1
Royal Dutch Shell
&
Foreign Direct Investment
2
FAHAD KHAN
History
Royal Dutch Petroleum Company
Founded in 1890, after licensed by King William III of the Netherlands to work
on petroleum wells in The Dutch East Indies
+
Shell Transportation and Trading Company
Antique business importing and selling sea shells, founded in 1897 in London
=
Royal Dutch Shell Group
Created in February 1907
Merger was largely driven by the need to compete globally
Ownership ratio between the Netherlands and Britain 60:40
3
Introduction
 HQ: Netherlands, Registered office: London
 Largest company in the world in the Oil & Gas industry, 1 of 6
“Supermajors”
 Royal Dutch Shell’s revenue was equivalent to 84% of Netherland’s GDP in
2013, valuing USD 555.8 Billion
 Dynamic in all area of Oil & Gas Industry
Exploration Production Refining
Distribution & marketing Petrochemicals Power generation
3
Introduction (Continued)
 90 countries, 44,000 service stations, 92,000 employees
 3.1 million barrels of oil equivalent produced per day
 Topped the 2013 Fortune global Top 500 list
 2014: Second in terms of revenue in the Financial Times list
 Ventured into renewable energy resource market recently
5
4
Organization Hierarchy
Board of
Directors
Chairman of
the Board &
Managing
Director
Vice
Chairman of
the Board
Deputy
Managing
Directors
Strategic
corporate
planning &
development
Administration
and Human
Resources
Finance Marketing
Refinery
Manufacturing
6
8
Jorma Ollila
Chairman of
the Board
2006
Ben van
Beurden
Chief Executive
Officer
2014
Simon Henry
Chief Financial
Officer
2009
Matthias
Bichsel
Projects&
Technology
Director
2009
John Abbott
Downstream
Director
2013
Hugh Mitchell
Chief Human
Resources &
Corporate
Officer
2009
Andrew
Brown
Upstream
Director
2012
CurrentExecutiveBoard
7
9
SHELL PAKISTAN
8
Shell is a multinational company and in Pakistan it is operating as
a public limited company by the name “Shell Pakistan Ltd. Shell
is a superior brand name with a 100 year history in this region,
infect the company is still in possession of a fuel storage tank
from 1899. In Pakistan it was founded in 1993, 23 years ago as
Shell Pakistan Ltd.
STRATEGIC INTENTION
9
COMPANY’S SLOGAN/MISSION
“You can be sure of Shell.”
COMPANY’S OBJECTIVE
Shell is focusing on retailing, providing better facilities to customers, clean petrol pumps constructing international
standard petrol filling stations, good advertising campaigns and mini markets (select).
VISION OF SHELL
To Be The Top Performer Of First Choice.
AIM OF SHELL
Creating a secure business environment, minimizing economic losses, and business disruptions safeguarding the group’s
integrity and reputations.
GOAL OF SHELL
The goal of the company is to position itself as the preferred oil company in Pakistan, leading the field in its
commitment to safety, customer service, quality and environmental protection.
10
Headquarters Shell House Karachi, Pakistan
(Head office)
Area served Nationwide
Key people Omar Y Sheikh
(Managing Director and Country Chair)
Management
• Farooq Rehmatullah succeeded
David M Weston in 2001, to
become the first Pakistani
national CEO of SPL. He retired
in 2006. SPL Managing Directors
• Farooq Rehmatullah – April 2001-
June 2006
• Quentin D’Silva – May–August
2006
• Zaiviji Ismail bin Abdullah –
September 2006-July 2011
• Sarim Sheikh – April 2011-July
2012
• Omar Y Sheikh – June 2012 –
present
BoardofDirectors
• Omar Y Sheikh (Chairman)
• Rafi H Basheer
• Farrokh K Captain
• Chong Keng Cheen
• Imran R Ibrahim
• Nasser N S Jaffer
• Zaffar A Khan
• Michael Noll
• Haroon Rashid
• Badaruddin F Vellani
SUPPLY CHAIN PROCESS OF OIL INDUSTRY
11
Step 1:Extraction of crude oil from underground.
Step 2:Crude oil is sent to refineries to be refined.
Step 3:During refining, extracts are taken out they include MOGAS, Diesel , furnace oil,
kerosene oil, jet fuel all these are “grades” refinery produces petroleum, it refines petroleum.
Step 4:After this the refinery sells these extracts/refined products to Oil marketing companies.
Step 5:Oil manufacturers sell these refined products to their customers.
HIERARCHY OF SHELL’s SUPPLY CHAIN
GM Supply &
Distribution (4
countries)
Facilities
Terminal
Manager
Logistics
Manager (ME &
SA)
South North
Supply
Contracts &
Negotiations
Supply
Contracts &
Negotiations
Lead
Supply
Chain
Analyst
Supply
Operations
(ME & SA)
Supply
Operations
Lead (PK)
Supply
Operation
s Analyst
13
Products
 Shell Bitumen
 Cost effective and sustainable
solutions
 Shell LPG
 Dimethylether (DME) main
constituent
 Shell Marine Products
 Specialized lubricants for air
compressor, axles, bearings
 Grease
 Card services
 Shell Fuel Card for Businesses
 Shell Credit Card
 Fuels
 Shell Nitrogen Enriched fuel
 V-Power fuel
 Oil and Lubricants
 For cars and bikes
 Heavy-duty vehicles
 Shell Chemicals
 Petrochemicals used in plastics, rubbers,
fibers, foams
 Further used in textile, paints, mattress
industries
 Shell Aviation
 Fuel and lubricants
 Turbine and Piston Engine oil
14
10
Competitors
Exxon
Mobil
Revenue:
$428.3 billion
Daily
production:
6.4 million
barrels
Reserves: 13.6
billion barrels
of Oil
Equivalent
Chevron
Corp.
Revenue:
$222.5 billion
Daily
production:
2.6 million
barrels
Reserves: 11.3
billion barrels
of Oil
Equivalent
British
Petroleum
Revenue:
$375.5 billion
Reserves:
18.1 billion
barrels of Oil
Equivalent
Daily
production:
4.1 million
barrels
Total SA
Revenue:
$237.0 billion
Daily
production:
3.4 million
barrels
Reserves:
11.5 billion
barrels of Oil
Equivalent
Royal
Dutch
Shell
Revenue: $451.2
billion
Daily
production: 3.1
million barrels
Reserves: 13.6
billion barrels of
Oil Equivalent15
11
Financial Data & Endorsements
 Total revenue: $451.2 billion
 Operating income: $26.87 billion
 Profit: $16.38 billion
 Total asset: $357.51 billion
 Total equity: $180.04 billion
 Current stock price (London Stock
Exchange): £2403.5
 Sponsors of F1 racing Ferrari team
and cars, since 1970
 Belgian Grand Prix title sponsor
 Title sponsors for Asia Talent Cup
16
13
17
The Petroleum Industry
Country wise Oil Production in the decade between 1960 to 2006
Name Percentage
Institutional Shareholders (999) 13.29%
Necigef Nederlands Centraal Inst Giraal Effectenverkeer BV 43.8%
BlackRock Investment Management (UK) Ltd. 3.54%
State Administration of Foreign Exchange 1.90%
The Vanguard Group, Inc. 1.41%
Scottish Widows Investment Partnership Ltd. 1.34%
Legal & General Investment Management Ltd. 1.34%
State Street Global Advisors Ltd. 1.01%
BlackRock Fund Advisors 0.84%
SSgA Funds Management, Inc. 0.83%
Franklin Mutual Advisers LLC 0.80%
18
Who Owns Shell?
7
Recommendation
19
20

Shell Pakistan

  • 1.
  • 2.
  • 3.
    History Royal Dutch PetroleumCompany Founded in 1890, after licensed by King William III of the Netherlands to work on petroleum wells in The Dutch East Indies + Shell Transportation and Trading Company Antique business importing and selling sea shells, founded in 1897 in London = Royal Dutch Shell Group Created in February 1907 Merger was largely driven by the need to compete globally Ownership ratio between the Netherlands and Britain 60:40 3
  • 4.
    Introduction  HQ: Netherlands,Registered office: London  Largest company in the world in the Oil & Gas industry, 1 of 6 “Supermajors”  Royal Dutch Shell’s revenue was equivalent to 84% of Netherland’s GDP in 2013, valuing USD 555.8 Billion  Dynamic in all area of Oil & Gas Industry Exploration Production Refining Distribution & marketing Petrochemicals Power generation 3
  • 5.
    Introduction (Continued)  90countries, 44,000 service stations, 92,000 employees  3.1 million barrels of oil equivalent produced per day  Topped the 2013 Fortune global Top 500 list  2014: Second in terms of revenue in the Financial Times list  Ventured into renewable energy resource market recently 5 4
  • 6.
    Organization Hierarchy Board of Directors Chairmanof the Board & Managing Director Vice Chairman of the Board Deputy Managing Directors Strategic corporate planning & development Administration and Human Resources Finance Marketing Refinery Manufacturing 6 8
  • 7.
    Jorma Ollila Chairman of theBoard 2006 Ben van Beurden Chief Executive Officer 2014 Simon Henry Chief Financial Officer 2009 Matthias Bichsel Projects& Technology Director 2009 John Abbott Downstream Director 2013 Hugh Mitchell Chief Human Resources & Corporate Officer 2009 Andrew Brown Upstream Director 2012 CurrentExecutiveBoard 7 9
  • 8.
    SHELL PAKISTAN 8 Shell isa multinational company and in Pakistan it is operating as a public limited company by the name “Shell Pakistan Ltd. Shell is a superior brand name with a 100 year history in this region, infect the company is still in possession of a fuel storage tank from 1899. In Pakistan it was founded in 1993, 23 years ago as Shell Pakistan Ltd.
  • 9.
    STRATEGIC INTENTION 9 COMPANY’S SLOGAN/MISSION “Youcan be sure of Shell.” COMPANY’S OBJECTIVE Shell is focusing on retailing, providing better facilities to customers, clean petrol pumps constructing international standard petrol filling stations, good advertising campaigns and mini markets (select). VISION OF SHELL To Be The Top Performer Of First Choice. AIM OF SHELL Creating a secure business environment, minimizing economic losses, and business disruptions safeguarding the group’s integrity and reputations. GOAL OF SHELL The goal of the company is to position itself as the preferred oil company in Pakistan, leading the field in its commitment to safety, customer service, quality and environmental protection.
  • 10.
    10 Headquarters Shell HouseKarachi, Pakistan (Head office) Area served Nationwide Key people Omar Y Sheikh (Managing Director and Country Chair) Management • Farooq Rehmatullah succeeded David M Weston in 2001, to become the first Pakistani national CEO of SPL. He retired in 2006. SPL Managing Directors • Farooq Rehmatullah – April 2001- June 2006 • Quentin D’Silva – May–August 2006 • Zaiviji Ismail bin Abdullah – September 2006-July 2011 • Sarim Sheikh – April 2011-July 2012 • Omar Y Sheikh – June 2012 – present BoardofDirectors • Omar Y Sheikh (Chairman) • Rafi H Basheer • Farrokh K Captain • Chong Keng Cheen • Imran R Ibrahim • Nasser N S Jaffer • Zaffar A Khan • Michael Noll • Haroon Rashid • Badaruddin F Vellani
  • 11.
    SUPPLY CHAIN PROCESSOF OIL INDUSTRY 11 Step 1:Extraction of crude oil from underground. Step 2:Crude oil is sent to refineries to be refined. Step 3:During refining, extracts are taken out they include MOGAS, Diesel , furnace oil, kerosene oil, jet fuel all these are “grades” refinery produces petroleum, it refines petroleum. Step 4:After this the refinery sells these extracts/refined products to Oil marketing companies. Step 5:Oil manufacturers sell these refined products to their customers.
  • 12.
    HIERARCHY OF SHELL’sSUPPLY CHAIN GM Supply & Distribution (4 countries) Facilities Terminal Manager Logistics Manager (ME & SA) South North Supply Contracts & Negotiations Supply Contracts & Negotiations Lead Supply Chain Analyst Supply Operations (ME & SA) Supply Operations Lead (PK) Supply Operation s Analyst
  • 13.
  • 14.
    Products  Shell Bitumen Cost effective and sustainable solutions  Shell LPG  Dimethylether (DME) main constituent  Shell Marine Products  Specialized lubricants for air compressor, axles, bearings  Grease  Card services  Shell Fuel Card for Businesses  Shell Credit Card  Fuels  Shell Nitrogen Enriched fuel  V-Power fuel  Oil and Lubricants  For cars and bikes  Heavy-duty vehicles  Shell Chemicals  Petrochemicals used in plastics, rubbers, fibers, foams  Further used in textile, paints, mattress industries  Shell Aviation  Fuel and lubricants  Turbine and Piston Engine oil 14 10
  • 15.
    Competitors Exxon Mobil Revenue: $428.3 billion Daily production: 6.4 million barrels Reserves:13.6 billion barrels of Oil Equivalent Chevron Corp. Revenue: $222.5 billion Daily production: 2.6 million barrels Reserves: 11.3 billion barrels of Oil Equivalent British Petroleum Revenue: $375.5 billion Reserves: 18.1 billion barrels of Oil Equivalent Daily production: 4.1 million barrels Total SA Revenue: $237.0 billion Daily production: 3.4 million barrels Reserves: 11.5 billion barrels of Oil Equivalent Royal Dutch Shell Revenue: $451.2 billion Daily production: 3.1 million barrels Reserves: 13.6 billion barrels of Oil Equivalent15 11
  • 16.
    Financial Data &Endorsements  Total revenue: $451.2 billion  Operating income: $26.87 billion  Profit: $16.38 billion  Total asset: $357.51 billion  Total equity: $180.04 billion  Current stock price (London Stock Exchange): £2403.5  Sponsors of F1 racing Ferrari team and cars, since 1970  Belgian Grand Prix title sponsor  Title sponsors for Asia Talent Cup 16 13
  • 17.
    17 The Petroleum Industry Countrywise Oil Production in the decade between 1960 to 2006
  • 18.
    Name Percentage Institutional Shareholders(999) 13.29% Necigef Nederlands Centraal Inst Giraal Effectenverkeer BV 43.8% BlackRock Investment Management (UK) Ltd. 3.54% State Administration of Foreign Exchange 1.90% The Vanguard Group, Inc. 1.41% Scottish Widows Investment Partnership Ltd. 1.34% Legal & General Investment Management Ltd. 1.34% State Street Global Advisors Ltd. 1.01% BlackRock Fund Advisors 0.84% SSgA Funds Management, Inc. 0.83% Franklin Mutual Advisers LLC 0.80% 18 Who Owns Shell? 7
  • 19.
  • 20.