John Hollowell – Deepwater operations

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Shell held a field visit for Socially Responsible Investors in Houston and in the Haynesville gas field, Louisiana, at which Russ Ford, EVP onshore gas, John Hollowell, EVP deepwater and Paul …

Shell held a field visit for Socially Responsible Investors in Houston and in the Haynesville gas field, Louisiana, at which Russ Ford, EVP onshore gas, John Hollowell, EVP deepwater and Paul Goodfellow, VP production onshore gas all presented. The focus of the presentations and visit was to illustrate Shell’s tight gas operations in the context of sustainable development and our commitment to responsible deepwater operations.

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  • 1. ROYAL DUTCH SHELL PLC INVESTING FOR SUSTAINABLE GROWTHHOUSTON/SHREVEPORTNovember 2011JOHN HOLLOWELLEXECUTIVE VICE PRESIDENTDEEPWATER1 Copyright of Royal Dutch Shell plc 29 November 2011
  • 2. DEFINITIONS AND CAUTIONARY NOTEResources: Our use of the term “resources” in this presentation includes quantities of oil and gas not yet classified as SEC proved oil and gas. Resources are consistent with theSociety of Petroleum Engineers 2P and 2C definitions.The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate entities. In this presentation “Shell”, “Shell group” and “Royal Dutch Shell”are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also usedto refer to subsidiaries in general or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company orcompanies. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as used in this presentation refer to companies in which Royal Dutch Shell either directly or indirectlyhas control, by having either a majority of the voting rights or the right to exercise a controlling influence. The companies in which Shell has significant influence but not controlare referred to as “associated companies” or “associates” and companies in which Shell has joint control are referred to as “jointly controlled entities”. In this presentation,associates and jointly controlled entities are also referred to as “equity-accounted investments”. The term “Shell interest” is used for convenience to indicate the direct and/orindirect (for example, through our 24% shareholding in Woodside Petroleum Ltd.) ownership interest held by Shell in a venture, partnership or company, after exclusion of allthird-party interest.This presentation contains forward-looking statements concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other thanstatements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based onmanagement’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differmaterially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of RoyalDutch Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statementsare identified by their use of terms and phrases such as ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, “scheduled”, ‘‘estimate’’, ‘‘expect’’, ‘‘goals’’, ‘‘intend’’, ‘‘may’’, ‘‘objectives’’,‘‘outlook’’, ‘‘plan’’, ‘‘probably’’, ‘‘project’’, ‘‘risks’’, ‘‘seek’’, ‘‘should’’, ‘‘target’’, ‘‘will’’ and similar terms and phrases. There are a number of factors that could affect the futureoperations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this presentation, including(without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell’s products; (c) currency fluctuations; (d) drilling and production results;(e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potentialacquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject tointernational sanctions; (j) legislative, fiscal and regulatory developments including regulatory measures addressing climate change; (k) economic and financial marketconditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays oradvancements in the approval of projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions. All forward-looking statements contained inthis presentation are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance onforward-looking statements. Additional factors that may affect future results are contained in Royal Dutch Shell’s Annual Presentation / Form 20-F for the year ended December31, 2010 (available at www.shell.com/investor and www.sec.gov ). These factors also should be considered by the reader. Each forward-looking statement speaks only as ofthe date of this presentation, 29 November 2011. Neither Royal Dutch Shell nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferredfrom the forward-looking statements contained in this presentation.We may have used certain terms in this presentation that United States Securities and Exchange Commission (SEC) strictly prohibits us from including in our filings with the SEC,such as resources and oil in place. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website www.sec.gov.You can also obtain these forms from the SEC by calling 1-800-SEC-0330. 2 Copyright of Royal Dutch Shell plc 29 November 2011
  • 3. DEEPWATER DEVELOPMENT HISTORY Tobago 20113 Copyright of Royal Dutch Shell plc 29 November 2011
  • 4. GROWTH DELIVERYDEEPWATER UNDER CONSTRUCTIONMARS-B (GULF OF MEXICO) BC-10 PHASE 2 (CAMPOS, BRAZIL) CARDAMOM (GULF OF MEXICO)Development concept Phase 1 FPSO Surface System and Subsea View TLP design capacity ~100 kboe/d Expected peak production ~30 Expected peak production ~50 West Boreas + South Deimos kboe/d kboe/d Water depth 950 meters Argonauta O-North field Tie back to Auger platform Shell 72% (operator) Water depth 1,600 meters Water depth 830 meters Shell 50% (operator) Shell 100% (operator) Part of >250 kboe/d deepwater production under construction4 Copyright of Royal Dutch Shell plc 29 November 2011
  • 5. PROGRESS IN GULF OF MEXICOSHELL GOM DEEPWATER PRODUCTION W. Boreas, S. Deimos Mars BKboe/d >150 million boe resources FID for new TLP, Shell 72% Tie-back to Mars B (operator)500 500 Shell 72% (operator) ~100 kboe/d250 250 Vito 0 0 >200 million boe resources Nakika 94 98 02 06 10 15+ ~100 kboe/d potential Mars Shell 55% (operator) Cardamom Deep Ursa Auger TLP extended reach Auger Brutus discovery & appraisal Appomattox > 100 million boe resources ~100 kboe/d hub potential 50 kboe/d Holstein > 250 million boe resources Shell 100% (operator) Shell 80% (operator) Stones Assessing development options Caesar/Tonga Shell 35% (operator) Perdido ~50 kboe/d 2009 FID 0 200 KM Shell 22.5% NEW HUB EXISTING PRODUCTION HUB SHELL LEASEHOLD CURRENT RIG LOCATIONS 2010 production ~230,000 boe/d >250,000 boe/d new potential for Shell5 Copyright of Royal Dutch Shell plc 29 November 2011
  • 6. NEW GROWTH AT AUGER: CARDAMOM DEEPSEISMIC OVERVIEW PRODUCTION Kboe/d Auger Platform 100 100 Auger North 50 50 Auger Main Cardamom 0 0 94 96 98 00 02 04 06 08 10 15+ Shell 100% (operator) Auger TLP & Cardamom Auger 1993: 1st application of a Tension Leg 1987 1993 1999-2004 2009/10 2011 ~2014 Platform in deepwater (820 meters water depth) Discovered First Oil First TLP Subsea-Fields Macaroni Deep Deep Cardamom First Cardamom Subsea system production Cardamom Deep discoveries in 2009/10 Serrano discoveries FID (>100 million boe resources) Oregano Habanaro Llano FID 2011: 50 kboe/d expected peak production6 Copyright of Royal Dutch Shell plc 29 November 2011
  • 7. PERDIDO –TECHNOLOGY LEADER Shell 33.3% (operator); Peak production ~100 kboe/d RESERVOIR VIEW Substantial oil in place > 3 billion boe We expect recoverable resources > 400 million boe …… upside from technology development First oil in March 2010 Industry first production in Lower Tertiary Development drilling planned for 5+ years New world record deepest drilling and production system 4.85 KM km Seismic overview of Great White7 Copyright of Royal Dutch Shell plc 29 November 2011
  • 8. BRAZIL GROWTH POTENTIALSHELL BRAZIL PRODUCTIONOVERVIEW SHELL POSITIONS Espirito Santo Basin Sao Francisco exploration Parque das Conchas BC-10 • Start-up phase -1 2009 • Phase 2 FID 2010 Bijupira-Gato do Mato BMS-54 Salema Camposdiscovery Basin• multi-well drilling BC-10 FPSO program in 2011&’12 Stena Drillmax – Gato do Mato well SantosDivested BMS-8 Basin UPSTREAM PRODUCTION UPSTREAM POTENTIAL 2011-12 KEY WELLS8 Copyright of Royal Dutch Shell plc 29 November 2011
  • 9. GOM: PERMITTING STILL A CHALLENGEPLANS SUBMITTED REQUIRING EAS AND NEW APDS - BY PLANDays450400 Plans: Operator submission to "Deemed Submitted" Plans: "Deemed Submitted" to Final Action (Approval) Plan Approved to First APD Total time for Plan Approval, 5 Plan Trend350 May June July August September 30 51 51300 47 33 60 51 29250 30 31 52 5 29 29 58 65 24 55 21 43 46 41 31200 28 46 30 31 54 40 28 29 46 16 5 13 30150 9 47 1 35 42 48 300 288 288 25 33 21 76 273 73 52 28 232 231 238 248 213 219 219 24 34100 192 203 191 199 182 187 190 176 204 203 204 35 170 171 50 74 173 173 17 158 146 122 133 126 126 119 121 27 107 50 92 98 100 92 73 76 62 51 43 0 Permitting averaging >150 days; 50 pre-MacondoDEEPWATER PLANS WITH EA., APDS TARGETING HYDROCARBONS ONLY,9 Copyright of Royal Dutch Shell plc 29 November 2011
  • 10. SAFE AND RELIABLE OPERATIONS SAFETY CASE ‘BOW TIE’ MODEL:OUR APPROACH PREVENTION AND RECOVERY – INDUSTRY Global Standards Multiple Barriers CONSEQUENCES Well Design HAZARD Training Control Response & Incident Remote Monitoring & Barriers Recovery Safety Case Approach Minimize Mitigate Leadership & Safety Culture Likelihood ConsequencesPREVENTATIVE BARRIERS MINIMIZE LIKELIHOOD OF AN INCIDENT Competent Safety Case Minimum Technical Equipment Human Zero process + staff & + + management + two tested & + = standards & testing & behaviours safety contractors; of major independent procedures certification & culture incidents rigorous drills hazards barriers10 Copyright of Royal Dutch Shell plc 29 November 2011
  • 11. BLOWOUT PREVENTION & CONTAINMENT CAPABILITYSTANDARD ASSET INTEGRITY MANAGEMENT INTERNATIONAL RESPONSE Founding & permanent Board Member of the 9 participating members, Shell operator Marine Well Containment Company (MWCC) Near term the project team will: MWCC will own & deploy the system in US GOM • Design a capping toolbox & additional Subsea containment equipment designed for GOM hardware for the subsea injection of dispersant • Interim system was available Feb 2011 • Further assess the need for and feasibility of a • Expanded system available 2012 containment system for shared use • Assess deployment options11 Copyright of Royal Dutch Shell plc 29 November 2011
  • 12. ALASKA – CHUKCHI & BEAUFORT SEA Chukchi Sea Preparing for two rig, 2012 drilling program • up to three Chukchi wells, including Burger Beaufort Sea appraisal; up to two Beaufort wells Current focus on operational readiness and 0 100 SHELL LEASEHOLD securing necessary permits CHUKCHI Crackerjack Klondike Burger X-SECTION 1991 1989 1990 Successful leasing in 2005-2008 • #1 Alaska position, 2.4 mln acres Proven petroleum province • well understood North Slope geology Multi-billion boe potential in existing Chukchi & Beaufort Sea discoveries12 Copyright of Royal Dutch Shell plc 29 November 2011
  • 13. ROYAL DUTCH SHELL PLC Q&A HOUSTON/SHREVEPORT NOVEMBER 201113 Copyright of Royal Dutch Shell plc 29 November 2011