INVESTORS HANDBOOK

Royal Dutch Shell plc

Financial and Operational Information
20122016
CONTENTS 02 50
COMPANY OVERVIEW CORPORATE SEGMENT
03 Our businesses and organisation 51 Treasury
04 Results 51 Headquarters and central functions
05 Market overview 51 Risk and insurance
06 Overall highlights in 2016
07
10
Strategy
Shell and BG
52
MAPS
12 Financial framework
13 Project delivery 52 Europe
15 Outlook 54 Africa
56 Asia

16 60
62
Oceania
North America
INTEGRATED GAS 65 South America
17 Integrated Gas overview
18
20
LNG
In Focus: LNG Outlook
66
EMPLOYEE DATA
21 GTL
22 New Energies
22 Europe 68
24 Africa FINANCIAL DATA
23 Asia (including Middle East and Russia) 68 Financial statements information
24 Oceania 71 Financial ratios
24 North America 72 Quarterly data by segment
24 South America 74 Additional segmental information and capital
25 In Focus: Australia data

COVER IMAGE
26 77
The cover shows Shell's innovative UPSTREAM EXPLORATION AND PRODUCTION DATA
ability and collaboration with a wide 27 Upstream overview 77 Oil and gas exploration and production activities
variety of partners to provide more 28 Conventional oil & gas
and cleaner energy solutions. earnings
29 Deep water 81 Oil and gas exploration and development costs
ABOUT THIS PUBLICATION 29 Shales incurred
This Investors Handbook contains 30 Conventional exploration
detailed information about our annual
82 Proved oil and gas reserves
31 Europe 83 Changes
financial and operational
performance over varying timescales
32 Asia (including Middle East) 85 Oil, gas, synthetic crude oil and bitumen
from 2012 to 2016. Wherever 33 Africa production
possible, the facts and figures have 34 North America 88 Acreage and wells
been made comparable. The 35 South America
information in this publication is best
understood in combination with the
narrative contained in our Annual
36 In Focus: Kaikias
91
Report and Form 20-F 2016. 37 ADDITIONAL INTEGRATED GAS DATA

DIGITAL
The Investors Handbook has moved
DOWNSTREAM
38 Downstream overview
93
to an online digital report
39 Oil Products DOWNSTREAM DATA
http://reports.shell.com/investors-
44 Chemicals 93 Oil products and refining locations
handbook/2016. In the event of any
conflict, discrepancy or inconsistency 45 In Focus: Rhine Envelope 95 Oil sales and retail sites
between the digital report and this 97 Chemicals
hardcopy report of the Investors
46
Handbook, the information contained
in the digital report will then prevail. PROJECTS & TECHNOLOGY 99
This hardcopy report is provided for 47 Projects & technology overview ADDITIONAL INVESTOR INFORMATION
the reader's convenience only. 99 Share information
47 Project delivery
NON-GAAP MEASURE 48 Innovation and R&D 100 Dividends
RECONCILIATION 48 Technology solutions and deployment 101 Bondholder information
Non-GAAP measures in this report 103 Abbreviations
49 Contracting and procurement
are defined and reconciled to GAAP
49 Safety and environment 104 About this publication
measures in the consolidated financial
data section. 49 In Focus: Shell Technology Centre Bangalore 105 Financial calendar
105 Contact us
INTRODUCTION
FROM THE CEO

We are working to This Investors' Handbook gives an overview of our But we are working to reshape Shell into a more focused
global operations, shows how Shell has performed over and resilient company by capping our investments for the
reshape Shell into a more the last five years and sets out our plans for the future. next few years, while continuing to drive down costs and
focused and resilient to sell assets.
company The acquisition and integration of BG Group plc (BG),
which we have now completed, has been an important Following the integration of BG, our Integrated Gas
growth accelerator and a catalyst for the changes we are business has become an engine for generating cash and
making to our work practices, cost structure and portfolio. returns. Our greatly enhanced global gas business,
The global portfolio acquired with BG, combined with the combined with our other cash engines, should deliver
major deep-water projects we started up in 2016, have rising free cash flow from around 2020. We plan to
greatly strengthened Shell. continue prioritising growth in our deep-water and
chemicals businesses beyond 2020.
The oil and gas market outlook remains uncertain, but our
strict capital discipline, substantial cost savings and We expect demand for oil and gas to continue to grow,
integrated business model are helping support earnings but we also intend to build upon our portfolio and will
and cash flow generation. continue to look at the potential of low-carbon biofuels,
hydrogen, solar and wind as the transition to a lower-
We continue to streamline our Downstream business as carbon global energy system unfolds. That is why we
part of our ongoing effort to improve efficiency by created a New Energies business in 2016. We intend to
lowering costs and concentrating on our most competitive act with conviction and commercial realism in this area,
positions. We have also sold several large Upstream when the value for shareholders and society is clear.
assets, including in the Gulf of Mexico and in Canada.
Our divestment drive gained real momentum in 2016 and We revitalised Shell in 2016 and I am confident that
we plan to continue to sell assets in 2017 as part of our 2017 will be another year of progress in building our
overall divestment programme of $30 billion for 2016-18. world-class investment case.

Despite the challenging market environment, it is important Ben van Beurden

that we continue to invest in the most competitive projects. Chief Executive Officer
That is why we took final investment decisions on
petrochemicals projects in China and the USA in 2016
and a deep-water project in the US Gulf of Mexico in
early 2017.

SHELL INVESTORS HANDBOOK 2012-2016 CONTENTS 01

COMPANY
OVERVIEW
This section provides an overview of
the company, including information
on the strategy, financial framework
and key projects.

In March 2017, Shell opened its new technology hub in

Bangalore.
 INTEGRATED GAS AND NEW ENERGIES Our Downstream organisation also manages our Oil
Our Integrated Gas and New Energies organisation Sands operations, which extract bitumen from mined oil
OUR manages liquefied natural gas (LNG) activities and the
conversion of natural gas into gas-to-liquids (GTL) fuels and
sands and convert this into synthetic crude oil.

BUSINESSES other products, as well as our New Energies portfolio. It PROJECTS & TECHNOLOGY
AND includes natural gas exploration and extraction, when
contractually linked to the production and transportation of
Our Projects & Technology organisation manages the
delivery of our major projects and drives research and
ORGANISATION LNG, and the operation of the upstream and midstream
infrastructure necessary to deliver gas to market. It markets
innovation to develop new technology solutions. It provides
technical services and technology capability for our
and trades crude oil, natural gas, LNG, electricity, carbon- Integrated Gas, Upstream and Downstream activities. It is
emission rights. It also markets and sells LNG as a fuel for also responsible for providing functional leadership across
heavy-duty vehicles and marine vessels. Shell in the areas of safety and environment, contracting
and procurement, wells activities and greenhouse
UPSTREAM gas management.
Our Upstream organisation explores for and extracts crude
oil, natural gas and natural gas liquids. It also markets and SEGMENTAL REPORTING
transports oil and gas, and operates the infrastructure Our reporting segments are Integrated Gas, Upstream,
necessary to deliver them to market. Downstream and Corporate. Upstream combines the
operating segments Upstream (managed by our Upstream
DOWNSTREAM organisation) and Oil Sands (managed by our
Our Downstream organisation manages different Oil Downstream organisation), which have similar economic
Products and Chemicals activities as part of an integrated characteristics. Integrated Gas, Upstream and Downstream
value chain, including trading activities, that turns crude oil include their respective elements of our Projects &
and other feedstocks into a range of products which are Technology organisation. The Corporate segment
moved and marketed around the world for domestic, comprises our holdings and treasury organisation,
industrial and transport use. The products we sell include self-insurance activities, and headquarters and
gasoline, diesel, heating oil, aviation fuel, marine fuel, central functions.
lubricants, bitumen and sulphur. In addition, we produce
and sell petrochemicals for industrial use worldwide.

Exploring for Exploring for

oil and gas: oil and gas:
offshore onshore

Lubricants Developing
fields

EXPLORATION
Retail Producing oil
and gas

DEVELOPMENT Extracting
Aviation SALES AND CUSTOMERS bitumen
MARKETING AND EXTRACTION
B2B & retail

Supply and Upgrading

distribution bitumen

TRANSPORT MANUFACTURING
AND TRADING AND ENERGY Refining oil
Regasifying
PRODUCTION into fuels and
(LNG)
lubricants

Shipping
Producing
and trading
petrochemicals

Liquefying gas
by cooling Producing
(LNG) Converting biofuels
gas into liquid
Generating products (GTL)
power

SHELL INVESTORS HANDBOOK 2012-2016 COMPANY OVERVIEW 03

RESULTS

Summary of results $ million unless specified

2016 2015 2014 2013 2012
Income attributable to Royal Dutch Shell plc shareholders 4,575 1,939 14,874 16,371 26,712
CCS adjustment for Downstream [A] 1,042 (1,903) (4,167) (374) (452)
CCS earnings attributable to shareholders 3,533 3,842 19,041 16,745 27,164
Identified items [A] (3,652) (7,604) (4,010) (3,273) 1,905
CCS earnings attributable to shareholders excluding identified items 7,185 11,446 23,051 20,018 25,259
Non-controlling interest (270) (316) (55) (164) (222)
CCS earnings excluding identified items 7,455 11,762 23,106 20,182 25,481
Integrated Gas 3,700 5,057 10,332 8,999 9,414
Upstream (2,704) (2,255) 6,754 6,644 10,693
Downstream (CCS basis) 7,243 9,748 6,265 4,466 5,343
Corporate (784) (788) (245) 73 31
Basic CCS earnings per share ($) 0.45 0.61 3.02 2.66 4.34
CCS adjustment per share ($) 0.13 (0.30) (0.66) (0.06) (0.07)
Basic earnings per share ($) 0.58 0.31 2.36 2.60 4.27
Basic earnings per ADS ($) 1.16 0.62 4.72 5.20 8.54
Cash flow from operating activities 20,615 29,810 45,044 40,440 46,140
Dividend per share ($) 1.88 1.88 1.88 1.80 1.72
Dividend per ADS ($) 3.76 3.76 3.76 3.60 3.44
[A] Attributable to shareholders.

CCS earnings Cash flow from operating activities

$ billion $ billion
30 50

40

15
30

20
0

10

-15 0
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
Upstream Downstream Identified items Upstream Downstream
Integrated Gas Corporate and non-controlling interest Integrated Gas Corporate

ROACE 2016 [A] Total shareholder return 2016

% %
10 40

30

5 20

10

0 0
Shell Shell
Other oil and gas majors Other oil and gas majors

[A] European companies: CCS earnings excluding identified items. US

companies: reported earnings excluding special non-operating items. Capital
employed on gross debt basis.

04 COMPANY OVERVIEW SHELL INVESTORS HANDBOOK 2012-2016

MARKET OVERVIEW

Shell realised prices Year average

2016 2015 2014 2013 2012
SUBS JV&A SUBS JV&A SUBS JV&A SUBS JV&A SUBS JV&A
Crude oil and natural gas
liquids ($/b)
Europe 38.62 40.75 49.77 45.97 94.57 89.68 105.23 99.27 108.13 104.60
Asia 38.11 43.95 47.73 52.21 89.47 96.85 96.46 70.34 107.76 67.33
Oceania 36.64 33.76 43.39 50.01 82.26 88.07 90.50 91.91 91.62 90.14
Africa 42.73 51.80 100.55 110.14 112.45
North America USA 37.50 44.99 87.90 98.10 103.59 110.00
North America Canada 25.76 25.45 59.19 63.14 68.31
South America 38.58 42.38 88.68 97.17 94.01 100.01 97.33
Total 38.60 43.58 47.52 51.82 91.09 95.87 99.83 72.69 107.15 76.01
Natural gas ($/thousand scf)
Europe 4.75 4.19 7.10 6.46 8.58 8.26 10.29 9.17 9.48 9.64
Asia 2.32 4.63 3.02 7.06 4.57 11.50 4.51 10.73 4.81 10.13
Oceania 5.31 4.33 6.80 6.73 10.49 11.01 11.55 9.45 11.14 9.48
Africa 2.33 2.10 2.71 2.84 2.74
North America USA 2.21 2.39 4.52 3.92 3.17 7.88
North America Canada 1.71 2.29 4.39 3.26 2.36
South America 1.83 2.46 2.85 2.91 0.42 2.63 1.04
Total 3.16 4.41 4.07 6.77 5.68 9.72 5.85 9.72 5.53 9.81
Other ($/b)
North America Synthetic
crude oil 37.61 40.87 81.83 87.24 81.46
North America Bitumen 25.74 30.25 70.19 67.40 68.97

Oil and gas marker industry prices Industry refining margins [A]
$/barrel $/MMBtu $/barrel
120 5 20

15
100 4

10
80 3
5

60 2
0

40 1 5
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016

Brent ($/barrel) JCC ($/barrel) [A] US West Coast margin Rotterdam Complex margin
WTI ($/barrel) Henry Hub ($/MMBtu) US Gulf Coast Coking margin Singapore

[A] Japan Customs-cleared Crude is based on available market information at [A] Refining industry margins do not represent the actual Shell realised margins
the end of the year. for the periods.

Industry chemicals margins

$/tonne
1000

800

600

400

200

0
2012 2013 2014 2015 2016

US ethane North-east/South-east
Western Europe naphtha Asia naphtha

SHELL INVESTORS HANDBOOK 2012-2016 COMPANY OVERVIEW 05

 Cash flow from
operating Total dividends
OVERALL CCS earnings activities distributed Gearing

HIGHLIGHTS $7.2 billion $20.6 billion $15.0 billion 28.0 %

IN 2016 excluding identified items of which $5.3 billion
were settled under the
Scrip Dividend
Programme
Underlying
Major project Organic capital operating
Divestments startups investment expenses

$4.7 billion 8 $26.9 billion $38.3 billion

BG ACQUISITION Shell is being highly selective on new investment decisions

The successful completion of our acquisition of BG was a and we plan to continue this approach throughout 2017.
transformational step for Shell. It is a bold and compelling
stride forward in our LNG and deep-water growth strategy. START-UPS
The overarching goal of buying BG was to create value We started up eight major projects in Australia, Brazil,
for shareholders. The effective integration of BG into our Kazakhstan, Malaysia and the USA. We expect these
portfolio, which has now been completed, will help deliver projects to add more than 250 thousand barrels of oil
that value and accelerate the reshaping of Shell into a equivalent per day to our production and add 3.9 mtpa to
world-class investment. The foundations for building this our LNG liquefaction capacity, once fully ramped up.
investment case are now set. An extensive overview is provided in the project
delivery section.
PORTFOLIO ADDITIONS
Key portfolio events in 2016 included the following: DIVESTMENTS
We continued to divest assets that fail to deliver
Shell was appointed to provide up to 1 million tonnes competitive performance or no longer meet our longer-term
per annum (mtpa) of LNG to Singapore for the next strategic objectives. Divestments in Japan, Denmark and
three years. Malaysia helped streamline our Downstream businesses.
We signed an agreement to construct a regasification We also sold part of our interests in Shell Midstream
unit to provide gas for power generation in Gibraltar. Partners, L.P. and Pilipinas Shell Petroleum Corporation,
while retaining control of both. In Upstream, we sold
We took the final investment decision (FID) to expand
assets in the Gulf of Mexico and in Canada.
our 50:50 joint venture with China National Offshore
Oil Corporation (CNOOC) in China, to increase
Our divestment drive gained momentum during the year
ethylene capacity by more than 1 mpta when fully
and we plan to continue to sell assets in 2017 as part of
completed.
our overall divestment programme of $30 billion for the
We took the FID to build a major petrochemicals 2016-18 period.
complex in Pennsylvania, USA.

Cash flow management and track record

$ billion

$97 $87 $44

45

30

15

0
5-year average 3-year average 2016
2011-2015 2013-2015

Cash flow from operating activities Cash used in investing activities [A] Cash dividend and buyback Average oil price

[A] 2016 excludes cash component of BG acquisition.

06 COMPANY OVERVIEW SHELL INVESTORS HANDBOOK 2012-2016

 Our strategy seeks to create a world-class investment case PORTFOLIO AND PRIORITIES
for shareholders. This strategy is underpinned by Shells We focus on a series of strategic themes, described in
STRATEGY outlook for the energy sector and the need to adapt to
substantial changes in the world around us. Rising global
categories of cash engines, growth priorities and future
opportunities each requiring distinctive technologies and
population and standards of living should continue to drive risk management.
demand growth for oil and gas for decades to come. At
the same time, there is a transition underway to a lower- Through all of our strategic themes, our intention is to be in
carbon energy system; a world with increased customer fundamentally advantaged and resilient positions. We
choice; continued energy price volatility; and, with the allocate capital to each of these strategic themes to drive
advent of low-cost shale reserves, a new dynamic in value an optimal cash flow and returns profile over multiple
creation in oil and gas. Safety and environmental and timelines. When we set our plans and goals, we do so on
social responsibility are at the heart of our activities. The the basis of delivering sustained returns over decades.
ability to achieve our strategic objectives depends on how
we respond to competitive forces. We aim to leverage our diverse and global business
portfolio and customer-focused businesses built around the
We continuously assess the external environment the strength of the Shell brand.
markets as well as the underlying economic, political,
social and environmental drivers that shape them to
anticipate changes in competitive forces and business
models. We undertake regular reviews of the markets we
operate in and analyse our competitors strengths and
weaknesses to understand our competitive position. We
maintain business strategies and plans that focus on
actions and capabilities to create and sustain
competitive advantage.

STRATEGIC AMBITIONS
Against this backdrop, Shell has the following
strategic ambitions:

to create a world-class investment case by reshaping

Shell to grow free cash flow and increase returns, all
underpinned by a conservative financial framework;
to reduce our carbon intensity as part of the energy
transition;
to maintain a position of leadership and influence in our
industry and to have the largest value share among our
competitors; and
to create shared value for society.

We have defined our strategy to deliver against these

long-term ambitions and believe that success will lead to
sustaining a world-class investment case.

Create a world-class investment case

Strategic
Focus portfolio on resilient
positions
Leader:
Invest in advantaged projects
value +
Value-chain integration
influence World-class
investment case
FCF + ROCE growth Operational
Reducing Shared
our carbon value for Conservative financial Reset cost and capital spending
intensity society management First-class execution of projects
and operations
Unrelenting focus on HSSE and
licence to operate

SHELL INVESTORS HANDBOOK 2012-2016 COMPANY OVERVIEW 07

 CASH ENGINES
Cash engines need to deliver strong and stable returns In March 2017, Shell announced our agreement to sell
STRATEGIC and strong and stable free cash flow that can cover the
dividend and share buybacks throughout macroeconomic
the majority of our interests in oil sands in Canada. As a
result, Oil Sands Mining no longer features as a
THEMES cycles and leave us with enough cash to fund our future. strategic theme.

CONVENTIONAL In our conventional oil and gas business, we only

OIL AND GAS make investments in selective growth positions and
apply our distinctive technology and operating
performance to extend the productive lives of our
assets and to enhance their profitability.

INTEGRATED GAS In Integrated Gas, covering LNG worldwide and

GTL production facilities in Qatar and Malaysia, we
have leadership positions in profitable and growing
markets. We focus on delivering cash and returns,
creating and securing new gas demand, and
making selective new investments in additional LNG
supply capacity.

OIL PRODUCTS Our Oil Products businesses distinctive product

offering is underpinned by a strong manufacturing
base and offers growth potential in
selective markets.

GROWTH PRIORITIES
Growth priorities have a clear pathway towards delivering
strong returns and free cash flow in the medium term.

DEEP WATER In deep water, we have leading positions in the Gulf

of Mexico, Brazil, Nigeria and Malaysia. Our
deep-water operations have significant growth
potential from our large undeveloped resource base
and deployment of our technology and capabilities.

CHEMICALS Our Chemicals business strategy is based on

investment at existing sites to increase capacity,
improve efficiency and integration, and strengthen
our feedstock sources. Securing new integrated
growth projects and developing technologies to
convert gas into chemicals are also critical
strategic components.

08 COMPANY OVERVIEW SHELL INVESTORS HANDBOOK 2012-2016

 FUTURE OPPORTUNITIES
Future opportunities should provide us with material growth
in free cash flow in the next decade or beyond when the
energy transition opens up new areas of value for us.

SHALES We have a substantial position in shales in North

America and Argentina. These are in production
today, with substantial longer-term growth potential.

NEW ENERGIES Our New Energies business is exploring

opportunities in various sectors and we intend to
invest at scale in new opportunities where sufficient
commercial value is available.

Investment priorities

CASH ENGINES: TODAY GROWTH PRIORITIES: 2016+ FUTURE OPPORTUNITIES: 2020+

Funds dividends + balance sheet Cash engines 2020+ Material value + upside
Competitive + resilient Affordable growth in advantaged positions Path to profitability
Strong, stable returns and free cash flow ROACE + free cash flow pathway Managed exposure

Conventional oil and gas Deep water Shales

Integrated Gas Chemicals New Energies

Oil Products

SHELL INVESTORS HANDBOOK 2012-2016 COMPANY OVERVIEW 09

 The BG combination was designed to accelerate Shells WORLD-CLASS INTEGRATION
growth strategy in deep water and LNG, enhance our free Delivering the real value from the BG deal has been all
SHELL AND BG cash flow, and create a platform from which we can
reshape Shell. It is about transforming Shell into a world-
about a swift and effective integration getting value from
BG projects and learning from BG's best working practices
class investment case to create value for shareholders. to ensure that Shell can become a more resilient, agile and
profitable company. Shell formally completed the
STRATEGIC FIT integration by the end of 2016.
The complementary portfolios of Shell and BG made for a
great strategic fit. By combining BGs portfolio and skill set The strong performance of BG assets during the 10 months
with Shells capabilities, we greatly enhanced our leading up to the acquisition, as well as throughout 2016,
Integrated Gas and deep-water portfolio, as well as our underscores Shells belief that the timing was right for
Trading and Supply business. this acquisition.

In Integrated Gas, the combined group unified two world- CAPTURING VALUE
class portfolios and will deliver attractive LNG The acquisition of BG was transformational for Shell. As a
opportunities, such as the QCLNG project in Australia and result, Shell became one of the largest international oil
the expansion of Shells position in Trinidad and Tobago. In companies by market capitalization, cash flow, and
Upstream, BGs deep-water acreage in Brazil offers near- production, the top LNG trader, and a major deep-water
term growth in the Santos Basin, complementing Shells oil producer.
Libra field acreage. Shells Downstream Trading and
Supply business has performed strongly in recent years Key growth assets acquired from BG contributed
and the combination presents new opportunities, in significantly to Shells production growth in 2016, driving
particular to further build capabilities in LNG, gas and a 70% increase in Australia and a 100% increase
crude oil trading, and in shipping. in Brazil.

In this way, the combination of the two companies builds BG has proven to be a major catalyst for cost reductions
upon the strategic focus and direction that Shell has through savings and synergies. We initially identified
pursued for many years. around $2.5 billion of externally verified pre-tax synergies
per year in 2018. We have continued to look at all
potential synergies from the combination with BG, and as
a result, now expect the synergies from the deal to be
$4.5 billion on a pre-tax basis in 2018 80% more than
what was initially expected.

Increasing production BG synergies identified

kboe/d $ billion
1,000 6
+30%
4.5
800
4.0
4
600
2.8

400
2

200

0 0
Q4 2014 Q4 2015 Q4 2016 2016 2017E 2018E

Conventional oil + gas Deep water Costs

LNG Exploration

Queensland LNG Brazil pre-salt

kboe/d number kboe/d
200 Train 2 start up 40 300 FPSO Cidade de Caraguatatuba
1st LNG Train 1 Nov 2015 Lapa Field started on the December 19th.
Dec 2014
150 30 +100%
200

+70%
100 20

100
50 10

0 0 0
2015-Jan 2016-Jan 2014-Jan 2015-Jan 2016-Jan

Production Number of cargoes delivered Production

Bid announced in the quarter (right axis) Bid announced

10 COMPANY OVERVIEW SHELL INVESTORS HANDBOOK 2012-2016

Countries with assets acquired from BG

Norway
UK

Kazakhstan
USA
Tunisia

Egypt
India
Thailand
Trinidad & Tobago

Tanzania
Brazil
Bolivia

Australia

Integrated Gas

Upstream

SHELL INVESTORS HANDBOOK 2012-2016 COMPANY OVERVIEW 11

 Shells strategy and financial framework are designed to The balance sheet must support dividends and re-
manage through multi-year macroeconomic cycles and investment through the low points in oil market cycles. Our
FINANCIAL multi-decade investment and returns programmes. We
balance near-term affordability and cost trends with the
intention is to generate sufficient free cash flow at the
lower end of the price cycle to cover the cash dividend.
FRAMEWORK fundamentally long-term nature of our industry.

Cash flow priorities 201618

1 2 3
Priorities for cash Debt Dividends Buybacks and
reduction capital
investment

Our priorities for cash flow are reducing debt and paying We see potential for at least $25 billion of buybacks in
dividends, followed by a balance of share buybacks and the period 2017-2020, subject to debt reduction and
capital investment. recovery in oil prices.

Shells dividend distributed in 2016 was $15 billion. Our FOUR LEVERS
dividend policy is to grow the US dollar dividend through We have identified four levers to manage through the
time, in line with our view of Shells underlying earnings market down-cycle: divestments, reduced capital
and cash flow. When setting the dividend, the Board looks investment and operating expenses, and delivering new
at a range of factors, including the macroeconomic projects that will add significant cash flow.
environment, the current balance sheet and future
investment plans.

Divestment programme Capital investment

$ billion $ billion; excludes BG acquisition in 2016
30 60

25 47 $20 billion

20 40 36 $2530
billion
27
15 ~25

10 20

0 0
2010-12 2013-15 2016-18 2014 2015 2016 2017E 201720 avg

Downstream/Corporate Refocus portfolio Base + short cycle BG [A]

Upstream Infrastructure + mature positions Committed growth projects Shell + BG C.I. on a cash basis
Integrated Gas High grading tail assets Growth options/exploration 2017E

[A] Historical BG capital investment based on BG's published Annual Reports.

Underlying operating expenses Shell project start-ups 2014+ [A]

$ billion kboe/d / mtpa $ billion
1600 / 20
50

<$40 billion
1200 / 15
10

800 / 10
25

400 / 5

0 0 0
2014 2015 2016 2017E 201415 201617 2018+

Shell Production (kboe/d) 2016 CFFO ($ billion)

BG [A] LNG volume (mtpa) 2018E CFFO ($ billion)
2016 identified items

[A] Historical BG operating expenses based on BG's published [A] BG organic growth from January 1, 2016; LNG volume includes offtake;
Annual Reports. 2016 $60 oil price scenario 2018 (real terms).

12 COMPANY OVERVIEW SHELL INVESTORS HANDBOOK 2012-2016

PROJECTS

Projects under construction

Shell share Peak Produc- LNG 100%
(direct & tion 100% capacity Shell
Start up Project Country indirect) % kboe/d mtpa Products Legend Theme operated
2017-18 Baronia / Tukau Timur Malaysia 40 65 Conventional oil + gas
Berbigo [A] Brazil 25 150 Deep water
Clair Ph2 UK 28 100 Conventional oil + gas
Coulomb USA 100 20 Deep water
Fox Creek [B] Canada various 26 Shales
Forcados Yokri Integrated Nigeria 30 50 Conventional oil + gas
Project (FYIP)
Gbaran-Ubie Ph2 Nigeria 30 150 Conventional oil + gas
Geismar AO4 USA 100 425 kta AO Chemicals
Gorgon T3 Australia 25 5.2 Integrated Gas
Lula Extreme South [A] Brazil 25 150 Deep water
Lula North [A] Brazil 25 150 Deep water
Lula South [A] Brazil 25 150 Deep water
Permian [B] USA various 54 Shales
Prelude FLNG Australia 67.5 131 3.6 1.7 mtpa NGLs Integrated Gas
Pernis solvent Netherlands 100 7.2 kbpd Oil Products
deasphalting
Schiehallion UK 55 125 Conventional oil + gas
Redevelopment
Tempa Rossa Italy 25 50 Conventional oil + gas
2019+ Appomattox USA 79 175 Deep water
Atapu 1 [A] Brazil 25 150 Deep water
Atapu 2 [A] Brazil 25 150 Deep water
Kaikias Ph1 USA 80 40 Deep water
Nanhai China Chemicals China 50 1200 kta C2 Chemicals
Pennsylvania cracker USA 100 1500 kta C2 Chemicals
Rabab Harweel Oman 34 40 Conventional oil + gas
Integrated Project
Southern Swamp AG Nigeria 30 30 Conventional oil + gas
[A] The Lula, Berbigo, Sururu, Atapu accumulations are subject to unitisation agreements; production shown is FPSO oil capacity as per operator.
[B] Fox Creek and Permian production represents Shell entitlement share of production and is the production growth expected between 2016 peak to 2018 peak production.

SHELL INVESTORS HANDBOOK 2012-2016 COMPANY OVERVIEW 13

 2016 highlighted projects
Projects Continued

STONES MALIKAI
(Shell interest 100%, Shell operated) (Shell interest 35%, Shell operated)

Our Stones project began production in September 2016 Malikai came on stream in December 2016. It is Shells
and is the deepest offshore oil and gas producing project second deep-water project in Malaysia after Gumusut-
in the world (9,500-foot water depth). To meet the Kakap. The Malikai oil field is located around 100
challenges of the water depth in this area of the Gulf of kilometres (60 miles) off Sabah, in waters about 500
Mexico, the Stones project uses a floating production, metres (1,640 feet) deep. It comprises two main reservoirs
storage and offloading (FPSO) vessel, together with an with a peak annual production of 60 thousand barrels per
industry-first combination of a disconnectable buoy and day (b/d). Featuring the companys first tension leg
steel lazy wave risers. It is expected to reach 50 thousand platform (TLP) outside the US Gulf of Mexico, Malikai is an
barrels of oil equivalent per day (boe/d) peak production example of the strength of Shells global deep-water
in the first phase of development, from more than business, applying TLP expertise from decades of
250 million boe of recoverable resources. operations in the Gulf of Mexico.

PRELUDE PENNSYLVANIA CHEMICALS

(Shell interest 67.5%, Shell operated) (Shell interest 100%, Shell operated)

Shell is building the worlds largest floating LNG (FLNG) On June 7, 2016, we announced the FID on a new
facility, which will produce natural gas from a remote field 1.5-mtpa cracker and polyethylene plant in Pennsylvania,
off the north coast of Western Australia. The Prelude FLNG USA, which will use natural gas from shales as its
facility will be operated by Shell in a joint venture with feedstock to produce polyethylene. Polyethylene is used in
INPEX (17.5%), KOGAS (10%) and OPIC (5%). As the many products, from food packaging and containers to
Prelude construction nears completion, the focus remains automotive components. Commercial production is
on building a facility that is safe, profitable and reliable. expected to begin early in the next decade.

In 2016, the project saw a transition from construction to

commissioning in Geoje, South Korea. 150 Australian
production technicians are currently working in Geoje,
supporting the commissioning of the facility. They will help
run the facility during operations. The Prelude production
wells and subsea infrastructure are now complete after a
number of offshore campaigns at the site. The Prelude
FLNG Collaborative Working Environment, which will
provide 24/7 communications and support during
operations, is up and running in Shells Perth headquarters.

14 COMPANY OVERVIEW SHELL INVESTORS HANDBOOK 2012-2016

 We have identified four levers to manage through the Our drive to create a world-class investment case means
market down-cycle: divestments, reduced capital that, around the end of this decade, we expect to deliver
OUTLOOK investment and operating expenses, and delivering new
projects that will add significant cash flow.
higher, more predictable returns and growing free cash
flow. At the same time, we intend to reduce our debt,
which has increased as a result of the acquisition of BG.
Following the acquisition of BG, we expect the pace of Subject to such progress and a recovery in oil prices, we
asset sales to increase with $30 billion of divestments in intend to turn off our scrip dividend programme and
2016-18, including up to 10% of Shells oil and undertake a share buy-back programme of at least
gas production and exit from five to ten countries and $25 billion in 2017-2020.
selected midstream and Downstream assets. This is a
value-driven not a time-driven divestment Around the end of the decade, our cash engines should
programme, and an integral element of Shells portfolio have a more stabilised portfolio. With the main
improvement plan. We completed $4.7 billion divestments and project ramp ups behind us, our growth
divestments of non-strategic assets in 2016 with further priorities, chemicals and deep water, should be delivering
sales underway. free cash flow. Shales and New Energies portfolios will be
We expect organic capital investment to be between ready for more substantial growth investments, if we
$25 billion and $30 billion a year until 2020. We see decide to take such steps.
$30 billion as a ceiling, as we reduce debt following
the BG acquisition and meet our goals for shareholder We see the potential for free cash flow, plus proceeds
distributions. The $25 billion level reflects the from sale of interests in Shell Midstream Partners, L.P., to
expenditure we believe is needed to maintain medium- reach $20-$30 billion, with return on average capital
term growth for Shell; we can go below that level if employed of around 10%, by around the end of the
warranted by oil prices. The final outcome in any given decade, assuming $60 oil prices (2016 real terms). This
year will be determined by the pace of development potential represents a substantial transformation in the
and overall affordability considerations. In 2017, we company over the next few years.
expect organic capital investment to be around
$25 billion.
The consolidation of BG resulted in an increase in
operating expenses of $1 billion in 2016, to
$42 billion. This also included redundancy and
restructuring charges of $1.9 billion and BG acquisition
costs of $0.4 billion. The impact of the consolidation of
BG was offset by steps taken to reduce expenses,
realising synergies and follow-on benefits from the
acquisition. We plan to reduce our operating expenses
further in 2017. We expect the combination with BG to
generate pre-tax synergies of $4.5 billion in operating
and exploration expenses in 2018, up from our earlier
expectation of $3.5 billion, with further upside
potential.
In 2016, we started up eight major projects in
Australia, Brazil, Kazakhstan, Malaysia and the USA.
We expect these projects to add more than 250
thousand barrels of oil equivalent per day to our
production and 3.9 million tonnes of LNG a year to our
liquefaction capacity once fully ramped up. In addition,
we took final investment decisions on new
petrochemicals investments in China and the USA. We
are being highly selective on new investment decisions
and plan to continue this approach throughout 2017.

SHELL INVESTORS HANDBOOK 2012-2016 COMPANY OVERVIEW 15

INTEGRATED
GAS
Through its operated and non-
operated ventures, Shell is a leading
international oil company in both
liquefied natural gas (LNG) and gas
to liquids (GTL). The acquisition of BG
underscores our role as the largest
independent marketer and trader of
LNG. It also accelerates a growth
strategy that would otherwise have
run into the next decade.
Our Integrated Gas business also
manages our New Energies portfolio.

$9.1 BILLION
Cash flow from operating activities

57.1 MTPA
LNG sales volumes

40.0 MTPA
LNG liquefaction capacity

884 KBOED
Oil and gas production

The Methane Kari Elin delivers the first consignment of

LNG to Singapore's SLNG terminal.
 MILESTONES IN 2016 In August 2016, we signed an agreement with the
In Indonesia, INPEX Masela Ltd (Shell interest 35%), Gibraltar government for the supply of LNG and the
INTEGRATED received a notification from the Indonesian government
authorities instructing it to re-propose a development
construction of a regasification unit to provide gas for
power generation in Gibraltar.
GAS OVERVIEW plan for the Abadi gas field based on an onshore LNG
The Sabine Pass LNG export terminal in the USA started
project.
operations in February and we have started loading
In Australia, the participants in the Browse joint volumes in line with a long-term offtake agreement
arrangement (Shell interest 27%) decided not to move assumed on the acquisition of BG.
forward with the selected development concept in the
In Australia, production of LNG and condensate from
current economic and market environment. We still
INTEGRATED GAS the first train at the Gorgon LNG project (Shell interest
intend to develop the Browse field.
Cash engine 25%) on Barrow Island, off the northwest coast, started
Shell and its partners in the LNG Canada joint venture in March 2016. The second train started production in
(Shell interest 50%) decided to postpone a final October 2016.
investment decision (FID) on the proposed export project
NEW ENERGIES In September 2016, the first loading of the Shell-
Future opportunity in British Columbia.
chartered Coral Methane vessel was completed at the
We decided to delay the FID on the Lake Charles LNG recently opened third jetty at the Gas Access to Europe
project in the USA that was planned for 2016. The (GATE) LNG terminal in Rotterdam, the Netherlands.
proposed project would convert the existing Lake
As announced in December 2016, the Pearl GTL plant
Charles LNG regasification facility owned by Energy
(Shell interest 100%) in Qatar operated at a reduced
Transfer into a liquefaction plant in which we would
rate of production due to unforeseen maintenance
have capacity rights.
required on the gasifier units, until a controlled shutdown
We were appointed by the Energy Market Authority of on February 1, 2017. We expect Pearl to be ramping
Singapore as one of the importers for the next tranche of back up during the second quarter of 2017.
LNG supply into Singapore, which is expected to begin
in 2017. Shell and another importer will have
exclusivity for three years to supply up to 1 million
tonnes of LNG per year each.

Integrated gas key statistics

2016 2015 2014 2013 2012
Earnings ($ million) 2,529 3,170 10,610 8,998 10,990
Earnings excluding identified items ($ million) 3,700 5,057 10,332 8,999 9,414
Cash flow from operating activities ($ million) 9,132 7,728 12,689 12,273 10,930
Liquids production (thousand b/d) [A] 223 204 221 224 138
Natural gas production (million scf/d) [A] 3,832 2,469 2,666 2,557 1,961
Total production (thousand boe/d) [A][B] 884 631 682 665 476
LNG liquefaction volumes (million tonnes) 30.9 22.6 24.0 19.6 20.2
LNG sales volumes (million tonnes) 57.1 39.2 39.5 30.5 30.6
Capital investment ($ million) 26,214 5,178 9,124 11,822 6,077
Capital employed ($ million) 86,631 62,481 62,127 60,657 47,561
Employees (thousands) 13 13 11 10 N/A
[A] Available for sale.
[B] Natural gas volumes are converted into oil equivalent using a factor of 5,800 scf per barrel.

Integrated Gas earnings and cash flow [A] Production available for sale
$ billion kboe/d mtpa
15 900 60

10 600 40

5 300 20

0 0 0
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016

Earnings Cash flow from operating activities Liquids (kboe/d) LNG liquefaction volumes (mtpa)
Gas (kboe/d) LNG sales volume (mtpa)

[A] Earnings excluding identified items.

SHELL INVESTORS HANDBOOK 2012-2016 INTEGRATED GAS 17

 Shell is involved in every stage of the LNG value chain. Between 2014 and 2020, the size of global LNG trade
We find gas fields, extract and liquefy gas, trade and is expected to grow by 50%, mainly from LNG facilities
LNG ship LNG, and turn it back into gas before distributing it
to customers. In February 2016, Shell completed its
already under construction or recently completed.

acquisition of BG. This deal underscores Shells role as The vast majority of Shells LNG portfolio is sold on long-term
a large independent, international trader and marketer contracts, ranging from two to 20 years, linked to oil and
in LNG. gas-hub prices. Some volumes are sold on a short-term basis
and these sales mostly offset our spot market purchases.
Gas has been the fastest-growing hydrocarbon over the
past decade and demand has increased by around 2% Shell plays an aggregator role in the global LNG market
per year since 2000. The number of countries importing whereby, on top of our own liquefaction volumes, we buy
LNG stands at 35, up from around 10 at the start of the LNG under long-term contracts from other suppliers, often
century. Global LNG demand has grown at an estimated from our joint venture partners, and market it to customers
annual average rate of 6% since 2000, reaching around the world. We also buy and sell LNG on the spot
265 million tonnes (MT) in 2016. That is enough to market to further enhance our business through logistic or
generate electricity for around 500 million homes a year. market optimisations. Our large global portfolio of diverse
sources and market positions helps optimise this business.
2016 saw strong growth in LNG supply. The bulk of
growth came from Australia, where exports increased by In 2016, Shell was appointed as one of the aggregators
15 MT to a total of 44.3 MT. for the next tranche of LNG into Singapore, further
demonstrating the value of BG in our portfolio. This built on
Between 2015 and 2030, LNG demand is expected to the existing customer relationship in Singapores gas
rise 45% per year (see Shell LNG Outlook on page 20). market and Shells downstream gas demand, while
More countries now have the necessary infrastructure in offering flexible and competitive terms to the market.
place and LNG will increasingly be used when there are
shortages in domestic energy supply. We are actively developing new markets and outlets for
our gas. We have capacity rights for a total of around
LNG use beyond the power sector is expected to continue 40 million tonnes per annum (mtpa) in 10 regasification
rising. Over the next decade, LNG use in the heavy-duty terminals around the world and are actively pursuing
road and marine transport sectors is expected to grow in additional opportunities. For example, we saw demand in
the Middle East, Europe, Southeast Asia and the USA, three new LNG-importing countries grow rapidly: Egypt,
driven in part by tighter emissions regulations. Pakistan and Jordan. Egypt and Pakistan effectively used
LNG to replace existing domestic gas supply, taking
In Southeast Asia, Malaysia and Indonesia are significant advantage of floating storage and regasification units
LNG exporters. But the region is set to become a net (FSRUs) which turn LNG back into gas offshore then pipe it
importer by 2035. The rise in LNG demand is driven by into the countrys grid. A recent successful example of
economic growth coupled with declining domestic creating new markets is Gibraltar, where Shell will supply
gas supplies. LNG for power generation through a new small-scale LNG
supply chain.

Global LNG supply + demand outlook Liquefaction capacity

mtpa Capacity at end of 2016, in mtpa
600 50

40

400
30

20
200

10

0 0
2000 2005 2010 2015 2020 2025 2030

In operation Shell
Under construction Other oil and gas majors
Demand forecasts

18 INTEGRATED GAS SHELL INVESTORS HANDBOOK 2012-2016

LNG FOR TRANSPORT the Netherlands. The first five of these Shell truck refuelling
The world needs cleaner vehicles and fuels to meet the stations are open for business in Rotterdam, Waalwijk,
increasing demand for transport with lower emissions. Pijnacker, Amsterdam, and Eindhoven.
LNG is emerging as a cost-competitive and cleaner
burning fuel for shipping, heavy-duty road transport, and In 2016, Shell signed an agreement with the worlds
industrial applications. We estimate that LNG for transport biggest cruise operator, Carnival, to supply LNG to fuel
could add around 25-45 mtpa to global demand two of the worlds largest passenger cruise ships. These
by 2025. will be the worlds first LNG-powered cruise ships and are
due to start sailing in north-west Europe and the
Shell has access to import and storage capacity at the Mediterranean in 2019.
GATE LNG terminal in the Netherlands, allowing the
company to supply LNG to marine and road transport In 2016, the Port Authority of Singapore announced that
customers in northwest Europe. Shell is building an BG Group now part of Shell and Keppel Offshore &
innovative bunker vessel with a capacity of around Marine Ltd won a bid for Singapore's first licence to fuel
6,500 cubic metres to facilitate ship-to-ship transfers of ships with LNG. In October 2016, the Singapore Energy
LNG. The vessel will load LNG from the Gate terminal Market Authority appointed Shell to import the next tranche
and deliver it to marine customers in Europe. of LNG for Singapore. Shell will have an exclusive
franchise until 2020.
For road customers, the existing truck-loading station at the
Gate terminal will be used to distribute LNG fuel to a
growing Shell network of LNG truck refuelling stations in

LNG imports by role in domestic market

mtpa
500
Gas market type Countries/regions

Bunker fuel Atlantic Middle East Pacific

400 Balances LNG Northwest

market Europe

LNG replaces India Egypt [A] Bangladesh [A]

300 declining domestic Thailand Kuwait Bahrain [A]
production into Indonesia UAE Philippines [A]
existing demand Malaysia Colombia [A] Vietnam [A]
Pakistan [A]

200 LNG complements Southern Cone China Morocco [A]

domestic and Eastern Europe Singapore Jordan [A]
pipeline supply Southern Europe Israel
North America

100

Solely dependent Japan Puerto Rico Jamaica [A]

on LNG Korea Dominican Panama [A]
Taiwan Republic
0
2000 2005 2010 2015 2020 2025 2030

[A] Denotes new or emerging LNG importing countries.

Source: Shell interpretation of Wood Mackenzie Q4 2016 data.

SHELL INVESTORS HANDBOOK 2012-2016 INTEGRATED GAS 19

 Shell launched its first LNG Outlook in February 2017. LNG trade is changing to mirror the shifting needs of
Drawing on a broad range of independent industry buyers, including shorter-term, lower-volume contracts with
IN FOCUS: LNG data and internal analysis, the Outlook highlights key
trends in 2016 and focuses on future global demand
greater flexibility.

OUTLOOK and supply (www.shell.com/lngoutlook). Building on the BG tradition of producing a similar

publication, we intend to offer a balanced and informative
LNG demand reached 265 million tonnes in 2016, with outlook for LNG. This business is not only a significant part
growth expected to continue at 4-5% a year up to 2030. of our portfolio, but is also a vital part of the energy
The LNG Outlook highlights the critical role of gas in the industry future.
transition to a low-carbon future.

Many analysts expected a strong increase in new LNG

supplies to outpace demand growth during 2016.
However, demand growth kept pace with supply as
greater than expected demand in Asia and the Middle
East absorbed an increase in supply from Australia.

LNG market views

2016 facts Future trends

LNG demand growth from China, India and new

entrants absorbed supply growth in 2016 Continued LNG supply growth to 2020

LNG demand is set to rise

Egypt, Pakistan and Jordan all new importers at 4 to 5% a year to 2030
made up three of the top five fastest growing
LNG importing countries in the world

Global LNG demand reached 265 MT enough to LNG and Russian gas imports required
supply power to around 500 million homes a year to balance European gas demand

Bulk of growth in LNG exports in 2016 came

2020
New investments required to meet
from Australia, where exports increased
growing LNG demand after 2020
by 15 MT to a total of 44.3 MT

20 INTEGRATED GAS SHELL INVESTORS HANDBOOK 2012-2016

 Our GTL technology turns natural gas into valuable, the second train underwent planned maintenance from
high-quality transport fuels, motor oils and ingredients March to May 2016. As announced in December 2016,
GTL for everyday necessities such as plastics, detergents and
cosmetics. It is the result of more than 40 years of
Pearl operated at a reduced rate of production due to
unforeseen maintenance required on the gasifier units, until
research, development and commercial experience. a controlled shutdown on February 1, 2017. We expect
It enables natural gas resource holders to access the Pearl to be ramping back up during the second quarter
global oil products market, which helps those who want of 2017.
to diversify risk.
Recognising the market demand for mid-sized GTL facilities
Our proprietary Shell GTL technology is at the heart of between the scales of SMDS (Bintulu) and Pearl GTL, Shell
our GTL plants. We have invested more than $1 billion has developed a more flexible technology that can be
and filed over 3,500 patents in developing our used for GTL plants in a range of sizes.
gas-to-liquids process.
Natural gas is abundant, versatile and affordable. GTL
In 1993, we opened the worlds first commercial GTL can help countries with natural gas resources grow their
plant in Bintulu, Malaysia with a capacity of 14,700 economies, as new gas supplies come on-stream to satisfy
barrels of oil equivalent per day (boe/d). growing global demand for liquid products.

In 2011, we started up Pearl GTL in Qatar with a

capacity of about 140,000 boe/d of high-quality liquid
hydrocarbon products and 120,000 boe/d of natural
gas liquids (NGL) and ethane. Of Pearls two trains,

Integrated Gas assets: LNG liquefaction plants, LNG regasification terminals and GTL plants

Gasnor

Dragon LNG Gas Access to

Europe (GATE)
Barcelona Sakhalin LNG
Lake Cove Point
Costa Egyptian LNG
Charles
Azul Elba Island
Pearl GTL
Altamira Qatargas 4
Hazira
Oman LNG and
Qalhat LNG
Atlantic LNG Brunei LNG
Nigeria LNG
Singapore SMDS (Bintulu)
Malaysia LNG

Peru LNG North West Shelf Prelude FLNG

Gorgon Pluto (Woodside)
QCLNG

On Under
stream construction

Liquefaction
Regasification
GTL

SHELL INVESTORS HANDBOOK 2012-2016 INTEGRATED GAS 21

 In 2016, we formed a New Energies business to pursue Our focus remains on areas that share aspects with our
NEW ENERGIES three main areas of opportunities in the energy core businesses, such as our biofuels joint venture Razen
transition: new fuels for transport, such as biofuels and (Shell interest 50%) in Brazil that produces ethanol from
hydrogen; integrated energy solutions, where wind and sugar cane, as well as hydrogen as a transport fuel.
solar energy can partner with gas to manage Working with the H2 Mobility joint venture in Germany,
intermittency; and connecting customers with new we aim to grow the hydrogen network and are exploring
business models for energy, enabled by digitalisation other opportunities in the UK and USA. We are looking at
and the decentralisation of energy systems. how best to combine wind and solar power with our
existing business and capabilities. Our share of capacity
from wind power projects in the USA and the Netherlands
New energies: areas of opportunities is more than 400 megawatts. In the Netherlands, we have
an interest in the consortium that, in December 2016, was
awarded the concession by the Dutch government to
develop the Borssele III and IV offshore wind farm projects,
to be located 20 kilometres off the Dutch coast. We are
New fuels exploring ways to deploy solar technologies to lower the
carbon intensity of our operations.

This complements Shells Integrated Gas business in

many ways.
Renewable Connected
power customer

Hydrogen & biofuels

Customer solutions
Wind & solar combined with gas

GREECE government to develop the Borssele III and IV offshore

EUROPE We have a 49% interest in Attiki Gas Supply Company wind farm projects, to be located about 20 kilometres off
S.A., a natural gas distribution company in Athens. Under the Dutch coast.
Greek law, it will be unbundled into separate supply and
distribution companies in 2017. NORWAY
Gasnor (Shell interest 100%) provides LNG fuel for ships
NETHERLANDS and industrial customers and has a natural gas
We have access to import and storage capacity at the pipeline network.
GATE LNG terminal in the Netherlands (Shell capacity
rights 1.4 million tonnes per annum), enabling us to supply UK
LNG to marine and road transport customers in northwest As a result of the BG acquisition, we have a 50% interest
Europe. We are also using the terminal to supply LNG to in the Dragon LNG regasification terminal, with long-term
our growing truck-refuelling network in the Netherlands. In arrangements in place governing the use of
2016, GATEs third jetty became operational and we capacity rights.
carried out our first loading from it.

As part of our New Energies business on page 22, we

have an interest in the consortium that, in December
2016, was awarded the concession by the Dutch

22 INTEGRATED GAS SHELL INVESTORS HANDBOOK 2012-2016

 BRUNEI
We have a 25% interest in Brunei LNG Sendirian Berhad
ASIA which sells most of its LNG on long-term contracts to
customers in Asia.
(INCLUDING
MIDDLE EAST CHINA
We jointly develop and produce from the onshore
AND RUSSIA) Changbei tight-gas field under a production-sharing
contract (PSC) with China National Petroleum Corporation
(CNPC). In 2016, we completed the Changbei I
development programme under the PSC and subsequently
handed over the production operatorship to CNPC. We
also completed drilling appraisal wells for Changbei II Worker doing a routine inspection at the Hazira LNG receiving and
regasification terminal, a joint venture between Shell and Total,
Phase I under the PSC, and have submitted a development
in India.
plan to CNPC.

In Sichuan, we completed a significant drilling programme standard cubic feet per day (scf/d) of gas from Qatars
in all three blocks in 2016, in accordance with provisions North Field. It has an installed capacity of about 140
of the PSCs with CNPC. The geology is challenging and thousand boe/d of high-quality liquid hydrocarbon products
the mixed evaluation results do not justify further investment. and 120 thousand boe/d of NGL and ethane. In 2016,
Pearl GTL produced 5 million tonnes of GTL products.
We also have a 49% interest in an offshore oil and gas
block in the Yinggehai basin, under a PSC with China We have a 30% interest in Qatargas 4, which comprises
National Offshore Oil Corporation (CNOOC). Based on integrated facilities to produce about 1.4 billion scf/d of gas
the results from the second deep-water exploration well, from Qatars North Field, an onshore gas-processing facility
LD11-1-1 block 62/17, we decided not to pursue this and one LNG train with a collective production capacity of
opportunity further. 7.8 mtpa of LNG and 70 thousand boe/d of condensate
and NGL.
INDIA
As a result of the acquisition of BG, we have a 30% interest RUSSIA
in each of the producing oil and gas fields Panna/Mukta, We have a 27.5% interest in Sakhalin-2, an integrated oil
Mid Tapti and South Tapti. The Tapti fields ceased production and gas project located in a subarctic environment.
in the first quarter of 2016.
We have a 50% interest in the Salym fields in western
Also as a result of the acquisition, we gained a 49.75% Siberia, Khanty Mansiysk Autonomous District, where
interest in MGL, a natural gas distribution company in production was approximately 125 thousand boe/d
Mumbai. As result of an initial public offering, our interest in 2016.
was reduced to 32.5% in June 2016.
As a result of European Union and US sanctions prohibiting
Hazira is a regasification terminal, in which we have a 74% certain defined oil and gas activities in Russia, we
interest, in the state of Gujarat, on the west coast of India. suspended our shale oil exploration activities undertaken
through Salym and Khanty-Mansiysk Petroleum Alliance
INDONESIA in 2014.
We have a 35% interest in the INPEX Masela Ltd joint
venture which owns and operates the offshore Masela block. SINGAPORE
In April 2016, the joint venture received a notification from In 2016, Shell and Keppel Offshore & Marine secured the
the Indonesian government authorities instructing it to re- licence to supply LNG fuel for vessels in the Port of
propose a plan for the Abadi gas field based on an onshore Singapore after submitting a joint bid to the Maritime and
LNG project. The partners are committed to working together Port Authority of Singapore. With the granting of the licence,
with the Indonesia government to move the project forward. Shell and Keppel have formed a 50:50 joint venture to fuel
ships with LNG. We currently have an exclusive role as the
MALAYSIA aggregator of LNG demand for the Singapore market. In
We have a 15% interest in Malaysia LNG Tiga located in October 2016, we won a licence to import a further
Bintulu. We also operate a GTL plant, Shell MDS (Shell interest 1 mtpa, starting in 2017.
72%), adjacent to the Malaysia LNG facilities. Using Shell
technology, the plant converts gas into high-quality middle THAILAND
distillates, drilling fluids, waxes and specialty products. As a result of the acquisition of BG, we have a 22.2%
interest in the Bongkot and G12/48 fields in the Gulf of
OMAN Thailand and a 66.7% interest in exploration Blocks 7 and
We have a 30% interest in Oman LNG, which mainly 8, where activity is currently suspended due to overlapping
supplies Asian markets under long-term contracts. We also claims by Thailand and Cambodia. We have an agreement
have an 11% interest in Qalhat LNG, which is part of the over Block 9a under which we receive royalties.
Oman LNG complex. The Bongkot field meets around 20% of the countrys
gas demand.
QATAR
We operate the Pearl GTL plant (Shell interest 100%) in In January 2017, we reached an agreement with KUFPEC
Qatar under a development and production-sharing contract Thailand Holdings Pte Limited, for the sale of our interests in
with the government. The fully-integrated facility has capacity the Bongkot and G12/48 fields.
for production, processing and transportation of 1.6 billion

SHELL INVESTORS HANDBOOK 2012-2016 INTEGRATED GAS 23

 EGYPT TANZANIA
AFRICA As a result of the BG acquisition, we have interests of As a result of the BG acquisition, we have a 60% interest in,
35.5% and 38%, respectively, in trains one and two of the and are the operator of, Blocks 1 and 4 offshore southern
Egyptian LNG (ELNG) plant. In January 2014, force Tanzania. The blocks cover approximately 7,000 square
majeure notices were issued under the LNG agreements as kilometres of the Mafia Deep Offshore Basin and the
a result of domestic gas diversions severely restricting northern part of the Rovuma Basin. In 2014, a heads of
volumes available to ELNG. These notices remain in agreement (HoA) was signed and subsequently extended
place. See Additional Integrated Gas data on page 91. between the partners of Blocks 1, 4 and 2 to develop a
potential LNG project. A memorandum of understanding
NIGERIA was also signed between the HoA partners and the
We have a 25.6% interest in Nigeria LNG Ltd, which Tanzania government to lease an agreed site for the project.
operates six LNG trains. We completed drilling on all remaining wells in 2016.

REST OF AFRICA
We have a 17.9% share in the West African Gas
Pipeline Company.

AUSTRALIA exploration licences in the Great South Basin and a

OCEANIA See In Focus: Australia on page 25. 37.5% interest in the petroleum prospecting permit in the
New Caledonia Basin.
NEW ZEALAND
Our interests include the Maui (83.75%), Kapuni (50%) The business is under strategic review and we sold our
and Pohokura (48%) natural gas fields. We are an 83.75% interest in the Maui natural gas pipeline in 2016.
operator with an approximate 60% interest in two

USA FID on this project to convert the existing regasification

NORTH We have offtake rights to 100% of the capacity (2.5 facility into a liquefaction plant in which we would have
AMERICA mtpa) of the Elba Island liquefaction plant, which is under
construction. Elba Island also has a regasification terminal
capacity rights.

in which we have contracted capacity of 11.6 mtpa. CANADA

In 2014, we entered into a joint venture (Shell interest
We have 13.1 mtpa contracted capacity in the Lake 50%) to evaluate an investment in an LNG export facility in
Charles regasification terminal in Louisiana. Also, as a Kitimat on the west coast of Canada. Together with our
result of the acquisition of BG, we are involved in the Lake partners, we have elected to postpone the FID on
Charles LNG project. In 2016, we decided to delay the the project.

BOLIVIA
SOUTH As a result of the BG acquisition, we have a 100% interest
AMERICA in the La Vertiente, Los Suris and Tarija XX East blocks and
the La Vertiente gas processing plant. We have a 37.5%
interest in the Caipipendi block where we mainly produce
from the Margarita field. We also have a 25% interest in
the Tarija XX West block where we produce from the Ita
field. We have the rights to explore and further develop
the onshore Huacareta block.

TRINIDAD AND TOBAGO

As a result of the BG acquisition, we are now the largest
The Ita gas and condensate field in Bolivia.
shareholder in all four trains at Atlantic LNG. We have an
interest in three concessions with producing fields Central
Block (Shell interest 65%), East Coast Marine Area (Shell REST OF SOUTH AMERICA
interest 50%) and North Coast Marine Area (Shell interest We have a 17% interest in Brazils Companhia de Gas de
45.88%). We also have an interest in exploration activities So Paulo (Comgs), a natural gas distribution company
in blocks 5(c), 5(d), 6(d), and Atlantic Area blocks 3, 5, 6 in the state of So Paulo. In Peru, we have a 20% interest
and 7, with interests ranging from 35% to 100%. in an LNG liquefaction plant. We have interests in a gas
pipeline connecting Uruguay to Argentina.

24 INTEGRATED GAS SHELL INVESTORS HANDBOOK 2012-2016

 The Shell Australia business is focused on the compression stations and processing plants, in Queenslands
exploration, development and production of LNG and Surat Basin. During the development and operation of
IN FOCUS: oil. Australia ranks in Shell's top five as an investment
destination. We are Australias second-largest
QGC, the venture has worked with local communities and
Traditional Owner groups, while meeting 1,500
AUSTRALIA foreign investor. environmental conditions.

Shell is the majority interest holder in the QGC venture. The

Shell: A major investor in Australian LNG
partners in the LNG plant on Curtis Island are CNOOC (50%
Crux equity in Train 1) and Tokyo Gas (2.5% equity in Train 2).
Sunrise
Prelude FLNG
Browse FLNG In November 2015, QGC announced the Charlie project
Greater Gorgon on its tenements west of Wandoan in Queenslands Surat
Basin. The Charlie project is the operations next stage of
North West
Shelf
development and is an important investment in future gas
QGC supply. The project is progressing to schedule.

Arrow QGC has supplied natural gas to the domestic market since
Energy 2006 and LNG to international customers since 2014. In
2016, QGC supplied the equivalent of 20% of
Queenslands domestic demand and loaded its 200th cargo
pre-FID Shell in December 2016.
operated
Under
construction Joint
On stream venture GORGON PROJECT
The Gorgon Project involves the development of the Greater
Gorgon gas fields, located between 130 and 200 km off
The bulk of the growth in global LNG exports in 2016 came the north-west coast of Western Australia and contains about
from Australia, where exports increased by 15 million tonnes 40 trillion cubic feet of gas, Australia's largest known gas
(MT) to 44.3 MT. Australia is now the second largest LNG resource. It involves an LNG production facility on Barrow
exporter, after Qatar and ahead of Malaysia. Island, around 60 km offshore, LNG shipping facilities to
transport products to international markets, and greenhouse
Shells Australian portfolio includes: gas management via injection of CO2 into deep formations
Majority interest holding of the Shell-operated QGC beneath Barrow Island.
venture;
Shell holds a 25% stake in the Gorgon joint venture. The
67.5% stake in our operated Prelude FLNG project;
other joint venture participants are Chevron (operator) and
50% interest in Queenslands Arrow Energy; ExxonMobil, Osaka Gas, Tokyo Gas and Chubu
27% equity in the Woodside-operated Browse Electric Power.
Development venture;
25% stake in the Chevron-operated Gorgon LNG The Gorgon Project commenced LNG production in March
project; 2016. Shells first cargo from Gorgon sailed in July 2016.
16.67% equity in the Woodside-operated NWS
Project; and NORTH WEST SHELF (NWS) PROJECT
The NWS Project has been Western Australias largest
13% equity in Woodside Petroleum.
producer of pipeline gas since 1984.

PRELUDE FLNG Shell was a foundation participant in the NWS Project and
Shell is building the worlds largest floating liquefied natural now holds a 16.67% equity stake in the NWS LNG project,
gas (FLNG) project, which has the potential to transform the serving as a technical advisor.
way we develop natural gas resources. It will help to unlock
vital energy resources offshore, without the need to lay The NWS project is operated by Woodside Petroleum
pipelines and build processing plants on land. Limited. The other participants in the NWS Project are BP,
BHP Billiton Petroleum, Chevron, Mitsubishi/Mitsui
As the operator, Shell has a 67.5% interest in Prelude FLNG and Woodside.
with partners INPEX 17.5%, Kogas 10% and OPIC 5%.
ARROW
As the Prelude construction phase nears completion, the focus Arrow provides approximately 20% of Queenslands gas
remains on building a facility that is safe, profitable and supply from five producing onshore gas fields in both the
reliable. 2016 saw a transition from construction to Surat and Bowen Basins.
commissioning in Geoje, South Korea. The Prelude
production wells and subsea infrastructure have been Shell holds a 50% interest in Arrow Energy, a joint venture
completed. Once ready, the facility will be towed to the partnership with PetroChina, which is developing onshore
Browse Basin off the north coast of Western Australia, where reserves in Queenslands Surat Basin, and the Bowen Basin
it will extract, process, store and transfer LNG, LPG and in Central Queensland.
condensates at sea.
Arrow is assessing development options for its natural
QGC gas resources.
The Shell-operated QGC venture is located in Queensland in
eastern Australia. QGC, one of Australias leading natural FUTURE OPPORTUNITIES
gas producers, is focused on developing Queenslands Shell continues to work on valuable opportunities in Australia,
world-class onshore gas reserves. QGC operates an including the development of the Crux field and the options
8.5-mtpa LNG plant on Curtis Island near Gladstone, as for development of the Greater Sunrise fields.
well as natural gas operations which include wells,

SHELL INVESTORS HANDBOOK 2012-2016 INTEGRATED GAS 25

UPSTREAM
Our Upstream business explores for
and extracts crude oil, natural gas
and natural gas liquids. It also
markets and transports oil and gas,
and operates the infrastructure
necessary to deliver them to market.
We also extract bitumen from mined
oil sands and convert it into
synthetic crude oil.

$7.7 BILLION
Cash flow from operating activities

8 KEY PROJECTS
announced first production in 2016

2,784 KBOED
Oil and gas production

Malikai, Shells second deep-water project in Malaysia,

features the countrys first tension-leg platform and
began production in December 2016.
 MILESTONES IN 2016 We continued to divest selected assets during
Following the acquisition of BG in February 2016, we 2016, including:
UPSTREAM completed the integration of BG assets into our portfolio.
In Canada, we sold our interest in 145 thousand net
Also in early 2016, in the United Arab Emirates, we
OVERVIEW decided to exit the joint development of the Bab sour gas acres in the Deep Basin acreage and 61 thousand net
reservoirs (Shell interest 40%) with Abu Dhabi National Oil acres in the Gundy acreage.
Company (ADNOC) in the emirate of Abu Dhabi, and to In the USA, we sold our 100% interest in the Brutus TLP,
stop further work on the project. the Glider subsea production system, and the oil and gas
In Brazil, the seventh, eighth and ninth floating production, pipelines used to transport the production from the TLP.
storage and offloading facilities (FPSO) Cidade de Also in the USA, we sold a 20% interest in the Kaikias
CONVENTIONAL OIL AND
GAS Maric, (Shell interest 25%, production capacity of development in the Gulf of Mexico. We retain an
Cash engine 150 thousand boe/d), Cidade de Saquarema (Shell 80% interest.
interest 25%, production capacity of 150 thousand In Malaysia, we agreed to sell our 50% interest in the
DEEP WATER boe/d) and Cidade de Caraguatauba (Shell interest 2011 North Sabah EOR Production Sharing Contract
Growth priority 30%, production capacity of 100 thousand boe/d) in Malaysia, subject to obtaining regulatory and
respectively achieved first oil in various offshore blocks. partner approval.
In Brunei, the non-Shell-operated ML South development
SHALES (Shell interest 35%) achieved first production. The
Future opportunity ADDITIONALLY, IN 2017
expected peak production from this development is In January, we agreed to sell our interests in some of our
around 40 thousand boe/d. UK North Sea assets, for up to $3.8bn. The transaction is
In Kazakhstan, first crude oil was exported on subject to partner and regulatory approvals, with
October 29, 2016, and the Commencement of completion expected in 2017.
Commercial Production milestone was achieved on In March, we agreed to sell all of our in-situ and
November 1, 2016, from the non-Shell-operated undeveloped oil sands interests in Canada, and reduce
Kashagan development (Shell interest 16.8%). our interest in the Athabasca Oil Sands Project (AOSP), for
In Malaysia, we started production from the Malikai a net consideration of $7.25 billion. Upon completion,
tension leg platform (TLP) (Shell interest 35%), located we will continue as operator of the Scotford Upgrader
100 kilometres off the coast of the state of Sabah. Malikai and Quest carbon capture and storage (CCS) project.
is expected to reach a peak production of 60 thousand The transactions are expected to close in mid-2017,
boe/d. subject to customary closing conditions, adjustments and
In the USA, we started production at the Stones regulatory approvals.
development (Shell interest 100%) in the Gulf of Mexico.
Stones is expected to produce around 50 thousand
boe/d when fully ramped up at the end of 2017.

Upstream key statistics

2016 2015 2014 2013 2012
Earnings ($ million) (3,674) (8,833) 5,231 3,640 11,254
Earnings excluding identified items ($ million) (2,704) (2,255) 6,754 6,644 10,693
Cash flow from operating activities ($ million) 7,662 5,453 19,150 17,841 22,131
Liquids production (thousand b/d) [A] 1,615 1,305 1,263 1,317 1,495
Natural gas production (million scf/d) [A] 6,781 5,911 6,593 7,059 7,488
Total production (thousand boe/d) [A][B] 2,784 2,323 2,399 2,534 2,786
Capital investment ($ million) 47,507 18,349 22,169 28,481 25,102
Capital employed ($ million) 128,782 84,727 88,692 93,135 87,413
Employees (thousands) 22 22 22 21 N/A
[A] Available for sale.
[B] Natural gas volumes are converted into oil equivalent using a factor of 5,800 scf per barrel.

Upstream earnings and cash flow [A] Production available for sale
$ billion mboe/d
25 3

20

15 2

10

5 1

5 0
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016

Earnings Liquids
Cash flow from operating activities Gas

[A] Earnings excluding identified items.

SHELL INVESTORS HANDBOOK 2012-2016 UPSTREAM 27

 The conventional oil and gas business is a cash engine many decades, with governments, national oil companies,
for Shell. It plays a key role in improving and sustaining other international oil companies (IOCs)
CONVENTIONAL oil and gas production. By producing safely and
reliably, this business provides cash to fund the
and independents.

OIL & GAS development of new opportunities for Shell. In Oman and Brunei, for example, we helped build their
oil and gas businesses which have created a foundation
The portfolio contains assets that produce both oil and for broader development that remains a principal source of
gas, onshore and offshore, in shallow and deep- revenue. In the UK, Norway, the Netherlands and
water settings. Denmark, we partnered with other IOCs and led the oil
and gas industries, which helped boost these economies.
This part of our business includes a large range of assets,
from more established basins such as in the North Sea, We expect to further strengthen this portfolio by divesting
Nigeria, Malaysia, Oman and Brunei to more recent non-strategic positions and focusing on improving
positions such as in Egypt, Iraq, Italy and Kazakhstan. attractiveness and resilience.

Our conventional oil and gas operations are important to After the start-up of Maharaja Lela South (ML South) and
most of the countries in which we operate. We have Kashagan in 2016, we expect new production from
always worked with a high level of government Gbaran-Ubie phase 2B and the Schiehallion
involvement and regulatory control and we partner with redevelopment to come on-stream in 2017. This,
others to execute operations and share risk. We have a combined with lower costs and improved uptime, should
proven capability to sustain deep relationships, spanning improve our free cash flow and returns.

Selective growth Capital investment

kboe/d $ billion
Clair ph2
Tempa Rossa
others 10
300

Corrib $5-6 billion

Sabah gas
Knarr
Kashagan 5
150 ML South
Schiehallion
G-U ph2
others

0 0
201415 201617 201819 ~2020 2013 2014 2015 2016 2017/18

Start-ups: 201415 201617 2018+

28 UPSTREAM SHELL INVESTORS HANDBOOK 2012-2016

 Deep water is the Upstream growth priority for Shell. We
DEEP WATER have advantaged positions in Brazil, the Gulf of Mexico,
Nigeria and Malaysia as well as in other regions with
substantial and profitable growth potential. We expect
our global deep-water production from already
discovered fields to grow to more than 900 thousand
boe/d by 2020. Near-field exploration could add further
growth. We are shaping our deep-water business with
economically resilient projects that are scoped, designed,
and safely operated in any market condition. We have
new, pre-final investment decision (FID) projects with
average break-even prices of less than $45 per barrel.

Decades ago, we pioneered deep-water development in the

Shells Saquarema FPSO at a shipyard in Brazil.
US Gulf of Mexico and have since led the industry on
technological achievements. Our Stones development began
producing in 2016 and is the deepest producing facility in a new production milestone of more than 250 thousand
the world. We took FID on the Appomattox project after we boe/d, further consolidating its presence as Brazils second-
reduced the expected cost by around 20% compared with largest oil producer.
the initial estimate. Since taking the FID, we have reduced
costs by another 20%. Appomattox and Vicksburg jointly Shell has been in Nigeria for more than 50 years and the
hold 650 million barrels of resources and production is country remains an important part of our deep-water
expected to begin later this decade. In addition, we have six portfolio, with clear growth potential. The Shell-operated
other major producing assets in the Gulf of Mexico with Bonga field was Nigerias first deep-water development in
subsea tie-back connections to several fields. In early 2017 depths of more than 1,000 metres; it began production in
we sanctioned the Kaikias project, which is a 40 thousand 2005 and has produced more than 600 million barrels of
boe/d tie-back to the Ursa platform and is expected to start oil. We brought the Bonga North West deep-water tie-back
up in 2019. on stream in 2014. In 2015, we increased production after
completing the third phase of infill drilling from the Bonga
In Brazil, we delivered approximately 35% of our global Main field.
deep-water production from operated and non-operated
assets in 2016. Through our acquisition of BG, we have Shell celebrated 125 years in Malaysia in 2016. Together,
significant acreage in the Santos Basin Pre Salt, which is one we pioneered the oil and gas industry in the country and
of the best deep-water provinces with break-even prices of fueled its growth. Offshore Malaysia, Shell operates five
under $40 per barrel. We have nine FPSOs operating in the producing oil fields, including the Gumusut-Kakap deep-
Santos Basin, with two more planned to start up in 2017. water field where production began in 2014. Malikai,
We also have a 20% interest in the giant Libra Pre Salt oil Shells second deep-water project in Malaysia, features the
field in the Santos Basin. At the end of 2016, Shell reached countrys first TLP and began production in December 2016.

We have substantial acreage positions in basins in North Shells North America shales acreage centres on liquids-rich
SHALES America and Argentina, and have shifted focus to shales in the Delaware Permian Basin in West Texas and the
accelerate select liquids development in the Permian and Duvernay and Montney plays in Alberta, Canada. Key
Fox Creek (Duvernay). We continue to quickly improve holdings of natural gas resources include positions in the
our execution performance, resulting in reduced economic Marcellus and Utica shales in Pennsylvania, Haynesville in
break-even points and competitive positions in geological Louisiana, and a strong shales footprint in Western Canada.
sweet-spots. We are on track to create a material, We also hold a growing position in liquids-rich shale in the
sustainable growth business for Shell from around 2020. Vaca Muerta of Argentina.

Americas shales

Western
Canada Gas Western Canada LRS
Fox creek

Appalachia

Permian Haynesville
Argentina Shells operations in the Delaware Permian Basin in the United States
of America.

Dry gas
Liquids rich

SHELL INVESTORS HANDBOOK 2012-2016 UPSTREAM 29

 In conventional exploration, we are executing a strategy In 2016, we had four notable discoveries (in Egypt, Malaysia
focused on both short-term value through established and the USA) and two appraisal successes (in Brunei and
CONVENTIONAL ventures and mid-term growth through expanding our
heartlands and selectively exploring in new
Malaysia). We made 13 near-field discoveries close to our
existing Upstream assets, with many of these new discoveries
EXPLORATION frontier basins. already in production by the end of 2016.

Following the acquisition of BG and our exit from offshore Over the past six years, 6 billion barrels of contingent
Alaska, exploration expenditure has been reduced to resources were added, including 1.5 billion barrels from deals
$2.5 billion per year. Our investments are balanced between: (this does not include the legacy BG contingent resources). The
finding costs derived from discoveries in this six-year period is
exploration near our existing assets, which can be around $4 per barrel on average, with a 45% success rate.
brought on stream quickly and generate high value;
We added new conventional exploration acreage in,
testing new geological concepts and finding new oil
amongst others, Brazil, Bulgaria, Bolivia, Kenya, Myanmar,
and gas resources within our existing heartlands; and
Tanzania and Trinidad and Tobago. This included acreage
building new frontier positions in under-explored areas from the BG combination.
with the potential for significant discoveries, but which
will take longer to develop. Shell will continue to deliver high-value exploration through
high-grading the integrated Shell and BG portfolio, leveraging
the best of both.

Conventional exploration and appraisal wells

Russia
UK

Albania
Algeria
USA Egypt

Oman

Trinidad & Tobago

Malaysia Brunei
Nigeria

Brazil

2017 Targets

Heartlands

Frontier

Conventional exploration themes

Prospect size Time to production
(million boe) (years)

FRONTIER Build-up of acreage,

de-risking and drilling in
under-explored basins
>250 10+

HEARTLANDS High-value near field

exploration and drilling
new geological plays in 1-250 1-5+
Shell producing basins

30 UPSTREAM SHELL INVESTORS HANDBOOK 2012-2016

 DENMARK
We have a non-operating interest in a producing
EUROPE concession in Denmark (Shell interest 36.8%), which was
granted in 1962 and expires in 2042. The Danish
government is one of our partners with a 20% interest.

IRELAND
We are the operator of the Corrib gas project (Shell
interest 45%), which has been in production since 2015.

ITALY
We have a 39.23% interest in the Val dAgri producing
The Jasmine development, in the UK North Sea, comprises a
concession, operated by ENI. Over the course of about
wellhead platform with a bridge-linked accommodation block. It
four months in 2016, operational issues with the waste- is tied back via a pipeline and new riser platform to the existing Judy
water classification resulted in production being shut in. production facilities.
During 2016, the Val dAgri Phase 2 project was
reshaped and an alternative phased approach defined to
improve capital efficiency, resolve critical sustainable Ormen Lange gas field (Shell interest 17.8%). We have
development elements and lower non-technical risks. interests in the producing fields Troll, Gja, Kvitebjrn and
Valemon, where we are not the operator.
We also have a 25% interest in the Tempa Rossa
concession, operated by Total. The Tempa Rossa field is UK
under development and first oil is expected in 2018. We operate a significant number of our interests on the UK
continental shelf on behalf of a 50:50 joint arrangement
NETHERLANDS with ExxonMobil. Most of our UK oil and gas production
Shell and ExxonMobil are 50:50 shareholders in comes from the North Sea. In the Atlantic Margin area,
Nederlandse Aardolie Maatschappij B.V. (NAM). An we have various interests where we are not the operator,
important part of NAMs gas production comes from the principally in the West of Shetland area (Clair, Shell
onshore Groningen gas field, in which EBN, a Dutch interest 28%; and Schiehallion, operated by BP, Shell
government entity, has a 40% interest and NAM a interest approximately 55%).
60% interest.
Production from the Schiehallion and Loyal fields was
In September 2016, the Minister of Economic Affairs suspended in 2013 to accomodate field redevelopment.
approved a production limit of 24 billion cubic metres A replacement FPSO was installed in 2016 and
(bcm) per year from the Groningen field until October 1, production from these fields is expected to resume
2021, in order to reduce the impact of earthquakes on the in 2017.
neighbouring communities. At the request of Parliament,
the Minister will review annually whether new As a result of the BG acquisition, we obtained non-
circumstances have arisen that call for a further reduction operating interests in the Buzzard field (Shell interest
of the production. Since 2013, a variety of measures have 21.7%, operated by Nexen Petroleum), located in the
been taken by NAM, the Minister and the government, Outer Moray Firth, central North Sea; in the J-Block and
including an in-depth study and measuring programme Jade area (Shell interests ranging from 30.5% to 35%,
(both sub-surface and above surface) and issuance of operated by ConocoPhillips); interests ranging from 20% to
specific building regulations. A national coordinator has 49% in the Beryl area fields operated by Apache; and
been appointed by the government to coordinate public other operated and non-Shell operated interests in offshore
oversight and a dedicated damage claim handling blocks, with Shell interests ranging from 14.1% to 100%.
company has been set up, with improvements to damage
claim handling kept under review. In 2016, we sold our 7.59% interest in the Maclure oil
and gas field in the North Sea, and sold the Anasuria
NAM also has a 60% interest in the Schoonebeek oil FPSO (including the Guillemot A, Cook and Teal fields),
field, which resumed operations in September 2016 also in the North Sea.
following the resolution of pipeline integrity issues, and
operates a significant number of other onshore gas fields In January 2017, we agreed to sell our interests in the UK
and offshore gas fields in the North Sea. North Sea assets Buzzard, Beryl, Bressay, Elgin-Franklin, J-
Block, the Greater Armada cluster, Everest, Lomond and
NORWAY Erskine, as well as a 10% interest in Schiehallion.
As a result of the BG acquisition, we are the operator in Completion is subject to partner and regulatory approvals.
the producing Gaupe (Shell interest 60%) and Knarr fields
(Shell interest 45%). REST OF EUROPE
We also have interests in Albania, Bulgaria, Cyprus,
Overall, we are a partner in 42 production licences on the Germany and Greenland.
Norwegian continental shelf, including seven new licences
awarded in January 2017. We are the operator in 19 of
these, of which four are producing: the Draugen oil field
(Shell interest 44.6%), the Gaupe and Knarr fields, and the

SHELL INVESTORS HANDBOOK 2012-2016 UPSTREAM 31

 BRUNEI Caspian Sea, where first crude oil was exported on
Shell and the Brunei government are 50:50 shareholders October 29, 2016, and the Commencement of
ASIA in Brunei Shell Petroleum Company Sendirian Berhad
(BSP). BSP has long-term oil and gas concession rights
Commercial Production milestone was achieved on
November 1, 2016. The North Caspian Operating
(INCLUDING onshore and offshore Brunei, and sells most of its gas Company is the operator. This shallow-water field covers

MIDDLE EAST) production to Brunei LNG Sendirian Berhad (see

Integrated Gas on page 18). BSP started up the
an area of approximately 3,400 square kilometres. Phase
1 development of the field is expected to lead to plateau
Champion Intermediate Deep (expected peak production oil production capacity of about 370 thousand b/d, on a
of around 9 thousand boe/d) and Champion Waterflood 100% basis, with the possibility of increases with
B2-B3 (expected peak production of around 10 thousand additional phases of development. Production started in
boe/d) projects in 2016. October 2016.

In addition to our interest in BSP, we are the operator for We also have an interest of 55% in the Pearls PSC,
the Block A concession (Shell interest 53.9%), which is covering an area of approximately 900 square kilometres
under exploration and development, and also the operator in the Kazakh sector of the Caspian Sea. It includes two
for exploration Block Q (Shell interest 50%). We have a oil discoveries, Auezov and Khazar.
35% non-operating interest in the Block B concession,
where gas and condensate are produced from the We also have a 7.43% interest in Caspian Pipeline
Maharaja Lela field. Consortium, which owns and operates an oil pipeline
running from the Caspian Sea to the Black Sea across
We also have non-operating interests in deep-water parts of Kazakhstan and Russia.
exploration Block CA-2 (Shell interest 12.5%) and in
exploration Block N (Shell interest 50%), both under PSCs. MALAYSIA
We explore for and produce oil and gas offshore Sabah
The non-Shell-operated ML South development (Shell and Sarawak under 17 PSCs, in which our interests range
interest 35%) achieved first production in 2016. from 20% to 75%.

IRAN Offshore Sabah, we operate five producing oil fields (Shell

Shell transactions with Iran are disclosed separately. See interests ranging from 29% to 50%). These include the
RDS Form 20-F for the year ended December 31, 2016. Gumusut-Kakap deep-water field (Shell interest 29%) where
production is via a dedicated floating production system.
IRAQ We have additional interests ranging from 30% to 40% in
We have a 45% interest in the Majnoon oil field that we PSCs for the exploration and development of four blocks.
operate under a development and production services These include the Malikai deep-water field (Shell interest
contract that expires in 2030. The other partners in 35%), which we are developing as the operator and
Majnoon are PETRONAS (30%) and the Iraqi government, where we started production from the Malikai TLP. We
which is represented by the Missan Oil Company (25%). also have a 21% interest in the Siakap North-Petai deep-
Majnoon is located in southern Iraq and is one of the water field and a 30% interest in the Kebabangan field,
worlds largest oil fields. Production at Majnoon averaged both operated by third parties.
215 thousand boe/d in 2016, compared with 206
thousand boe/d in 2015. We also have a 20% interest in In 2016, we agreed to sell our 50% interest in the 2011
the development and production services contract for the North Sabah EOR Production Sharing Contract in
West Qurna 1 field, which is operated by ExxonMobil. Malaysia, subject to obtaining regulatory and
This is subject to an ongoing sales process. partner approval.

We also have a 44% interest in the Basrah Gas Offshore Sarawak, we are the operator of 12 producing
Company, which gathers, treats and processes associated gas fields (Shell interests ranging from 37.5% to 70%).
gas produced from the Rumaila, West Qurna 1 and Nearly all of the gas produced is supplied to Malaysia
Zubair fields that was previously being flared. The LNG in Bintulu and to our gas-to-liquids plant in Bintulu.
processed gas and associated products, such as See Integrated Gas on page 21.
condensate and liquefied petroleum gas (LPG), are sold
primarily to the domestic market with the potential to export We also have a 40% interest in the 2011 Baram Delta
any surplus. In 2016, Basrah Gas processed over EOR PSC and a 50% interest in Block SK-307.
570 million scf/d of associated gas into dry gas, Additionally, we have interests in four exploration PSCs:
condensate and LPG, and executed its first exports of LPG SK318, SK319, SK320 and SK408.
and condensates.
OMAN
KAZAKHSTAN We have a 34% interest in Petroleum Development Oman
As a result of the BG acquisition, we are the joint operator (PDO); the Omani government has a 60% interest. PDO is
of the onshore Karachaganak oil and condensate field the operator of more than 160 oil fields, mainly located in
(Shell interest 29.25%), where we have a licence until the central and southern Oman, over an area of 85,823
end of 2037. Karachaganak produced around 390 square kilometres. The concession expires in 2044.
thousand boe/d, on a 100% basis, in 2016.
We are also participating in the Mukhaizna oil field (Shell
We have a 16.8% interest in the North Caspian Sea interest 17%).
Production Sharing Agreement which covers, among
others, the Kashagan field in the Kazakh sector of the

32 UPSTREAM SHELL INVESTORS HANDBOOK 2012-2016

 UNITED ARAB EMIRATES In 2016, we decided to exit the joint development of the
In Abu Dhabi, we have a 15% interest in the licence of Bab sour gas reservoirs (Shell interest 40%) with the Abu
Abu Dhabi Gas Industries Limited (GASCO), which expires Dhabi National Oil Company in the emirate of Abu
in 2028. GASCO exports propane, butane and heavier- Dhabi, and to stop further work on the project.
liquid hydrocarbons, which it extracts from the wet gas
associated with the oil produced by the Abu Dhabi REST OF ASIA
Company for Onshore Oil Operations. We also have interests in Jordan, Kuwait, Mongolia,
Myanmar, Palestine, the Philippines and Turkey.

EGYPT ONSHORE
AFRICA We have a 50% interest in the Badr Petroleum Company The Shell Petroleum Development Company of Nigeria
(BAPETCO), a self-operated joint venture between Shell Limited (SPDC) is the operator of a joint arrangement (Shell
and the Egyptian General Petroleum Corporation (EGPC). interest 30%) that has 17 Niger Delta onshore oil mining
BAPETCO onshore operations are located in the Western leases (OML), which expire in 2019. These include OML
Desert where we have an interest in nine oil and gas 25, which is held for sale subject to the resolution of pending
producing development leases, as well as three litigation. Of the Nigeria onshore proved reserves,
exploration concessions (North East Obaiyed, North 164 million boe are expected to be produced before the
Matrouh and North East Alam El Shawish). expiry of the current licences, and 377 million boe beyond.
To provide funding, modified carry agreements are in place
As a result of the BG acquisition, we have interests in two for certain key projects and are being reimbursed.
gas-producing areas offshore the Nile Delta. We have a
40% interest in the Rashid Petroleum Company Although the level of crude oil theft decreased in 2016
(RASHPETCO), a self-operated joint venture between Shell, compared with 2015, a substantial increase in the level of
EGPC and Edison, which operates the Rosetta concession sabotage was reported as result of the Forcados export line
(Shell interest 80%). In 2016, the contractor parties to the attacks, which led to a significantly higher overall production
Rosetta concession (Shell and Edison) handed over the loss than in 2015.
right of use for the Rosetta onshore gas processing plant to
BP and RWE. SPDC supplies gas to Nigeria LNG Ltd (see Integrated
Gas on page 18) mainly through its Gbaran-Ubie and
We also have a 25% interest in the Burullus Gas Soku projects.
Company (Burullus), a self-operated joint venture between
Shell, EGPC and PETRONAS. Burullus operates the West OFFSHORE
Delta Deep Marine concession (WDDM, Shell interest Our main offshore deep-water activities are carried out by
50%). Shell Nigeria Exploration and Production Company Limited
(SNEPCO, Shell interest 100%), which has interests in four
In 2016, gas was supplied from the WDDM concession deep-water blocks under PSC terms. SNEPCO operates
to the Egyptian LNG (ELNG) plant. OMLs 118 (including the Bonga field, Shell interest 55%)
and 135 (Bolia and Doro, Shell interest 55%) and has a
We also have a 60% interest in the development rights 43.75% interest in OML 133 (Erha), where we are not the
over the Harmattan Deep discovery and in the Notus operator, and a 50% interest in OPL 245 (Zabazaba, Etan),
discovery offshore the Nile Delta. where we are also not the operator.

GABON The authorities in various countries are investigating our

We have an interest in eight onshore mining concessions investment in Nigerian oil block OPL 245 and the 2011
(Shell interests ranging from 40% to 100%), of which five settlement of litigation pertaining to that block. On
are Shell operated and three are Total operated. The January 27, 2017, the Nigeria Federal High Court issued
onshore concessions are governed through seven an Interim Order of Attachment for oil block OPL 245,
production sharing contracts and one tax agreement. An pending the conclusion of the investigation. Shell has applied
important part of the Gabon production comes from the to discharge this order on constitutional and procedural
Toucan (Shell interest 94.25%), Rabi (Shell interest 52.5%) grounds. On February 14, 2017, we received notice of the
and Koula fields (Shell interest 40%). We also have an request of indictment from the Italian prosecution office
interest in Shell-operated Gabon deep-water exploration in Milan.
licences (Shell interest 75%).
SNEPCO also has an approximate 43% interest in the
In March 2017, we reached agreement to sell all our Bonga South West / Aparo development via its 55% interest
onshore interests in Gabon. The agreement is subject to in OML 118. Following the decision to delay the Bonga
certain conditions and approvals. Closing is expected in South West / Aparo project, a reframing exercise is under
mid-2017. way to make this project economically viable in the current
business environment. FID is not expected before 2018.
NIGERIA
Our share of production, onshore and offshore, in Nigeria SPDC also has three shallow-water licences (OMLs 74, 77,
was 258 thousand boe/d in 2016, compared with 278 and 79) and a 40% interest in the non-Shell-operated Sunlink
thousand boe/d in 2015. Security issues, sabotage and joint venture that has one shallow-water licence (OML 144);
crude oil theft in the Niger Delta continued to be all four shallow-water OMLs expire in 2034.
significant challenges in 2016.
REST OF AFRICA
We also have interests in Algeria, Kenya, Namibia, South
Africa, Tanzania and Tunisia.

SHELL INVESTORS HANDBOOK 2012-2016 UPSTREAM 33

 CANADA
We have approximately 1,600 mineral leases in Canada,
NORTH mainly in Alberta and British Columbia. We produce and
market natural gas, natural gas liquids, synthetic crude oil
AMERICA and bitumen. In addition, we have significant exploration
acreage offshore.

SHALES
We continued to develop fields in Alberta and British
Columbia during 2016 through drilling programmes and
investment in infrastructure to facilitate new production. We
own and operate natural gas processing and sulphur-
Worker bundling casing for inspection at the Shelburne Basin
extraction plants in Alberta and natural gas processing
Venture, Shore Base Dockyard, Canada.
plants in British Columbia. Our investment focus remains
on liquid-rich shale assets in Alberta. As part of that focus,
we sold shale gas assets located in Deep Basin East and
Gundy in November 2016. CARBON CAPTURE AND STORAGE (CCS)
In 2015, we launched our Quest CCS project in Canada,
BITUMEN AND SYNTHETIC CRUDE OIL which captured and safely stored more than 1 million
Bitumen is a very heavy crude oil produced through tonnes of CO2 in 2016.
conventional methods as well as through enhanced oil
recovery methods. We produce and market bitumen in the OFFSHORE
Peace River area of Alberta. We also have heavy oil We have a 31.3% interest in the Sable Offshore Energy
resources in approximately 1,200 square kilometres of the project, a natural-gas complex off the east coast of
Grosmont oil sands area, also in northern Alberta. We Canada, and other acreages in deep-water offshore
retain Carmon Creek leases to preserve future options. Nova Scotia and Newfoundland. We have a 50%
interest and operatorship in the Shelburne exploration
Synthetic crude oil is produced by mining bitumen- project offshore Nova Scotia. We also have a number of
saturated sands, extracting the bitumen from the sands and exploration licences off the west coast of British Columbia
transporting it to a processing facility where hydrogen is and in the Mackenzie Delta in the Northwest Territories.
added to produce a wide range of feedstocks for
refineries. We operate the Athabasca Oil Sands Project USA
(AOSP) in north-east Alberta as part of a joint arrangement We produce oil and gas in deep water in the Gulf of
(Shell interest 60%). The bitumen is transported by pipeline Mexico, heavy oil in California and oil and gas from shale
for processing at the Scotford Upgrader, which is located in Pennsylvania, Texas and Louisiana. The majority of our
in the Edmonton area. We also have a number of other oil and gas production interests are acquired under leases
minable oil sands leases in the Athabasca region with granted by the owner of the minerals underlying the
expiry dates ranging from 2018 to 2025. By completing relevant acreage, including many leases for federal
the Alberta Department of Energys development onshore and offshore tracts. Such leases usually run on an
requirements prior to their expiry, leases may be extended. initial fixed term that is automatically extended by the
establishment of production for as long as production
In March 2017, Shell agreed to sell to Canadian Natural continues, subject to compliance with the terms of the lease
Resources Limited (Canadian Natural) its 60% interest in (including, in the case of federal leases, extensive
the Athabasca Oil Sands Project (AOSP), accounted for as regulations imposed by federal law).
a joint operation, its 100% interest in the Peace River
Complex in-situ assets including Carmon Creek, and a GULF OF MEXICO
number of undeveloped oil sands leases, all in Alberta, The Gulf of Mexico is our major production area in the
Canada. The consideration is approximately $8.5 billion, USA and accounts for more than 62% of our oil and gas
comprising $5.4 billion in cash and around 98 million production in the country. We have an interest in
Canadian Natural shares currently valued at $3.1 billion. approximately 400 federal offshore production leases and
The transaction is estimated to result in a post-tax our share of production averaged 248 thousand boe/d
impairment loss of $1.3 billion to $1.5 billion, subject to in 2016.
adjustments. In a related transaction, Shell and Canadian
Natural have agreed to jointly (50:50) acquire Marathon We are the operator of eight production hubs: Mars A,
Oil Canada Corporation (MOCC), which has a 20% Mars B, Auger, Perdido, Ursa, Enchilada/Salsa, Ram
interest in the AOSP, for $1.25 billion each. Following Powell and Stones, as well as the West Delta 143
these transactions, Shell will continue as operator of the Processing Facilities (Shell interest ranging from 38% to
Scotford Upgrader and the Quest carbon capture and 100%). We also have non-operating interests in Nakika
storage (CCS) project. Subject to regulatory approvals, the (Shell interest 50%) and Caesar Tonga (Shell interest
transactions are expected to close in mid-2017. Subject to 22.5%), and the Coulomb field (Shell interest 100%).
closing of these transactions and additional further
conditions, Shell may swap its purchased interest in During 2016, the Stones field came on stream with Shells
MOCC for a 20% interest in the Scotford Upgrader and first FPSO in the Gulf of Mexico. We also began drilling
Quest CCS project. If the swap were to occur, Shell would operations at the Appomattox field. Construction of the
fully exit AOSP mining operations and have a 20% interest facilities and export pipeline continues with first oil
in the Scotford Upgrader and Quest CCS project. expected in 2019.

34 UPSTREAM SHELL INVESTORS HANDBOOK 2012-2016

 In 2016, we sold our 100% interest in the Brutus TLP, the During the summer of 2016, contractors safely collected
Glider subsea production system, and the oil and gas the remaining equipment used for our prior offshore
pipelines used to transport the production from the TLP. exploration and drilling operations, and successfully
Additionally, we sold a 20% interest in the Kaikias conducted Phase 4 of the drilling discharge monitoring
development in the Gulf of Mexico. We retain an 80% process in accordance with federal Environmental
interest and in February 2017 we we took the FID Protection Agency requirements.
to execute Phase 1 of the project.
In 2016, we relinquished all but one federal lease in the
ONSHORE Chukchi Sea and half of our federal leases in the Beaufort
We have significant shale acreage, focused in the Sea. We concluded a commercial deal to transfer 21
Delaware Permian Basin in West Texas and the Marcellus Beaufort federal leases to the Arctic Slope Regional
and Utica plays in Pennsylvania. As a result of the Corporation. We also transferred operatorship of our
acquisition of BG, we acquired a position in the remaining federal leases (Shell interest 40%) in the Beaufort
Haynesville shale gas formation in Northern Louisiana, Harrison Bay area to ENI. We retain 18 state leases
which is operated by EXCO Resources Inc. nearby and continue to evaluate all our Beaufort holdings
for commercial options. The BG acquisition added an
CALIFORNIA onshore gas portfolio in the Alaska Foothills, in which we
We have a 51.8% interest in Aera Energy LLC (Aera) now have a 33% non-Shell-operated interest along with
which operates approximately 15,000 wells in the San Anadarko and Suncor. We continue to evaluate options for
Joaquin Valley, mostly producing heavy oil and this portfolio.
associated gas.
REST OF NORTH AMERICA
ALASKA We also have interests in Honduras.
We found indications of oil and gas in the Burger J well in
the Chukchi Sea in 2015, but they were insufficient to
warrant further exploration in the prospect and the well
was deemed a dry hole. The well was sealed and
abandoned in accordance with US regulations.

BRAZIL South) are expected to be brought online in 2017 and

SOUTH We operate several producing fields in the Campos Basin, four are expected to do so over the period 2018-2020
AMERICA offshore Brazil. They include the Bijupir and Salema fields
(Shell interests 80%) and the BC-10 field (Shell interest
(Berbigao, Lula Extreme South, Atapu South, Atapu North).

50%). Production from the BC-10 Phase 3 project started We have further development and exploration leases in
in 2016. In February 2016, an agreement to sell our 80% the Santos Basin within the Libra (Shell interest 20%) and
interest in Bijupir Salema was cancelled and therefore this Gato-do-Mato BM-S-54 (Shell interest 80%) fields and
asset remains in our portfolio. have a further 20% non-operated interest in the Sagitario
BM-S-50 offshore exploration block, also in the
As a result of the BG acquisition, we have a 30% interest Santos Basin.
in the Sapinhoa and Lapa fields, as well as 25% interests
in the Lula, Iracema, Berbigo, Sururu and Atap West Additionally, as a further result of the BG acquisition, we
fields. We have nine producing FPSOs in Brazil. Of those, operate 10 offshore exploration blocks in the Barreirinhas
the seventh, eighth and ninth FPSOs Cidade de Maric, Basin (Shell interests ranging from 50% to 100%).
Cidade de Saquarema and Cidade de Caraguatauba
respectively reached first oil in 2016 in various offshore REST OF SOUTH AMERICA
blocks and are expected to ramp up to full production We also have interests in Argentina, Colombia
capacity by 2020. Two further FPSOs (Lula North and Lula and Uruguay.

SHELL INVESTORS HANDBOOK 2012-2016 UPSTREAM 35

 In early 2017, Shell announced the decision to execute
phase one of the Kaikias deep-water project in the US
IN FOCUS: Gulf of Mexico. Kaikias is a financially attractive near-
field discovery with a go-forward break-even price
KAIKIAS below $40 per barrel. It will produce oil and gas
through a subsea tie-back to the nearby Shell-operated
Ursa production hub. Kaikias is designed to be a safe,
competitive and capital-efficient deep-water project
using infrastructure already in place. By simplifying the
design and using lessons learned from previous subsea
developments, Shell reduced the total cost by around
50% compared to the initial estimate.
New production from Kaikias will flow to our Ursa platform
Shell minimized the need for new drilling at Kaikias by
safely re-developing the exploration and appraisal wells
for production. The 50% reduction in total costs versus
FAST FACTS
initial estimates further comes as a result of supply chain
savings, simplifying our subsea architecture and Kaikias is located in the abundant Mars-Ursa
competitively designing the new wells. By taking basin approximately 200 km from the Louisiana
advantage of existing oil and gas processing equipment coast.
on Ursa, Shell minimised the need for additional top-side Shell discovered the field in 2014 and it is
modifications and will reduce unit operating costs at estimated to contain more than 100 million boe
the asset. recoverable resources.
Shell, the operator, owns 80% of the venture;
Globally, Shells deep-water business is a growth priority MOEX North America, a wholly-owned
for the company, producing 725,000 boe/d at the end subsidiary of Mitsui Oil Exploration Co.,
of 2016. Shells deep-water production is expected to owns 20%.
increase to more than 900,000 boe/d by 2020 from
already discovered, established reservoirs. In the Gulf of The Kaikias project will be developed in two
Mexico, Shell is a leading operator with significant phases. The first phase includes three wells,
acreage, seven production hubs, and an established which are designed to produce up to
network of subsea infrastructure. 40,000 boe/d.
Production will flow to the Ursa platform using a
Kaikias provides an affordable and capital-efficient growth single flowline.
opportunity in Shells core and most abundant heartland in Kaikias phase one is expected to start production
the Gulf of Mexico the Mars-Ursa basin. It is a world- in 2019.
class development that will deliver cash flow and
Two other Shell-operated projects in the Gulf of
robust returns.
Mexico are currently under construction or
undergoing pre-production commissioning:
Kaikias is an example of what an empowered and
Coulomb Phase 2 and Appomattox.
integrated team can do. It was on the drawing board just
as the oil price decline was setting in. We proved just how
competitive we can be in deep water. Every discipline and
function rallied around the target to halve project costs,
and to do that in a very tight timeline.

We are now shifting our focus to safely delivering our

promises on the path to first oil.

36 UPSTREAM SHELL INVESTORS HANDBOOK 2012-2016

DOWNSTREAM
Our Downstream business is made
up of a number of different Oil
Products and Chemicals activities,
part of an integrated value chain,
including trading activities, that
turns crude oil and other feedstocks
into a range of products which are
moved and marketed around the
world for domestic, industrial and
transport use. The products we sell
include gasoline, diesel, heating oil,
aviation fuel, marine fuel, lubricants,
bitumen and sulphur. In addition,
we produce and sell petrochemicals
for industrial use worldwide.

2.9 MILLION
barrels of oil per day refining capacity

NUMBER 1
Market position globally for retail and lubricants
businesses

2 FIDS
taken on Chemicals projects

Shell Rheinland Refinery in Germany.

 MILESTONES IN 2016 In the Philippines, Pilipinas Shell Petroleum
Downstream achieved the second-highest earnings since Corporation (PSPC), a subsidiary of Shell, priced its
DOWNSTREAM 2008. Notably, our results featured a strong
performance from our Marketing business, benefiting
initial public offering (IPO) at 67 Philippine pesos per
share. Following the IPO, Shell remains the majority
OVERVIEW from growth in premium branded products which helped shareholder in PSPC with a 55% interest.
generate higher unit margins. The Retail business had its
We signed agreements for sales that are expected to
strongest year ever.
complete in 2017 subject to regulatory approval. These
We announced the final investment decision (FID) to include:
expand our 50:50 joint venture with CNOOC in our 20% interest in Vivo Energy, the Shell licensee in
Huizhou, Guangdong Province, China, which includes 16 markets in Africa, to Vitol Africa B.V., for
OIL PRODUCTS the Nanhai petrochemicals complex. The expansion
Cash engine $250 million.
includes the ongoing construction of a new ethylene
cracker and ethylene derivatives units, which are our Australian aviation business to Viva Energy
Australia Pty Ltd., for a total transaction value of
expected to increase ethylene capacity by more than
CHEMICALS approximately $250 million.
1 million tonnes per year when fully completed in
Growth priority
2019. the Fredericia refinery and local trading and supply
activities in Denmark to Dansk Olieselskab ApS, for
We announced the FID to build a major petrochemicals
approximately $80 million including working capital.
complex, comprising an ethylene cracker with
polyethylene derivatives unit in Pennsylvania, USA.
Main construction is expected to start by 2018, with ADDITIONALLY, IN 2017
commercial production beginning early in the next Shell and SABIC signed an agreement whereby SABIC
decade. will acquire Shells 50% share in the petrochemicals
SADAF joint venture, located in Jubail, Kingdom of
Shell completed the sale of a number of our interests
Saudi Arabia for $820 million. The transaction is
including:
subject to regulatory approval and is expected to
our Denmark Marketing business to Couche-Tard.
complete later this year.
a 31.2% interest in Showa Shell in Japan to Idemitsu,
Also, Saudi Refining Inc. (SRI) and Shell announced the
retaining a 3.8% interest.
signing of binding definitive agreements on the
our 51% interest in Shell Refining Company (SRC) to separation of assets, liabilities and businesses of Motiva
Malaysia Hengyuan International Limited (SRC owns Enterprises LLC. Subject to regulatory approval, the
the Port Dickson refinery). transaction is expected to close in the second quarter of
2017. A balancing payment of $2.2 billion has been
agreed between the parties, subject to adjustments
including for working capital.

Downstream key statistics

2016 2015 2014 2013 2012
CCS earnings ($ million), of which: 6,588 10,243 3,411 3,869 5,382
Oil Products 4,940 8,654 1,994 2,026 4,008
Chemicals 1,648 1,589 1,417 1,843 1,374
CCS earnings excluding identified items ($ million) 7,243 9,748 6,265 4,466 5,343
Cash flow from operating activities ($ million) 3,556 14,076 11,292 7,903 11,111
Oil Products sales volumes (thousand b/d) 6,483 6,432 6,365 6,164 6,235
Chemicals sales volumes (thousand tonnes) 17,292 17,148 17,008 17,386 18,669
Refinery processing intake (thousand b/d) 2,701 2,805 2,903 2,915 2,819
Refinery availability (%) 90 90 93 94 92
Chemical plant availability (%) 90 85 85 92 91
Capital investment ($ million) 6,057 5,119 5,910 5,528 5,454
Capital employed ($ million) 52,671 46,280 48,925 64,507 62,426
Employees (thousands) 40 43 47 48 48

Downstream CCS earnings and ROACE [A] Downstream capital investment

$ billion % $ billion
10 20 6

5 10 3

0 0 0
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016

Marketing Chemicals Asset integrity

Refining & trading ROACE (right axis) Growth

[A] CCS earnings excluding identified items, ROACE on a CCS basis

excluding identified items.

38 DOWNSTREAM SHELL INVESTORS HANDBOOK 2012-2016

 REFINING AND TRADING TRADING AND SUPPLY
REFINING Shell Trading and Supply is one of the largest energy
OIL PRODUCTS We aim to create a Downstream portfolio that is more
focused on larger, integrated refining and petrochemical
trading operations in the world. This global organisation
combines our network of trading companies, industry-
sites that are better able to respond to growth opportunities leading shipping and maritime capabilities and an
and tighter fuel specifications. integrated network of supply and distribution activities, to
act as the central nervous system for Royal Dutch Shell.
A key part of our strategy is to divest non-core assets while Our trading capability, deep market knowledge, global
selectively investing in high-growth markets. We have portfolio and end-to-end integration within Shell effectively
retained our larger and more integrated refineries, and our creates opportunities to deliver value for our customers and
current portfolio is positioned for optimisation across the for Shell across our Upstream, Downstream and Integrated
value chain. Gas businesses.

We have interests in 22 refineries worldwide. They have Through our main trading offices in London, Houston,
the capacity to process a total of around 2.9 million Singapore, Dubai and Rotterdam we trade crude oil,
barrels of crude oil per day (Shell share) into a wide range natural gas, LNG, electricity, refined products, chemical
of products, including gasoline, diesel, heating oil, feedstocks and environmental products. We have the
aviation fuel, marine fuel, lubricants, liquefied petroleum experience and international scope to capitalise on trading
gas (LPG), sulphur and bitumen. Approximately 35% of our opportunities inherent in Shells asset and market positions
refining capacity is in Europe and Africa, with 42% in the around the world to deliver sustained and growing cash
Americas and 23% in Asia and Oceania. returns. In 2016, Shell integrated all gas and energy
marketing and trading capabilities under Trading &
Efficiency improvements have contributed to a reduction in Supply, creating Gas and Energy Marketing and Trading.
greenhouse gas emissions from our refineries and This is the market interface for our Integrated Gas business,
petrochemicals plants. Achieving even greater efficiency managing the flow of gas molecules around the world to
and operational reliability will also help us improve meet customer demand for reliable and flexible
profitability. The average availability of our refineries, a energy supply.
measure of their operational performance, was 90%
in 2016. With more than 100 distribution terminals and 770 supply
points in around 25 countries, our supply and distribution
In Canada, we completed a debottlenecking project at infrastructure is well positioned to make deliveries around
Scotford refinery, which will increase its hydrocracking the world. This includes supplying feedstocks for our
capacity by about 20%. In the Netherlands, we began refineries and chemical plants and finished products such
construction of a major unit at the Pernis refinery. The new as gasoline, diesel and aviation fuel to our Marketing
solvent deasphalter unit will remove heavier fractions from businesses and customers.
crude oil, allowing the refinery to upgrade a larger
proportion of its oil intake into lighter, high-grade products. Our Shell Shipping and Maritime business has a high level
Completion is expected by the end of 2018. of expertise and decades of experience. It is responsible
for ensuring that all of our global maritime activities are
In September 2016, we reached an agreement with safely managed, including a fleet of around 40 LNG
Dansk Olieselskab ApS for the sale of A/S Dansk Shell in carriers and 10 oil tankers. In addition, we have more
Denmark, which includes the Fredericia refinery. than 240 oil and LNG vessels on time charter. There are
around 2,000 vessels associated with Shell on the water
In December 2016, we completed the sale of our 51% on any given day, including the ships, barges, drilling rigs,
shareholding in SRC in Malaysia, which includes the Port supply boats, FPSOs, FSRUs, SBMs and the related
Dickson Refinery, to Malaysia Hengyuan International Ltd. operations that take place in ports and terminals.

In 2017, Shell signed binding definitive agreements with

SRI for the separation of assets, liabilities and businesses of
Motiva. Following completion of this transaction Shell will
assume sole ownership of the Norco and Convent
refineries in Louisiana, 11 distribution terminals and Shell-
branded markets in various regions of the USA. SRI will
assume full ownership of the Motiva Enterprises LLC name
and legal entity, including the refinery at Port Arthur, Texas
and 24 distribution terminals. Motiva will have the right to
exclusively sell Shell-branded gasoline and diesel in other
regions in the USA.

SHELL INVESTORS HANDBOOK 2012-2016 DOWNSTREAM 39

 Shell Trading and Supply
Oil Products Continued

Trader in the middle Time charters

more than
Manages more than
TRADES
MORE
THAN
240 6m
BARRELS PER DAY
BARRELS LNG AND oil equivalent of gas, power

8m
PER DAY OIL TANKERS and LNG movements
CRUDE
OIL
Physically delivers around 4 million
barrels of refined products per day
to customers (directly or via Shells
marketing business)

4
MILLION

110 43,000 SHELL RETAIL

STATIONS
FUEL
DEPOTS 770
OUTSIDE
SUPPLY
3,000 TRUCKS
POINTS

ADDING VALUE FOR SHELL

MARKETING well as making around $6 billion in annual convenience

Marketing includes retail, lubricants, business to business retail sales. In some markets such as Germany, Eastern
(B2B), pipelines as well as biofuels and alternative Europe and Switzerland there are more non-fuels
energies. Our products are marketed around the world for transactions than fuel at every moment of the day.
domestic, industrial and transport use and include
gasoline, diesel, heating oil, aviation fuel, marine fuel, Our experience in fuel development, gained over more
lubricants, bitumen and sulphur. than 100 years, underpins our position today as a leading
provider of innovative fuels. Differentiated fuels with unique
RETAIL formulations designed to improve performance are
Our global retail business deploys a range of operating available in 68 countries under the Shell V-Power brand.
platforms. In our invested operating platforms, Shell owns Recently, we launched our latest generation of Shell V-
the assets and manages the revenues. Assets and revenues Power across a range of key markets. We are the leading
of non-invested platforms are owned and managed by the supplier of premium fuels among the international oil
dealer, wholesaler or licensee. These models enable the companies. In 2009, we launched the Shell FuelSave
business to optimise performance depending on the range. These products are now available in 29 countries.
country we are operating in. We also sell Shell Fuel Economy, our petrol and diesel
formula, in 18 countries where Shell FuelSave has not yet
Our branded fuel retail network is the worlds largest, with been launched. We are also the largest retailer of biofuels
close to 43,000 branded service stations in over 70 in the world.
countries. We serve approximately 30 million customers
every day and sell 200 billion litres of fuel each year As engines, vehicles and transport systems continue to
(enough to fill more than 72 Airbus A380s per hour), as evolve we change with them. Investing more in research
and development than any other energy company our
goal is to deliver the energy our customers require today
Global Brand Preference and in the decades ahead. We have a close technical
% partnership with Scuderia Ferrari. Our fuel has helped the
25 Ferrari motor racing team to achieve 10 Formula One
World Constructors and 12 World Championship Drivers
20
titles. This partnership enables our scientists and engineers
to develop cutting-edge fuel technologies for the racetrack
15
that can be used to make better road fuels for
10 our customers.

5 People are at the heart of the Shell culture. We pride

ourselves on having more than 500,000 frontline service
0
2011 2012 2013 2014 2015 2016 champions who are confident, empowered and proud to
Shell
represent the Shell brand. We have one of the largest
Other Oil Majors global employee recognition programmes, in which the

40 DOWNSTREAM SHELL INVESTORS HANDBOOK 2012-2016

best frontline service champions from across the world are and Land Rover drivers in the UK can use their cars
invited to an annual event where the best service touchscreen to pay for fuel via the Shell app. It will be
champion is crowned. rolled out in additional markets across the globe in 2017.
The Shell app is available in 30 countries and the Shell
Retail is investing in the customer digital experience, with station locator is available in 40. As cars become more
digital screens at the pump available in the UK, connected to the Internet of things, Shell is looking to
Netherlands, Malaysia, Oman and Thailand. The Shell digitise other services like paying for a car wash or
digital experience gives customers access to fast and ordering and paying for drinks from any digital screen the
flexible mobile payments, click-and-collect services, and customer chooses.
connected-car technology.
Commercial Fleet is an important part of the Shell Retail
We are working closely with a number of technology business, with Shell fuel cards used 260 million times
partners and car manufacturers to allow customers to order annually. The Shell loyalty club also has 19 million
ahead and pay from their cars reducing queuing and active users.
congestion. In February 2017, we announced that Jaguar

Retail business footprint

CIRCA
43K 500K
FRONT-LINE SERVICE CHAMPIONS
CLOSE
TO

80
SHELL BRANDED SITES AROUND THE WORLD COUNTRIES

SOLD ANNUALLY 30 MILLION +

CUSTOMERS SERVED DAILY SHELL FUEL CARDS USED

APPROXIMATELY 260
MILLION
200 BILLION TIMES ANNUALLY
LITRES OF FUEL

350 450 SHELL LOYALTY CLUB

APPROXIMATELY 250 MILLION 19

$6
MILLION MILLION

BILLION MILLION
CONVENIENCE ACTIVE USERS
RETAIL SALES CUPS OF COFFEE COLD BEVERAGES UNITS OF SNACKS

BUSINESS TO BUSINESS licensed our Shell Thiogro technology to Office

We sell fuels and speciality products and services to a Chrifiendes des Phosphates (OCP), one of the worlds
broad range of commercial customers. largest fertiliser producers, to produce premium sulphur-
enhanced fertilisers at their production facility in Jorf
Shell Aviation fuels more than 2 million aircraft a year, with Lasfar, Morocco.
a presence at around 900 airports in about 40 countries.
Customers range from private pilots to the largest global LUBRICANTS
airlines and airports. Shell is active across the full value chain in lubricants. We
manufacture and buy a number of base oil grades and
In Australia, we signed an agreement with Viva Energy blend them with additives at Shell-owned or joint venture
Australia Pty Ltd for the sale of our aviation business. It blending plants, creating a range of branded products
follows the sale of Shells other Downstream activities in the with different technical specifications. We then market, sell
country to Viva Energy in 2014. The sale is expected to and distribute those products, either ourselves or via
complete in the first half of 2017. partners, in more than 100 countries. We have around
1,200 accredited distributors, in locations that make sense
Shell Bitumen is the worlds largest international marketer of for our customers. We sell to both individual consumers
bitumen, with over 1,600 customers across 30 countries, and to business customers. Shell also owns Jiffy Lube
and supplies enough bitumen to resurface 450 kilometres franchised service centres in North America.
of road lanes every day. We have also developed
innovative bitumen products that can be mixed and laid at We offer market-leading brands for a broad range of
lower temperatures than conventional asphalt, which helps applications, including passenger car motor oils, heavy-
reduce energy use and carbon dioxide (CO2) emissions. duty engine oils, process oils, hydraulic fluids, industrial
In 2015, Shell Bitumen was recognised by the engine oils and greases.
International Road Federation for its odour-neutralising
product Shell Bitufresh. Since 2014, we have launched a number of new
premium products made from natural gas Pennzoil
Shell Sulphur Solutions is a dedicated business which Platinum in North America, Shell Helix Ultra outside of
manages the complete value chain of sulphur, from refining North America, and Shell Advance Ultra. They contain
to marketing. The business provides sulphur for industries Shell PurePlus Technology: a patented process which
such as mining and textiles and also develops products converts natural gas into a clear base oil, the main
which incorporate sulphur, such as fertilisers. In 2016, we component of motor oils. These premium products offer

SHELL INVESTORS HANDBOOK 2012-2016 DOWNSTREAM 41

 better lubrication compared to base oils made from crude PIPELINES
oil. It helps to extend engine life, reduce maintenance Shell Pipeline Company LP operates seven tank farms
Oil Products Continued
costs and oil consumption, maintain fuel economy and across the USA and transports more than 1.5 billion
improve engine cleanliness. barrels of crude oil and refined products annually through
about 6,000 kilometres of pipelines in the Gulf of Mexico
Today, the Ferrari Formula One, BMW Motorsport DTM and five US states. Our various non-operated ownership
and Hyundai Motorsport World Rally Championship teams interests add about 13,000 pipeline kilometres to our
all use Shell Helix Ultra with PurePlus Technology. The portfolio, unlocking multiple interfaces to share best
Ducati MotoGP team uses Shell Advance Ultra with practices with other pipeline operators.
PurePlus Technology.
We carry more than 40 kinds of crude oil and more than
In 2016 we launched the Shell Rotella range of heavy-duty 20 grades of gasoline, as well as diesel fuel, aviation fuel,
engine oils, an industry-first offering of oils compatible with chemicals, and ethylene.
the latest specifications prescribed by the American
Petroleum Institute. Shell Midstream Partners is a fee-based, growth-oriented
master limited partnership formed by Royal Dutch Shell to
We also unveiled the Shell Concept Car, an ultra-efficient own, operate, develop and acquire pipelines and other
concept city car co-engineered by Shell Lubricants, engine midstream assets. Shell Midstream Partners L.P. is listed on
experts Geo Technology, and automotive designers the New York Stock Exchange under the ticker symbol
Gordon Murray Design. SHLX. Shell Midstream Partners assets consist of
pipelines, oil storage and terminal systems that serve as
Our marine business supplies around 90 grades of key infrastructure to transport and store onshore and
lubricants and fuels, as well as dedicated technical offshore crude oil production to Gulf Coast and Midwest
services for marine vessels powered by diesel, steam refining markets and to deliver refined products from Gulf
turbine and gas turbine engines. Coast markets to major demand centres. We maintain
control of the partnership through the general partner and
The 14th annual Kline & Company report on the global own approximately 49% of the limited partner units.
lubricants sector confirmed our volume and brand
leadership position, with a global market share of
around 11.5%.

Shell Midstream Partners Portfolio

LOCKPORT TERMINAL EXPLORER COLONIAL

MN MI
SD WI MI
PA
IA NJ
WI IA
NE
IN
OH DE
Lockport M I NE
IL
WV
MD
IL
Terminal IN
KS MO KY
VA

NC
KS MO TN
IA O H KY OK SC
AR

TN MS AL GA

IN OK
AR
LA
TX

IL MS AL FL

LA
TX
M O ALABAMA

Batton Rouge MISSISSIPPI

LOUISIANA

TEXAS

Erath St. James Convent

Channelview Lake Charles Norco/St. Charles
Houston Clovelly
Houma MP 69P
Port Arthur / Alliance
Nederland
GULF OF MEXICO
Caillou
OFFSHORE CRUDE REFINED PRODUCTS Island
- Auger - Bengal
- Endymion - Colonial
- Mars - Explorer
- Poseidon
ONSHORE C RUDE
- Proteus SMI 205A
- Zydeco
- Odyssey
STORAGE
GAS PIPELINE
- Lockport
- Cle opatra
Updated: January, 2017

42 DOWNSTREAM SHELL INVESTORS HANDBOOK 2012-2016

BIOFUELS & ALTERNATIVE ENERGY
The international market for biofuels is growing, driven
largely by the need to reduce greenhouse gas emissions
from transport, but also to improve energy security and
support the agricultural sector. Sustainable biofuels are
expected to play an increasingly important role in helping
to meet fuel needs and reduce CO2 emissions.

Today, we are today one of the worlds largest blenders

and distributors of biofuels and we continue to build
capacity in conventional biofuels that meet our corporate
and social responsibility criteria. The production, purchase,
trading, storage, blending and distribution of biofuels are
part of our everyday business. Two researchers working in the biofuels section at the Shell
Technology Center Houston, Unites States of America.
In 2011, Shell and Cosan launched the Razen biofuels
joint venture (Shell interest 50%) in Brazil to produce
ethanol, sugar and electricity, as well as supply, distribute HYDROGEN
and sell transport fuels. With a production capacity of Hydrogen has the potential to be an important low-carbon
more than 2.1 billion litres per year (35 thousand b/d) of transport fuel and Shell is part of several initiatives to
ethanol from sugar cane, Razen is one of the worlds encourage the adoption of hydrogen-electric energy.
largest sugar-cane ethanol producers. The deal marked our
first move into the mass production of biofuels. In 2015, Hydrogen fuel-cell electric cars do not produce greenhouse
Razen opened a second-generation biofuels plant, which gases from their tailpipe the only emission is water
uses technology from our earlier programmes with Iogen vapour. If the hydrogen comes from renewable sources of
Energy. In 2016, the plant produced 6.9 million litres of energy, and if it is produced at retail sites, then the fuel-cell
cellulosic ethanol from sugar-cane residues. It is expected vehicles create almost no emissions.
to produce 40 million litres a year once fully operational.
In Germany, the government is supporting the development
Outside Brazil, we continue to invest in new ways of of a national network of hydrogen electric fuelling stations
producing biofuels from sustainable feedstocks, such as across the country by 2023. We are working on this
biofuels made from waste products or cellulosic biomass. project with our joint-venture partners in H2 Mobility
New advanced biofuels technology can turn these Germany Air Liquide, Daimler, OMV, Linde and Total.
feedstocks into high-quality fuels, while further reducing The hydrogen will be delivered by truck as a gas to retail
CO2 emissions compared to gasoline and diesel. sites. Under the terms of the partnership, at least 50% of
the hydrogen sold must be produced without emitting
In 2012, Shell built an advanced biofuels pilot plant at our greenhouse gases.
Westhollow Technology Center in Houston, USA, to
produce drop-in biofuels. In 2015, also in Houston, we In 2016, the first station in the H2 Mobility network
completed the construction of a plant to demonstrate a opened at Shells retail site in Wuppertal, western
proprietary pre-treatment system for the production of Germany. We currently have five hydrogen filling stations
cellulosic ethanol. in Germany and two hydrogen filling stations in Los
Angeles, California. In the UK, we are partnering with ITM
A third pilot plant, approved in 2015, is being built in Power, a company specialising in hydrogen fuel-cell
Bangalore, India. The demonstration plant will use IH2 products, to make hydrogen fuel available at three Shell
technology (licensed from GTi) to convert a range of retail sites in the south east of the UK. The first of the UK
forestry and agricultural residues and municipal wastes stations opened in February 2017. Shell is assessing the
directly into drop-in fuels or blend stocks. potential for similar projects in the USA, Canada,
Switzerland, Austria, France, Belgium, Luxembourg and
With effect from 2017, our biofuels development and the Netherlands.
hydrogen activities will be reported within Integrated Gas
as part of our New Energies business. Razen will remain
within Downstream.

SHELL INVESTORS HANDBOOK 2012-2016 DOWNSTREAM 43

 We have more than 80 years of experience in the Our Chemicals strategy is based on investment at existing
chemicals industry and produce and supply 17 million sites to increase capacity, improve efficiency and
CHEMICALS tonnes per annum (mtpa) of chemicals to about 1,000
large industrial customers worldwide. Our plants
integration, and to strengthen our feedstock sources.
Securing new integrated growth projects and developing
produce a range of base and intermediate chemicals. technologies to convert gas into chemicals are also critical
We have the capacity to produce over 6 mtpa strategy components.
of ethylene.
In 2016, we announced final investment decisions (FID) on
Our products are used to make numerous everyday items, two major projects.
from clothing and cars to detergents and bicycle helmets.
In China, we announced the FID to expand our joint
Over many decades, we have developed proprietary venture (JV) with China National Offshore Oil Corporation
technologies, processes and catalysts that enable us to (CNOOC) in Huizhou, Guangdong Province, which
compete strongly in our core petrochemical markets. For includes the Nanhai petrochemicals complex. The
example, Shell Chemicals has launched Shell gas-to-liquids expansion includes the ongoing construction of a new
(GTL) fluids and solvents, which are high-purity paraffinic ethylene cracker and ethylene derivatives units, which are
fluids and solvents made from GTL products manufactured expected to increase ethylene capacity by more than
at our Pearl facility in Qatar. We are the first company to 1 mtpa when completed.
offer a range of natural gas-based fluids and solvents to
the chemicals industry worldwide. In the USA, we announced the FID on a petrochemicals
complex in Pennsylvania. The site will have a 1.6-mtpa
We will continue to focus on increasing synergies between polyethylene capacity, using ethane from the lowest-cost
our petrochemical plants, refineries, Integrated Gas and shale gas basin in North America to produce polyethylene
Upstream businesses to increase supplies of the best at world scale. Main construction is expected to start by
available feedstock to our facilities. 2018, with commercial production beginning early in the
next decade.
Chemicals is now a growth priority for Shell.
Petrochemicals is the fastest growing hydrocarbon demand In January 2017, we agreed to sell our 50% interest in the
sector, with annual growth of 3.7% over the last 10 years, SADAF petrochemicals joint venture with SABIC in Saudi
and we expect this to continue. Shells Chemicals strategy Arabia. In 2016, the joint ventures production was
focuses on activities with a clear competitive advantage. around 4 million tonnes. The transaction is expected to be
We optimise returns from using different feedstocks, invest completed in 2017.
in our existing first-class footprint, and continue to focus on
enhancing our customer relationships and service. With a We will continue to focus on selective and prudent
competitive edge in chemical feedstocks, underpinned by investments with a competitive advantage to ensure
a strong product portfolio and proprietary Shell profitable growth in the future.
technology, the business is entering a new period
of growth.

Ethylene capacity
Million metric tonnes
10
Bukom start-up Pennsylvania cracker
Nanhai I
USGC Nanhai II
8 restructuring

0 Operator checks product label print quality at the Shell Nangang

2000 2005 2010 2015 2020 2025 Lubricant Oil Blending Plant, China.

44 DOWNSTREAM SHELL INVESTORS HANDBOOK 2012-2016

 Shell has a long history of manufacturing and marketing manufacturing assets as one integrated, high-performing
fuels and chemicals along the River Rhine, an important system, unlocking new optimisation opportunities for
IN FOCUS: commercial artery that connects some of Europes major
economic centres and provides access to the large
feedstocks and products.

RHINE consumer markets of western and central Europe. We Through new ways of working, we are now more effectively

ENVELOPE have unlocked additional value by operating our strong

refining and chemicals manufacturing assets in an
leveraging the physical integration of our Moerdijk chemicals
plant and the Rheinland steam cracker through the existing
integrated system that includes our supply, trading and pipeline network. This has improved supply reliability for our
marketing businesses. customers an important consideration in an increasingly
competitive environment and positions us strongly to
RHINE ENVELOPE respond to growth in the European chemicals market.
Geographically, Shells Rhine Envelope covers Europes
largest short market for oil products and many of the most In 2016, we further strengthened our position in both refining
important clusters of the petrochemicals industry in Europe. and chemicals with the start-up of a new aromatics unit at the
Moreover, its location in the centre of Europe provides Shell Pernis refinery. The new unit is helping us to grow our
with access to the wider German and several other profitable European chemicals business through the supply of
European oil markets, as well as global trading options via our own optimised aromatics feedstock from Pernis to the
the Port of Rotterdam. Moerdijk plant.

In addition, the crude oil flexibility of both the Pernis and

Rhine Envelope Rheinland refineries has been improved through initiatives
including equipment upgrades and process changes.
Global
trading Our fuels business also benefits from integration. For
options
Rostock example, in periods of higher market volatility, sites can
Harburg PCK coordinate their output of various products to meet customer
Schwedt needs in the most efficient way. The plants also benefit from
Arnhem past investments designed to enable them to process a wider
Pernis Seefeld range of crude grades to improve site economics.
RRP
Moerdijk
Rheinland And a newly built rail tank-car loading facility for middle
RMR distillates at the Rheinland Refinery further enhances the
flexibility of the Envelope to serve customers to the south,
Bertrange Flrsheim
west and east of Cologne, making the supply chain even
Ludwigshafen Wrzburg more robust.
MiRO Karlsruhe
Linz Lobau
SUPPLY, MARKETING AND TRADING
Altmannshofen Salzburg BUSINESSES
Shared infrastructure such as strategic depots, pipelines (e.g.
Zurich RRP and RMR connecting the Pernis and Rhineland refineries),
Geneva rail, road and barge transfers enables us to optimise the flow
of molecules between the sites and customers, while carefully
Chemical plant 100% Shell assets balancing supply with demand.
Refinery Joint venture
Storage depot Additional value is generated by integrating our Retail,
Pipeline Chemicals, Commercial Fuels, Aviation and Bitumen
marketing businesses into decision-making processes. Their
deep market insights shape our production, supply and
MANUFACTURING / CHEMICAL trading decisions, enabling us to meet customer demand
INTEGRATION more efficiently.
In the past, our three manufacturing assets in the envelope
were operated more or less independently of each other. The Envelope has full access to Shells global network of
Today, we run our combined refining and chemicals trading companies, which is one of the largest energy
trading operations in the world.

KEY FACTS
Pernis Refinery (Rotterdam): Rheinland Refinery (Cologne):
Capacity: 20 million tonnes of crude oil per year. Capacity: 17 million tonnes crude oil per year.
Largest European refinery. Largest refinery in Germany.
Complex export refinery fully integrated with Supplies about 10% of German demand for diesel
chemicals production and business. It can process a and gasoline, about 10% of heating oil demand,
wide variety of crude oils into high-value fuels and around 15% of the kerosene feedstocks for the
chemicals. chemicals industry, and around 10% of bitumen
demand.
Moerdijk chemical plant (Rotterdam):
Capacity: over 4 million tonnes of products per year.
Key products include ethylene, propylene, styrene
monomer, propylene oxide and ethylene oxide.

SHELL INVESTORS HANDBOOK 2012-2016 DOWNSTREAM 45

PROJECTS &
TECHNOLOGY
Shells Projects & Technology (P&T)
organisation manages the delivery
of major projects and drives the
innovation that leads to new
technology. It also manages global
contracts with suppliers and
provides technical services that keep
our Integrated Gas, Upstream and
Downstream assets operating not
only safely but also efficientlyin
both economic and
environmental terms.

$1.0 BILLION
R&D expense in 2016

60% COST REDUCTION

for the wells of the King deepwater field

Worker handling chemicals during a research project at

the Shell Technology Centre Bangalore.
 The realisation of our business strategy depends on a few P&T marshals these capabilities for Shell. In addition, P&T
PROJECTS & winning capabilities. They include: provides the functional leadership for our global
TECHNOLOGY designing, engineering and constructing oil and gas
contracting and procurement programme and for our
global safety commitment, helping ensure that our facilities
OVERVIEW projects including drilling of wells so that they
return the most value per dollar invested;
remain competitive and do not harm people or
the environment.
developing nascent technologies into value-
generating propositions through internal and external
R&D programmes; and
troubleshooting existing facilities where performance
falls below expectations.

P&T is responsible for delivering capital projects. Some In the face of such scale and complexity, we constantly
PROJECT projects entail constructing entirely new facilities, some seek opportunities to improve efficiency and reduce costs.
DELIVERY involve expansions of existing facilities, and others may
require outdated facilities to be decommissioned and
These efforts, which have intensified in recent years
because of the challenging market conditions, are paying
dismantled. Many of these projects are huge undertakings. off. In 2015-2016, P&T delivered multi-billion-dollar gains
A single project may involve several years of design and in capital efficiency, split between cash savings and well-
engineering work, hundreds of wells, thousands of efficiency improvements.
construction workers, and billions of dollars worth of
materials and equipment.

Integrated Projects & Technology organisation

PROJECT INNOVATION TECHNOLOGY SOLUTIONS
DELIVERY AND R&D AND DEPLOYMENT

CONTRACTING AND
PROCUREMENT

SAFETY AND
ENVIRONMENT

Top-quartile performance Business focus Right concept

Goal Zero on safety Short and long term Standardisation and
replication

SHELL INVESTORS HANDBOOK 2012-2016 PROJECTS & TECHNOLOGY 47

 In 2016, Shell continued to invest in research and recycle carbon dioxide into chemicals and fuels using an
INNOVATION development (R&D) with a view to improve the efficiency of electrochemical process. (More information can be found
AND R&D its products, processes and operations, and to develop
new technologies that aid the worlds transition to a low-
at www.shell.com/gamechanger.)

carbon system. Specifically, R&D spending in 2016 SHELL TECHNOLOGY VENTURES (STV)
amounted to $1,014 million. (In 2015 and 2014, it This is the corporate venturing arm through which Shell can
amounted to $1,093 million and $1,222 million, become both an investor and a partner in companies that
respectively.) are developing promising technologies. STV invests mainly
in companies in the oil and gas, new energy and
Shells R&D activities are carried out through P&Ts global information technology industries.
network of technology centres with major hubs in
Amsterdam, the Netherlands; Houston, USA; and One of the recipients of STVs investments in 2016
Bangalore, India. The Shell Technology Centre Bangalore included California-based Growing Energy Labs, which
is the latest hub to be housed in newly constructed provides software to design, connect and operate energy-
premises. The site was officially opened in March 2017 storage systems and microgrids. Another STV investment
(see In Focus: Shell Technology Centre Bangalore on was in Sense Labs, a Massachusetts-based company that
page 49). has developed a device enabling households to monitor
the energy use of any home appliance, using
EXTERNAL COLLABORATIONS mobile devices.
Our in-house R&D activities are complemented by various
collaborations with leading universities, including the In 2016, STV also invested in UK company Kite Power
Massachusetts Institute of Technology in the USA, Tsinghua Systems (KPS). The investment will support the technical
University in China, and Imperial College in the UK. We and commercial development of KPSs high-altitude wind
also have three programmes through which other external power generation technology. It is cheaper to manufacture
parties can share the rewards (and risks) of innovation with and needs less construction and installation materials than
us. These span both short- and longer-term conventional wind turbines. KPS came to the attention of
technology developments. STV through the GameChanger programme. (More
information can be found at www.shell.com/techventures.)
SHELL GAMECHANGER
This programme provides financial and technical support SHELL TECHWORKS (STW)
to prove the commercial viability of ideas that may be Based in Cambridge, Massachusetts, USA, STW aims to
applicable not only to the oil and gas sector but also to accelerate the adoption in the oil and gas industry of
alternative energy sources. Since 1996, more than 1,700 proven technologies from other industries. Since its
innovators have approached GameChanger, and founding in 2013, STW has collaborated with various
GameChanger responded by helping to turn more than academic and non-academic entities to help develop and
100 of their ideas into reality. One of those ideas whose deploy technology quickly and cost-effectively. For
feasibility was assessed through GameChanger is now an example, STW collaborated with several private
ongoing Shell flagship project: the Prelude facility, which companies to develop a system for robot submarines to
will produce and liquefy natural gas at sea. detect hydrocarbons that seep naturally from the seabed.
This helps to locate new offshore resources at lower cost.
GameChanger connects with early-stage start-ups as well (More information can be found at www.shell.com/
as business incubators and seed-capital accelerators. One techworks.)
such accelerator, Cyclotron Road, organised a competition
through which Opus 12 won the 2016 Shell
GameChanger Innovation Challenge. Opus 12 seeks to

Potential energy projects can involve oil and gas fields, awareness of their cost and value trade-offs. Above all the
TECHNOLOGY transnational pipelines, crude-oil refineries, natural gas project must be kept competitive, relative to
SOLUTIONS liquefaction trains, or petrochemical plants. Teams of
scientists and engineers must develop ways in which a
comparable projects.

AND potential project could be feasibly turned into reality and then
select the best option for a positive final investment decision.
P&Ts scientists and engineers also apply their expertise to
formulate fuels, lubricants and other end products that
DEPLOYMENT P&T has the in-house expertise to do this in collaboration with differentiate Shell from other oil companies. And they
Shells businesses, often relying on the application of develop proprietary processes for manufacturing derivative
innovative technology delivered by P&Ts R&D programme. chemicals. We embedded such processes in the Nanhai
and Pennsylvania petrochemicals complexes, for example.
One key area of focus is project scoping. The design and
technical specification of a project should first and Finally, P&T supplies catalysts, licenses technology and
foremost be aimed at assuring a minimum acceptable provides technical consultancy services to non-Shell parties.
performance. Scope changes to give a project greater
value; for example, by increasing throughput; or to make it
more robust against risks, for example, by increasing
operational flexibility; must then only be accepted with full

48 PROJECTS & TECHNOLOGY SHELL INVESTORS HANDBOOK 2012-2016

 P&T manages the contracts with tens of thousands of vendors P&T seeks to build on this progress, establishing bold new
CONTRACTING through which some $50+ billion is spent per year on goods methods of collaboration with supply-chain partners. This will
AND and services. One of the main aims of P&Ts improvement
programme has been to increase the value derived from
require greater trust among partners and
greater transparency.
PROCUREMENT every dollar of third-party spend. To that end, very
competitive supply chains have been developed.

Safety is central to the responsible delivery of energy. We We use structured processes to manage our asset integrity
SAFETY AND develop and operate our facilities with the aim of preventing and prevent spills, leaks and any other technical failures or
ENVIRONMENT any incidents that may harm our employees, contract staff or
nearby communities, or cause damage to our assets or
breakdowns. In the event of a loss of containment, such as a
spill or a leak, we employ independent recovery measures to
adversely impact the environment. We manage safety risks prevent the release from becoming catastrophic.
across our businesses through clear standards, controls and
compliance systems combined with a safety-focused culture. We continue to strengthen the safety culture and safety
leadership among our employees and contract staff, with the
Our global standards and operating procedures define the focus on caring for people. Our safety goal is to achieve no
controls and physical barriers we require to prevent incidents. harm and no leaks across all of our operations. We refer to
For example, our offshore wells are designed with at least this as our Goal Zero ambition. We expect everyone
two independent barriers to mitigate the risk of an working for us to intervene and stop work that may appear
uncontrolled release of hydrocarbons. We regularly inspect, to be unsafe.
test and maintain these barriers to ensure they meet our
standards. We also routinely prepare and practise our
emergency response to potential incidents such as an oil spill
or a fire.

Shell Technology Centre Bangalore (STCB) is one of the STCB is particularly well-positioned to develop, deploy
IN FOCUS: three hubs around which P&Ts global R&D network is and deepen the technical know-how of Shell businesses
SHELL built. It also carries out advanced technical studies and
supports P&Ts projects and technical services around the
throughout the world at a competitive price.

TECHNOLOGY world. STCB will concentrate on:

CENTRE The centre brings together R&D staff who previously computational science and data analysis, including the

BANGALORE worked at separate locations in Bangalore and also

provides additional space for high-tech innovation and
modelling of the flow of oil through underground rock
layers but also the chemical reactions in internal-
demonstration facilities. By housing all R&D staff in combustion engines;
Bangalore in one centre, the STCB will create new the engineering of refineries, chemical-processing
opportunities for multidisciplinary collaboration, and drive facilities and gas-liquefaction plants; and
relevant and affordable innovations.
the catalysts for use across all of Shell's chemical
processing, whether in a gas plant, an oil refinery or a
biofuel manufacturing facility.

Specialists at STCB work closely with experts from

industrial partners, universities and research institutes.
These collaborations help to ensure a healthy influx of new
ideas and speed up the deployment of new technology in
Shells operations. Examples include chemistry and
catalysis research with the Indian Institutes of Technology at
Kanpur and Madras, as well as the development of
advanced computing techniques with the Massachusetts
Institute of Technology.
Researcher using new facilities at the Shell Technology
Centre Bangalore.

SHELL INVESTORS HANDBOOK 2012-2016 PROJECTS & TECHNOLOGY 49

CORPORATE
SEGMENT
The Corporate segment covers the
non-operating activities supporting
Shell. It comprises our holdings and
treasury organisation, our self-
insurance activities and our
headquarters and central functions.
All finance income and expense as
well as related taxes are included in
the Corporate segment earnings,
rather than in the earnings of the
business segments.

25
office closures in 2016/2017

Shell Headquarters in The Hague, the Netherlands.

 The holdings and treasury organisation manages many of The treasury organisation maintains Shells credit ratings
TREASURY the Corporate entities and is the point of contact between and debt platforms, issues short- and long-term capital-
Shell and the external capital markets. Its daily operations market instruments and executes the Royal Dutch Shell
include liquidity and foreign exchange management, dividend, scrip and share buyback programmes.
advising and financing subsidiaries and joint ventures,
investing surplus funds and managing Shells bank
account infrastructure.

We use robust methodologies and processes to assess, The insurance subsidiaries form a key part of our approach
RISK AND mitigate and manage risk in order to drive down our total to risk management. They provide insurance coverage to
INSURANCE cost. This includes the valuation of risk so that it can be
properly taken into account in decision-making. Risk and
Shell entities, up to $1.65 billion per event and usually
limited to Shells percentage interest in the relevant entity.
Insurance also requires the causes of losses to be analysed We seek to ensure that the capital held to support the self-
and understood so that losses can be reduced in the future. insurance obligations is at a level at least equivalent to
To support this, our insurable risks are mainly aggregated what would be held in the third-party insurance market.
and retained within insurance subsidiaries, which means
that we self-insure most of our risk exposure.

Headquarters and central functions provide services to the

HEADQUARTERS businesses (Upstream, Integrated Gas and Downstream) as
AND CENTRAL well as other functions. They also provide support for
Shells shareholder-related activities. The services they
FUNCTIONS provide cover the areas of finance, human resources, legal
advice, information technology, real estate,
communications, health, security and government relations.

The central functions have been increasingly supported by

business service centres located around the world. These
centres process transactions, manage data and produce
statutory reports, among other services.
Wall at the new technology hub in Bangalore showing the evolution
of the Shell Pecten.
The majority of the headquarters and central function costs
are recovered from the business segments. Those costs that
are not recovered are retained in Corporate.

SHELL INVESTORS HANDBOOK 2012-2016 CORPORATE SEGMENT 51

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" Nelson
"
"" """" " Pierce
NORTH Gannet A ""
""" " " "
"" "
""
" Shearwater
" " """" "
"
"
ATLANTIC OCEAN Curlew ""
""""
"
""
""
" """
"
" Jade
Mossmorran "
" DENMARK
Grangemouth Refinery " """ Braefoot Bay "
COPENHAGEN
Hound Point "
" """" " Fredericia
"""""
""
"
Corrib "
NORTH SEA
G14 Groningen
"
K/L Blocks "
"
Delfzijl-Terminal
"
"" "
IRELAND DUBLIN ""
" """ " "
" """""
" "
"
"
"" """" " " " " " Schwedt
" Stanlow "" ""
" "
" "
"
"
""""
"
"
"""" """ Emden
"
" ""
""
"
"
"
"
"""" "
"
" "
""
"
""
"
"
"
"
"
"
""
""
"
" " ""
" "
" """"
"
"
""
"
"""
"""
""
"
" """
"
"
""
"""""" """"
" " """
"" "
"
" "
""
""""
""
"
"
"
""""
" """ """""
Bacton "
" """ "" ""
""" "
""
" ""
" " "
"
""
"
" BERLIN POLAND
"
"" " "
"" ""
"
"""
""
Leman "
"
"
"
"
" ""
""
"" ""
"
" " """
" "
""
"
"""
""
"
" "" "" "
" " " "
"
" "
UNITED KINGDOM NETHERLANDS
"
"
""" "

Dragon LNG #
Gate
#
"
"
""
"
"
"
"""
"""
"""
" """" Schoonebeek
Pernis "
""
"
""
"
"
"
"
""""
"
"" " "
"
LONDON Moerdijk
GERMANY
" Rheinland
BELGIUM
CELTIC SEA CZECH REPUBLIC
LUXEMBOURG "
"

"" Miro
"
Karlsruhe
FRANCE AUSTRIA

0 100 200 300 400 km

Upstream facility Oil or mixed oil and gas field Shell oil pipeline
Integrated Gas facility Gas field Shell gas pipeline
Downstream facility 2016 frontier/heartlands discovery or appraisal success Concession licences

52 maps SHELL INVESTORS HANDBOOK 2012-2016

Greenland Italy

HUNGARY
SLOVENIA
Cascina Alberto CROATIA

GREENLAND BOSNIA AND

SEA HERZEGOVINA
SAN MARINO
FRANCE

Block 9 - Umimmak
ITALY ADRIATIC SEA
Block 14 - Nerleq
ROME

Block 5 - Anu GREENLAND NAPLES

""""
Gorgoglione
Val D'Agri """"
Block 8 - Napu
TYRRHENIAN SEA Tempa Rossa

UPERNAVIK

BAFFIN
BAY
PALERMO

IONIAN SEA

0 100 200 300 400 km 0 100 200 300 400 km

Albania cyprus

TURKEY
ALBANIA MACEDONIA NICOSIA

TIRANA
CYPRUS
ADRIATIC SEA

Albania Block 2

Albania Block 3 MEDITERRANEAN SEA

ITALY

GREECE
Block 12
" Aphrodite 1

IONIAN SEA

0 25 50 75 100 km 0 25 50 75 100 km

SHELL INVESTORS HANDBOOK 2012-2016 MAPS 53

Africa

Egypt

West Delta Deep Marine

"
" " "
" ""
" " " "
"" " "

""
North Gamasa
" Rosetta
MEDITERRANEAN SEA "
El Burg Offshore
"

MATRUH # Egyptian LNG

Northeast Obaiyed
PORT SAID
ALEXANDRIA
Obaiyed "" " North Matruh

TANTA

EGYPT
NAES BTE-B
"
"
" "
" " " CAIRO SUEZ
" "" "
"
"
""" "" " ""
"" " ""
" ""
"""
" " ""
"" """"" " "
"" "
"" ""
""
"

EL-FAIYUM

0 25 50 75 100 km

ALGERIA AND TUNISIA GABON

LIBREVILLE
SO TOM
AND PRNCIPE

MEDITERRANEAN SEA

PORT GENTIL LAMBARENE

ALGIERS TUNIS
GABON

""" Koula/Damier/Tsiengui W
Boughezoul Avocette/M'Boukou ""
Toucan/Robin "" Coucal
Ben Sahloul "" Hannibal
" Rabi
Trapsa " "Miskar
" Hasdrubal
Gabes LPG " " Atora
BC 9 " Bende
Totou "
" Gamba/Ivinga
ALGERIA TUNISIA
BCD 10

MAYUMBA

LIBYA
ATLANTIC OCEAN CONGO
Timissit

0 100 200 300 400 km 0 25 50 75 100 km

Upstream facility Oil or mixed oil and gas field Shell oil pipeline
Integrated Gas facility Gas field Shell gas pipeline
Downstream facility 2016 frontier/heartlands discovery or appraisal success Concession licences

54 maps SHELL INVESTORS HANDBOOK 2012-2016

NIGERIA

"
"
" "
""
OML133 "
"
"
"
" "
WARRI
"
"
"
" " Erha "
"
"
" "
" "
"
OML79 "" ""
"
" ""
"
" " " "
NIGERIA CAMEROON
OPL284 ""
"" " "
" " " "
"
"
"
" "
" " " " "
" "
" " " " "
" " " " " " "
"" " " " "
"" " " " CALABAR
" "" " "" "
" "" " " " ""
"
" " "" " " " " """" "
"" " " ""
OML118
"
" " "
" PORT
" HARCOURT
"
" " " " " "
Bonga North " " "
"
"""
" "" "
" " "
" "
" "
"
"
Bonga Main " " "
Bonga South West/Aparo " "
" #"
" "
""
OML25 Nigeria LNG
"

OPL286 " "

" "
" "" ""

OML77 OML74

OML144

"
OML135
GULF OF GUINEA EQUATORIAL
OPL245 Doro " " Bolia GUINEA

Zabazaba "
" " Etan

0 25 50 75 100 km

SOUTH AFRICA AND NAMIBIA TANZANIA AND KENYA

KENYA
WINDHOEK

BOTSWANA MOMBASA
"
Block L10A
Block L10B

JOHANNESBURG
NAMIBIA

DAR ES SALAAM
SOUTH AFRICA LESOTHO
PEL 39 DURBAN " TANZANIA INDIAN OCEAN
Durban Refinery

Orange Basin West Central East "

"
"
Block 4
"
Deepwater Area Block Block Block

"
CAPE TOWN
" Block 1
"
"
"

INDIAN OCEAN

0 100 200 300 400 km 0 50 100 150 200 km

SHELL INVESTORS HANDBOOK 2012-2016 MAPS 55

ASIA

TURKEY AND BULGARIA KAZAKHSTAN

Karachaganak "

BULGARIA BLACK SEA

KAZAKHSTAN

BURGAS
1-14 Silistar

" Bolashak
ATYRAU
RUSSIA
Kairan
DW Licence 3920 Kashagan "
"
ASTRAKHAN
Kashagan SW " "
Aktote
" Kalamkas
Khazar "" Auezov
TURKEY
CASPIAN SEA
" Bautino Base
ISTANBUL

AKTAU

" Kuryk

0 25 50 75 100 km 0 100 200 300 400 km

Palestine and Jordan IRAQ

SYRIA

MEDITERRANEAN SEA
Majnoon "

Offshore Gaza AMMAN

JERUSALEM West Qurna 1 ""

"
" Gaza marine 1 Central Oil Shale "
GAZA IRAQ IRAN
"

"
" """ NGL Plant NR
" BASRA
"
ISRAEL JORDAN "

"
"" "
"

"
"" KAZ LPG/ NGL Plant AZ
"
South Oil Shale
"
"
" "
"

EGYPT

KUWAIT

THE GULF

0 25 50 75 100 km
0 25 50 75 100 km

Upstream facility Oil or mixed oil and gas field Shell oil pipeline
Integrated Gas facility Gas field Shell gas pipeline
Downstream facility 2016 frontier/heartlands discovery or appraisal success Concession licences

56 maps SHELL INVESTORS HANDBOOK 2012-2016

Qatar and Saudi Arabia OMAN
QATAR

ABU DHABI
GULF OF OMAN
SUHAR

UNITED MUSCAT
ARAB EMIRATES

""
Al Jubail " " "
""""
" "
"
Oman LNG # SUR
" " " " Qalhat LNG
" " " ""
"""" "
""
" "
" " " " "
"" " "
""
" "
" "" " "
" " " "
"
""
" """ "
" " " Qarn Alam Power Station
SAUDI ARABIA "
" "" "
"
"
Qatargas 3 & 4 "
"
North, Central
""
"" "
"
"
"
& South Oman
"""
BAHRAIN "
" " "
Pearl 1 & 2 "" "
"
" "" "
Pearl GTL Plant ## Qatargas LNG Plant """ "
" " "
" " ""
" "" " ""
""
"
Mukhaizna
" "" " "
" ""
" " "" ""
"
"""""
"
"" " ""
"
" "" " " """
OMAN " ""
" """
" ""
" "
""" "
""""
"

""" """" """

"
""""""
"
""""" """
" """""
"" """"""
""
" """
" """
"
Harweel 'A' Gath. Stn."""""""" """ ""
"""
" "
""
""
SAUDI ARABIA QATAR DOHA THE GULF ""
""
" "
"" """ "
"""
"
""
" "
YEMEN ARABIAN SEA

RAYSUT

0 25 50 75 100 km 0 50 100 150 200 km

SHELL INVESTORS HANDBOOK 2012-2016 MAPS 57

Asia Continued

India and Pakistan CHINA

BEIJING

YINCHUAN "
" Changbei

PAKISTAN

" Karachi
XI'AN

Zitong
SHANGHAI
CHENGDU
Jinqiu
INDIA
CHINA
Fushun

# Hazira
TAIWAN
"
" " Nanhai
HONG KONG
Mid & South Tapti MYANMAR VIETNAM
(BURMA)

Panna LAOS SOUTH CHINA SEA

Mukta "" ""
ARABIAN SEA Mahanagar Gas " MUMBAI

PHILIPPINES
THAILAND

0 50 100 150 200 km 0 200 400 600 800 km

MYANMAR THAILAND

BANGKOK

MYANMAR
THAILAND CAMBODIA

NAYPYIDAW

MYANMAR
AD9 AD2 A4
AD11
Blocks 7, 8, 9, 9A

BAY OF BENGAL THAILAND

VIETNAM
AD5 A7

GULF OF THAILAND

"
"
"
Bongkot "" "
" "
"
""
" "
" ""
""
ANDAMAN SEA "
"

MD5

0 100 200 300 400 km 0 50 100 150 200 km

Upstream facility Oil or mixed oil and gas field Shell oil pipeline
Integrated Gas facility Gas field Shell gas pipeline
Downstream facility 2016 frontier/heartlands discovery or appraisal success Concession licences

58 maps SHELL INVESTORS HANDBOOK 2012-2016

RUSSIA SIBERIA RUSSIA SAKHALIN

OKHA

North-Vorkutinsky-1 PA-B ""

Piltun-Astokh (Sakhalin II)
North-Vorkutinsky-2 Syriaga OKHA
PA-A "
VORKUTA PA-B
Piltun-Astokhskoye

NOGLIKI

Onshore Processing Facility " " Lunskoye (Sakhalin II)

Onshore Processing LUN-A
Lunskoye
Facility (OPF)

RUSSIA

Sakhalin SEA OF
RUSSIA Sakhalin
OKHOTSK
RUSSIA

Yuilsky-4 Yuzhno-Lungorsky-1
Yuilsky-5 " BS 2

KHOLMSK
YUZHNO-SAKHALINSK

LNG Plant
Oil Export Terminal
SURGUT

"
West Salym "
" KHOLMSK
Upper Salym """ Vadelyp YUZHNO-SAKHALINSK

Oil Export Terminal #

" Sakhalin LNG

0 200 400 600 800 km 0 100 200 300 400 km

mongolia Japan

RUSSIA

MONGOLIA ULAANBAATAR
JAPAN

TOKYO
Block V " Mizue (Toa)

" Yokkaichi

Block IV
" Yamaguchi

CHINA

PACIFIC OCEAN

0 200 400 600 800 km 0 100 200 300 400 km

SHELL INVESTORS HANDBOOK 2012-2016 MAPS 59

Asia Continued

Singapore PHILIPPINES

MANILA

MALAYSIA

BATANGAS " Tabangao

"
Malampaya Gas plant

SOUTH CHINA SEA PHILIPPINES

SINGAPORE

SINGAPORE

" Jurong Island

SC 38C
San martin "
" Singapore " Pulau Bukom

SC 38B
Malampaya "

Destacado "
SC 38A

INDONESIA
SAN JOSE
SULU SEA DE BUENAVISTA

0 5 10 15 20 km 0 25 50 75 100 km

BRUNEI AND EAST MALAYSIA

"
"
"
SOUTH CHINA SEA "
" Kebabangan "
SULU SEA
"

Block G (Malikai) "

"

Block G (Petai)
Petai " " "
KOTA KINABALU (JESSELTON)
Gumusut""" "
CA2
" Maharaja Lela"""
" SK318 "
"
"
"
"
"
"
" #LIF
"
" "
" "
"
"
"
"
"
"
"
"
"
"
"""
"
"
"
"
"
"
"
"
" ""
"
"
"
"
"
"
"
"
"
PHILIPPINES
"
"
""
"
"
" " "
" "
"" ""
"
"
"
" "
" """ SK320 " "" "
""" "
" " "
"
" " BSP Port
" "
""" ""
"
" "
""
" ""
BANDAR SERI BEGAWAN
" " " ""
"" " """
""
""" "
"" "
"
"
""
"
"
"
"
" """ BLNG
Jerun 1 ""
" " "
" "
"
""
"
" "
""
"
"
"
"
"
"
"
"
"
""
"
"
""
"
""
"
"
"
"
"
"
"
"
"#
" " " SK408 " "
""
"
""
"
"" "

"" " " MIRI

SK319 "" BRUNEI
" "

"

ND6 ND7

SMDS # MLNG Tiga MALAYSIA INDONESIA

CELEBES SEA

0 50 100 150 200 km

Upstream facility Oil or mixed oil and gas field Shell oil pipeline
Integrated Gas facility Gas field Shell gas pipeline
Downstream facility 2016 frontier/heartlands discovery or appraisal success Concession licences

60 maps SHELL INVESTORS HANDBOOK 2012-2016

Oceania

WEST AUSTRALIA AND INDONESIA East Australia

CORAL SEA

TOWNSVILLE
" "
INDONESIA

TIMOR SEA
MACKAY

DARWIN Moranbah Gas Processing

"
Facility " "
"
"
" ""
"
#" Prelude
" ""
"
" Torosa "
" " ""
Brecknock " " Queensland Curtis LNG
Calliance " # GLADSTONE
AUSTRALIA
"

DERBY "
""
BROOME "
" """"
"" "
"" "
"""""
"""
""
"
""
"
"" ""
"
"" """ "
"" """
" "" """""" "
""
""
"" " "
"
" "
" "
" Braemar 2 Power Station
"" "
""" " "" " "" "
"" "
"
" ""
" " "
"
"
""
"""
"
""
""
"
""""
"""
"" ""
"" """
" BRISBANE
" "" """ " ""
" "
# # DAMPIER AUSTRALIA "
" " " "
Gorgon LNG Pluto LNG
"""
"""
" NWS LNG
" "
EXMOUTH Western Australia South Queensland
Australia New South Wales

INDIAN
CARNARVON
OCEAN

0 100 200 300 400 km 0 100 200 300 400 km

South Australia New Zealand

New South Wales

AUCKLAND

NEW PLYMOUTH " "" Pohokura

AUSTRALIA
TASMAN SEA Maui """
" "
Kapuni
Victoria

WELLINGTON

NEW ZEALAND

CHRISTCHURCH

" Boundary creek

MORWELL

" Wombat

DUNEDIN

Great South Basin

PACIFIC OCEAN PACIFIC OCEAN

0 25 50 75 100 km 0 100 200 300 400 km

SHELL INVESTORS HANDBOOK 2012-2016 MAPS 61

North
America
South-West USA and Mexico NORTH-EAST USA AND CANADA
Idaho
Wyoming CANADA UNITED STATES OF AMERICA
Nebraska " Sarnia Refinery
New York

" BINGHAMTON
""" " "
"
""
""" " " """ "
""" "
" """" "
Tioga
Nevada Utah Colorado Kansas "" """
" ""
""
" ""
"
""
"""
CLEVELAND " " Bradford
" Martinez "
" Marcellus
UNITED STATES "

OF AMERICA
Ohio PITTSBURGH Pennsylvania
Okla-
homa
California Arizona New Mexico New
Maryland Jersey
LOS ANGELES

West Virginia Delaware

EL PASO Texas
Costa Azul # CHARLESTON Cove Point #
Permian """"""

Kentucky Virginia

MEXICO ATLANTIC
Chittim
Ranch OCEAN

0 200 400 600 800 km 0 100 200 300 400 km

SOUTH USA AND GULF OF MEXICO

SHREVEPORT UNITED STATES

OF AMERICA

Haynesville
Louisiana Mississippi Alabama

Mobile "
MOBILE
Texas Florida
BATON ROUGE

" Geismar
# Lake Charles " Convent
NEW IBERIA Norco " NEW ORLEANS
" Port Arthur Motiva Refinery
HOUSTON " Deer Park

HOUMA
Tahoe
"
" Ram-Powell
"

Herschel Fourier
Kepler North Ariel Appomattox
"
Kepler " "
" " "" Vicksburg
"
" West Boreas King Princess " " "
" " Rydberg
Fort Sumter " Coulomb
"
"" Deimos """"""""" " Kaikias
Europa " " """ Ursa
"
" South Deimos Vito Crosby
"
" Conger Pastel Pink
" Habanero Mars PowerNap
Cardamom ""
"
Mars-B (Olympus)
Auger "
Llano
"
Oregano " Caesar
Macaroni "
"
Tonga
" Yucatan North

" Stones

Great White " "" Silvertip GULF OF MEXICO

Tobago

0 50 100 150 200 km

Upstream facility Oil or mixed oil and gas field Shell oil pipeline
Integrated Gas facility Gas field Shell gas pipeline
Downstream facility 2016 frontier/heartlands discovery or appraisal success Concession licences
Designated oil sands area

62 maps SHELL INVESTORS HANDBOOK 2012-2016

ALASKA, YUKON AND NORTHWEST TERRITORIES NOVA SCOTIA

Newfoundland
BEAUFORT SEA

BARROW

West Harrison Bay

Nova Scotia

HALIFAX

Mackenzie Delta
Sable Island
UNITED STATES CANADA
OF AMERICA
Shelburne
Alaska Yukon Northwest Territories
ATLANTIC OCEAN
Central Mackenzie Valley
FAIRBANKS

0 100 200 300 400 km 0 200 400 600 800 km

Alberta, British Columbia and North-West USA

Alberta

FORT ST. JOHN " "

" "
"" "" "
""
" "
"Peace
"" River " " Muskeg River
"
"" " "
Grosmont Jackpine
" "

FORT MCMURRAY
GRANDE PRAIRIE
" "
"

"
"
" " "
" "
"
" "

CANADA Quest
" "
""
"
Scotford "
British Columbia " Saskatchewan
" EDMONTON

"
"
"" "
" " an Are
a

"" Klapp

"
" "
""
" ""
"
""
" DA

""
CA NA
TES
STA
" UN
ITE D
"
" "
"
"
VANCOUVER " Shellburn Distribution "
"""
" " n
" " Saskatchewa

"
" " " CALGARY
"
"

" Puget Sound

""
PACIFIC OCEAN UNITED STATES ""
"
"
"
""
"
"
"
""" "
OF AMERICA ""

0 50 100 150 200 km

SHELL INVESTORS HANDBOOK 2012-2016 MAPS 63

North America Continued

Canada Nunavut HONDURAS

Nunavut
CARIBBEAN SEA

CANADA GREENLAND
Nunavut

BAFFIN
BAY HONDURAS

UPERNAVIK

TEGUCIGALPA
Nunavut

NICARAGUA

IQALUIT

0 100 200 300 400 km 0 50 100 150 200 km

Upstream facility Oil or mixed oil and gas field Shell oil pipeline
Integrated Gas facility Gas field Shell gas pipeline
Downstream facility 2016 frontier/heartlands discovery or appraisal success Concession licences

64 maps SHELL INVESTORS HANDBOOK 2012-2016

South
America
COLOMBIA and TRINIDAD AND TOBAGO NORTH BRAZIL

NORTH
ATLANTIC OCEAN

CARIBBEAN SEA

Gua Off 3

Col 3
TRINIDAD
BARRANQUILLA ""
" AND TOBAGO
PORT OF SPAIN
Sin Off 7 Atlantic LNG # "
" "
"
""
" BAR-M
"

SAO LUIS
VENEZUELA

COLOMBIA GUYANA

BOGOTA

BRAZIL

BRAZIL

0 100 200 300 400 km 0 100 200 300 400 km

ARGENTINA, PERU, BOLIVIA AND URUGUAY South-East Brazil

LIMA
# Peru LNG

PERU
BC-10
BOLIVIA BRAZIL "
" ""
BRAZIL "

Huacareta
Caipipendi """ La Vertiente
Itau "" "" Los Suris
"
""
"
" Acambuco I & II
CHILE PARAGUAY ""
" Bijupira-Salema
RIO DE JANEIRO

PACIFIC
SAO PAULO
OCEAN

Berbigo " Libra

ARGENTINA URUGUAY
" "" Atap West
BUENOS AIRES " ""
"
Sururu
MONTEVIDEO Iracema
Buenos Aires Refinery "
Lapa "
""
""
Lula
"
"" Sapinho
La Escalonada "
""
" Aguila Mora Blocks 8, 9,13
Rincon la Ceniza "
"
" Cruz de Lorena
Coiron Amargo SudOeste
Sierras Blancas SOUTH
SOUTH ATLANTIC OCEAN
ATLANTIC OCEAN

0 200 400 600 800 km 0 50 100 150 200 km

SHELL INVESTORS HANDBOOK 2012-2016 MAPS 65

EMPLOYEE DATA
Average number of employees by country Thousands
2016 2015 2014 2013 2012
Europe
France [A] 1 1 1 1
Germany 4 5 5 5 4
Netherlands 9 9 9 8 8
Norway 1 1 1 1 1
Poland 3 2 2 2 2
UK 6 5 6 6 5
Other [B] 2 2 1 2 3
Total Europe 25 25 25 25 24
Asia
China 2 3 4 4 4
India 5 4 3 3 3
Iraq 1 1 [A] [A] [A]
Kazakhstan 1
Malaysia 6 7 7 6 6
Philippines 4 4 4 4 4
Qatar 1 1 1 1 1
Russia 1 1 1 1 [A]
Singapore 3 3 3 3 3
Thailand 1
Turkey 1 1 1 1 1
United Arab Emirates 1 1 1 1 1
Other [B] 1 3 3 3 2
Total Asia 28 29 28 27 25
Oceania
Australia 2 1 2 2 2
New Zealand [A] [A] [A] 1 1
Total Oceania 2 1 2 3 3
Africa
Gabon 1 1 1 1 1
Nigeria 1 1 1 1 1
South Africa 1 1 1 1 1
Other [B] 1 [A] [A] [A] [A]
Total Africa 4 3 3 3 3
North America
Canada 8 9 9 9 8
USA 21 22 22 22 20
Other [B] [A] [A] 1 [A] 1
Total North America 29 31 32 31 29
South America
Argentina 2 2 2 2 2
Brazil 1 1 1 1 1
Other [B] 1 1 1 [A] [A]
Total South America 4 4 4 3 3
Total 92 93 94 92 87
[A] Fewer than 500 employees.
[B] Countries with fewer than 500 employees in each of the last three years.

66 EMPLOYEE DATA SHELL INVESTORS HANDBOOK 2012-2016

Average number of employees by segment Thousands
2016 2015 2014 2013 2012
Integrated Gas 13 13 11 10 N/A
Upstream 22 22 22 21 N/A
Integrated Gas and Upstream 35 35 33 31 26
Downstream 40 43 47 48 48
Corporate [A] 17 15 14 13 13
Total 92 93 94 92 87
[A] Includes all employees working in business services centres irrespective of the segment they support.

Employee expense $ million

2016[A] 2015 2014 2013 2012
Remuneration 11,985 12,558 13,092 12,047 11,133
Social security contributions 867 830 944 907 789
Retirement benefits 2,181 2,984 1,516 2,849 2,279
Share-based compensation 693 750 804 572 909
Total 15,726 17,122 16,356 16,375 15,110
[A] In addition, there were redundancy costs of $1,441 million.

SHELL INVESTORS HANDBOOK 2012-2016 EMPLOYEE DATA 67

CONSOLIDATED FINANCIAL DATA
FINANCIAL STATEMENTS INFORMATION

Consolidated statement of income $ million

2016 2015 2014 2013 2012
Revenue 233,591 264,960 421,105 451,235 467,153
Share of profit of joint ventures and associates 3,545 3,527 6,116 7,275 8,948
Interest and other income 2,897 3,669 4,123 1,089 5,599
Total revenue and other income 240,033 272,156 431,344 459,599 481,700
Purchases 162,574 194,644 327,278 353,199 369,725
Production and manufacturing expenses 28,434 28,095 30,038 28,386 26,215
Selling, distribution and administrative expenses 12,101 11,956 13,965 14,675 14,465
Research and development 1,014 1,093 1,222 1,318 1,307
Exploration 2,108 5,719 4,224 5,278 3,104
Depreciation, depletion and amortisation 24,993 26,714 24,499 21,509 14,615
Interest expense 3,203 1,888 1,804 1,642 1,757
Total expenditure 234,427 270,109 403,030 426,007 431,188
Income before taxation 5,606 2,047 28,314 33,592 50,512
Taxation charge/(credit) 829 (153) 13,584 17,066 23,552
Income for the period 4,777 2,200 14,730 16,526 26,960
Income/(loss) attributable to non-controlling interest 202 261 (144) 155 248
Income attributable to Royal Dutch Shell plc shareholders 4,575 1,939 14,874 16,371 26,712

Reconciliation of CCS earnings to income for the period $ million

2016 2015 2014 2013 2012
Earnings on a current cost of supplies basis (CCS earnings) 3,692 4,155 19,096 16,879 27,423
Attributable to non-controlling interest (159) (313) (55) (134) (259)
Earnings on a current cost of supplies basis attributable to
Royal Dutch Shell plc shareholders 3,533 3,842 19,041 16,745 27,164
Current cost of supplies adjustment 1,085 (1,955) (4,366) (353) (463)
Non-controlling interest (43) 52 199 (21) 11
Income attributable to Royal Dutch Shell plc shareholders 4,575 1,939 14,874 16,371 26,712
Non-controlling interest 202 261 (144) 155 248
Income for the period 4,777 2,200 14,730 16,526 26,960

CCS earnings is a non-GAAP measure which excludes the effect of changes in the oil price on inventory carrying amounts, after making allowance for the tax
effect. On this basis, the purchase price of volumes sold during the period is based on the current cost of supplies (CCS) during the same period, rather than on
the historic cost calculated on a first-in, first-out (FIFO) basis. Therefore, when oil prices are decreasing, CCS earnings are likely to be higher than earnings
calculated on a FIFO basis, and when prices are increasing, CCS earnings are likely to be lower than earnings calculated on a FIFO basis. Earnings by segment
are also presented on a CCS basis. CCS earnings is the earnings measure used by the Chief Executive Officer for the purposes of making decisions about
allocating resources and assessing performance. The current cost of supplies adjustment does not impact cash flow from operating activities in the Consolidated
Statement of Cash Flows. The reconciliation of CCS earnings to net income is provided above.

Earnings per share [A] $

2016 2015 2014 2013 2012
Basic earnings per share 0.58 0.31 2.36 2.60 4.27
Diluted earnings per share 0.58 0.30 2.36 2.60 4.26
[A] Ordinary shares of 0.07 each.

Shares Million
2016 2015 2014 2013 2012
Basic weighted average number of A and B shares 7,833.7 6,320.3 6,311.5 6,291.1 6,261.2
Diluted weighted average number of A and B shares 7,891.7 6,393.8 6,311.6 6,293.4 6,267.8
Shares outstanding at the end of the period 8,145.3 6,397.5 6,295.0 6,295.4 6,305.9

68 FINANCIAL DATA SHELL INVESTORS HANDBOOK 2012-2016

Taxation (credit)/charge $ million unless specified
2016 2015 2014 2013 2012
Current tax 2,731 7,058 13,757 18,582 22,722
Deferred tax (1,902) (7,211) (173) (1,516) 830
Total taxation charge/(credit) 829 (153) 13,584 17,066 23,552
As a % of income before taxation 15 (7) 48 51 47

Consolidated balance sheet (at December 31) $ million

2016 2015 2014 2013 2012
Assets
Non-current assets
Intangible assets 23,967 6,283 7,076 4,394 4,470
Property, plant and equipment 236,098 182,838 192,472 191,897 172,293
Joint ventures and associates 33,255 30,150 31,558 34,613 38,350
Investments in securities 5,952 3,416 4,115 4,715 4,867
Deferred tax 14,425 11,033 8,131 5,785 4,288
Retirement benefits 1,456 4,362 1,682 3,574 2,301
Trade and other receivables 9,553 8,717 8,304 9,191 8,991
324,706 246,799 253,338 254,169 235,560
Current assets
Inventories 21,775 15,822 19,701 30,009 30,781
Trade and other receivables 45,664 45,784 58,470 63,638 65,403
Cash and cash equivalents 19,130 31,752 21,607 9,696 18,550
86,569 93,358 99,778 103,343 114,734
Total assets 411,275 340,157 353,116 357,512 350,294
Liabilities
Non-current liabilities
Debt 82,992 52,849 38,332 36,218 29,921
Trade and other payables 6,925 4,528 3,582 4,065 4,175
Deferred tax 15,274 8,976 12,052 11,943 10,312
Retirement benefits 14,130 12,587 16,318 11,182 15,290
Decommissioning and other provisions 29,618 26,148 23,834 19,698 17,435
148,939 105,088 94,118 83,106 77,133
Current liabilities
Debt 9,484 5,530 7,208 8,344 7,833
Trade and other payables 53,417 52,770 64,864 70,112 72,839
Taxes payable 6,685 8,233 9,797 11,173 12,684
Retirement benefits 455 350 377 382 402
Decommissioning and other provisions 3,784 4,065 3,966 3,247 3,221
73,825 70,948 86,212 93,258 96,979
Total liabilities 222,764 176,036 180,330 176,364 174,112
Equity
Share capital 683 546 540 542 542
Shares held in trust (901) (584) (1,190) (1,932) (2,287)
Other reserves 11,298 (17,186) (14,365) (2,037) (3,752)
Retained earnings 175,566 180,100 186,981 183,474 180,246
Equity attributable to Royal Dutch Shell plc shareholders 186,646 162,876 171,966 180,047 174,749
Non-controlling interest 1,865 1,245 820 1,101 1,433
Total equity 188,511 164,121 172,786 181,148 176,182
Total liabilities and equity 411,275 340,157 353,116 357,512 350,294

SHELL INVESTORS HANDBOOK 2012-2016 FINANCIAL DATA 69

Consolidated statement of cash flows $ million
2016 2015 2014 2013 2012
Income for the period 4,777 2,200 14,730 16,526 26,960
Adjustment for:
Current tax 2,731 7,058 13,757 18,582 22,722
Interest expense (net) 2,752 1,529 1,598 1,448 1,543
Depreciation, depletion and amortisation 24,993 26,714 24,499 21,509 14,615
Net gains on sale of non-current assets and businesses (2,141) (3,460) (3,212) (382) (4,228)
Decrease/(increase) in working capital (6,289) 5,521 6,405 2,988 3,391
(Increase)/decrease in inventories (5,658) 2,827 7,958 608 (1,746)
Decrease/(increase) in accounts receivable 2,038 9,852 (1,541) 5,648 14,145
Decrease in accounts payable (2,669) (7,158) (12) (3,268) (9,008)
Share of profit of joint ventures and associates (3,545) (3,527) (6,116) (7,275) (8,948)
Dividends received from joint ventures and associates 3,820 4,627 6,902 7,117 10,573
Deferred tax, retirement benefits, decommissioning and
other provisions (823) (5,827) (1,720) (2,701) 341
Other (1,226) 2,648 2,500 2,937 201
Tax paid (4,434) (7,673) (14,299) (20,309) (21,030)
Cash flow from operating activities 20,615 29,810 45,044 40,440 46,140
Capital expenditure (22,116) (26,131) (31,676) (39,975) (33,184)
Acquisition of BG Group plc, net of cash and cash equivalents
acquired (11,421)
Investments in joint ventures and associates (1,330) (896) (1,426) (1,538) (3,028)
Proceeds from sale of property, plant and equipment and businesses 2,072 4,720 9,873 1,212 6,346
Proceeds from sale of joint ventures and associates 1,565 276 4,163 538 698
Interest received 470 288 174 175 193
Other (203) (664) (765) (558) 522
Cash flow from investing activities (30,963) (22,407) (19,657) (40,146) (28,453)
Net (decrease)/increase in debt with maturity period within three
months (360) (586) (3,332) 3,126 (165)
Other debt:
New borrowings 18,144 21,500 7,778 9,146 5,108
Repayments (6,710) (6,023) (4,089) (6,877) (4,960)
Interest paid (2,938) (1,742) (1,480) (1,307) (1,428)
Change in non-controlling interest 1,110 598 989 (51) 23
Cash dividends paid to:
Royal Dutch Shell plc shareholders (9,677) (9,370) (9,444) (7,198) (7,390)
Non-controlling interest (180) (117) (116) (252) (292)
Repurchases of shares (409) (3,328) (5,000) (1,492)
Shares held in trust: net (purchases)/sales and dividends received (160) (39) 232 (565) (34)
Cash flow from financing activities (771) 3,812 (12,790) (8,978) (10,630)
Currency translation differences relating to cash and cash equivalents (1,503) (1,070) (686) (170) 201
(Decrease)/increase in cash and cash equivalents (12,622) 10,145 11,911 (8,854) 7,258
Cash and cash equivalents at January 1 31,752 21,607 9,696 18,550 11,292
Cash and cash equivalents at December 31 19,130 31,752 21,607 9,696 18,550

Free cash flow $ million

2016 2015 2014 2013 2012
Cash flow from operating activities 20,615 29,810 45,044 40,440 46,140
Cash flow from investing activities (30,963) (22,407) (19,657) (40,146) (28,453)
Free cash flow (10,348) 7,403 25,387 294 17,687

Free cash flow is a non-GAAP measure used to evaluate cash available for financing activities, including dividend payments, after investment in maintaining and
growing our business. It is defined as the sum of Cash flow from operating activities and Cash flow from investing activities.

70 FINANCIAL DATA SHELL INVESTORS HANDBOOK 2012-2016

FINANCIAL RATIOS
The following three non-GAAP measures are used to evaluate the efficiency of Shells utilisation of the capital that it employs. The first two measures show returns
generated by Shell as a percentage of its total capital employed (consisting of total equity, current debt and non-current debt). The "return on average capital in
service" measure excludes the impacts of exploration and evaluation assets and assets under construction on income and capital employed, because these assets
do not yet generate returns.

Calculation of return on average capital employed (ROACE) $ million unless specified

2016 2015 2014 2013 2012
Income for the period 4,777 2,200 14,730 16,526 26,960
Interest expense after tax 2,730 2,030 938 808 938
Income before interest expense 7,507 4,230 15,668 17,334 27,898
Capital employed opening 222,500 218,326 225,710 213,936 197,141
Capital employed closing 280,988 222,500 218,326 225,710 213,936
Capital employed average 251,744 220,413 222,018 219,823 205,539
ROACE 3.0% 1.9% 7.1% 7.9% 13.6%

Calculation of ROACE on CCS basis excluding identified items [A] $ million unless specified
2016 2015 2014 2013 2012
CCS earnings excluding identified items [A] 7,185 11,446 23,051 20,018 25,259
Capital employed opening 222,500 218,326 225,710 213,936 197,141
Capital employed closing 280,988 222,500 218,326 225,710 213,936
Capital employed average 251,744 220,413 222,018 219,823 205,539
ROACE on CCS basis excluding identified items [A] 2.9% 5.2% 10.4% 9.1% 12.3%
[A] Attributable to shareholders.

Calculation of return on average capital in service $ million unless specified

2016 2015 2014 2013 2012
Income for the period 4,777 2,200 14,730 16,526 26,960
Add: Depreciation on exploration and evaluation assets after tax 351 399 366 720 525
Add: Interest expense after tax 2,730 2,030 938 808 938
Income before depreciation on exploration and evaluation assets and
interest expense 7,858 4,628 16,034 18,054 28,423
Capital employed excluding assets under construction and exploration
and evaluation assets opening 156,749 145,702 155,049 147,746 146,648
Capital employed excluding assets under construction and exploration
and evaluation assets closing 216,293 156,749 145,403 155,049 147,746
Capital employed excluding assets under construction and exploration
and evaluation assets average 186,521 151,226 150,226 151,397 147,197
Return on average capital in service 4.2% 3.1% 10.7% 11.9% 19.3%

Gearing (at December 31) $ million unless specified

2016 2015 2014 2013 2012
Current debt 9,484 5,530 7,208 8,344 7,833
Non-current debt 82,992 52,849 38,332 36,218 29,921
Total debt 92,476 58,379 45,540 44,562 37,754
Less: Cash and cash equivalents (19,130) (31,752) (21,607) (9,696) (18,550)
Net debt 73,346 26,627 23,933 34,866 19,204
Add: Total equity 188,511 164,121 172,786 181,148 176,182
Total capital 261,857 190,748 196,719 216,014 195,386
Gearing 28.0% 14.0% 12.2% 16.1% 9.8%

Gearing is a non-GAAP measure, defined as net debt (total debt less cash and cash equivalents) as a percentage of total capital (net debt plus total equity). It is a
key measure of Shells capital structure.

SHELL INVESTORS HANDBOOK 2012-2016 FINANCIAL DATA 71

QUARTERLY DATA BY SEGMENT

Quarterly earnings by segment $ million

2016 2015
Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year
Integrated Gas 905 982 614 28 2,529 1,139 1,335 (429) 1,125 3,170
Upstream
Europe (86) (820) 12 495 (399) 957 (76) (40) 241 1,082
Asia (18) (83) 91 (113) (123) 195 114 (26) (206) 77
Oceania
Africa (92) 34 269 (139) 72 1,484 220 173 (98) 1,779
North America (1,153) (1,061) (917) 56 (3,075) (882) (762) (7,827) (977) (10,448)
South America (1) (44) 160 (264) (149) (354) (57) (494) (418) (1,323)
Total Upstream (1,350) (1,974) (385) 35 (3,674) 1,400 (561) (8,214) (1,458) (8,833)
Downstream (CCS basis)
Refining & Trading 181 509 (42) (72) 576 1,136 1,192 1,043 733 4,104
Marketing 1,113 981 1,117 1,153 4,364 978 1,051 930 1,591 4,550
Oil Products 1,294 1,490 1,075 1,081 4,940 2,114 2,243 1,973 2,324 8,654
Chemicals 406 227 521 494 1,648 400 503 508 178 1,589
Total Downstream 1,700 1,717 1,596 1,575 6,588 2,514 2,746 2,481 2,502 10,243
Corporate and non-controlling interest
Corporate (456) (423) (306) (566) (1,751) (171) (68) 109 (295) (425)
Non-controlling interest 15 (63) (71) (40) (159) (121) (91) (67) (34) (313)
Total Corporate and non-controlling interest (441) (486) (377) (606) (1,910) (292) (159) 42 (329) (738)
CCS earnings attributable to shareholders 814 239 1,448 1,032 3,533 4,761 3,361 (6,120) 1,840 3,842
CCS adjustment for Downstream [A] (330) 936 (73) 509 1,042 (331) 625 (1,296) (901) (1,903)
Income attributable to Royal Dutch Shell plc shareholders 484 1,175 1,375 1,541 4,575 4,430 3,986 (7,416) 939 1,939
[A] Attributable to shareholders.

Quarterly identified items by segment [A] $ million

2016 2015
Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year
Integrated Gas (89) 114 (317) (879) (1,171) (352) (68) (1,347) (120) (1,887)
Upstream
Europe (21) (597) 140 (40) (518) 547 43 (153) (174) 263
Asia (3) (24) (15) (246) (288) (31) (3) (111) (30) (175)
Oceania
Africa (5) (11) 86 (8) 62 1,417 (2) (2) (29) 1,384
North America (52) (354) (478) 404 (480) (84) (168) (7,037) (93) (7,382)
South America 168 337 (122) (129) 254 (254) 38 (329) (123) (668)
Total Upstream 87 (649) (389) (19) (970) 1,595 (92) (7,632) (449) (6,578)
Downstream (CCS basis)
Refining & Trading (481) 50 (313) (149) (893) (126) (121) (1) 22 (226)
Marketing 142 (128) (148) 407 273 3 (34) (111) 960 818
Oil Products (339) (78) (461) 258 (620) (123) (155) (112) 982 592
Chemicals 29 (21) (21) (22) (35) (9) (60) (24) (4) (97)
Total Downstream (310) (99) (482) 236 (655) (132) (215) (136) 978 495
Corporate and non-controlling interest
Corporate (525) (189) (152) (101) (967) (88) (27) 619 (141) 363
Non-controlling interest 98 17 (4) 111 3 3
Total Corporate and non-controlling interest (427) (172) (156) (101) (856) (88) (24) 619 (141) 366
CCS earnings impact (739) (806) (1,344) (763) (3,652) 1,023 (399) (8,496) 268 (7,604)
[A] With effect from 2016, identified items include the impact on deferred tax balances of exchange rate movements arising on the conversion to dollars of the local currency tax base of non-monetary assets and
liabilities, as well as losses, and the conversion of dollar-denominated inter-segment loans to local currency. Comparative information has been restated.

IDENTIFIED ITEMS
Identified items comprise: divestment gains and losses; impairments; fair value accounting of commodity derivatives and certain gas contracts; redundancy and
restructuring; the impact of exchange rate movements on certain deferred tax balances; and other items. Identified items are deducted from relevant GAAP
measures to provide additional insight into Shell's financial performance, in the form of non-GAAP measures such as "Earnings excluding identified items" or
"Underlying operating expenses". A description of Shells identified items per quarter can be found in the Quarterly Results Announcements.

72 FINANCIAL DATA SHELL INVESTORS HANDBOOK 2012-2016

Quarterly earnings by segment Continued $ million
2014 2013 2012
Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year
3,183 3,963 2,331 1,133 10,610 2,858 2,240 2,006 1,894 8,998 2,427 2,621 2,776 3,166 10,990

863 469 438 782 2,552 1,225 829 649 727 3,430 1,314 1,158 675 1,081 4,228
504 448 476 216 1,644 539 509 470 496 2,014 904 531 470 415 2,320
(1) (1) 49 78 83 70 280
513 500 217 682 1,912 805 423 549 34 1,811 864 369 1,101 1,118 3,452
256 (1,371) 608 22 (485) 403 (2,102) (296) (867) (2,862) 958 12 (508) 309 771
108 (189) (121) (190) (392) (9) (217) (88) (438) (752) 207 (61) 14 43 203
2,244 (143) 1,618 1,512 5,231 2,963 (559) 1,284 (48) 3,640 4,296 2,087 1,835 3,036 11,254

(1,481) 884 1,145 1,446 1,994 1,133 468 303 122 2,026 830 885 1,406 887 4,008
476 387 456 98 1,417 555 335 603 350 1,843 490 475 195 214 1,374
(1,005) 1,271 1,601 1,544 3,411 1,688 803 906 472 3,869 1,320 1,360 1,601 1,101 5,382

77 100 (301) (32) (156) 491 (73) 88 (134) 372 (264) (36) 15 82 (203)
(34) (44) 17 6 (55) (49) (17) (36) (32) (134) (102) (48) (75) (34) (259)
43 56 (284) (26) (211) 442 (90) 52 (166) 238 (366) (84) (60) 48 (462)
4,465 5,147 5,266 4,163 19,041 7,951 2,394 4,248 2,152 16,745 7,677 5,984 6,152 7,351 27,164
44 160 (803) (3,568) (4,167) 225 (657) 429 (371) (374) 1,060 (1,901) 1,012 (623) (452)
4,509 5,307 4,463 595 14,874 8,176 1,737 4,677 1,781 16,371 8,737 4,083 7,164 6,728 26,712

Quarterly identified items by segment Continued $ million

2014 2013 2012
Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year
(1) 1,279 (695) (305) 278 299 (401) 38 63 (1) 539 202 835 1,576

15 17 (6) 311 337 (5) 16 50 (24) 37 (64) 160 (357) 45 (216)

(40) (68) (6) (114) (48) 1 4 (43)
1 1
(7) (72) 341 262 (4) 79 (1) (371) (297) (373) 295 567 489
(83) (1,757) 52 183 (1,605) 11 (1,986) (238) (488) (2,701) 517 (145) (439) 354 287
54 (216) (194) (47) (403)
(61) (2,024) (226) 788 (1,523) (46) (1,890) (185) (883) (3,004) 453 (358) (500) 966 561

(2,576) (76) (185) (58) (2,895) (158) (362) 2 (130) (648) 198 32 (47) (89) 94
(4) (7) 52 41 (2) (3) 12 44 51 32 (87) (55)
(2,580) (76) (192) (6) (2,854) (160) (365) 14 (86) (597) 198 64 (134) (89) 39

1 (1) 17 72 89 403 4 (47) (61) 299 (234) (234)

15 15 30 (37) (37)
1 (1) 17 72 89 418 4 (47) (46) 329 (271) (271)
(2,641) (822) (1,096) 549 (4,010) 511 (2,652) (180) (952) (3,273) 380 245 (432) 1,712 1,905

SHELL INVESTORS HANDBOOK 2012-2016 FINANCIAL DATA 73

ADDITIONAL SEGMENTAL INFORMATION AND CAPITAL DATA

Additional segmental information $ million

2016 2015 2014 2013 2012
Integrated Gas
Segment earnings 2,529 3,170 10,610 8,998 10,990
Including:
Exploration 494 1,290 1,439 1,457 155
Depreciation, depletion and amortisation 4,509 2,596 2,661 2,176 1,161
Share of profit of joint ventures and associates 1,116 1,469 4,324 4,270 4,719
Production and manufacturing expenses 5,786 3,102 3,538 3,314 2,160
Selling, distribution and administrative expenses 584 546 607 692 65
Cash flow from operating activities 9,132 7,728 12,689 12,273 10,930
Of which: Working capital movements 2,842 (444) (2,324) 488 (910)
Capital employed 86,631 62,481 62,127 60,657 47,561
Upstream
Segment earnings (3,674) (8,833) 5,231 3,640 11,254
Including:
Exploration 1,614 4,429 2,785 3,821 2,949
Depreciation, depletion and amortisation 16,779 20,405 15,207 14,773 10,226
Share of profit of joint ventures and associates 222 493 1,178 1,850 3,282
Production and manufacturing expenses 13,396 14,914 16,555 15,157 14,194
Selling, distribution and administrative expenses 556 464 448 502 1,146
Cash flow from operating activities 7,662 5,453 19,150 17,841 22,131
Of which: Working capital movements (2,833) 408 854 824 1,020
Capital employed 128,782 84,727 88,692 93,135 87,413
Downstream
Segment CCS earnings 6,588 10,243 3,411 3,869 5,382
Including:
Depreciation, depletion and amortisation 3,681 3,667 6,619 4,421 3,083
Share of profit of joint ventures and associates 2,244 2,215 1,693 1,525 1,354
Production and manufacturing expenses 9,208 9,994 9,845 9,807 9,539
Selling, distribution and administrative expenses 10,117 10,531 12,489 13,114 12,860
Cash flow from operating activities 3,556 14,076 11,292 7,903 11,111
Of which: Working capital movements (6,272) 3,457 6,777 400 3,083
Capital employed 52,671 46,280 48,925 64,507 62,426
Corporate
Segment earnings (1,751) (425) (156) 372 (203)
Including:
Interest and investment expense (1,824) (995) (913) (832) (1,001)
Currency exchange gains/(losses) 3 (731) (263) (189) 169
Other including taxation 70 1,301 1,020 1,393 629
Cash flow from operating activities 265 2,553 1,913 2,423 1,968
Of which: Working capital movements (26) 2,100 1,098 1,276 198
Capital employed 12,903 29,012 18,582 7,411 16,536
Royal Dutch Shell
CCS earnings 3,692 4,155 19,096 16,879 27,423
Non-controlling interest (159) (313) (55) (134) (259)
CCS earnings attributable to shareholders 3,533 3,842 19,041 16,745 27,164
Cash flow from operating activities 20,615 29,810 45,044 40,440 46,140
Of which: Working capital movements (6,289) 5,521 6,405 2,988 3,391
Capital employed 280,987 222,500 218,326 225,710 213,936

74 FINANCIAL DATA SHELL INVESTORS HANDBOOK 2012-2016

Operating expenses $ million
2016 2015 2014
Production and manufacturing expenses 28,434 28,095 30,038
Selling, distribution and administrative expenses 12,101 11,956 13,965
Research and development 1,014 1,093 1,222
Operating expenses 41,549 41,144 45,225
Less identified items:
Redundancy and restructuring charges (1,870) (430) (606)
Provisions (915) (1,150) (460)
BG acquisition costs (422)
Pension plan amendment 1,033
(3,207) (1,580) (33)
Underlying operating expenses 38,342 39,564 45,192

Operating expenses is a non-GAAP measure of Shell's total operating expenses performance, comprising the following Income Statement lines: production and
manufacturing expenses; selling, distribution and administrative expenses; and research and development expenses. Underlying operating expenses is a non-
GAAP measure used to monitor Shell's total operating expenses performance excluding identified items (see definition of identified items in the "Quarterly data per
segment" section).

Divestments $ million
2016 2015 2014 2013 2012 2011 2010
Proceeds from sale of property, plant and
equipment and businesses [A] 2,072 4,720 9,873 1,212 6,346 6,990 3,325
Proceeds from sale of joint ventures and
associates [A] 1,565 276 4,163 538 698 468 3,591
Other [A] (203) (664) (765) (558) 522 (120) (122)
Proceeds from sale of interests in entities while
retaining control [B] 1,108 595 1,012
Other [C] 167 613 736 546 (608) 210 88
Total 4,709 5,540 15,019 1,738 6,958 7,548 6,882
Integrated Gas 352 269 4,819 567 1,596 246 N/A
Upstream 1,451 2,478 5,770 519 4,263 4,034 N/A
Integrated Gas and Upstream 1,803 2,747 10,589 1,086 5,859 4,280 4,487
Downstream 2,889 2,282 4,410 643 1,179 3,206 2,401
Oil Products 2,880 2,279 4,360 586 1,089 3,116 N/A
Chemicals 9 3 50 57 90 90 N/A
Corporate 17 511 20 9 (80) 62 (6)
[A] Included within cash flow from investing activities in the Consolidated Statement of Cash Flows.
[B] Included within Change in non-controlling interest in cash flow from financing activities in the Consolidated Statement of Cash Flows.
[C] Mainly changes in non-current receivables included within Other (in Cash flow from investing activities), which are not considered to be divestments.

Divestments is a non-GAAP measure used to monitor the progress of Shells divestment programme. This measure comprises proceeds from sale of property, plant
and equipment and businesses, joint ventures and associates, and other Integrated Gas, Upstream and Downstream investments, adjusted onto an accruals basis,
and proceeds from sale of interests in entities while retaining control (for example, proceeds from sale of interest in Shell Midstream Partners, L.P.).

SHELL INVESTORS HANDBOOK 2012-2016 FINANCIAL DATA 75

Capital employed [A] (at December 31) $ million
2016 2015 2014 2013 2012
Integrated Gas 86,631 62,481 62,127 60,657 47,561
Upstream 128,782 84,727 88,692 93,135 87,413
Downstream 52,671 46,280 48,925 64,507 62,426
Oil Products 38,925 34,444 38,512 53,459 52,069
Chemicals 13,746 11,836 10,413 11,048 10,357
Corporate 12,903 29,012 18,582 7,411 16,536
Total 280,987 222,500 218,326 225,710 213,936
[A] Consists of total equity, current debt and non-current debt.

Capital investment $ million

2016 2015 2014 2013 2012
Capital expenditure
Integrated Gas 3,994 4,580 6,054 10,517 5,560
Upstream
Europe 2,198 2,729 3,420 4,193 2,914
Asia 1,624 2,272 2,733 2,983 3,125
Oceania 1 127
Africa 1,142 2,441 2,452 2,473 1,965
North America 5,682 8,507 10,512 11,065 14,204
South America 2,064 457 847 3,230 730
Total Upstream 12,710 16,406 19,964 23,945 23,065
Downstream
Oil Products 3,322 3,231 3,718 4,110 3,558
Chemicals 1,987 1,757 1,802 1,193 875
Total Downstream 5,309 4,988 5,520 5,303 4,433
Corporate 103 157 138 210 126
Total capital expenditure 22,116 26,131 31,676 39,975 33,184
Capital investment related to the acquisition of BG Group plc 52,904
Exploration expense [A] 1,274 2,948 2,244 2,506 2,114
Finance leases and other [B] 2,253 (1,114) 1,993 2,022 (1,565)
New equity in joint ventures and associates 868 61 523 856 2,410
New loans to joint ventures and associates 462 835 903 682 618
Capital investment 79,877 28,861 37,339 46,041 36,761
Comprising:
Integrated Gas 26,214 5,178 9,124 11,822 6,077
Upstream 47,507 18,349 22,169 28,481 25,102
Downstream 6,057 5,119 5,910 5,528 5,454
Oil Products 3,595 3,352 4,091 4,334 4,578
Chemicals 2,462 1,767 1,819 1,194 876
Corporate 99 215 136 210 128
Total 79,877 28,861 37,339 46,041 36,761
Of which
Organic capital investment 26,913 28,403 34,082 37,930 31,415
Inorganic capital investment 52,964 458 3,257 8,111 5,346
[A] Represents the exploration expense presented in the Statement of Income, less exploration wells written off.
[B] Includes finance leases and other adjustments related to timing differences between the recognition of assets and associated underlying cash flows.

Capital investment is a non-GAAP measure used to make decisions about allocating resources and assessing performance. It is defined as the sum of capital
expenditure, acquisition of BG, exploration expense (excluding well write-offs), new investments in joint ventures and associates, new finance leases and other
adjustments. The reconciliation of capital investment to capital expenditure is provided above.

Organic capital investment includes capital expenditure and new finance leases of existing subsidiaries, investments in existing joint ventures and associates, and
exploration expense (excluding well write-offs). Inorganic capital investment includes investments related to the acquisition of businesses, investments in new joint
ventures and associates, and new acreage.

76 FINANCIAL DATA SHELL INVESTORS HANDBOOK 2012-2016

EXPLORATION AND PRODUCTION DATA
OIL AND GAS EXPLORATION AND PRODUCTION ACTIVITIES
EARNINGS
The results of operations for oil and gas producing activities are shown in the tables below. As a result of the adoption of IFRS 11 Joint Arrangements, the earnings
of certain entities in Asia and the USA, which were previously presented under the Shell share of joint ventures and associates, are presented under Shell
subsidiaries with effect from 2013.

Shell subsidiaries 2016 $ million

North America South
Europe[A] Asia Oceania Africa USA Other[B] America Total
Revenue
Third parties 969 2,656 1,069 1,380 643 41 476 7,234
Sales between businesses 5,816 7,284 1,438 3,138 3,960 3,789 2,980 28,405
Total 6,785 9,940 2,507 4,518 4,603 3,830 3,456 35,639
Production costs excluding taxes 2,565 2,212 805 1,468 3,348 2,230 865 13,493
Taxes other than income tax [C] 66 421 83 194 70 790 1,624
Exploration 250 408 70 356 438 291 295 2,108
Depreciation, depletion and amortisation 3,270 3,304 1,130 2,018 4,372 1,953 2,881 18,928
Other costs/(income) 1,925 1,606 (700) 356 40 680 (173) 3,734
Earnings before taxation (1,291) 1,989 1,119 126 (3,665) (1,324) (1,202) (4,248)
Taxation (credit)/charge (311) 1,918 559 431 (1,351) (377) (1,032) (163)
Earnings after taxation (980) 71 560 (305) (2,314) (947) (170) (4,085)

$/boe
Revenue 36.31 28.49 27.58 30.64 29.60 34.07 30.54 30.85
Production costs excluding taxes 13.73 6.34 8.86 9.96 21.53 19.84 7.64 11.68
Taxes other than income tax [C] 0.35 1.21 0.91 1.32 0.45 6.98 1.41
Exploration 1.34 1.17 0.77 2.41 2.82 2.59 2.61 1.82
Depreciation, depletion and amortisation 17.50 9.47 12.43 13.69 28.12 17.37 25.46 16.38
Other costs/(income) 10.30 4.60 (7.70) 2.41 0.26 6.05 (1.53) 3.23
Earnings before taxation (6.91) 5.70 12.31 0.85 (23.57) (11.78) (10.62) (3.68)
Taxation (credit)/charge (1.66) 5.50 6.15 2.92 (8.69) (3.35) (9.12) (0.14)
Earnings after taxation (5.24) 0.20 6.16 (2.07) (14.88) (8.42) (1.50) (3.54)
[A] Includes Greenland.
[B] Comprises Canada, Honduras and Mexico.
[C] Includes cash paid royalties to governments outside North America.

SHELL INVESTORS HANDBOOK 2012-2016 EXPLORATION AND PRODUCTION DATA 77

Shell subsidiaries 2015 $ million
North America South
Europe[A] Asia Oceania Africa USA Other[B] America Total
Revenue
Third parties 1,866 2,577 1,202 1,174 567 53 85 7,524
Sales between businesses 5,707 8,040 418 3,737 4,941 4,045 535 27,423
Total 7,573 10,617 1,620 4,911 5,508 4,098 620 34,947
Production costs excluding taxes 2,490 2,163 541 1,570 3,039 2,612 343 12,758
Taxes other than income tax [C] 128 435 115 347 79 63 1,167
Exploration 261 1,255 195 161 3,336 164 347 5,719
Depreciation, depletion and amortisation 2,769 3,047 478 1,733 6,259 6,570 687 21,543
Other costs/(income) 779 1,465 226 (1,441) 668 2,172 232 4,101
Earnings before taxation 1,146 2,252 65 2,541 (7,873) (7,420) (1,052) (10,341)
Taxation charge/(credit) 418 2,516 429 866 (2,907) (1,815) 278 (215)
Earnings after taxation 728 (264) (364) 1,675 (4,966) (5,605) (1,330) (10,126)

$/boe
Revenue 51.61 36.41 39.99 37.48 36.72 39.39 38.61 39.71
Production costs excluding taxes 16.97 7.42 13.35 11.98 20.26 25.11 21.36 14.50
Taxes other than income tax [C] 0.87 1.49 2.84 2.65 0.53 3.92 1.33
Exploration 1.78 4.30 4.81 1.23 22.24 1.58 21.61 6.50
Depreciation, depletion and amortisation 18.87 10.45 11.80 13.23 41.72 63.16 42.78 24.48
Other costs/(income) 5.31 5.02 5.58 (11.00) 4.45 20.88 14.45 4.66
Earnings before taxation 7.81 7.72 1.60 19.39 (52.48) (71.33) (65.50) (11.75)
Taxation charge/(credit) 2.85 8.63 10.59 6.61 (19.38) (17.45) 17.31 (0.24)
Earnings after taxation 4.96 (0.91) (8.98) 12.78 (33.10) (53.88) (82.81) (11.51)
[A] Includes Greenland.
[B] Comprises Canada and Mexico.
[C] Includes cash paid royalties to governments outside North America.

Shell subsidiaries 2014 $ million

North America South
Europe[A] Asia Oceania Africa USA Canada America Total
Revenue
Third parties 2,808 4,914 1,867 3,004 1,078 202 126 13,999
Sales between businesses 7,869 13,973 990 6,516 9,903 7,399 1,376 48,026
Total 10,677 18,887 2,857 9,520 10,981 7,601 1,502 62,025
Production costs excluding taxes 2,831 2,282 599 2,032 3,440 3,367 482 15,033
Taxes other than income tax [B] 264 948 216 836 198 165 2,627
Exploration 457 1,331 232 307 1,549 88 260 4,224
Depreciation, depletion and amortisation 1,772 3,341 427 2,037 6,576 1,709 475 16,337
Other costs/(income) 766 2,058 (2,123) 129 845 2,137 78 3,890
Earnings before taxation 4,587 8,927 3,506 4,179 (1,627) 300 42 19,914
Taxation charge/(credit) 3,362 6,800 2,113 2,404 (654) 60 157 14,242
Earnings after taxation 1,225 2,127 1,393 1,775 (973) 240 (115) 5,672

$/boe
Revenue 73.31 65.09 65.23 69.55 68.22 77.42 79.14 69.33
Production costs excluding taxes 19.44 7.86 13.68 14.85 21.37 34.29 25.40 16.80
Taxes other than income tax [B] 1.81 3.27 4.93 6.11 1.23 8.69 2.94
Exploration 3.14 4.59 5.30 2.24 9.62 0.90 13.70 4.72
Depreciation, depletion and amortisation 12.17 11.51 9.75 14.88 40.85 17.41 25.03 18.26
Other costs/(income) 5.26 7.09 (48.47) 0.94 5.25 21.77 4.11 4.35
Earnings before taxation 31.50 30.76 80.05 30.53 (10.11) 3.06 2.21 22.26
Taxation charge/(credit) 23.09 23.43 48.24 17.56 (4.06) 0.61 8.27 15.92
Earnings after taxation 8.41 7.33 31.80 12.97 (6.04) 2.44 (6.06) 6.34
[A] Includes Greenland.
[B] Includes cash paid royalties to governments outside North America.

78 EXPLORATION AND PRODUCTION DATA SHELL INVESTORS HANDBOOK 2012-2016

Shell subsidiaries 2013 $ million
North America South
Europe[A] Asia[B] Oceania Africa USA Canada America Total
Revenue
Third parties 4,116 5,535 1,982 2,690 3,416 52 64 17,855
Sales between businesses 8,420 17,538 1,038 6,873 7,232 7,354 684 49,139
Total 12,536 23,073 3,020 9,563 10,648 7,406 748 66,994
Production costs excluding taxes 2,656 1,762 481 1,753 3,336 3,303 378 13,669
Taxes other than income tax [B] 328 1,254 231 963 223 85 3,084
Exploration 627 1,082 396 354 1,790 312 717 5,278
Depreciation, depletion and amortisation 1,400 2,268 423 1,276 7,858 2,366 160 15,751
Other costs 1,052 3,713 40 419 1,395 2,129 124 8,872
Earnings before taxation 6,473 12,994 1,449 4,798 (3,954) (704) (716) 20,340
Taxation charge/(credit) 4,843 10,251 486 3,093 (1,461) (231) 71 17,052
Earnings after taxation 1,630 2,743 963 1,705 (2,493) (473) (787) 3,288

$/boe
Revenue 83.36 85.42 72.58 78.92 68.80 73.78 73.19 78.94
Production costs excluding taxes 17.66 6.52 11.56 14.47 21.56 32.91 36.99 16.11
Taxes other than income tax [B] 2.18 4.64 5.55 7.95 1.44 8.32 3.63
Exploration 4.17 4.01 9.52 2.92 11.57 3.11 70.16 6.22
Depreciation, depletion and amortisation 9.31 8.40 10.17 10.53 50.78 23.57 15.66 18.56
Other costs 7.00 13.75 0.96 3.46 9.01 21.21 12.13 10.45
Earnings before taxation 43.04 48.11 34.82 39.59 (25.55) (7.01) (70.06) 23.97
Taxation charge/(credit) 32.21 37.95 11.68 25.52 (9.44) (2.30) 6.95 20.09
Earnings after taxation 10.84 10.16 23.14 14.07 (16.11) (4.71) (77.01) 3.87
[A] Includes Greenland.
[B] Includes cash paid royalties to governments outside North America.

Shell subsidiaries 2012 $ million

North America South
Europe[A] Asia Oceania Africa USA Canada America Total
Revenue
Third parties 4,705 3,981 1,941 2,807 3,573 207 23 17,237
Sales between businesses 10,275 16,450 1,129 10,364 3,906 6,443 1,431 49,998
Total 14,980 20,431 3,070 13,171 7,479 6,650 1,454 67,235
Production costs excluding taxes 2,516 1,582 395 1,540 2,486 3,130 255 11,904
Taxes other than income tax [B] 350 410 322 1,248 39 145 2,514
Exploration 398 461 175 699 801 372 198 3,104
Depreciation, depletion and amortisation 1,531 1,222 304 1,261 3,837 2,037 315 10,507
Other costs/(income) 1,420 3,157 (1,769) (322) 421 1,963 63 4,933
Earnings before taxation 8,765 13,599 3,643 8,745 (105) (852) 478 34,273
Taxation charge/(credit) 6,310 10,733 1,104 5,358 (65) (413) 137 23,164
Earnings after taxation 2,455 2,866 2,539 3,387 (40) (439) 341 11,109

$/boe
Revenue 86.58 97.52 70.68 81.64 60.62 68.49 92.64 81.65
Production costs excluding taxes 14.54 7.55 9.09 9.55 20.15 32.24 16.25 14.46
Taxes other than income tax [B] 2.02 1.96 7.41 7.74 0.32 9.24 3.05
Exploration 2.30 2.20 4.03 4.33 6.49 3.83 12.62 3.77
Depreciation, depletion and amortisation 8.85 5.83 7.00 7.82 31.10 20.98 20.07 12.76
Other costs/(income) 8.21 15.07 (40.73) (2.00) 3.41 20.22 4.01 5.99
Earnings before taxation 50.66 64.91 83.87 54.21 (0.85) (8.78) 30.46 41.62
Taxation charge/(credit) 36.47 51.23 25.42 33.21 (0.53) (4.25) 8.73 28.13
Earnings after taxation 14.19 13.68 58.46 20.99 (0.32) (4.52) 21.73 13.49
[A] Includes Greenland.
[B] Includes cash paid royalties to governments outside North America.

SHELL INVESTORS HANDBOOK 2012-2016 EXPLORATION AND PRODUCTION DATA 79

Shell share of joint ventures and associates 20162012 $ million
North America South
Europe Asia Oceania Africa USA Canada America Total
Third-party revenue 1,705 3,708 197 5,610
Production costs excluding taxes 293 705 123 1,121
Taxes other than income tax [A] 706 456 7 1,169
Exploration 36 25 27 88
Depreciation, depletion and amortisation 208 1,663 237 2,108
Other costs/(income) 79 401 (28) 452
Earnings before taxation 383 458 (169) 672
Taxation charge 91 23 8 122
Earnings after taxation 292 435 (177) 550
2015 454 1,250 (800) 904
2014 1,076 2,365 271 (276) 3,436
2013 1,453 2,329 117 (14) 3,885
2012 1,658 2,979 412 1,155 (137) 6,067
[A] Includes cash paid royalties to governments outside North America.

80 EXPLORATION AND PRODUCTION DATA SHELL INVESTORS HANDBOOK 2012-2016

OIL AND GAS EXPLORATION AND DEVELOPMENT COSTS INCURRED
Costs incurred by Shell subsidiaries in oil and gas exploration and development activities in 2016, whether capitalised or charged to income currently, are shown
in the table below excluding the costs incurred on acquisition of BG.

Exploration and development costs incurred in 2016 excluding costs incurred on

acquisition of BG (Shell subsidiaries) $ million
North America South
Europe[A] Asia Oceania Africa USA Other[B] America Total
Exploration 338 400 34 247 1,043 415 574 3,051
Development 2,289 1,982 3,352 1,087 3,497 701 1,788 14,696
[A] Includes Greenland.
[B] Comprises Canada, Honduras and Mexico.

SHELL INVESTORS HANDBOOK 2012-2016 EXPLORATION AND PRODUCTION DATA 81

PROVED OIL AND GAS RESERVES
The tables present oil and gas reserves on a net basis, which means that they include the reserves relating to: (i) the Shell subsidiaries including the reserves
attributable to non-controlling interest holders in our subsidiaries; and (ii) the Shell share of joint ventures and associates.

Proved crude oil and natural gas liquids, synthetic crude oil and bitumen reserves for Shell
subsidiaries and the Shell share of joint ventures and associates [A] (at December 31) Million barrels
2016 2015 2014 2013 2012
Europe 442 428 608 798 793
Asia 1,642 1,576 1,682 1,724 1,706
Oceania 128 138 140 163 174
Africa 529 579 691 651 688
North America USA 491 560 711 991 903
North America Canada
Oil and NGL 18 22 44 29 33
Synthetic crude oil 2,014 1,941 1,763 1,731 1,763
Bitumen 2 3 428 422 49
South America 992 56 63 112 87
Total including year-average price effects 6,258 5,303 6,130 6,621 6,196
[A] Includes proved reserves associated with future production that will be consumed in operations.

Proved natural gas reserves for Shell subsidiaries and the Shell share of joint ventures and Thousand
associates [A][B] (at December 31) million scf
2016 2015 2014 2013 2012
Europe 10,238 11,386 12,296 13,275 14,168
Asia 15,827 16,055 16,101 16,161 16,311
Oceania 9,082 5,946 6,078 7,001 6,610
Africa 2,225 2,236 2,621 2,257 2,241
North America USA 675 754 1,561 2,199 2,352
North America Canada 844 955 1,611 1,500 1,011
South America 1,650 43 48 80 99
Total including year-average price effects 40,541 37,375 40,316 42,473 42,792
[A] Includes proved reserves associated with future production that will be consumed in operations.
[B] These quantities have not been adjusted to standard heat content.

Total proved oil and gas reserves [A][B] (at December 31) Million boe
2016 2015 2014 2013 2012
Europe 2,207 2,391 2,728 3,087 3,236
Asia 4,371 4,344 4,458 4,510 4,518
Oceania 1,694 1,163 1,188 1,370 1,314
Africa 913 965 1,143 1,040 1,074
North America USA 607 690 980 1,370 1,309
North America Canada 2,180 2,131 2,513 2,441 2,019
South America 1,276 63 71 126 104
Total including year-average price effects 13,248 11,747 13,081 13,944 13,574
Year-average price effects (1,480) (1,707) 44 48 (431)
[A] Includes proved reserves associated with future production that will be consumed in operations.
[B] Natural gas volumes are converted into oil equivalent using a factor of 5,800 scf per barrel. Rounding difference may occur in estimates of gas reserves conversion from scf to boe.

82 EXPLORATION AND PRODUCTION DATA SHELL INVESTORS HANDBOOK 2012-2016

CHANGES
The tables present oil and gas reserves on a net basis, which means that they include the reserves relating to: (i) the Shell subsidiaries including the reserves
attributable to non-controlling interest holders in our subsidiaries; and (ii) the Shell share of joint ventures and associates.

Proved crude oil and natural gas liquids, synthetic crude oil and bitumen reserves changes Million
for Shell subsidiaries and the Shell share of joint ventures and associates [A] (at December 31) barrels
2016 2015 2014 2013 2012
Revisions and reclassifications 284 (252) 62 351 629
Improved recovery 24 4 9 412 13
Extensions and discoveries 127 48 68 182 88
Purchases of minerals in place 1,207 2 48 82
Sales of minerals in place (12) (76) (86) (4) (66)
Total additions including year-average price effects 1,630 (274) 53 989 746
Production (675) (553) (544) (564) (598)
[A] Includes proved reserves associated with future production that will be consumed in operations.

Proved natural gas reserves changes for Shell subsidiaries and the Shell share of joint Thousand
ventures and associates [A][B] (at December 31) million scf
2016 2015 2014 2013 2012
Revisions and reclassifications (765) 114 1,767 2,530 (1,343)
Improved recovery 10 7 160 16
Extensions and discoveries 586 249 762 721 667
Purchases of minerals in place 7,537 86 287 54 161
Sales of minerals in place (77) (139) (1,375) (55) (684)
Total additions including year-average price effects 7,291 317 1,441 3,410 (1,183)
Production (4,125) (3,258) (3,598) (3,729) (3,687)
[A] Includes proved reserves associated with future production that will be consumed in operations.
[B] These quantities have not been adjusted to standard heat content.

Total proved oil and gas reserves changes [A][B] (at December 31) Million boe
2016 2015 2014 2013 2012
Revisions and reclassifications 152 (232) 367 787 397
Improved recovery 26 5 9 440 16
Extensions and discoveries 228 91 199 306 203
Purchases of minerals in place 2,506 16 49 57 110
Sales of minerals in place (25) (100) (323) (13) (184)
Total additions including year-average price effects 2,887 (220) 301 1,577 542
Year-average price effects (1,480) (1,707) 44 48 (431)
Total additions excluding year-average price effects 4,367 1,487 257 1,529 973
Total additions excluding acquisitions, divestments and year-average
price effects 1,886 1,571 531 1,485 1,047
Production (1,386) (1,114) (1,164) (1,207) (1,234)
[A] Includes proved reserves associated with future production that will be consumed in operations.
[B] Natural gas volumes are converted into oil equivalent using a factor of 5,800 scf per barrel. Rounding differences may occur in estimates of gas reserves conversion from scf to boe.

Proved crude oil and natural gas liquids, synthetic crude oil and bitumen reserves changes for Shell Million
subsidiaries and the Shell share of joint ventures and associates [A] (at December 31, 2016) barrels
North America South
Europe Asia Oceania Africa USA Canada America Total
Synthetic
Oil and NGL Oil and NGL Oil and NGL Oil and NGL Oil and NGL Oil and NGL crude oil Bitumen Oil and NGL All products
Revisions and reclassifications 21 101 (2) 21 17 3 33 4 86 284
Improved recovery 22 2 24
Extensions and discoveries 5 20 6 96 127
Purchases of minerals in place 85 175 2 14 931 1,207
Sales of minerals in place (5) (5) (2) (12)
Total additions including year-
average price effects 101 303 35 34 7 129 4 1,017 1,630
Production (87) (237) (10) (85) (103) (11) (56) (5) (81) (675)
[A] Includes proved reserves associated with volumes consumed in operations.

SHELL INVESTORS HANDBOOK 2012-2016 EXPLORATION AND PRODUCTION DATA 83

Proved natural gas reserves changes for Shell subsidiaries and the Shell share of joint Thousand
ventures and associates [A][B] (at December 31, 2016) million scf
North America South
Europe Asia Oceania Africa USA Canada America Total
Revisions and reclassifications (544) 357 (641) 51 (95) 41 66 (765)
Improved recovery 10 10
Extensions and discoveries 4 197 2 200 180 3 586
Purchases of minerals in place 419 576 4,330 327 151 1,734 7,537
Sales of minerals in place (7) (7) (63) (77)
Total additions including year-average price
effects (128) 1,140 3,689 380 249 158 1,803 7,291
Production (1,020) (1,368) (553) (391) (328) (269) (196) (4,125)
[A] Includes proved reserves associated with volumes consumed in operations.
[B] These quantities have not been adjusted to standard heat content.

Total proved reserves changes for Shell subsidiaries and the Shell share of joint ventures and Million boe
associates [A][B] (at December 31, 2016) unless specified
North America South
Europe Asia Oceania Africa USA Canada America Total
Oil, NGL Oil, NGL Oil, NGL Oil, NGL Oil, NGL Oil, NGL Synthetic
and Gas and Gas and Gas and Gas and Gas and Gas crude oil Bitumen Oil and NGL All products
Revisions and reclassifications (73) 163 (113) 30 1 10 33 4 97 152
Improved recovery 24 2 26
Extensions and discoveries 1 39 54 37 96 1 228
Purchases of minerals in place 157 274 749 70 26 1,230 2,506
Sales of minerals in place (6) (6) (13) (25)
Total additions including year-
average price effects 79 500 636 100 77 34 129 4 1,328 2,887
Year-average price effect (1,480)
Production (263) (473) (105) (152) (160) (57) (56) (5) (115) (1,386)
Reserves replacement ratio
excluding acquisitions,
divestments and year-average
price effects 136%
Total additions excluding
acquisitions and divestments
but including year-average
price effects 406
Reserves replacement ratio
including acquisitions,
divestments and year-average
price effects 208%
[A] Includes proved reserves associated with volumes consumed in operations.
[B] Natural gas volumes are converted into oil equivalent using a factor of 5,800 scf per barrel. Rounding differences may occur in estimates of gas reserves conversion from scf to boe.

84 EXPLORATION AND PRODUCTION DATA SHELL INVESTORS HANDBOOK 2012-2016

OIL, GAS, SYNTHETIC CRUDE OIL AND BITUMEN PRODUCTION

Total production available for sale [A][B] Thousand boe/d

2016 2015 2014 2013 2012
SUBS JV&A SUBS JV&A SUBS JV&A SUBS JV&A SUBS JV&A
Europe
Denmark 64 70 75 82 108
Germany 26 30 34 37 40
Ireland 21
Italy 24 38 40 41 46
Netherlands 192 207 279 346 316
Norway 174 159 160 161 163
UK 203 105 90 91 117
Total Europe 512 192 402 207 399 279 412 346 474 316
Asia
Brunei 16 121 12 128 13 124 11 133 11 161
China 21 22 25 28 22
Iraq 54 55 53 23 6
Kazakhstan 94
Malaysia 178 183 160 155 140
Oman 220 215 205 204 205
Philippines 24 22 22 22 22
Russia 63 93 62 90 67 89 71 89 168
Thailand 33
Other [C] 253 77 228 78 250 85 226 236 168 223
Total Asia 956 291 799 296 795 298 740 458 574 552
Oceania
Australia 214 20 77 40 77 52 76 61 79 60
New Zealand 35 34 43 38 41
Total Oceania 249 20 111 40 120 52 114 61 120 60
Africa
Egypt 88 48 39 33 36
Gabon 35 34 33 29 38
Nigeria 259 277 303 270 367
Tunisia 22
Total Africa 404 359 375 332 441
North America
USA 426 411 441 424 338 68
Canada 149 134 124 130 121
Total North America 575 545 565 554 459 68
South America
Bolivia 38
Brazil 229 38 45 21 35
Trinidad and Tobago 38
Other [C] 5 6 7 7 9 8 10
Total South America 310 44 52 28 9 43 10
Total oil and gas production 3,006 503 2,260 543 2,306 629 2,180 874 2,111 1,006
Synthetic oil production 146 137 129 126 125
Bitumen production 13 14 16 19 20
Grand total 3,165 503 2,411 543 2,451 629 2,325 874 2,256 1,006
[A] Natural gas volumes are converted into oil equivalent using a factor of 5,800 scf per barrel.
[B] Includes natural gas liquids. Reflects 100% of production attributable to subsidiaries except in respect of PSCs, where the figures shown represent the entitlement of the subsidiaries concerned under
those contracts.
[C] Other comprises countries where 2016 production was lower than 20 thousand boe/d or where specific disclosures are prohibited.

SHELL INVESTORS HANDBOOK 2012-2016 EXPLORATION AND PRODUCTION DATA 85

Crude oil and natural gas liquids production available for sale [A] Thousand b/d
2016 2015 2014 2013 2012
SUBS JV&A SUBS JV&A SUBS JV&A SUBS JV&A SUBS JV&A
Europe
Denmark 42 48 52 57 73
Norway 59 38 41 40 40
UK 113 57 41 40 60
Other [B] 22 2 33 4 34 5 36 5 42 4
Total Europe 236 2 176 4 168 5 173 5 215 4
Asia
Brunei 3 48 2 51 2 51 2 55 2 73
Iraq 54 55 53 23 6
Kazakhstan 58
Malaysia 74 63 46 42 41
Oman 220 215 205 204 205
Russia 61 30 60 28 65 28 69 29 104
Other [B] 80 21 67 22 73 29 68 182 53 168
Total Asia 550 99 462 101 444 108 408 266 307 345
Total Oceania [B] 24 3 22 8 25 10 26 13 27 18
Africa
Gabon 35 34 33 30 38
Nigeria 171 186 192 175 240
Other [B] 26 17 14 11 12
Total Africa 232 237 239 216 290
North America
USA 281 286 271 237 155 67
Canada 30 24 23 21 15
Total North America 311 310 294 258 170 67
South America
Brazil 214 36 45 21 34
Other [B] 8 2 1 1 9 1 10
Total South America 222 38 46 22 9 35 10
Total 1,575 104 1,245 113 1,216 123 1,103 293 1,044 444
[A] Reflects 100% of production attributable to subsidiaries except in respect of PSCs, where the figures shown represent the entitlement of the subsidiaries concerned under those contracts.
[B] Comprises countries where 2016 production was lower than 20 thousand b/d or where specific disclosures are prohibited.

86 EXPLORATION AND PRODUCTION DATA SHELL INVESTORS HANDBOOK 2012-2016

Natural gas production available for sale [A] Million scf/d
2016 2015 2014 2013 2012
SUBS JV&A SUBS JV&A SUBS JV&A SUBS JV&A SUBS JV&A
Europe
Denmark 129 132 136 146 202
Germany 141 160 183 200 217
Ireland 122
Netherlands 1,100 1,177 1,592 1,976 1,808
Norway 663 693 691 703 713
UK 520 277 286 300 328
Other [B] 27 44 43 42 43
Total Europe 1,602 1,100 1,306 1,177 1,339 1,592 1,391 1,976 1,503 1,808
Asia
Brunei 74 426 58 446 61 425 51 451 51 512
China 119 127 145 164 131
Kazakhstan 211
Malaysia 606 697 663 655 572
Philippines 123 114 110 108 108
Russia 11 364 11 361 11 352 12 347 374
Thailand 163
Other [B] 1,049 323 947 324 1,041 324 928 317 687 317
Total Asia 2,356 1,113 1,954 1,131 2,031 1,101 1,918 1,115 1,549 1,203
Oceania
Australia 1,145 100 362 185 364 241 344 276 352 243
New Zealand 159 153 189 168 182
Total Oceania 1,304 100 515 185 553 241 512 276 534 243
Africa
Egypt 397 178 148 126 141
Nigeria 503 534 643 552 740
Other [B] 95
Total Africa 995 712 791 678 881
North America
USA 845 724 989 1,081 1,062 5
Canada 693 641 588 635 616
Total North America 1,538 1,365 1,577 1,716 1,678 5
South America
Bolivia 184
Trinidad and Tobago 214
Other [B] 107 35 34 33 1 44 1
Total South America 505 35 34 33 1 44 1
Total 8,300 2,313 5,887 2,493 6,325 2,934 6,248 3,368 6,189 3,260
[A] Reflects 100% of production attributable to subsidiaries except in respect of PSCs, where the figures shown represent the entitlement of the subsidiaries concerned under those contracts.
[B] Comprises countries where 2016 production was lower than 115 million scf/d or where specific disclosures are prohibited.

SHELL INVESTORS HANDBOOK 2012-2016 EXPLORATION AND PRODUCTION DATA 87

ACREAGE AND WELLS
The tables below reflect Shell subsidiaries and Shell share of joint ventures and associates acreage and wells. The term gross refers to the total activity in which
Shell subsidiaries and Shell share of joint ventures and associates have an interest. The term net refers to the sum of the fractional interests owned by Shell
subsidiaries plus the Shell share of joint ventures and associates fractional interests.

Oil and gas acreage (at December 31) Thousand acres

2016 2015
Developed Undeveloped Developed Undeveloped
Gross Net Gross Net Gross Net Gross Net
Europe 6,556 2,197 18,216 10,241 7,152 2,194 14,623 7,732
Asia 26,003 9,199 58,463 36,298 25,581 9,181 36,658 22,995
Oceania 1,939 822 37,876 24,109 2,041 [A] 530 [B] 51,740 [C] 16,975 [D]
Africa 5,083 2,315 41,517 29,152 4,650 2,071 40,435 27,058
North America USA 2,002 1,197 4,151 2,577 1,659 1,158 5,033 4,262
North America Canada 976 670 26,149 19,402 1,227 745 32,706 25,716
South America 1,315 547 17,759 14,643 100 52 7,851 3,621
Total 43,874 16,947 204,131 136,422 42,410 15,931 189,046 108,359
[A] Corrected from 1,657.
[B] Corrected from 434.
[C] Corrected from 70,509.
[D] Corrected from 26,312.

Oil and gas acreage (at December 31) Thousand acres

2014 2013 2012
Developed Undeveloped Developed Undeveloped Developed Undeveloped
Gross Net Gross Net Gross Net Gross Net Gross Net Gross Net
Europe 9,603 2,693 16,161 8,563 9,614 2,698 15,978 6,225 9,091 2,659 10,937 4,196
Asia 25,724 9,252 46,487 25,155 26,349 9,275 56,373 27,791 26,989 9,400 53,460 26,604
Oceania 1,657 433 57,939 [A] 18,991 [B] 1,659 466 74,055 29,811 1,703 467 70,575 26,469
Africa 5,174 2,232 39,297 26,409 5,217 2,245 37,811 24,553 5,428 2,299 45,315 30,916
North America USA 1,635 1,131 6,133 5,047 1,901 1,213 8,432 6,613 1,837 1,176 8,878 6,990
North America
Canada 1,132 748 33,094 27,223 1,259 832 33,307 28,677 1,181 785 31,086 25,117
South America 100 52 8,637 4,081 162 89 15,116 7,210 162 76 17,242 9,668
Total 45,025 16,541 207,748 115,469 46,161 16,818 241,072 130,880 46,391 16,862 237,493 129,960
[A] Corrected from 71,941.
[B] Corrected from 25,992.

Number of productive wells [A] (at December 31)

2016 2015
Oil Gas Oil Gas
Gross Net Gross Net Gross Net Gross Net
Europe 1,215 321 1,232 403 1,272 344 1,229 392
Asia 9,261 3,141 656 263 8,271 2,853 334 190
Oceania 3,257 1,734 624 234
Africa 662 289 191 127 821 [B] 334 [B] 129 86 [C]
North America USA 15,532 7,892 3,046 2,136 15,331 7,893 2,522 2,403
North America Canada 283 283 941 781 286 286 1,209 1,059
South America 73 28 50 26 25 15 7 2
Total 27,026 11,954 9,373 5,470 26,006 11,725 6,054 4,366
[A] The number of productive wells with multiple completions (more than one formation producing into the same well bore) at December 31, 2016, was 1,754 gross (691 net); 2015: 1,811 gross (760 net);
corrected from 1,733 gross (727 net).
[B] Corrected from 812 gross (362 net).
[C] Corrected from 87 net.

88 EXPLORATION AND PRODUCTION DATA SHELL INVESTORS HANDBOOK 2012-2016

Number of productive wells [A] (at December 31)
2014 2013 2012
Oil Gas Oil Gas Oil Gas
Gross Net Gross Net Gross Net Gross Net Gross Net Gross Net
Europe 1,256 [B] 332 [B] 1,209 [D] 333 [D] 1,315 349 1,193 [F] 334 [F] 1,431 425 1,266 398
Asia 7,529 2,643 353 198 8,187 2,578 340 192 7,392 2,345 248 118
Oceania 44 3 625 235 44 5 655 244 48 5 574 217
Africa 887 [C] 349 [C] 116 79 921 [E] 350 [E] 109 71 837 324 95 62
North America USA 15,313 7,760 2,555 1,849 15,347 8,150 4,316 2,878 15,108 7,630 4,618 2,808
North America
Canada 325 320 1,125 878 337 331 1,238 949 460 393 1,165 880
South America 25 15 7 2 74 31 7 2 73 29 7 2
Total 25,379 11,422 5,990 3,574 26,225 11,794 7,858 4,670 25,349 11,151 7,973 4,485
[A] The number of productive wells with multiple completions (more than one formation producing into the same well bore) at December 31, 2014, was 1,802 gross (762 net); 2013: 2,200 gross (805 net);
2012: 1,918 gross (694 net).
[B] Corrected from 1,269 gross and 333 net.
[C] Corrected from 891 gross and 352 net.
[D] Corrected from 1,311 gross and 410 net.
[E] Corrected from 920 gross and 351 net.
[F] Corrected from 1,295 gross and 411 net.

Number of net productive wells and dry holes drilled (at December 31)
2016 2015
Productive Dry Productive Dry
Exploratory [A]
Europe 1 2
Asia 2 4 11
Oceania 3
Africa 4 2 5
North America USA 40 2 35 8
North America Canada 73 5
South America 1
Total 46 8 114 30
Development
Europe 10 1 10
Asia 265 252 2
Oceania 184 2
Africa 15 24 [B]
North America USA 137 433
North America Canada 50 20 2
South America 3 3 1
Total 664 1 744 5
[A] Productive wells are wells with proved reserves allocated. Exploratory wells in the process of drilling are excluded.
[B] Corrected from 27.

SHELL INVESTORS HANDBOOK 2012-2016 EXPLORATION AND PRODUCTION DATA 89

Number of net productive wells and dry holes drilled (at December 31)
2014 2013 2012
Productive Dry Productive Dry Productive Dry
Exploratory [A]
Europe 1 2 1 3 1 1
Asia 2 10 2 9 3 4
Oceania 1 1 1
Africa 4 4 6 3 3 7
North America USA 53 89 173 33 127 11
North America Canada 39 2 17 2 37 9
South America 1 5 1
Total 99 109 [B] 199 56 171 34
Development
Europe 8 1 6 2 9
Asia 243 9 218 6 255 4
Oceania 6 1 12 7
Africa 23 [C] 2 24 [D] 25
North America USA 392 3 447 2 352
North America Canada 22 57 1 49 2
South America 3 4 1
Total 697 16 768 11 698 6
[A] Productive wells are wells with proved reserves allocated. Exploratory wells in the process of drilling are excluded.
[B] Includes 50 net exploratory wells sold in North and South America.
[C] Corrected from 25.
[D] Corrected from 25.

90 EXPLORATION AND PRODUCTION DATA SHELL INVESTORS HANDBOOK 2012-2016

ADDITIONAL INTEGRATED GAS DATA
LNG regasification terminals
Shell capacity rights
Project name Location (mtpa) Capacity right period Status Shell interest (%) Start-up date
Altamira Tamaulipas, Mexico 3.3 [A] from 2006 In operation Leased 2006
Barcelona Barcelona, Spain 0.1 20102020 In operation Leased 1969
Costa Azul Baja California, Mexico 2.7 20082028 In operation Leased 2008
Cove Point Lusby, MD, USA 1.8 20032023 In operation Leased 2003
Dragon LNG Milford Haven, UK 2.8 20092029 In operation 50 2009
Elba Island Expansion Elba Island, GA, USA 4.2 20102035 In operation Leased 2010
Elba Island Elba Island, GA, USA 2.8 20062036 In operation Leased 2006
Elba Island Elba Island, GA, USA 4.6 [B] 20032027 In operation Leased 2003
GATE (Gas Access Rotterdam, 1.4 [C] 20152031 In operation Capacity rights 2015
to Europe) The Netherlands
Hazira Gujarat, India 2.2 [D] from 2005 In operation 74 2005
Lake Charles Lake Charles, LA, USA 4.4 20022030 In operation Leased 2002
Lake Charles Expansion Lake Charles, LA, USA 8.7 20052030 In operation Leased 2005
Singapore Singapore 3.0 20132023 [E] In operation Aggregator Rights 2013
[A] 100% capacity rights are held by Gas del Litoral joint venture with which Shell has a contract to supply 75% of the volumes.
[B] Of which 1.2 mtpa may be supplied by Marathon.
[C] No Shell interest (%) in the project, only capacity rights and use of jetty.
[D] 100% capacity rights are held by Hazira joint venture with which Shell has a contract to supply 74% of the volumes.
[E] Exclusive licence to import LNG and sell regasified LNG in Singapore for up to 3.0 mtpa or until the year 2023, whichever comes first.

LNG liquefaction plants in operation

100% capacity
Asset Location Shell interest (%) (mtpa)[A]
Europe
Norway Gasnor Bergen 100.0 0.3
Asia
Brunei Brunei LNG Lumut 25.0 7.8
Malaysia Malaysia LNG Tiga Bintulu 15.0 7.7
Oman Oman LNG Sur 30.0 7.1
Qalhat (Oman) LNG Sur 11.0 [B] 3.7
Qatar Qatargas 4 Ras Laffan 30.0 7.8
Russia Sakhalin LNG Prigorodnoye 27.5 9.6
Oceania
Australia Australia North West Shelf Karratha 18.9 [B] 16.7
Australia Pluto 1 Karratha 11.9 [B] 4.9
Gorgon LNG T1 Barrow Island 25.0 5.2
Gorgon LNG T2 Barrow Island 25.0 5.2
Queensland Curtis LNG T1 Curtis Island 50.0 4.3
Queensland Curtis LNG T2 Curtis Island 97.5 4.3
Africa
Egypt Egyptian LNG T1 Idku 35.5 3.6
Egyptian LNG T2 Idku 38.0 3.6
Nigeria Nigeria LNG Bonny 25.6 22.0
South America
Peru Peru LNG Pampa Melchorita 20.0 4.5
Trinidad and Tobago Atlantic LNG T1 Point Fortin 46.0 3.1
Atlantic LNG T2/3 Point Fortin 57.5 6.6
Atlantic LNG T4 Point Fortin 51.1 5.2
[A] As reported by the operator.
[B] Interest, or part of the interest, is held via indirect shareholding.

SHELL INVESTORS HANDBOOK 2012-2016 ADDITIONAL INTEGRATED GAS DATA 91

LNG liquefaction plants under construction
Asset Location Shell Interest capacity (mtpa)
Oceania
Australia Gorgon LNG T3 Barrow Island 1.3
Prelude Browse Basin 2.4

GTL plants in operation

Asset Location Shell interest (%) 100% capacity (b/d)
Asia
Malaysia Shell MDS Bintulu 72.0 14,700
Qatar Pearl Ras Laffan 100.0 140,000

LNG liquefaction volumes Million tonnes

2016 2015 2014 2013 2012
Australia 9.5 3.4 3.7 3.7 3.6
Brunei 1.6 1.6 1.5 1.7 1.7
Egypt 0.2
Malaysia 1.3 1.8 2.7 2.6 2.5
Nigeria 4.5 5.0 5.0 4.4 5.1
Norway 0.1
Oman 2.0 1.9 1.8 2.0 1.9
Peru 0.9 0.7 0.8
Qatar 2.4 2.4 2.4 2.3 2.4
Russia 3.0 2.9 2.9 2.9 3.0
Trinidad and Tobago 5.4 2.9 3.2
Total 30.9 22.6 24.0 19.6 20.2

92 ADDITIONAL INTEGRATED GAS DATA SHELL INVESTORS HANDBOOK 2012-2016

DOWNSTREAM DATA
OIL PRODUCTS AND REFINING LOCATIONS
The tables below reflect Shell subsidiaries, the 50% Shell interest in Motiva in the USA and instances where Shell owns the crude oil or feedstock processed by a
refinery. Other joint ventures and associates are only included where explicitly stated.

Refinery availability %
2016 2015 2014 2013 2012
Average worldwide 90 90 93 94 92

Cost of crude oil processed or consumed [A] $/b

2016 2015 2014 2013 2012
Total 34.47 40.91 82.76 90.36 106.82
[A] Includes Upstream margin on crude oil supplied by Shell subsidiaries, joint ventures and associates. Excludes cost of crude oil processed or consumed by Motiva.

Crude distillation capacity [A] Thousand b/calendar day[B]

2016 2015 2014 2013 2012
Europe 973 1,037 1,033 1,033 1,084
Asia 808 816 810 810 664
Oceania 80 118 158
Africa 82 82 82 82 83
Americas 1,223 1,219 1,212 1,212 1,212
Total 3,086 3,154 3,217 3,255 3,201
[A] Average operating capacity for the year, excluding mothballed capacity.
[B] Calendar day capacity is the maximum sustainable capacity adjusted for normal unit downtime.

Oil Products crude oil processed [A] Thousand b/d

2016 2015 2014 2013 2012
Europe 898 870 941 1,010 1,069
Asia 563 685 688 706 761
Oceania 59 116 93
Africa 68 56 69 61 70
Americas 1,088 1,150 1,149 1,100 1,024
Total 2,617 2,761 2,906 2,993 3,017
[A] Includes natural gas liquids, share of joint ventures and associates and processing for others.

Refinery processing intake [A] Thousand b/d

2016 2015 2014 2013 2012
Crude oil 2,317 2,596 2,716 2,732 2,620
Feedstocks 384 209 187 183 199
Total 2,701 2,805 2,903 2,915 2,819
Europe 896 903 941 933 970
Asia 568 627 639 634 520
Oceania 64 105 150
Africa 67 56 69 54 62
Americas 1,170 1,219 1,190 1,189 1,117
Total 2,701 2,805 2,903 2,915 2,819
[A] Includes crude oil, natural gas liquids and feedstocks processed in crude oil distillation units and in secondary conversion units.

SHELL INVESTORS HANDBOOK 2012-2016 DOWNSTREAM DATA 93

Refinery processing outturn [A] Thousand b/d
2016 2015 2014 2013 2012
Gasolines 1,021 1,012 1,049 1,049 995
Kerosines 326 316 331 368 321
Gas/diesel oils 942 972 1,047 1,014 996
Fuel oil 277 290 316 274 256
Other products 386 449 395 389 452
Total 2,952 3,039 3,138 3,094 3,020
[A] Excludes own use and products acquired for blending purposes.

Refineries in operation Thousand b/calendar day, 100% capacity[B]

Thermal
Crude cracking/
Shell interest distillation visbreaking/ Catalytic
Location Asset class (%)[A] capacity coking cracking Hydrocracking
Europe
Denmark Fredericia [C] 100 67 25
Germany Miro [D] 32 310 65 89
Rheinland 100 325 44 80
Schwedt [D] 38 204 41 52
Netherlands Pernis 100 404 45 48 83
Asia
Japan Mizue (Toa) [D] 2 64 24 38
Yamaguchi [D] 1 110 25
Yokkaichi [D] 3 234 55
Pakistan Karachi [D] 30 43
Philippines Tabangao 55 96 31
Saudi Arabia Al Jubail [D] 50 292 62 45
Singapore Pulau Bukom 100 460 62 33 54
Africa
South Africa Durban [D] 36 165 23 34
Americas
Argentina Buenos Aires 100 100 18 20
Canada
Alberta Scotford 100 92 62
Ontario Sarnia 100 73 4 19 9
USA
California Martinez 100 144 42 65 37
Louisiana Convent [D] [E] 50 235 83 49
Norco [D] [E] 50 229 25 107 39
Texas Deer Park 50 312 78 63 53
Port Arthur [D] [E] 50 578 144 81 73
Washington Puget Sound 100 137 23 52
[A] Shell interest is rounded to nearest whole percentage point; the Shell share of production capacity may differ.
[B] Calendar day capacity is the maximum sustainable capacity adjusted for normal unit downtime.
[C] In September 2016, we agreed to sell the Fredericia refinery.
[D] Not operated by Shell.
[E] We have signed agreements with SRI as a result of which we will assume sole ownership of the Convent and Norco refineries and SRI will assume sole ownership of the Port Arthur refinery (see Refining and
Trading on page 39 in the Oil Products section).

Integrated refinery and chemical complex.

Refinery complex with cogeneration capacity.
Refinery complex with chemical unit(s).

94 DOWNSTREAM DATA SHELL INVESTORS HANDBOOK 2012-2016

OIL SALES AND RETAIL SITES

Oil product sales volumes [A][B] Thousand b/d

2016 2015 2014 2013 2012
Europe
Gasolines 309 403 405 415 450
Kerosines 258 251 264 226 234
Gas/diesel oils 765 779 841 962 909
Fuel oil 183 186 176 194 180
Other products 287 240 205 168 184
Total 1,802 1,859 1,891 1,965 1,957
Asia
Gasolines 388 379 343 325 352
Kerosines 195 214 191 191 172
Gas/diesel oils 519 533 515 483 515
Fuel oil 354 340 325 322 355
Other products 593 489 441 256 220
Total 2,049 1,955 1,815 1,577 1,614
Oceania
Gasolines 52 87 93
Kerosines 55 51 48 51 48
Gas/diesel oils 64 115 107
Fuel oil 4
Other products 10 19 26
Total 55 51 174 272 278
Africa
Gasolines 41 37 36 45 58
Kerosines 10 9 9 9 16
Gas/diesel oils 66 57 52 43 53
Fuel oil 1 1 3 9
Other products 7 15 7 14 13
Total 125 119 104 114 149
Americas
Gasolines 1,331 1,325 1,268 1,149 1,123
Kerosines 205 204 206 234 264
Gas/diesel oils 540 584 583 519 528
Fuel oil 69 86 68 96 89
Other products 307 249 256 238 233
Total 2,452 2,448 2,381 2,236 2,237
Total product sales [C]
Gasolines 2,069 2,144 2,104 2,021 2,076
Kerosines 723 729 718 711 734
Gas/diesel oils 1,890 1,953 2,055 2,122 2,112
Fuel oil 607 613 569 615 637
Other products 1,194 993 919 695 676
Total 6,483 6,432 6,365 6,164 6,235
[A] Excludes deliveries to other companies under reciprocal sale and purchase arrangements, which are in the nature of exchanges. Sales of condensate and natural gas liquids are included.
[B] Includes the Shell share of Razen's sales volumes.
[C] Certain contracts are held for trading purposes and reported net rather than gross. The effect in 2016 was a reduction in oil products sales of approximately 839,000 b/d (2015: 1,158,000 b/d; 2014:
1,067,000 b/d; 2013: 921,000 b/d; 2012: 856,000 b/d).

SHELL INVESTORS HANDBOOK 2012-2016 DOWNSTREAM DATA 95

Sales by product as percentage of total product sales %
2016 2015 2014 2013 2012[A]
Gasolines 31.9 33.3 33.1 32.8 33.3
Kerosines 11.2 11.3 11.3 11.5 11.8
Gas/diesel oils 29.2 30.4 32.3 34.4 33.9
Fuel oil 9.4 9.5 8.9 10.0 10.2
Other products 18.4 15.5 14.4 11.3 10.8
Total 100.0 100.0 100.0 100.0 100.0
[A] Excludes deliveries to other companies under reciprocal sale and purchase arrangements, which are in the nature of exchanges. Sales of condensate and natural gas liquids are included.

Branded retail sites Year-end number

2016 2015 2014 2013 2012
Europe 7,768 7,829 7,971 9,038 9,352
Asia [A] 9,596 9,386 9,726 9,276 9,236
Oceania 850 850 888 923 940
Africa 2,277 2,262 1,932 2,099 2,064
Americas 22,855 22,385 22,344 21,970 22,182
Total 43,346 42,712 42,861 43,306 43,774
[A] Asia includes Turkey and Russia.

96 DOWNSTREAM DATA SHELL INVESTORS HANDBOOK 2012-2016

CHEMICALS

Chemical plant availability %

2016 2015 2014 2013 2012
Average worldwide 90 85 85 92 91

Chemicals sales volumes [A] Thousand tonnes

2016 2015 2014 2013 2012
Europe
Base chemicals 3,670 3,000 3,287 3,423 3,771
Intermediates and others 2,073 1,936 2,019 2,281 2,626
Total 5,743 4,936 5,306 5,704 6,397
Asia
Base chemicals 2,200 2,319 2,220 2,266 2,588
Intermediates and others 2,927 3,576 2,901 2,989 3,074
Total 5,127 5,895 5,121 5,255 5,662
Oceania
Base chemicals
Intermediates and others 35 62 75
Total 35 62 75
Africa
Base chemicals
Intermediates and others 22 37 43 47 54
Total 22 37 43 47 54
Americas
Base chemicals 4,041 3,036 3,251 3,218 3,336
Intermediates and others 2,359 3,244 3,252 3,100 3,145
Total 6,400 6,280 6,503 6,318 6,481
Total product sales
Base chemicals 9,911 8,355 8,758 8,907 9,695
Intermediates and others 7,381 8,793 8,250 8,479 8,974
Total 17,292 17,148 17,008 17,386 18,669
[A] Excludes feedstock trading and by-products.

Ethylene capacity [A] Thousand tonnes/year

2016 2015 2014 2013 2012
Europe 1,702 1,702 1,659 1,659 1,659
Asia 2,222 2,222 1,922 1,922 1,922
Oceania
Africa
Americas 2,235 2,235 2,212 2,212 2,212
Total 6,159 6,159 5,793 5,793 5,793
[A] Includes the Shell share of capacity entitlement (offtake rights) of joint ventures and associates, which may be different from nominal equity interest. Nominal capacity is quoted at December 31.

Chemical products and their major applications

Product group Some typical end uses
Base chemicals: Feedstock for petrochemical derivatives typically used for:
ethylene, propylene and aromatics polyethylene film for packaging, carrier bags, polypropylene for moulded plastic buckets, food containers,
polyvinyl chloride (PVC) for drain pipes
Ethylene oxide/glycols (EO/G) Brake fluids, polyethylene terephthalate (PET) plastics, polyester, packaging, antifreeze
Higher olefins and derivatives (HODer) Sunscreen, shower gel, automobile interiors, wire insulation, detergents
Styrene monomer Polystyrene, fridge insulation, tyres, food containers, crash helmets, film scenery
Propylene oxide and derivatives Insulation, foam for bedding and car interiors, engineering plastics, aeroplane de-icers, cosmetics
Solvents Pharmaceuticals, paints, mining and metalworking fluids, adhesives, inks, hand sanitisers
Phenol Plywood, kitchen worktops, fibreglass boats, car parts, CDs, circuit boards

SHELL INVESTORS HANDBOOK 2012-2016 DOWNSTREAM DATA 97

Major chemical plants in operation [A] Thousand tonnes/year, Shell share capacity[B]
Styrene Ethylene Higher Additional
Location Ethylene monomer glycol olefins[C] products
Europe
Germany Rheinland 315 A
Netherlands Moerdijk 972 725 155 A, I
UK Mossmorran [D] 415
Stanlow [D] 330 I
Asia
China Nanhai [D] 475 320 175 A, I, P
Saudi Arabia Al Jubail [D][E] 366 400 A, O
Singapore Jurong Island 281 1,020 1,005 A, I, P, O
Pulau Bukom 1,100 A, I
Americas
Canada Scotford 485 520 A, I
USA Deer Park 836 A, I
Geismar 400 920 I
Norco 1,399 A
Total 6,159 2,950 2,255 1,250
[A] Major chemical plants are large integrated chemical facilities, typically producing a range of chemical products from an array of feedstocks, and are a core part of our global Chemicals business.
[B] The Shell share of capacity of subsidiaries, joint arrangements and associates (Shell and non-Shell operated), excluding capacity of the Infineum additives joint ventures.
[C] Higher olefins are linear alpha and internal olefins (products range from C6-C2024).
[D] Not operated by Shell.
[E] In January 2017, we agreed to sell our interest.

A Aromatics/lower olefins.
I Intermediates.
P Polyethylene, polypropylene.
O Other.

Other chemical locations [A]

Location Products
Europe
Germany Karlsruhe A
Schwedt A
Netherlands Pernis A, I, O
Americas
Argentina Buenos Aires I
Canada Sarnia A, I
USA Martinez O
Mobile A
Puget Sound I
[A] Other chemical locations reflect locations with smaller chemical units, typically serving more local markets.

A Aromatics/lower olefins.
I Intermediates.
O Other.

98 DOWNSTREAM DATA SHELL INVESTORS HANDBOOK 2012-2016

ADDITIONAL INVESTOR INFORMATION
SHARE INFORMATION
Growth in the value of a hypothetical
100 holding and 100 holding Historical TSR performance of Royal Dutch Shell plc
over eight years. Euronext 100 and
FTSE 100 comparison based on 30
trading day average values.
RDSA versus Euronext 100 RDSB versus FTSE 100
value of hypothetical 100 holding value of hypothetical 100 holding

250 250

200 200

150 150

100 100

50 50

0 0
Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec
08 09 10 11 12 13 14 15 16 08 09 10 11 12 13 14 15 16

RDSA Euronext 100 RDSB FTSE 100

The following table shows the high,

low and year-end prices of the
Share prices
Companys registered
Euronext Amsterdam New York Stock Exchange
ordinary shares:
A shares A ADSs
of 0.07 nominal value on the
High Low Year-end High Low Year-end
London Stock Exchange;
$ $ $
of 0.07 nominal value on Euronext 2012 29.18 24.30 25.98 74.51 60.62 68.95
Amsterdam; and
2013 27.06 23.40 25.91 73.00 62.65 71.27
in the form of ADSs on the New York 2014 31.13 24.30 27.66 83.42 60.84 66.95
Stock Exchange (ADSs do not have 2015 29.59 19.58 21.10 67.16 43.26 45.79
a nominal value). 2016 26.39 16.53 25.99 56.29 35.80 54.38

London Stock Exchange New York Stock Exchange

B shares B ADSs
High Low Year-end High Low Year-end
pence pence pence $ $ $
2012 2,499 2,020 2,175 77.52 63.05 70.89
2013 2,375 2,070 2,280 75.18 65.02 75.11
2014 2,614 1,985 2,233 88.13 62.11 69.56
2015 2,315 1,423 1,543 70.15 43.51 46.04
2016 2,359 1,261 2,354 58.49 35.96 57.97

SHELL INVESTORS HANDBOOK 2012-2016 ADDITIONAL INVESTOR INFORMATION 99

 A and B shares $
DIVIDENDS 2016 2015 2014 2013 2012
Q1 0.47 0.47 0.47 0.45 0.43
Q2 0.47 0.47 0.47 0.45 0.43
POLICY Q3 0.47 0.47 0.47 0.45 0.43
Our policy is to grow the US dollar Q4 0.47 0.47 0.47 0.45 0.43
dividend through time in line with our Total announced in respect of the year 1.88 1.88 1.88 1.80 1.72
view of Shells underlying earnings
and cash flow. When setting the
dividend, the Board of Directors looks
at a range of factors, including the A shares [A]
macroeconomic environment, the 2016 2015 2014 2013 2012
current balance sheet and future Q1 0.42 0.42 0.35 0.34 0.35
investment plans. Q2 0.42 0.42 0.36 0.34 0.34
Q3 0.44 0.43 0.38 0.33 0.33
SCRIP DIVIDEND Q4 0.44 0.42 0.43 0.32 0.33
PROGRAMME Total announced in respect of the year 1.72 1.69 1.53 1.34 1.35
The Companys Scrip Dividend
Amount paid during the year 1.70 1.71 1.42 1.34 1.34
Programme enables shareholders to
[A] Euro equivalent, rounded to the nearest euro cent.
increase their shareholding by
choosing to receive new shares
instead of cash dividends (if approved
by the Board). Only new A shares are B shares Pence[A]
issued under the programme, 2016 2015 2014 2013 2012
including to shareholders who hold Q1 32.98 30.75 28.03 28.99 27.92
B shares. Q2 35.27 30.92 29.09 28.67 27.08
Q3 37.16 31.07 30.16 27.51 26.86
Q4 38.64 32.78 31.20 26.88 28.79
Total announced in respect of the year 144.05 125.52 118.48 112.05 110.65
Amount paid during the year 138.19 123.94 114.16 113.96 108.60
[A] Sterling equivalent.

A and B ADSs $
2016 2015 2014 2013 2012
Q1 0.94 0.94 0.94 0.90 0.86
Q2 0.94 0.94 0.94 0.90 0.86
Q3 0.94 0.94 0.94 0.90 0.86
Q4 0.94 0.94 0.94 0.90 0.86
Total announced in respect of the year 3.76 3.76 3.76 3.60 3.44
Amount paid during the year 3.76 3.76 3.72 3.56 3.42

Scrip issuance A shares Number of shares in million

2016 2015[A] 2014[A] 2013 2012
Q1 65.7 38.0 25.6 27.5
Q2 50.6 23.4 26.6 23.6 19.8
Q3 44.1 23.9 39.1 22.3
Q4 58.9 49.0 37.3 34.2
Total 219.3 96.3 64.6 125.6 103.8
[A] Our Scrip Dividend Programme was cancelled with effect from the second quarter 2014 interim dividend and reintroduced with effect from the first quarter
2015 interim dividend.

Number of shares repurchased [A] Number of shares in million

2016 2015[B] 2014 2013 2012
Q1 12.7 32.4 16.1 1.3
Q2 9.5 56.2 27.0
Q3 21.4 45.4 2.4
Q4 24.4 27.2 13.0
Total 12.7 87.7 144.9 43.7
[A] Share repurchases based on the trading date. Settlement usually occurs three working days after each trading day.
[B] Our share buyback programme was suspended in February 2015.

100 ADDITIONAL INVESTOR INFORMATION SHELL INVESTORS HANDBOOK 2012-2016

BONDHOLDER INFORMATION
Publicly listed bonds were issued by Shell International Finance B.V. and guaranteed by Royal Dutch Shell plc. Shell International Finance B.V. is a 100%
subsidiary of Royal Dutch Shell plc.

Credit ratings (at March 7, 2017)

S&P Moodys
Short-term rating Long-term rating Outlook Short-term rating Long-term rating Outlook
Royal Dutch Shell plc A1 A Positive P1 Aa2 Negative
Debt of Shell International Finance
BV A1 A Positive P1 Aa2 Negative

Publicly listed bonds, current outstanding

Maturity Settlement Currency Million Coupon Listing ISIN
10 May 2017 10 Nov 2015 USD 1,000 3-month LIBOR + 0.32% New York US822582BL56
22 May 2017 22 May 2007 EUR 1,500 4.625% London XS0301945860
21 Aug 2017 21 Aug 2012 USD 1,000 1.125% New York US822582AR36
10 Nov 2017 10 Nov 2015 USD 1,000 1.250% New York US822582BK73
14 May 2018 13 May 2009 EUR 2,500 4.375% London XS0428147093
10 Aug 2018 12 Aug 2013 USD 1,500 1.900% New York US822582AW21
10 Nov 2018 10 Nov 2015 USD 1,250 1.625% New York US822582BM30
10 Nov 2018 10 Nov 2015 USD 500 3-month LIBOR + 0.58% New York US822582BN13
15 Nov 2018 15 Nov 2013 USD 1,250 2.000% New York US822582BA91
10 May 2019 10 May 2016 USD 1,750 1.375% New York US822582BR27
12 Sep 2019 12 Sep 2016 USD 1,000 1.375% New York US822582BU55
12 Sep 2019 12 Sep 2016 USD 500 3-month LIBOR + 0.35% New York US822582BV39
15 Sep 2019 15 Sep 2015 EUR 1,200 3-month EURIBOR + 0.40% London XS1292468987
22 Sep 2019 22 Sep 2009 USD 2,000 4.300% New York US822582AJ10
20 Dec 2019 06 Nov 2014 GBP 500 2.000% London XS1135277736
25 Mar 2020 25 Mar 2010 USD 1,250 4.375% New York US822582AM49
11 May 2020 11 May 2015 USD 2,000 2.125% New York US822582BG61
11 May 2020 11 May 2015 USD 750 3-month LIBOR + 0.45% New York US822582BH45
10 Nov 2020 10 Nov 2015 USD 1,250 2.250% New York US822582BP60
24 Mar 2021 24 Mar 2014 EUR 1,000 1.625% London XS1048521733
10 May 2021 10 May 2016 USD 1,500 1.875% New York US822582BS00
12 Sep 2021 12 Sep 2016 USD 1,000 1.750% New York US822582BW12
15 Mar 2022 15 Sep 2015 EUR 1,250 1.250% London XS1292484323
06 Apr 2022 06 Nov 2014 EUR 1,000 1.000% London XS1135276332
21 Aug 2022 21 Aug 2012 USD 1,000 2.375% New York US822582AS19
06 Jan 2023 06 Dec 2012 USD 1,000 2.250% New York US822582AV48
12 Aug 2023 12 Aug 2013 USD 1,000 3.400% New York US822582AX04
21 Aug 2023 21 Aug 2015 CHF 800 0.375% Zurich CH0292877880
12 May 2024 12 May 2016 EUR 750 0.750% London XS1411405662
15 Feb 2025 15 Aug 2016 EUR 1,250 0.375% London XS1476654238
11 May 2025 11 May 2015 USD 2,750 3.250% New York US822582BD31
15 Sep 2025 15 Sep 2015 EUR 1,000 1.875% London XS1292468045
24 Mar 2026 24 Mar 2014 EUR 1,000 2.500% London XS1048529041
10 May 2026 10 May 2016 USD 1,750 2.875% New York US822582BT82
12 Sep 2026 12 Sep 2016 USD 1,000 2.500% New York US822582BX94
20 Jan 2027 06 Nov 2014 EUR 1,250 1.625% London XS1135277140
12 May 2028 12 May 2016 EUR 1,000 1.250% London XS1411401083
15 Aug 2028 15 Aug 2016 EUR 1,000 0.750% London XS1476654584
21 Aug 2028 21 Aug 2015 CHF 525 0.875% Zurich CH0292877898
11 May 2035 11 May 2015 USD 1,500 4.125% New York US822582BE14
15 Dec 2038 11 Dec 2008 USD 2,750 6.375% New York US822582AD40
25 Mar 2040 25 Mar 2010 USD 1,000 5.500% New York US822582AN22
21 Aug 2042 21 Aug 2012 USD 500 3.625% New York US822582AT91
12 Aug 2043 12 Aug 2013 USD 1,250 4.550% New York US822582AY86
11 May 2045 11 May 2015 USD 3,000 4.375% New York US822582BF88
10 May 2046 10 May 2016 USD 2,250 4.000% New York US822582BQ44
12 Sep 2046 12 Sep 2016 USD 1,250 3.750% New York US822582BY77

SHELL INVESTORS HANDBOOK 2012-2016 ADDITIONAL INVESTOR INFORMATION 101

These bonds were issued by BG Energy Capital plc (BGEC) and are guaranteed by BG Energy Holdings Ltd (BGEH).

Publicly listed bonds, current outstanding

Maturity Currency Million Coupon Listing

07 Dec 2017 GBP 500 5.125% London

20 Sep 2018 USD 300 3-month LIBOR + 0.75% London
16 Nov 2018 EUR 1,000 3.000% London
16 Jul 2019 EUR 750 3.625% London
02 Oct 2019 HKD 370 3.940% London
09 Dec 2020 USD 650 4.000% London
15 Oct 2021 USD 1,350 4.000% London
21 Nov 2022 EUR 775 1.250% London
01 Dec 2025 GBP 750 5.125% London
21 Nov 2029 EUR 800 2.250% London
17 Oct 2033 EUR 100 3.500% London
04 Nov 2036 GBP 750 5.000% London
15 Oct 2041 USD 900 5.125% London
30 Nov 2072 GBP 600 6.500% London
30 Nov 2072 EUR 500 6.500% London
30 Nov 2072 USD 500 6.500% London

102 ADDITIONAL INVESTOR INFORMATION SHELL INVESTORS HANDBOOK 2012-2016

ABBREVIATIONS

Currencies Miscellaneous
$/USD US dollar ADS American Depositary Share
/EUR euro CCS carbon capture and storage
/GBP sterling CCS earnings earnings on a current cost of supplies basis
Units of measurement CFFO cash flow from operating activities
acre approximately 0.004 square kilometres CO2 carbon dioxide
b(/d) barrels (per day) EOR enhanced oil recovery
boe(/d) barrels of oil equivalent (per day); natural gas volumes are FCF Free cash flow
converted into oil equivalent using a factor of 5,800 scf per FEED front end engineering design
barrel FID final investment decision
kboe(/d) thousand barrels of oil equivalent (per day) FLNG floating liquefied natural gas
km kilometres FPSO floating production, storage and offloading
mboe(/d) million barrels of oil equivalent (per day) FSRU floating storage and regasification unit
MMBtu million British thermal units HSSE health, safety, security and environment
mtpa million tonnes per annum IFRS International Financial Reporting Standard(s)
MT million tonnes JV&A Shell share of joint ventures and associates
MW megawatts LRS liquids-rich shale
per day volumes are converted to a daily basis using a calendar year OML oil mining lease
scf(/d) standard cubic feet (per day) P&T Projects & Technology
Products PSC production-sharing contract
GTL gas to liquids R&D research and development
LNG liquefied natural gas ROACE return on average capital employed
LPG liquefied petroleum gas ROCE return on capital employed
NGL natural gas liquids SBM single buoy mooring
SEC US Securities and Exchange Commission
SUBS Shell subsidiaries
TSR total shareholder return
WTI West Texas Intermediate

SHELL INVESTORS HANDBOOK 2012-2016 ADDITIONAL INVESTOR INFORMATION 103

 Reserves: Our use of the term reserves in this publication (g) environmental and physical risks; (h) risks associated
means SEC proved oil and gas reserves. with the identification of suitable potential acquisition
ABOUT THIS Resources: Our use of the term resources in this
properties and targets, and successful negotiation and
completion of such transactions; (i) the risk of doing
PUBLICATION publication includes quantities of oil and gas not yet business in developing countries and countries subject to
classified as SEC proved oil and gas reserves. Resources international sanctions; (j) legislative, fiscal and regulatory
are consistent with the Society of Petroleum Engineers (SPE) developments including regulatory measures addressing
2P + 2C definitions. Resources volumes indicate the climate change; (k) economic and financial market
100% basis, not the Shell share. conditions in various countries and regions; (l) political
risks, including the risks of expropriation and renegotiation
Shales: Our use of the term shales refers to tight, shale of the terms of contracts with governmental entities, delays
and coal bed methane oil and gas acreage. or advancements in the approval of projects and delays in
the reimbursement for shared costs; and (m) changes in
All amounts shown throughout this publication are trading conditions. No assurance is provided that future
unaudited. All peak production figures in Portfolio dividend payments will match or exceed previous dividend
Developments are quoted at 100% expected production. payments. All forward-looking statements contained in this
publication are expressly qualified in their entirety by the
The companies in which Royal Dutch Shell plc directly and cautionary statements contained or referred to in this
indirectly owns investments are separate legal entities. In section. Readers should not place undue reliance on
this publication Shell, Shell group and Royal Dutch forward-looking statements. Additional risk factors that may
Shell are sometimes used for convenience where affect future results are contained in Royal Dutch Shells
references are made to Royal Dutch Shell plc and its Form 20-F for the year ended December 31, 2016
subsidiaries in general. Likewise, the words we, us and (available at www.shell.com/investor and www.sec.gov).
our are also used to refer to subsidiaries in general or to These risk factors also expressly qualify all forward-looking
those who work for them. These expressions are also used statements contained in this publication and should be
where no useful purpose is served by identifying the considered by the reader. Each forward-looking statement
particular company or companies. Subsidiaries, speaks only as of the date of this publication, April 20,
Shell subsidiaries and Shell companies as used in this 2017. Neither Royal Dutch Shell plc nor any of its
publication refer to companies over which Royal Dutch subsidiaries undertake any obligation to publicly update or
Shell plc either directly or indirectly has control. Entities revise any forward-looking statement as a result of new
and unincorporated arrangements over which Shell has information, future events or other information. In light of
joint control are generally referred to as joint ventures these risks, results could differ materially from those stated,
and joint operations respectively. Entities over which implied or inferred from the forward-looking statements
Shell has significant influence but neither control nor joint contained in this publication.
control are referred to as associates. The term Shell
interest is used for convenience to indicate the direct This Report contains references to Shells website. These
and/or indirect ownership interest held by Shell in a references are for the readers convenience only. Shell is
venture, partnership or company, after exclusion of all not incorporating by reference any information posted on
third-party interest. www.shell.com

This publication contains forward-looking statements We may have used certain terms, such as resources, in this
concerning the financial condition, results of operations publication that the United States Securities and Exchange
and businesses of Royal Dutch Shell. All statements other Commission (SEC) strictly prohibits us from including in our
than statements of historical fact are, or may be deemed to filings with the SEC. US investors are urged to consider
be, forward-looking statements. Forward-looking statements closely the disclosure in our Form 20-F, File No 1-32575,
are statements of future expectations that are based on available on the SEC website www.sec.gov. You can also
managements current expectations and assumptions and obtain this form from the SEC by calling 1-800-SEC-0330.
involve known and unknown risks and uncertainties that
could cause actual results, performance or events to differ April 20, 2017
materially from those expressed or implied in these
statements. Forward-looking statements include, among
The information in this Report reflects the unaudited
other things, statements concerning the potential exposure
consolidated financial position and results of Royal Dutch
of Royal Dutch Shell to market risks and statements
Shell plc. Company No. 4366849, Registered Office:
expressing managements expectations, beliefs, estimates,
Shell Centre, London, SE1 7NA, England, UK.
forecasts, projections and assumptions. These forward-
looking statements are identified by their use of terms and
phrases such as anticipate, believe, could, Contacts:
estimate, expect, goals, intend, may,
objectives, outlook, plan, probably, project, Linda Szymanski, Company Secretary
risks, schedule, seek, should, target, will and Investor Relations: International + 31 (0) 70 377 4540;
similar terms and phrases. There are a number of factors North America +1 832 337 2034
that could affect the future operations of Royal Dutch Shell
and could cause those results to differ materially from those Media: International +44 (0) 207 934 5550; USA +1
expressed in the forward-looking statements included in this 713 241 4544
publication, including (without limitation): (a) price
fluctuations in crude oil and natural gas; (b) changes in LEI number of Royal Dutch Shell plc:
demand for Shells products; (c) currency fluctuations; 21380068P1DRHMJ8KU70
(d) drilling and production results; (e) reserves estimates;
(f) loss of market share and industry competition;

104 ADDITIONAL INVESTOR INFORMATION SHELL INVESTORS HANDBOOK 2012-2016

 FINANCIAL CALENDAR IN 2017
The Annual General Meeting will be held on May 23, 2017.
2016 Fourth 2017 First 2017 Second 2017 Third
quarter [A] quarter [B] quarter [B] quarter [B]
Results announcements February 2 May 4 July 27 November 2
Interim dividend timetable
Announcement date February 2 [C] May 4 July 27 November 2
Ex-dividend date A and B ADSs [D] February 15 May 17 August 9 November 15
Ex-dividend date A and B shares [D] February 16 May 18 August 10 November 16
Record date February 17 May 19 August 11 November 17
Scrip reference share price announcement date February 23 May 25 August 17 November 23
Closing date for scrip election and currency
election [E] March 3 June 5 August 25 December 1
Euro and sterling equivalents announcement date March 10 June 12 September 4 December 7
Payment date March 27 June 26 September 18 December 20
[A] In respect of the financial year ended December 31, 2016.
[B] In respect of the financial year ended December 31, 2017.
[C] The Directors do not propose to recommend any further distribution in respect of 2016.
[D] The London Stock Exchange and Euronext Amsterdam, with effect from October 6, 2014, reduced the standard settlement cycle in accordance with the Regulation of the European Parliament and
of the Council on improving securities settlement in the European Union (EU) and on Central Securities Depositories (CSDs) and amending Directive 98/26/EC (the CSD Regulation). The CSD Regulation
aims to harmonise EU securities settlement cycles towards a T + 2 cycle. As a result, the ex-dividend dates for A and B shares traded on these markets are one trading day later than A and B ADSs traded
in the USA. Record dates are not affected.
[E] Both a different scrip and dividend currency election date may apply to shareholders holding shares in a securities account with a bank or financial institution ultimately through Euroclear Nederland.
This may also apply to other shareholders who do not hold their shares either directly on the Register of Members or in the corporate sponsored nominee arrangement. Shareholders can contact their
broker, financial intermediary, bank or financial institution for the election deadline that applies. A different scrip election date may also apply to registered and non-registered ADS holders. Registered
ADS holders can contact The Bank of New York Mellon for the election deadline that applies. Non-registered ADS holders can contact their broker, financial intermediary, bank or financial institution for
the election deadline that applies.

Registered office Shareholder relations Investor relations

Royal Dutch Shell plc Royal Dutch Shell plc Royal Dutch Shell plc
Shell Centre Carel van Bylandtlaan 30 PO Box 162
London SE1 7NA 2596 HR The Hague 2501 AN The Hague
United Kingdom The Netherlands The Netherlands
+31 (0)70 377 1365 +31 (0)70 377 4540
Registered in England and Wales +31 (0)70 377 4088 or
Company number 4366849 or Shell Oil Company
Registered with the Dutch Trade Register Royal Dutch Shell plc Investor Relations
undernumber 34179503 Shell Centre 150 N Dairy Ashford
London SE1 7NA Houston, TX 77079
Headquarters United Kingdom USA
Royal Dutch Shell plc +44 (0)20 7934 3363 +1 832 337 2034
Carel van Bylandtlaan 30
2596 HR The Hague royaldutchshell.shareholders@shell.com ir-europe@shell.com
The Netherlands www.shell.com/shareholder ir-usa@shell.com
www.shell.com/investor

Share registration American Depositary Report ordering

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