Media webcast presentation Royal Dutch Shell fourth quarter and full year 2011 results

ROYAL DUTCH SHELL

2011 RESULTS AND
COMPANY UPDATE
February 2, 2012
y

1 Copyright of Royal Dutch Shell plc 2 February 2012

ROYAL DUTCH SHELL

PETER VOSER
CHIEF EXECUTIVE OFFICER


DEFINITIONS AND CAUTIONARY NOTE

Resources: Our use of the term “resources” in this presentation includes quantities of oil and gas not yet classified as SEC proved oil and gas reserves or SEC proven mining
reserves. Resources are consistent with the Society of Petroleum Engineers 2P and 2C definitions.

The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate 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 subsidiaries in general or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or
companies. ‘‘S b idi i ’’ “Sh ll subsidiaries” and “Sh ll companies” as used i this presentation refer to companies i which R
i ‘‘Subsidiaries’’, “Shell b idi i ” d “Shell i ” d in hi i f i in hi h Royal D h Sh ll either di
l Dutch Shell i h directly or i di
l indirectly
l
has control, by having either a majority of the voting rights or the right to exercise a controlling influence. The companies in which Shell has significant influence but not control
are referred to as “associated companies” or “associates” and companies in which Shell has joint control are referred to as “jointly controlled entities”. In this presentation,
associates and jointly controlled entities are also referred to as “equity-accounted investments”. The term “Shell interest” is used for convenience to indicate the direct and/or
indirect (for example, through our 24% shareholding in Woodside Petroleum Ltd.) ownership interest held by Shell in a venture, partnership or company, after exclusion of all
third-party interest.

This presentation contains forward-looking statements concerning the financial condition results of operations and businesses of Royal Dutch Shell All statements other than
forward looking condition, Shell.
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 ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’, ‘‘intend’’, ‘‘may’’, ‘‘plan’’, ‘‘objectives’’, ‘‘outlook’’,
‘‘probably’’, ‘‘project’’, ‘‘will’’, ‘‘seek’’, ‘‘target’’, ‘‘risks’’, ‘‘goals’’, ‘‘should’’ 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
forward-looking presentation,
(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 potential litigation and regulatory measures as a result of climate changes; (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. 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
p p yq y y y p
undue reliance on forward-looking statements. Additional factors that may affect future results are contained in Royal Dutch Shell’s 20-F for the year ended 31 December,
2010 (available at www.shell.com/investor and www.sec.gov ). These factors also should be considered by the reader. Each forward-looking statement speaks only as of the
date of this presentation, 2 February 2012. Neither Royal Dutch Shell 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. There can be no assurance that dividend payments will match or exceed those set out in this presentation in the
future, or that they will be made at all.

We use certain terms in this presentation, such as resources, that the United States Securities and Exchange Commission (SEC) guidelines strictly prohibit us f
from including in
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. You can also
obtain these forms from the SEC by calling 1-800-SEC-0330.


SHELL

Managing through extreme volatility

Customer and Profitability & Updating our outlook
partner focus performance

Sustainability & Value added Through-cycle investment and portfolio
g y p
growth technology choices


CONTINUED FOCUS ON HSSE PERFORMANCE

‘GOAL ZERO’ ON SAFETY
injuries – TRCF/million working hours million working hours

5 900
Focus on personal and process safety
l d f
4 800

3 700
Rigorous global standards
2 600

1 500
Industry leader in Sustainable Development
0 400
'01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11

WORKING HOURS (RHS) TRCF

EMPLOYEES AND CONTRACTORS PER MILLION WORKING HOURS; SHELL OPERATED FACILITIES; PRELIMINARY ESTIMATE FOR 2011


ENERGY INVESTMENT FUNDAMENTALS POSITIVE

ROBUST LONGER TERM FUNDAMENTALS MANAGING SHORT-TERM VOLATILITY
energy demand outlook in million boe/d $/bbl

140 12
400
120
10

300 100
8

80
6
200
60

4
40
100
2
20

0 0 0
1980 1990 2000 2010 2020 2030 2040 2050 2008 2009 2010 2011

OIL BIOMASS COAL BRENT (LHS)
GAS WIND NUCLEAR
HENRY HUB $/MMBTU (RHS)
SOLAR
SHELL ACTIVITIES
OTHER RENEWABLES WEIGHTED AVERAGE REFINING MARGIN $/BBL (RHS)

SOURCE: SHELL ANALYSIS


STRATEGY AND CAPITAL ALLOCATION

STRATEGY CAPITAL INVESTMENT

$ billion

Upstream
p 30
Profitable growth; price upside
Exploration + resources plays
UP
20
Downstream STREAM

Optimize re-shaped portfolio
Selective growth
10
Climate change
Grow gas and biofuels DOWN DOWN
CCS and energy efficiency STREAM STREAM
0
'09-'11 2012 '09-'11 2012
Financial outlook average average

Investing for growth and competitive payout EUROPE
AFRICA, MIDDLE EAST,
Through-cycle returns and risk management CIS
ASIA PACIFIC
AMERICAS

Increasing our investment; 80 Upstream
i i 80%


IMPROVING OUR PERFORMANCE

EARNINGS TOTAL SHAREHOLDER RETURN
$ billion CCS %

30 60%

40%

10 20%

0%
2009 2010 2011 2006-2008 2009-2011
-10 -20%
UPSTREAM CORPORATE
DOWNSTREAM DIVESTMENTS/OTHER SHELL OTHER MAJORS

CASH FLOW FROM OPERATIONS VOLUMES
$ billion kboe/day mtpa
3,300 20
40

3,000
3 000 10
20

0 2,700 0
2009 2010 2011 2009 2011
UPSTREAM DOWNSTREAM CORPORATE OIL & GAS 2010-11
2010 11 LNG (RHS)
REFINING INTAKE ASSET SALES CHEMICALS (RHS)
CFFO EXCLUDES WORKING CAPITAL MOVEMENTS


PORTFOLIO + PROJECT PERFORMANCE

DELIVERING NEW PROJECTS

North America: Canada: Qatar: Australia
Nigeria: tight gas
i h AOSP-1
AOSP 1 QatarGas4 LNG
Q G 4 (Woodside): Pl t
(W d id ) Pluto
Gbaran Ubie Ph 1
Russia: Sakhalin II
Singapore: Netherlands: Qatar: USA:
Chemicals Schoonebeek Pearl GTL Port Arthur
Brazil: USA: Norway: Iraq: NA: Oman: Oman:
BC-10
BC 10 Perdido Gjoa W Q
G West Qurna tight gas
h Qarn Al
Q Alam Harweel
H l

2009 2010 2011

Car
Care
Norway: Australia: USA: Mexico: UK: Indonesia:
Statfjord Woodside GOM Altamira Stanlow Abadi
(10%) Germany: y refinery
e ey FLNG
Greece: USA: Heide Cameroon Africa
Chile Pakistan Australia:
Downstream Eagle Ford refinery
Nigeria: USA: Iraq: Basrah Bow Energy
USA: OML Australia: South Brazil: Gas company Nigeria:
Iraq: Majnoon
East Resources 4/38/41 Arrow Energy Texas BS4/BMS8 OML 26/42

START UP DIVESTMENT ACQUISITION/NEGOTIATED ENTRY


ROYAL DUTCH SHELL

SIMON HENRY
CHIEF FINANCIAL OFFICER


DELIVERING OUR STRATEGY 2009 - 2011

2009+ PRIORITIES 2009-2011 DELIVERY

Cost focus
PERFORMANCE FOCUS Corporate reorganization
Downstream portfolio reduction

14 project start-ups
GROWTH DELIVERY Enhanced free cash flow
$31 billion dividends declared

Exploration + business development
NEW OPTIONS
Maturing new growth projects


Q4 2011 FINANCIAL HIGHLIGHTS

CCS EARNINGS CCS EARNINGS Q4 2010 TO Q4 2011

$ billion $ billion

6

Q4 10 Q4 11

UPSTREAM 3.4 5.1 5
DOWNSTREAM (CCS) 0.5 (0.3)

BUSINESS SEGMENTS TOTAL 3.9 4.8
4
CORPORATE & MINORITIES 0.2 0.0

CCS NET EARNINGS 4.1 4.8
3
CCS EARNINGS, $ PER SHARE 0.67 0.78

CCS EARNINGS, $ PER ADS
EARNINGS 1.34
1 34 1.56
1 56
2

CASH FROM OPERATIONS 5.5 6.5

1

0

EARNINGS CCS BASIS, EARNINGS AND EPS EXCLUDING IDENTIFIED ITEMS


EARNINGS AND PERFORMANCE 2009-2011

UPSTREAM PRODUCTION OIL & GAS REALISATIONS UPSTREAM EARNINGS
million boe/d mtpa $/barrel $/mscf $ billion
3 20
20 100 6

2 4
10
10 50
1 2

0 0 0 0 0
2009 2010 2011 2009 2010 2011 2009 2010 2011
OIL GAS 2010-11 ASSET SALES OIL GAS (RHS) OTHER UPSTREAM INTEGRATED GAS
LNG SALES (RHS)

DOWNSTREAM AVAILABILITY DOWNSTREAM MARGINS DOWNSTREAM EARNINGS
% availability $/barrel $/tonne $ billion (CCS)
100

500
2 4
95

1 250 2
90

85 0 0 0
2009 2010 2011 2009 2010 2011 2009 2010 2011
UNPLANNED DOWNTIME ROTTERDAM COMPLEX MARGIN OIL PRODUCTS CHEMICALS
CHEMICALS AVAILABILITY REFINERY AVAILABILITY WESTERN EUROPE NAPHTHA (RHS)

EARNINGS EXCLUDE IDENTIFIED ITEMS


RETURNS & CASHFLOW PERFORMANCE 2009-11

RETURNS CASHFLOW 2009-2011
$ billion $ billion
SOURCES USES
250 40% 120

100
200
30% DOWNSTREAM
80
150
DOWNSTREAM
20% 60

100
40 UPSTREAM
10% UPSTREAM
50
20

0 0% 0
2007 2008 2009 2010 2011 2012E
CAPITAL IN SERVICE CASH FLOW FROM OPERATIONS ACQUISITIONS
CAPITAL UNDER CONSTRUCTION/OTHER ASSET SALES CAPEX + EQUITY ACC.
RETURN ON CAPITAL IN SERVICE (RHS) INVESTMENTS
RETURN ON CAPITAL EMPLOYED (RHS) DIVIDEND AND BUYBACK

CFFO EXCLUDES NET MOVEMENTS IN WORKING CAPITAL


PERFORMANCE FOCUS 2009-2011
CONTINUOUS IMPROVEMENT+ CAPITAL EFFICIENCY
DIVESTMENTS 2009-2011 ACQUISITIONS 2009-2011

$17 $15
billion billion

UPSTREAM UPSTREAM
DOWNSTREAM DOWNSTREAM
Retail, Af i
R il Africa Biofuels, Brazil
Bi f l B il

Refocus Downstream: Growth oil + gas:
• Europe; Africa; Latin-America • East Resources, Arrow, liquids-rich
shales, Abadi, Basrah Gas Company
, , p y
Late life/non-strategic Upstream • New exploration acreage
• Upstream ~120 kboe/d
• Woodside (10%), South Texas, Growth Downstream:
Cameroon, Pakistan, others
C P ki h • Brazil biofuels, retail


GROWTH DELIVERY 2009-2011
CONVERTING RESOURCES TO PRODUCTION

billion boe resources

35

Longer-term upside Carmon Creek
Geronggong
BC-10 Ph. 3 (Massa)
25 Prelude FLNG Tempa Rossa
AOSP debottl. Fram
NA tight gas / Malikai
M lik i
shales AOSP debottl. + Quest
Clair Ph2 NA tight gas/shales
15 Schiehallion

Pearl GTL Pluto (Woodside)
( )
QatarGas-4 Harweel
Schoonebeek NA tight gas/shales
5
Qarn Alam EOR Eagle Ford
West Qurna 1 IPT

-5
2008 2009 2010 2011 2012

ON-STREAM UNDER CONSTRUCTION STUDY PRODUCTION

Growing opportunity funnel
g pp y
12 bln boe on stream, maturing additional ~20 billion boe


ROYAL DUTCH SHELL
UPDATING OUR PRIORITIES


2012+ PRIORITIES

12 billion boe resources on stream
CONTINUOUS IMPROVEMENT
Drive
D i new cashflow growth:
hfl th
GROWTH DELIVERY +30-50 % CFFO 2012-15 versus 2008-11*
Maturing >60 projects; ~20 billion boe resources
MATURE NEW OPTIONS
Exploration + bolt-on deals
PERFORMANCE FOCUS
2017-18 production potential ~4 mboe/d average

* CFFO OUTLOOK @$80-$100/BBL BRENT AND ASSUMES IMPROVED US GAS AND DOWNSTREAM ENVIRONMENT FROM 2011; CFFO EXCLUDES WORKING CAPITAL MOVEMENTS


2012+ OUTLOOK
UNPLANNED DOWNTIME PROCESS EFFICIENCY OPPORTUNITIES
%
Offer to cash
9
Inventory management
y g
6 Well and reservoir management
Materials management
3
Asset maintenance and integrity
CHEMICALS REFINING
0
2006 2007 2008 2009 2010 2011

TIGHT GAS/SHALE DRILL TIME PROCUREMENT: LOW COST COUNTRIES
Indexed Well Delivery Time per year since first production # of suppliers $ billion
Pinedale - 2002 250
Early Deep Basin - 2006 BEING QUALIFIED
100 SUPPLIERS 3
Deep Basin - 2008* 200 QUALIFIED
75 Haynesville - 2008
Groundbirch - 2008 150 SPEND 2
50 100
1
25 50

0 0 0
0 1 2 3 4 5 6 7 8 9 10 2008 2009 2010 2011
Years

Performance focus


ROYAL DUTCH SHELL
2012+ GROWTH PROJECTS


GROWTH DELIVERY 2012+
KEY PROJECTS UNDER CONSTRUCTION

Schiehallion
Redevelopment Clair Ph2
AOSP
Debottlenecking
Corrib
Kashagan Ph1
North America tight gas

Eagle Ford Port Arthur Majnoon FCP
Mars B UAE

Cardamom Amal Steam
RESOURCES Harweel Gumusut-Kakap
p
Sabah Gas
billion boe Kebabangan
Bonga NW
30
Prelude FLNG
Wheatstone LNG
North Rankin 2
20 Pluto LNG T1 (Woodside)
BC-10 Phase 2 Gorgon LNG T1-3
Under Greater Western Flank Ph 1
START-UP DATE
10
Construction
2012-13
2014-15
2016+
0

26 projects under construction


MAINTAINING LNG LEADERSHIP
AUSTRALIA – INDONESIA: 2011 PROGRESS SHELL GLOBAL LNG CAPACITY GROWTH
Abadi entry mtpa
• Inpex 60%
• Shell 30%
• EMPI 10% 40.0
Wheatstone
Wh
2012 FEED
Pluto T1 & Prelude
(Woodside)
Abadi FLNG
20.0 Gorgon
Greater Sunrise T1-3
FIDs Prelude FLNG
Browse 0.0
2011 ~2020+
Wheatstone North West Shelf ONSTREAM CONSTRUCTION OPTIONS
Pluto (Woodside)
Gorgon
G SHELL LNG LEADERSHIP
Arrow Energy LNG: year end mtpa
Bow Energy acquisition ~90% long-term contracted
Shell-PetroChina 50/50 30
~80% of portfolio oil price linked

PRODUCTION
20
0
UNDER CONSTRUCTION
OPTIONS
10
~20 mtpa on-stream
~8 mtpa under construction
p 0
Shell
Sh ll Exxon
E Chevron
Ch BG Total
T l BP
Assessing ~ 15 mtpa future options 2011 2017
PROJECTS ONSTREAM OR UNDER CONSTRUCTION


REGAINING MOMENTUM IN GULF OF MEXICO

Vito Appomattox
~100 kboe/d potential
100 ~100 kboe/d hub potential
100
>200 million boe resources Appraisal drilling underway
Shell 55% (operator) > 250 million boe resources
Shell 80% (operator)
Nakika

Mars-B Mars
W.Boreas, S D i
WB S. Deimos Ursa
100 km
Mars-B, Olympus tension leg platform Brutus
Cardamom Deep DISCOVERY FID START-UP
Auger Caesar Tonga
Perdido
P did
Mars B
Holstein
Caesar Tonga
Cardamom
Stones
Stones
45 kboe/d potential
Shell 35% (operator)
( p )
Appomattox
A tt

Vito
ONSTREAM UNDER CONSTRUCTION OPTIONS 2005 2010 2015 2020

~185 kboe/d 2011- ~350 kboe/d potential ~2017
p
Drilling 5+ exploration wells 2012


INVESTMENT IN UPSTREAM HEARTLANDS
UK: ATLANTIC MARGIN AUSTRALIA: NWS LNG JV MALAYSIA
8 ºW 6º 4º 2º 0º 2ºE

0 50
S c a le
km

F a r o e Is la n d s
F aro e
C o n tine n ta l
S h e lf
W est of
S h e tl nd
tla d
S lo p e

C la i r
S c h ie h a l l i o n

F o in a v e n S h e t la n d
I s la n d s
W est of
S he tla n d
C on tin e nt al
S h e lf

O rkn ey
Is l a n d s

W e s te rn
Is l e s

S c o t la n d

Schiehallion (Shell 36%) Operating since 1989 Sabah Gas Kebabangan
• N FPSO
New Delivered >3,000 LNG cargoes
D li d 3 000 • IIntegrated production platform
t t d d ti l tf
• ~130 kboe/d Developing new gas resources: • ~130 kboe/d
• North Rankin ~280 kboe/d • Shell 30%
Clair Ph 2 (Shell 28%) • GWF Phase 1 ~110 kboe/d
• ~120 kb /d
20 kboe/d Shell 2 %
Sh ll 21% EOR
O
• Extending 2 PSCs with Petronas
• ~100 kboe/d potential
• Shell 40-50%


PRODUCTION OUTLOOK

PROJECTS UNDER CONSTRUCTION GROUP PRODUCTION OUTLOOK

Region Theme
100% 100%

90%

80%
Gorgon LNG, Australia 75%
70%

60%

50% 50%

40%

Mars-B, USA 30%
25%
20%

10%

0% 0%
2011 2017 2011 2017
AOSP debottlenecking Canada
debottlenecking,

MIDDLE EAST, AFRICA, CIS HEAVY OIL & EOR
EUROPE DEEPWATER
ASIA PACIFIC TIGHT/SHALE OIL/GAS
AMERICAS INTEGRATED GAS
TRADITIONAL
Bonga North West, Nigeria


ROYAL DUTCH SHELL
MATURING NEW GROWTH
OPTIONS


MATURING NEW GROWTH OPTIONS
DOWNSTREAM: SELECTIVE GROWTH

2012 CAPEX
$ billion
6
UK Retail
LNG to transport Lubes Russia
Rhineland Connect 4
Gas-to-
chemicals
Port Arthur China Retail + Lubes 2
Qatar China refining
chemicals and chemicals
0
CHEMICALS GROWTH
Raízen
REFINING BASE
UNDER DEVELOPMENT
OPTIONS MARKETING/OTHER
2011 DEALS

Nanhai chemicals Singapore chemicals Raízen Port Arthur Qatar chemicals
Gas-to-chemicals US
China

2006 2010 2011 2012 FUTURE

Value chains and leveraging our brand


2011 EXPLORATION + BUSINESS DEVELOPMENT
2011 EXPLORATION & ACQUISITIONS RESOURCES MATURATION / POTENTIAL
billion boe

4
Marcellus
Clair
Cl i Eagle Ford
E l F d
Groundbirch Abadi
Iraq
Liquids-rich
Arrow
shales
Marcellus China tight gas Groundbirch
2

Eagle Ford Zaedyus
Z d
Tologbene GAS
OIL
Acme West 0
Satyr-3
Vos
Arrow '08 '09 '10 '11

-2
DISCOVERY NEW EXPLORATION ACREAGE
APPRAISAL RESOURCES PLAY ENTRY

2011 delivery: EXPLORATION/APPRAISAL
2.3 billion boe exploration + appraisal DISPOSALS
>4 billion boe E&A + deals~; ~30% tight/shale gas
PRODUCTION

>140,000 km2 new acreage in 2011 RESOURCES-BASED DEALS

2008-11 delivery: ~13 billion boe at $2-3/boe (E&A + deals)


2011 DRILLING SUCCESS
FRENCH GUIANA – NEW PLAY OPENER WEST AUSTRALIA GAS FOR LNG

French G i
F h Guiana –
Guyane Maritime
Shell 45%
Zaedyus (GM-ES-1) Satyr-3 Acme West 1&2
NWS LNG
y
Guyana – Stabroek
Shell 50%* Vos-1 Gorgon LNG

0 100 200

Kilometers DISCOVERY

>300 million boe (100% basis) in Zaedyus discovery; New gas discoveries in 2011
upside identified
23 discoveries since 2005 12+ tcf Sh ll
di i i 2005; 12 f Shell
1 exploration well and Zaedyus appraisal 2H 2012 share added at <$1/boe finding cost
Multiple targets across 63,000 km2 in French Guiana Shell average 40%
& Guyana deepwater

* INCREASE PENDING GOVERNMENT APPROVAL


EXPLORATION: CONSISTENT DELIVERY OF NEW
RESOURCES DISCOVERED RESOURCES POTENTIAL
billion boe

3

2

Cardamom
Deep Appomattox 1
Amal SE
West Boreas Vito
South Deimos
S hD i Zaedyus
Z d Tologbene Geronggong
G
0
'02 '03 '04 '05 '06 '07 '08 '09 '10 '11
Concerto
Achilles Acme TRADITIONAL OIL/GAS INTEGRATED GAS
Massa
Vos Acme West
2009-2011 TIGHT/SHALE OIL/GAS
KEY FINDS Satyr Brederode
Gato do Mato
Yellowglen Kentish Knock
EXPLORATION PERFORMANCE
%
100%
~15 billion boe discovered 2002-2011

Strategic shift to OECD 50%

Stepped up spending in 2005
0%
'01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11
Renewed spending + activity increase 2011-2012
e ewed spe d g ac v y c ease 0 0
% OECD SUCCESS RATE

DISCOVERED RESOURCE POTENTIAL


STEPPING UP 2012 EXPLORATION PACE
EXPLORATION SPEND 2012 EXPLORATION SPEND

Alaska

N. America N. America liquids- Kazakhstan (1)
tight gas rich shales
Saudi Arabia (1) China
Gulf of Mexico (5)

Fr Guiana (2)
Brunei (4)
Gabon (1) &
Nigeria (1) Australia
offshore (5)
Brazil (1) Australia onshore CBM

New Zealand (1)
2012 DRILLING PLAN (# WELLS) INTEGRATED GAS
DEEPWATER
TRADITIONAL
TIGHT / SHALE OIL/GAS
20 -25 key well & play tests in 2012 in Australia
NWS, GoM, and tight/shale gas

Frontier drilling weighted to deep water and liquids-
rich shale plays
i h h l l


BUILDING WORLD-WIDE TIGHT GAS + LIQUIDS-RICH
SHALES PORTFOLIO

Canol Groundbirch
Montney Deep Basin
Germany
Foothills
Bakken Ukraine
Pinedale Utica
Niobrara
Marcellus Turkey Wells Manufacturing JV with CNPC
Monterey Mississippi Lime
Wolfcamp Haynesville Egypt China tight gas
Eagle Ford
Oman

Colombia

Neuquen
N TIGHT GAS
LIQUIDS POTENTIAL
2011 ENTRY
Drilling rig – Alberta

~50,000 km2 (~12 million acres) acreage world wide
~12,000 km2 (~3 million acres) liquids-rich shales added 2011; ~$2 billion, ~$825/acre


LIQUIDS-RICH SHALES AND TIGHT GAS OUTLOOK
2012 PRIORITIES + OUTLOOK GLOBAL PRODUCTION POTENTIAL
kboe/day bcfe/day
2.0
300
Annual investment decisions + flexibility
y 1.5
15
200
1.0
Focus on lowest cost North America gas
100 0.5
Spending at low-end of potential range
0 0
2008 2010 2011 2012
Eagle Ford liquids-rich shales development GAS LIQUIDS SOUTH TEXAS DISPOSAL

2012 CAPEX* ~$6 billion
Appraisal of new liquids-rich shale acreage
liquids rich
>250 kboe/d potential 2017
EXPLORATION + APPRAISAL
NORTH AMERICA GAS
INTERNATIONAL GAS DEVELOPMENT
LIQUIDS-RICH SHALES

* EXCLUDES ACREAGE PURCHASES


NORTH AMERICA GAS VALUE CHAINS
LEVERAGE SHELL INTEGRATION KNOW-HOW EXAMPLE: COMMERCIALISING LNG FOR TRANSPORT

Fort St John Fort Mc Murray

Grande Prairie
Gas into il i i
G i t oil pricing opportunity
t it
Canada Green Corridor FID 2011
FID for 0.3 mtpa LNG Edmonton
Long distance truck fuel
Assessing gas potential: LNG retail infrastructure

Calgary
C l

Vancouver Jumping Pound
• LNG-for transport Canada
ENGINES MODIFIED FOR LNG
• Western Canada LNG

• Gas-to-chemicals in Appalachia

• GTL options

Canada: Jumping Pound Gas Plant LNG powered truck


IRAQ OIL & GAS
WEST QURNA 1 + MAJNOON BASRAH GAS COMPANY (BGC)

Majnoon
West Qurna1

South Gas Processing Plants BASRAH

Rumaila Zubair

South Gas LPG Terminal

Barge unloading pipe racks at th
B l di i k t the OIL FIELDS WITH SHELL INTEREST
Majnoon Jetty, Shat-al-Arab waterway GAS SUPPLIES FOR BGC

West Qurna 1 November 2011 Joint Venture approved
• Rehabilitation program progressing ~2 bcf/d wet gas feedstock
• Cost recovery commenced
Majnoon: ~ 700 msfc/day currently flared
• Drilling programme under way for FCP Phased development approach
3-6 month conversion of capex to cash flow post- • Domestic gas, 35 kboe/d condensate, 5 mtpa LPG
FCP/IPT • Long term LNG export p
g p potential
Shell 44%


MATURING NEXT GROWTH OPTIONS
MATURING NEW PROJECTS 2012+

Long-term growth and investment
TIGHT GAS – N. AMERICA CARMON CREEK - CANADA

Options to flex annual spending with macro

Capex and growth outcomes

Investment decisions driven by
ARROW - AUSTRALIA APPOMATTOX - USA

Portfolio fit
o o o

Affordability

Profitability
y

Maturing 36 project options
Portfolio can support profitable growth to ~2020


ROYAL DUTCH SHELL
FINANCIAL FRAMEWORK


CAPITAL INVESTMENT

STRONG PROJECT FLOW DRIVES INVESTMENT GROWTH
capital investment $ billion

Thematic
Schiehallion
Redevelopment
R d l t
AOSP Debottlenecking
EXPLORATION 30
Clair Ph2
LNG for transport
UK Retail
HEAVY OIL & EOR North America NA LRS
tight gas
TIGHT/SHALE OIL/GAS US chemicals Basrah Gas Company
Eagle Ford
UPSTREAM

Mars-B
M B Qatar chemicals
Cardamom Sabah Gas Kebabangan
DEEPWATER
20

Abadi FLNG
Raízen
INTEGRATED GAS NWS GWF Ph1 Prelude FLNG
BC-10 Ph2 Wheatstone LNG

TRADITIONAL 10

FID 2010-2011
DOWNSTREAM 2011 PORTFOLIO GROWTH
2011 2012
$ billion 2010 Target 2011 Target
0
Organic investment 24 28 26 ~32
2012
Acquisitions 7 2.5 5
Disposals (7) (5) (7) (~2-3)
Net Capital Investment 24 25-27 24 ~30


UPDATING OUR GROWTH OUTLOOK
OIL & GAS PRODUCTION + OUTCOMES SUSTAINED CASH FLOW GROWTH

million boe/day $ billion

4.0

200 200 $100/bbl

$80/bbl

3.5 150 150
$87/bbl Brent

100 100

3.0
30

50 50

2.5 0 0
2009 2010 2011 2017-18 2008 -2011 2012 – 2015
average POTENTIAL

PRODUCTION + POTENTIAL CASH FLOW FROM NET CAPITAL INVESTMENT
2010-11 ASSET SALES OPERATIONS DIVIDENDS AND BUYBACKS
FUTURE ASSET SALES AND LICENSE EXPIRIES

PRODUCTION OUTLOOK @ $80/BBL BRENT. CFFO OUTLOOK ASSUMES IMPROVED US GAS AND DOWNSTREAM ENVIRONMENT FROM 2011; CFFO EXCLUDES WORKING CAPITAL MOVEMENTS


FINANCIAL FRAMEWORK

CASH PERFORMANCE
+30 50%
+30-50% CFFO 2012 15 versus
2012-15
2008-11
Growth free cash flow
CFFO drives investment + payout

PAY-OUT INVESTMENT

Dividend linked to business results
~$30 billi net capex 2012
$30 billion t
Scrip dividend with buy back offset
Affordability, profitability, portfolio
~$10.5 billion 2011

BALANCE SHEET

0 – 30% gearing through cycle
Balance sheet underpins investment
Capital employed g
p p y grows steadily y



ROYAL DUTCH SHELL
SUMMARY


SUMMARY

2012+ PRIORITIES

12 billion boe resources on stream
Drive
D i new cashflow growth:
hfl th
GROWTH DELIVERY +30-50 % CFFO 2012-15 versus 2008-11*
Maturing >60 projects; ~20 billion boe resources
MATURE NEW OPTIONS
Exploration + bolt-on deals
PERFORMANCE FOCUS
2017-18 production potential ~4 mboe/d average



ROYAL DUTCH SHELL
Q&A


Media webcast presentation Royal Dutch Shell fourth quarter and full year 2011 results

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Media webcast presentation Royal Dutch Shell fourth quarter and full year 2011 results