408) Malaysia 30 75
Conventional oil + gas
P
Changbei II China 100 TBD
Integrated Gas
P
KBB Ph2 Malaysia 30 75
Conventional oil + gas LNG Canada T1-2 Canada 40 14
Integrated Gas Mero 1* Brazil 20 180
Deep water Pegaga Malaysia 20 95
Conventional oil + gas Penguins Redevelopment United Kingdom 50 45
Conventional oil + gas
P
Pennsylvania cracker United States 100 1.5 mtpa C2
Chemicals
P
Troll Ph3 Norway 8 255
Conventional oil + gas Tyra Future*** Denmark 37 80
Conventional oil + gas Vito United States 63 100
Deep water
P
* The Brazil accumulations are subject to unitisation agreements which impacts onstream, under construction, and pre-FID projects; production shown is FPSO oil capacity as per operator ** Fox Creek and Permian production represents Shell entitlement share of production and is the production growth expected between 2016 peak to 2018 peak production *** Subject to completion of Denmark Upstream divestment
25
Projects under construction
2018 2018-19 Shell share:
▪ >600 kboe/d ▪ 2.4 mtpa LNG ▪ 0.4 mtpa AO
2020+ Shell share:
▪ >250 kboe/d ▪ 5.6 mtpa LNG ▪ 1.5 mtpa ethylene
SLIDE 26
Royal Dutch Shell November 1, 2018
Phase Project Country Shell share % Peak production 100% kboe/d LNG 100% capacity mtpa Products Legend Th Theme Shell
- perated
Define
Arrow Surat Australia 50 TBD
Integrated Gas Assa North Nigeria 30 60
Conventional oil + gas
P
Bonga South West Nigeria 43 175
Deep water
P
Gbaran Ph3 Nigeria 30 50
Conventional oil + gas
P
Lake Charles LNG United States TBD 16.8
Integrated Gas Uzu Development Nigeria 30 45
Conventional oil + gas
P
Val d'Agri Future Development Italy 39 65
Conventional oil + gas
Assess /
Bonga Main Life Extension & Upgrade Project Nigeria 55 75
Deep water
P Select
Clair South United Kingdom 28 60
Conventional oil + gas HI Development Nigeria 40 75
Conventional oil + gas
P
Jackdaw United Kingdom 74 40
Conventional oil + gas
P
Jerun Malaysia 30 95
Conventional oil + gas Kalamkas Kazakhstan 17 55
Conventional oil + gas Kashagan CFP Kazakhstan 17 65
Conventional oil + gas KGK Expansion Project Ph1 Kazakhstan 29 40
Conventional oil + gas Mero 2* Brazil 20 180
Deep water Mero 3* Brazil 20 180
Deep water Mero 4* Brazil 20 180
Deep water LNG Canada T3-4 Canada 40 14
Integrated Gas Marjoram/Rosmari Malaysia 75 60
Conventional oil + gas
P
Ormen Lange Late Life Recovery Norway 18 50
Conventional oil + gas
P
Pearls Khazar Kazakhstan 55 40
Conventional oil + gas Pierce Depressurisation United Kingdom 93 25
Conventional oil + gas
P
Powernap United States 100 35
Deep water
P
Sakhalin T3 Russia 28 5.4
Integrated Gas Salym Southern Hub Project Russia 50 65
Conventional oil + gas * The Brazil accumulations are subject to unitisation agreements which impacts onstream, under construction, and pre-FID projects; production shown is FPSO oil capacity as per operator
26
Pre-FID
- ptions