INVESTORS’ HANDBOOK

Royal Dutch Shell plc

Financial and Operational Information
2013-2017
 Contents

04 52
COMPANY OVERVIEW CORPORATE SEGMENT
04 Our businesses and organisation
06
07
Results
Market overview
53
MAPS
08 Overall highlights in 2017
53 Europe
09 Strategy
55 Africa
10 Strategic themes
57 Asia
11 Financial framework
61 Oceania
12 Projects
62 North America
14 Outlook
65 South America
15 In Focus: Net carbon footprint

16 66
EMPLOYEE DATA
INTEGRATED GAS
16 Integrated Gas overview
18 LNG 68
21 GTL FINANCIAL DATA
22 New Energies 68 Financial statements information
24 In Focus: Power 71 Financial ratios
25 Europe 72 Quarterly data by segment
25 Asia (including Middle East and Russia) 74 Additional segmental information and capital
26 Africa data
26 Oceania
27
27
North America
South America
77
EXPLORATION AND PRODUCTION DATA

28 77 Oil and gas exploration and production activities

earnings
UPSTREAM 81 Proved oil and gas reserves
Cover image
The fingerprint reflects how people are 28 Upstream overview 82 Changes to proved oil and gas reserves
central to powering progress with 30 Conventional Oil and Gas 84 Oil, gas, synthetic crude oil and bitumen
more and cleaner energy, from our 30 Deep water production
retail sites to our offshore operations. 31 Shales 87 Acreage and wells
31 Conventional exploration
About this publication
This Investors’ Handbook contains
detailed information about our annual
32
33
In Focus: Upstream pre-FID options
Europe
89
financial and operational performance 34 Asia (including Middle East) ADDITIONAL INTEGRATED GAS DATA
over varying timescales from 2013 to 35 Africa
2017. Wherever possible, the facts
and figures have been made
36 North America 91
37 South America DOWNSTREAM DATA
comparable. The information in this
38 In Focus: Fit for the future
publication is best understood in 91 Oil products
combination with the narrative 93 Oil sales and retail sites
contained in our Annual Report and
Form 20-F for the year ended
39 95 Chemicals
December 31, 2017. DOWNSTREAM

Digital
39 Downstream overview 97
41 Oil Products ADDITIONAL INVESTOR INFORMATION
The Investors’ Handbook has moved to
46 Chemicals
an online digital report 97 Share information
http://reports.shell.com/investors- 47 In Focus: Shell V-Power™ bolsters Marketing
98 Dividends
handbook/2017. In the event of any earnings growth
99 Bondholder information
conflict, discrepancy or inconsistency
101 Abbreviations
between the digital report and this
hardcopy report of the Investors’ 48 102 About this publication
Handbook, the information contained PROJECTS & TECHNOLOGY
in the digital report will then prevail.
48 Projects & Technology overview
This hardcopy report is provided for
the reader's convenience only. 48 Project delivery
49 Asset support
Non-GAAP measure 49 Technology commercialisation
reconciliation 50 Contracting and procurement
Non-GAAP measures in this report are 50 Safety and environment
defined and reconciled to GAAP
measures in the consolidated financial
51 In Focus: P&T’s improvement programme in deep
data section. water
Introduction from
the CEO
“We plan to continue This Investors' Handbook gives an overview of our
global operations, shows how Shell has performed over
showing leadership in the the last five years, and sets out our plans for the future.
oil and gas industry while
responding to society’s Our relentless focus on performance, combined with
higher oil and gas prices, helped us to increase our
need for more and cleaner operating cash flow in 2017. Our $30 billion divestment
energy” programme for 2016-2018 also made good progress,
including in Australia, Canada, Gabon and the UK. This
reshaping of our portfolio is part of our ongoing effort to
raise efficiency by reducing costs and concentrating on our
most competitive businesses.
We maintain a “lower forever” approach to our cost
management and will continue to closely control investment
levels, while improving the quality of our portfolio through
asset sales and new projects. We remain on track to
deliver a wave of new projects which have a targeted
delivery of 1 million barrels of oil equivalent a day (boe/
d) or $10 billion cash flow from operating activities by
2018, at $60 per barrel (real terms 2016). Most of these
projects are either already on-stream and ramping-up, or
are close to completion. These projects will continue to
ramp-up over 2019 and 2020. In fact, by 2020 we
expect an additional $5 billion of operating cash flow
from these projects and some new ones, all at $60
per barrel.
We expect our annual organic capital investment to
remain between $25 billion and $30 billion until 2020.
We see $30 billion as a ceiling, even if oil prices rise
further, while $25 billion is not a floor – we may go
below this.
Over the years ahead, we plan to continue showing
leadership in the oil and gas industry while responding to
society’s need for more and cleaner energy as the world
moves to a low-carbon energy system.
Tackling climate change is a challenge for society –
including businesses, governments and consumers. As the
global population grows and living standards rise, it will
mean society meeting increasing energy demand with an
ever-lower carbon footprint. We will play our part.
In November, we announced a net carbon footprint
reduction ambition covering not just emissions from our
own operations but also those produced by customers
when they use the energy products we sell. We plan to do
this in step with society’s drive to align with the Paris
climate agreement. We aim to reduce the overall footprint
of our energy products by around 20% by 2035 and by
around half by 2050. This measure will be reviewed
every five years to ensure progress is in line with wider
society’s progress towards the reductions required to meet
the Paris goals.
Our New Energies unit, which we created in 2016,
invested in commercial opportunities linked to the energy
transition in 2017. We acquired NewMotion, one of
Europe’s largest electric vehicle charging providers, and
UK home energy provider First Utility.
In a changing energy landscape, we will continue our
focus on delivering strong shareholder returns and cash as
we progress confidently along the path to becoming – and
remaining – a world-class investment.
Ben van Beurden
Chief Executive Officer
SHELL INVESTORS’ HANDBOOK 2013-2017 CONTENTS 03
Company overview Our businesses
and organisation
This section provides an overview of
the company, including information INTEGRATED GAS AND NEW ENERGIES

on the strategy, financial framework Our Integrated Gas and New Energies business manages
liquefied natural gas (LNG) activities and the conversion of
natural gas into gas-to-liquids (GTL) fuels and other
and key projects. products, as well as our New Energies portfolio. It includes
natural gas exploration and extraction, when contractually
linked to the production and transportation of LNG, and
the operation of the upstream and midstream infrastructure
necessary to deliver gas to market. It markets and trades
natural gas, LNG, crude oil, electricity and carbon-
emission rights and also markets and sells LNG as a fuel
for heavy-duty vehicles and marine vessels.

In New Energies, we are exploring emerging opportunities

and are already investing in opportunities where we
believe sufficient commercial value is available. We focus
on new fuels for transport, such as advanced biofuels,
hydrogen and charging for battery-electric vehicles; and
power, including from low-carbon sources such as wind
and solar as well as natural gas.

UPSTREAM
Our Upstream organisation manages the exploration for
and extraction of 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.

DOWNSTREAM
Our Downstream organisation manages different Oil
Products and Chemicals activities as 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,
biofuel, lubricants, bitumen and sulphur. In addition, we
produce and sell petrochemicals for industrial use
worldwide. Our Downstream organisation also manages
Oil Sands activities (the extraction of bitumen from mined
oil sands and its conversion into synthetic crude oil).

PROJECTS & TECHNOLOGY

Our Projects & Technology organisation manages the
delivery of our major projects and drives research and
innovation to develop new technology solutions. It provides
IN THIS CHAPTER technical services and technology capability for our
Integrated Gas, Upstream and Downstream activities. It is
04 Our businesses and organisation also responsible for providing functional leadership across
06 Results Shell in the areas of safety and environment, contracting
07 Market overview and procurement, wells activities and greenhouse
08 Overall highlights in 2017 gas management.
09 Strategy overview
10 Strategic themes SEGMENTAL REPORTING
11 Financial framework Our reporting segments are Integrated Gas, Upstream,
12 Project delivery Downstream and Corporate. Upstream combines the
14 Outlook operating segments Upstream (managed by our Upstream
15 In Focus: Net carbon footprint organisation) and Oil Sands (managed by our
Downstream organisation), which have similar economic
characteristics. Integrated Gas, Upstream and Downstream
include their respective elements of our Projects &
Technology organisation. The Corporate segment

04 COMPANY OVERVIEW SHELL INVESTORS’ HANDBOOK 2013-2017

 comprises our holdings and treasury organisation, self-
insurance activities, and headquarters and
central functions.
BUSINESS MODEL
Shell is an international energy company with expertise in
the exploration, development, production, refining and
marketing of oil and natural gas, as well as in the
manufacturing and marketing of chemicals. We are one of
the world’s largest independent energy companies in terms
of market capitalisation, cash flow from operating
activities, and production levels.
We seek to create shareholder value through the
following activities:
▪ We explore for crude oil and natural gas worldwide,
both in conventional fields and from sources such as
tight rock, shale and coal formations. We work to
develop new crude oil and natural gas supplies from
major fields. Also, bitumen extracted from oil sands is
converted into synthetic crude oil.
▪ We cool natural gas to produce LNG that can be safely
shipped to markets around the world, and we convert
gas to liquids (GTL).
▪ We have a portfolio of refineries and chemical plants
which enables us to capture value from oil and gas
production, turning them into a range of refined and
petrochemical 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, LNG for transport,
lubricants, bitumen and sulphur. We also produce and
sell ethanol from sugar cane in Brazil, through our
Raízen joint venture.
▪ We invest in low-carbon energy solutions such as
biofuels, hydrogen, wind and solar power, and in other
commercial opportunities linked to the energy transition.
The integration of our businesses is one of our competitive
advantages, allowing for optimisations across our global
portfolio. Our key strengths include the development and
application of innovation and technology, the financial
and project management skills that allow us to safely
develop large and complex projects, the management of
integrated value chains and the marketing of energy
products. The distinctive Shell pecten, a trademark in use
since the early part of the 20th century, and trademarks in
which the word Shell appears, help raise the profile of our
brand globally.

Shell business overview

Exploring for Exploring for

oil and gas: oil and gas:
offshore onshore

Lubricants Developing
fields

Retail
Producing oil
EXPLORATION and gas

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

Upgrading
bitumen

Supply and
distribution
MANUFACTURING Refining oil
TRANSPORT
AND ENERGY into fuels and
AND TRADING
PRODUCTION lubricants
Regasifying
(LNG)
Producing
petrochemicals
Shipping
and trading

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

SHELL INVESTORS’ HANDBOOK 2013-2017 COMPANY OVERVIEW 05

Results

Summary of results $ million unless specified

2017 2016 2015 2014 2013
Income attributable to Royal Dutch Shell plc shareholders 12,977 4,575 1,939 14,874 16,371
CCS adjustment for Downstream [A] 896 1,042 (1,903) (4,167) (374)
CCS earnings attributable to shareholders 12,081 3,533 3,842 19,041 16,745
Identified items [A] (3,683) (3,652) (7,604) (4,010) (3,273)
CCS earnings attributable to shareholders excluding identified items 15,764 7,185 11,446 23,051 20,018
Non-controlling interest (418) (270) (316) (55) (164)
CCS earnings excluding identified items 16,182 7,455 11,762 23,106 20,182
Integrated Gas 5,268 3,700 5,057 10,332 8,999
Upstream 3,091 (2,704) (2,255) 6,754 6,644
Downstream (CCS basis) 9,082 7,243 9,748 6,265 4,466
Corporate (1,259) (784) (788) (245) 73
Basic CCS earnings per share ($) 1.47 0.45 0.61 3.02 2.66
CCS adjustment per share ($) 0.11 0.13 (0.30) (0.66) (0.06)
Basic earnings per share ($) 1.58 0.58 0.31 2.36 2.60
Basic earnings per ADS ($) 3.16 1.16 0.62 4.72 5.20
Cash flow from operating activities 35,650 20,615 29,810 45,044 40,440
Dividend per share ($) 1.88 1.88 1.88 1.88 1.80
Dividend per ADS ($) 3.76 3.76 3.76 3.76 3.60
[A] Attributable to shareholders.

CCS earnings Cash flow from operating activities

$ billion $ billion
30 50

40 d
c
15 c
b 30
b
a 20
0 f e
d
10
a

−15 0
2013 2014 2015 2016 2017 2013 2014 2015 2016 2017

a Upstream d Corporate a Upstream c Downstream

b Integrated Gas e Non-controlling interest b Integrated Gas d Corporate
c Downstream f Identified items

ROACE 2017 [A] Total shareholder return 2017

% %
10 30

20

5 a
b
b 10
a

0 0
a Shell a Shell
b Other oil and gas majors b Other oil and gas majors

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

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

06 COMPANY OVERVIEW SHELL INVESTORS’ HANDBOOK 2013-2017

Market overview

Shell realised prices Year average

2017 2016 2015 2014 2013
SUBS JV&A SUBS JV&A SUBS JV&A SUBS JV&A SUBS JV&A
Crude oil and natural gas
liquids ($/b)
Europe 50.52 46.88 38.62 40.75 49.77 45.97 94.57 89.68 105.23 99.27
Asia 49.08 53.44 38.11 43.95 47.73 52.21 89.47 96.85 96.46 70.34
Oceania 45.64 – 36.64 33.76 43.39 50.01 82.26 88.07 90.50 91.91
Africa 53.39 – 42.73 – 51.80 – 100.55 – 110.14 –
North America – USA 47.23 – 37.50 – 44.99 – 87.90 – 98.10 –
North America – Canada 36.00 – 25.76 – 25.45 – 59.19 – 63.14 –
South America 48.10 – 38.58 – 42.38 – 88.68 – 97.17 94.01
Total 49.00 53.23 38.60 43.58 47.52 51.82 91.09 95.87 99.83 72.69
Natural gas ($/thousand scf)
Europe 5.48 4.77 4.75 4.19 7.10 6.46 8.58 8.26 10.29 9.17
Asia 2.84 5.45 2.32 4.63 3.02 7.06 4.57 11.50 4.51 10.73
Oceania 6.21 3.11 5.31 4.33 6.80 6.73 10.49 11.01 11.55 9.45
Africa 2.44 – 2.33 – 2.10 – 2.71 – 2.84 –
North America – USA 3.00 – 2.21 – 2.39 – 4.52 – 3.92 –
North America – Canada 1.85 – 1.71 – 2.29 – 4.39 – 3.26 –
South America 2.29 – 1.83 – 2.46 – 2.85 – 2.91 0.42
Total 3.83 5.11 3.16 4.41 4.07 6.77 5.68 9.72 5.85 9.72
Other ($/b)
North America – Synthetic
crude oil 45.90 – 37.61 – 40.87 – 81.83 – 87.24 –
North America – Bitumen 34.46 – 25.74 – 30.25 – 70.19 – 67.40 –

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

15
100 4

10 a
80 3
5 b
c
60 2
0
d
40 1 −5
2013 2014 2015 2016 2017 2013 2014 2015 2016 2017

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

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

Industry chemicals margins [A]

$/tonne
1000

800 a

600 b

400

200 c

0
2013 2014 2015 2016 2017

a US ethane
b Western Europe naphtha
c North-east/South-east Asia naphtha

[A] Refining industry margins do not represent the actual Shell realised
margins for the periods.

SHELL INVESTORS’ HANDBOOK 2013-2017 COMPANY OVERVIEW 07

Overall
Cash flow from Total dividends
highlights CCS earnings operating activities distributed Free cash flow

in 2017
$15.8 billion $35.7 billion $15.6 billion $27.6 billion
excluding identified items at an average $54/b of which $4.8 were
Brent oil price settled under the Scrip
Dividend Programme

Underlying
Divestments Capital investment operating expenses Gearing

$22 billion $24.0 billion $37.6 billion 24.8 %

completed 2016-2017

2017 was a year of strong financial performance for
Shell. A year of transformation, in which we showed we
have what it takes to deliver a world-class investment case.
Our relentless focus on value, performance and
competitiveness meant we were able to deliver $39
billion of cash flow from operations, excluding working
capital movements from our upgraded portfolio.
▪ At Management Day, we explained our ambition to
accelerate the pace of our investment in New Energies.
We also announced deals with NewMotion, IONITY
and First Utility.
▪ Key operational milestones were the start-up by Chevron
of Gorgon train 3 in Australia in March, and the return
of the Pearl GTL plant to full production following a
controlled shutdown.

We strengthened our financial framework through a net

repayment of debt of $11.8 billion, while our increased
free cash flow generation gave us the confidence to
cancel the Scrip Dividend Programme in the fourth quarter,
in line with what we said previously.
We enter 2018 with continued discipline and confidence,
committed to the delivery of strong returns and cash.
PORTFOLIO DEVELOPMENTS
Key portfolio events in 2017 included the following:
▪ We took the final investment decision (FID) to execute
Phase 1 of the Kaikias deep-water project in the USA.
In April 2017, Phase 2 was also approved.
▪ In Nigeria, we announced first production at Phase 2 of
the Gbaran-Ubie integrated oil and gas development in
the Niger Delta region.
▪ In the Santos Basin in Brazil, we started up the Lula
South floating production, storage and offloading
(FPSO) vessel, and commerciality of the Libra field was
declared, following an extended well test. Together, the
DIVESTMENTS
We completed several large divestment transactions
during the year, including the majority of our interests in oil
sands in Canada, the separation of Motiva assets, a
package of UK North Sea assets, our shareholding in
Woodside, and our Gabon onshore assets. These
divestments are all consistent with Shell’s strategy and
portfolio ambitions and were completed at
competitive valuations.
At the start of 2018, we were close to completing our
$30 billion divestment programme, with $22 billion of
divestments completed so far. This programme is a crucial
part of the push to simplify our portfolio and deliver a
world-class investment case.
Strong cash momentum continues
$ billion
99 52 44 54
40
+60%; +14.5 billion

Lula and Libra FPSOs represent 50 thousand barrels of 30

oil equivalent per day (kboe/d) production capacity,
Shell share. 20
▪ We opened our first service station in Mexico, with
more sites due to start providing Mexican motorists with 10
high-quality Shell fuels and retail services.
▪ We successfully achieved various exploration 0
2014 2015 2016 2017
milestones. We won bids for three exploration blocks in
the Santos Basin in Brazil, and nine in the deep-water Cash flow from operating activities excluding
Mexican Gulf of Mexico in January 2018. Also in working capital movements
Average Brent oil price ($/b)
January 2018, we announced what is expected to be
one of our largest US Gulf of Mexico exploration finds Working capital movements in 2014, 2015, 2016 and 2017 (respectively):
in the past decade with the Whale deep-water well. $6,405, $5,521, $(6,289), and $(3,158) (in million).

08 COMPANY OVERVIEW SHELL INVESTORS’ HANDBOOK 2013-2017

Strategy Shell’s purpose is to power progress together with more
and cleaner energy solutions. Our strategy is to strengthen
our position as a leading energy company by providing
oil, natural gas and low-carbon energy as the world’s
energy system changes. Safety and social responsibility are Thrive in
fundamental to our business approach. the energy
transition
The rising standard of living of a growing global
population is likely to continue to drive demand for energy,
including oil and gas, for years to come. At the same time,
technology changes and the need to tackle climate change
means there is a transition under way to a lower-carbon,
multi-source energy system with increasing customer choice. World-class
investment
STRATEGIC AMBITIONS case
Against this backdrop, we have the following
strategic ambitions:

▪ to provide a world-class investment case. This involves

growing free cash flow and increasing returns, all built
upon a strong financial framework and resilient portfolio; Strong
▪ to thrive in the energy transition by responding to licence
society’s desire for more and cleaner, convenient and to operate
competitive energy; and
▪ to sustain a strong societal licence to operate and to
contribute to society through a shared value approach to
our activities.
advantage. We maintain a risk management framework
that regularly assesses our response to, and risk appetite
The execution of our strategy is founded on becoming a
for, identified risk factors.
more customer-centric and simpler company, focused on
delivering higher and more predictable returns and
PORTFOLIO AND PRIORITIES
growing free cash flow. By investing in competitive
As part of our strategy, we divide our portfolio into strategic
projects, driving down costs and selling non-core
themes, each with distinctive capabilities, growth
businesses, Shell continues to seek to reshape its portfolio
strategies, risk management, capital allocation and
in order to become a more resilient and focused company.
expected returns.
Our ability to achieve our strategic ambitions depends on
how we respond to competitive forces. We continuously
Through all of our strategic themes, our intention is to be in
assess the external environment – the markets as well as the
fundamentally advantaged and resilient positions to drive
underlying economic, political, social and environmental
an optimal free cash flow and returns profile over multiple
drivers that shape them – to evaluate changes in
timelines. When we set our plans and goals, we do so on
competitive forces and business models. We undertake
the basis of delivering sustained returns over decades.
regular reviews of the markets we operate in and analyse
our traditional and non-traditional competitors’ strengths
We aim to leverage our diverse and global business
and weaknesses to understand our competitive position.
portfolio and customer-focused businesses built around the
We maintain business strategies and plans that focus on
strength of the Shell brand.
actions and capabilities to create and sustain competitive

Investment priorities and strategic intent

Today by 2020

Cash engines (FCF >0)

■ Funds dividends and balance sheet
■ Competitive and resilient
■ Strong free cash flow and returns

Growth priorities (FCF ~0)

■ Emerging cash engines
■ Affordable growth in advantaged positions
■ FCF and ROACE pathway

Emerging opportunities (FCF <0)

■ Significant future value
■ Strategic balance
■ Managed exposure while establishing scale

SHELL INVESTORS’ HANDBOOK 2013-2017 COMPANY OVERVIEW 09

Strategic themes CASH ENGINES

Cash engines are strategic themes that are expected to provide strong and resilient returns and free cash flow, funding
shareholder returns and strengthening the balance sheet. Shell continues to invest in selective growth opportunities for
cash engines. In May 2017, Shell completed the sale of the majority of its interests in oil sands in Canada. As a result,
Oil Sands Mining no longer features as a strategic theme.

CONVENTIONAL
OIL AND GAS
In our Conventional Oil and Gas business, we only 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
In Oil Products, our distinctive product offering is underpinned by a strong manufacturing base
and offers growth potential in selective markets.

GROWTH PRIORITIES

Growth priorities are the cash engines of the future. Shell seeks to invest in affordable growth in advantaged positions
with a pathway to free cash flow and returns in the near future.

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.

EMERGING OPPORTUNITIES

Emerging opportunities are strategic themes that are expected to become growth priorities after further development.
These opportunities should provide us with material growth in free cash flow in the next decade or beyond. We seek to
manage our exposure to those businesses while establishing scale.

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.

10 COMPANY OVERVIEW SHELL INVESTORS’ HANDBOOK 2013-2017

Financial Shell’s strategy and financial framework are designed to manage through multi-year macroeconomic cycles and multi-decade
investment and returns programmes. We balance near-term affordability and cost trends with the fundamentally long-term

framework nature of our industry.

Cash flow priorities

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

▪ Continue to reduce ▪ Cancel scrip ▪ Buy back

gearing to 20% dividend shares

Progress towards a world-class investment case

Increase shareholder distributions

Our priorities for cash flow are reducing debt and paying
dividends, followed by a balance of share buybacks and
capital investment.
Shell’s dividend distributed in 2017 was $15.6 billion. Our
dividend policy is to grow the US dollar dividend through
time, in line with our view of Shell’s underlying earnings and
cash flow. When setting the dividend, the Board looks at a
range of factors, including the macroeconomic environment,
the current balance sheet and future investment plans.
The company's progress and the confidence in our financial
framework enabled the Board to cancel the Scrip Dividend
Programme, starting with the payment of the fourth quarter
2017 dividend. With the cancellation now behind us and
with strong performance and delivery against our
commitments, we are entering the next phase in delivering a
world-class investment case.
We will maintain our commitment to the financial framework,
continue to grow the company and look to increase
shareholder distributions over time. The company is
confirming the plans for share buybacks of at least $25
billion in the period 2017-2020, subject to progress with
debt reduction and recovery in oil prices.
We continue to manage four cash flow levers: divestments,
reduced capital investment and operating expenses, and
delivering new projects that will add significant cash flow.

Divestments Capital investment [A]

$ billion $ billion
20 60

−$12 billion
15 b
40
30
10
25
20
a
5

0 0
2013 2014 2015 2016 2017 2014 2015 2016 2017 2018-20
avg
a Shell
b BG

[A] Excludes BG acquisition in 2016; historical BG capital investment is based

on BG’s published Annual Report.

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

2020
$ billion $ billion $ billion p.a.
50 1200 15
−$6 billion
b

800 10
25
a
400 5

b a
0 0 0
2015 2016 2017 2018E 2014 2017E 2018 2020
a Shell a Cash flow from operating activities (RHS)
b BG [B] b Production

[A] Operating expenses excluding identified items

[B] Historical BG operating expenses based on BG's published Annual Report.

SHELL INVESTORS’ HANDBOOK 2013-2017 COMPANY OVERVIEW 11

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
2018-19 Appomattox United States 79 175 Deep water
Atapu 1 [A] Brazil 25 150 Deep water
Berbigão [A] Brazil 25 150 Deep water
Changbei II China 50 57 Integrated Gas
Clair Ph2 United 28 95 Conventional oil + gas
Kingdom
Coulomb United States 100 10 Deep water
Forcados Yokri Integrated Nigeria 30 40 Conventional oil + gas
Project (FYIP)
Geismar AO4 United States 100 425 ktpa AO Chemicals
Gumusut-Kakap Ph2 Malaysia 30 50 Deep water
Kaikias Ph1 United States 80 40 Deep water
Lula Extreme South [A] Brazil 25 150 Deep water
Lula North [A] Brazil 25 150 Deep water
Nanhai China Chemicals China 50 1.2 mtpa C2 Chemicals
Permian + Fox Creek [B] United States various ~200 Shales
+ Canada
Pernis Solvent Netherlands 100 50 kbpd Oil Products
Deasphalting
Prelude FLNG Australia 68 131 3.6 1.7 mtpa Integrated Gas
NGLs
Rabab Harweel Oman 34 35 Conventional oil + gas
Integrated Project
Tempa Rossa Italy 25 50 Conventional oil + gas
Southern Swamp AG Nigeria 30 40 Conventional oil + gas
WDDM 9B Egypt 50 60 Conventional oil + gas
2020+ FPSO P-71 [A] Brazil 25 150 Deep water
KBB Ph2 Malaysia 30 75 Conventional oil + gas
Libra 1 (pilot FPSO) [A] Brazil 20 180 Deep water
Pegaga Malaysia 20 95 Conventional oil + gas
Penguins Redevelopment United 50 45 Conventional oil + gas
Kingdom
Pennsylvania cracker United States 100 1.5 mtpa C2 Chemicals
Bakong / Gorek / Larak Malaysia 30 75 Conventional oil + gas
(SK408)
Tyra Future Denmark 37 75 Conventional oil + gas
[A] The Lula, Berbigão, 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.

2017 HIGHLIGHTED PROJECTS

PRELUDE APPOMATTOX
(Shell interest: 67.5%) (Shell interest: 79%)

Destined to be the next productive addition to Shell’s
Integrated Gas portfolio, this project will liquefy and store
natural gas at sea, thanks to Shell's floating LNG (FLNG)
technology. The Prelude facility is located some 475
kilometres (295 miles) north-east of Broome, in Western
Australia. The production wells and subsea infrastructure
have been completed, and the Prelude facility is currently
being commissioned at the site. The facility is expected to
produce 3.6 million tonnes per annum (mtpa) of LNG, 1.3
mtpa of condensate and 0.4 mtpa of liquefied petroleum
gas (LPG). The asset will be operated by Shell in a joint
venture with INPEX (17.5%), KOGAS (10%) and OPIC
(5%).
This project is on track to produce first oil before the end
of the decade. As much as 175 kboe/d can be
produced through a four-column, semi-submersible platform
located 130 kilometres (80 miles) off the coast of the state
of Louisiana, the USA, in waters 2,195 metres (7,400
feet) deep. Oil will be tapped from both the Appomattox
field and the nearby Vicksburg field. Shell is the operator
of the asset, which it co-owns with Nexen Petroleum
Offshore (21% interest), a wholly-owned subsidiary of the
China National Offshore Oil Company.

12 COMPANY OVERVIEW SHELL INVESTORS’ HANDBOOK 2013-2017

Pre-FID options
Shell share Peak Produc- LNG 100%
(direct & tion 100% capacity Shell
Phase Project Country indirect) % kboe/d mtpa Legend Theme operated
Assess/ Bonga Main Life Extension & Upgrade Nigeria 55 90 Deep water
Select Project
Clair South United 28 60 Conventional oil + gas
Kingdom
HI Development Nigeria 40 75 Conventional oil + gas
Jackdaw United 74 40 Conventional oil + gas
Kingdom
Jerun Malaysia 30 95 Conventional oil + gas
Kalamkas Kazakhstan 17 55 Conventional oil + gas
Kashagan CC01 Kazakhstan 17 100 Conventional oil + gas
KGK Expansion Project Ph1 Kazakhstan 29 40 Conventional oil + gas
Libra 2 Brazil 20 180 Deep water
Libra 3 Brazil 20 TBD Deep water
Libra 4 Brazil 20 TBD Deep water
LNG Canada T3-4 Canada 50 14 Integrated Gas
Marjoram/Rosmari Malaysia 75 60 Conventional oil + gas
Ormen Lange Late Life Recovery Norway 18 60 Conventional oil + gas
Pearls Khazar Kazakhstan 55 40 Conventional oil + gas
Pierce Depressurisation United 93 25 Conventional oil + gas
Kingdom
Sakhalin T3 Russia 28 69 5.4 Integrated Gas
Define Assa North Nigeria 30 60 Conventional oil + gas
Bonga South West Nigeria 43 175 Deep water
Gbaran Ph3 Nigeria 30 50 Conventional oil + gas
Lake Charles LNG United States TBD 16.8 Integrated Gas
LNG Canada T1-2 Canada 50 14 Integrated Gas
Troll Ph3 Norway 8 255 Conventional oil + gas
Uzu Development Nigeria 30 45 Conventional oil + gas
Val d’Agri Ph2 Italy 39 65 Conventional oil + gas
Vito United States 63 100 Deep water

2017 HIGHLIGHTED PROJECTS

PERNIS DE-ASPHALTER NANHAI CHEMICALS EXPANSION

(Shell interest: 100%) (Shell interest: 50%)

A new solvent de-asphalter will enable the Shell Pernis
refinery in the Netherlands – the largest integrated refinery
complex in Europe – to process more of its crude-oil
feedstock into lighter, high-grade products. It will therefore
give the refinery more flexibility to respond to market
developments, such as the International Maritime
Organization (IMO) regulation changing in 2020, and
reduce the environmental footprint of its products. Several
key components of the project – including a furnace and
distillation columns – have already been installed. The de-
asphalter is expected to be brought into operation in
2018.
Shell’s petrochemicals non-operated joint venture with the
China National Offshore Oil Company is constructing
additional facilities next to its existing petrochemical
complex in Huizhou, Guangdong Province, China. The
expansion, which incorporates Shell proprietary
technology, is expected to double the total ethylene
production at the complex to around 2 mtpa. As such, it
will be one of the largest petrochemical sites in China.
Commercial production from the new facilities is expected
to start in the first half of 2018.

SHELL INVESTORS’ HANDBOOK 2013-2017 COMPANY OVERVIEW 13

Outlook We continuously seek to improve our operating
performance, with an emphasis on health, safety, security,
We fully support the Paris Agreement and its goal of
keeping the rise in global temperatures below two
environment and asset performance. In order to maximise degrees Celsius. After having carefully listened to our
sustainable free cash flows, we will also continue to critics, supporters and shareholders, in step with society’s
manage operating expenses, capital investment, drive to align with the Paris Agreement, we have set a
divestments and delivery of new projects. long-term ambition to reduce the net carbon footprint of
our energy products, measured in grams of carbon-dioxide
▪ We maintain a “lower forever” mindset in our cost equivalent per megajoule consumed, by around 20% by
management, with an outlook of less than $38 billion a 2035 and by around 50% by 2050. This demonstrates
year for operating expenses until 2020, assuming no leadership in the industry climate change debate.
portfolio impacts or other external effects.
▪ Our organic capital investment outlook remains Our drive to create a world-class investment case means
between $25 billion and $30 billion a year until that, around the end of this decade, we expect to deliver
2020. We see $30 billion as a ceiling, as we reduce higher, more predictable returns and growing free cash
debt and meet our goals for shareholder distributions. flow. At the same time, we intend to reduce our debt,
We may go below the $25 billion level, if warranted which increased as a result of the acquisition of BG.
by oil prices. The final outcome in any given year will Subject to such progress and a recovery in oil prices, we
be determined by the pace of development and overall intend to undertake a share-buyback programme of at
affordability considerations. For 2018, we expect to least $25 billion in 2017-20.
maintain capital investment in the lower part of this
range. We see the potential for free cash flow, plus proceeds
from sale of interests in Shell Midstream Partners, L.P., to
▪ We will continue delivering our 2016-18 divestment
reach $30-35 billion, with return on average capital
programme of $30 billion. This is a strategic value-
employed of around 10%, by the end of the decade,
driven, not a time-driven, programme and an integral
assuming $60 oil prices (2016 real terms). This potential
element of Shell’s portfolio improvement plan. We
represents a substantial transformation in the company
believe we have already significantly high-graded our
over the next few years.
portfolio and will continue with an annual average
outlook of at least $5 billion of divestments over the
period 2019 to 2020.
▪ We remain on track to deliver new projects particularly
in Brazil, the USA and Australia between 2014 and
2018, which we believe will add 1 million barrels of
oil equivalent a day, or $10 billion of cash flow from
operations at $60 per barrel by 2018. New project
start-ups and ramp-ups are expected to generate an
additional $5 billion cash flow from operations by
2020, assuming $60 per barrel real terms 2016 and
mid-cycle Downstream industry conditions. We will
remain highly selective on new investment decisions
throughout 2018 and beyond.

14 COMPANY OVERVIEW SHELL INVESTORS’ HANDBOOK 2013-2017

In Focus: We aim to reduce the greenhouse gas (GHG) intensity
of our portfolio and continue to work on improving the
Net carbon energy efficiency of our existing operations. In
addition, and as a better way to inform and drive our
footprint investment choices and adapt our business over time,
in November 2017, we announced our ambition to
reduce the net carbon footprint of our energy products
in step with society’s drive to reduce GHG emissions.
We aim to cut our and our customers’ GHG emissions
from energy products that Shell sells – expressed in grams
of carbon dioxide equivalent per megajoule (gCO2e/MJ)
consumed – by around half by 2050. As an interim step,
by 2035, and predicated on societal progress, we aim
for a reduction of around 20% compared with 2017
levels. Our approach to reducing the net carbon footprint
covers emissions directly from Shell operations (including
from the extraction, transportation and processing of raw
materials, and transportation of products), those
generated by third parties who supply energy to us for
production, and our customers’ emissions from their
consumption of our energy products. Also included are
emissions from elements of this life cycle not owned by
Shell, such as oil and gas processed by Shell but not
produced by Shell, or from oil products and electricity
marketed by Shell that have not been processed or
generated at a Shell facility. Excluded are our emissions
or our customers’ emissions from our chemicals and
lubricants products, which are not used to
produce energy.
Potential tools to achieve our 2035
net carbon footprint [A] ambition
WtW gCO2e/MJ [A]
90
80
70 2035 Ambition
60
50
40
30
Baseline Top Natural New Biofuels Electric CCS
quartile gas shift energy mobility
(Scope 1+2)
[A] Net carbon footprint measured on an aggregate “well-to-wheel” or “well-to-wire” basis, from production through to consumption, in gCO2e/MJ of energy
products consumed; chemicals and lubricants products are excluded. The carbon footprint of the energy system is modelled using Shell methodology
aggregating life-cycle emissions of energy products on a fossil-equivalence basis. The methodology will be further reviewed and validated in collaboration with
external experts.
[B] Potential society trajectory includes analysis from Shell scenarios estimate of Net Zero Emissions by 2070 and IEA Energy Technology Perspectives 2017;
potential illustrative Shell trajectory
Our long-term ambition for 2050 is a stretching
aspiration that aims to ensure that Shell continues to
develop a resilient and relevant portfolio over the coming
decades. While this is a long-term aspiration that will
need periodic recalibration in line with the pace of
change in broader society and the wider energy system,
it is intended to help ensure that we remain relevant and
competitively positioned in the energy transition. This
means supplying energy products and services that our
customers need, now and in the future, and developing a
resilient portfolio in line with our purpose of providing
more and cleaner energy to society.
In the period to 2035, we believe that all forms of GHG
reduction measures must be accelerated and increased in
scale. Major improvements in energy efficiency and new
sources of energy, such as renewables, combined with
the use of cleaner fossil fuels, such as replacing coal with
natural gas, are needed to meet the growing global
population’s energy needs while reducing GHG
emissions. In addition, the world will need significant
growth in carbon capture and storage (CCS) and
sustained reductions in demand. The management of
GHG emissions will become increasingly important to our
shareholders as concerns over climate change lead to
tighter environmental regulations. Policies and regulations
designed to limit the increase in global temperatures to
well below 2°C could have a material adverse effect on
Shell – through higher operating costs and reduced
demand for some of our products. We actively monitor
and assess these potential threats and are best able to
manage them when local policies provide a stable and
predictable regulatory foundation for our future
investments. At this stage, industry is still facing significant
uncertainty about how local regulatory policies and
consumer behaviour will shape the evolution of the
energy system and which technologies and business
models will thrive.
Ambition for net carbon footprint [A]
WtW gCO2e/MJ [A]
90
Shell “business as usual”
80
b
70 ~20% reduction by 2035
60
a
50
40 In line with society by 2050
30
Natural 2015 2020 2025 2030 2035 2040 2045 2050
sinks
a Society trajectory [B]
b Shell trajectory [B]
SHELL INVESTORS’ HANDBOOK 2013-2017 COMPANY OVERVIEW 15
Integrated Gas Integrated Gas
overview
Shell is a leading independent
producer, marketer and trader KEY MILESTONES

of LNG and GTL products. The PORTFOLIO EVENTS

▪ In April, we signed an agreement with Nord Stream 2
AG to provide a long-term funding facility of €285 million
acquisition of BG accelerated our and funds of up to €665 million to cover a combination
of short- and long-term funding and guarantees for a
growth strategy, by a decade, and pipeline project to run from Russia to Germany.
▪ In May, we acquired Centrica’s interest in the North Coast
our Integrated Gas business is now a Marine Area (NCMA) block offshore Trinidad and
Tobago, increasing our interest from 45.88% to 63.19%.
cash engine. With its differentiated In August, we acquired Chevron’s interests in Trinidad and
Tobago, which included increasing our interest in the Shell-
and resilient portfolio, it grows with operated East Coast Marine Area (ECMA) block from
50% to 100%.

the gas market and delivers free cash ▪ In July, Shell Energy Australia began selling gas in the
Australian domestic market.

flow. This business also manages our ▪ In September, we acquired MP2 Energy LLC (MP2), which
provides market-based solutions to commercial and
New Energies portfolio. industrial customers for managing energy supply, load,
and generation throughout the eastern USA.
▪ In October, we acquired NewMotion, one of Europe’s
largest electric vehicle (EV) charging providers.
▪ In December, we signed an agreement to buy First Utility,
INTEGRATED GAS NEW ENERGIES
a leading independent UK household energy and
Cash engine Emerging opportunity broadband provider. The transaction was completed in
February 2018.
▪ In December, we signed a gas sales agreement between
Arrow Energy Holdings Pty Limited (Arrow) and
Queensland Curtis LNG (QCLNG), both joint ventures in
Australia in which we participate. Under the agreement,
uncontracted gas from Arrow’s Surat Basin fields would
flow to the QCLNG venture, which would then both sell
gas to local customers and export it through its gas plant
on Curtis Island.
In January 2018, we announced an agreement to acquire a
43.83% interest in Silicon Ranch Corporation, a leading US
developer, owner and operator of solar assets. The
transaction was completed in March 2018.

OPERATIONAL MILESTONES
▪ In March, Gorgon train 3 started up in Australia.
▪ In June, our Prelude FLNG facility left the Samsung Heavy
Industries shipyard in South Korea, marking a significant
IN THIS CHAPTER milestone for the project. Prelude FLNG arrived in
Australian waters in July.
16 Integrated Gas overview
18 LNG The Pearl GTL plant (Shell interest 100%) resumed full
21 GTL production in July after completion of repairs to the gasifier
22 New Energies units following a controlled shutdown in February 2017.
24 In Focus: Power
25 Europe DIVESTMENTS
25 Asia (including Middle East and Russia) ▪ In New Zealand, we sold our 50% interest in the Kapuni
26 Africa gas field. In March 2018, we reached an agreement to
26 Oceania sell our shares in Shell entities in New Zealand.
27 North America ▪ In September, Shell and KUFPEC agreed to cancel the
27 South America January sale and purchase agreement for the sale of our
22.2% interest in the Bongkot field and adjoining acreage
offshore Thailand. Subsequently, in January 2018, we
agreed to sell our interest to PTT Exploration & Production
Public Company Limited (PTTEP). The transaction is
pending regulatory and other approvals, and expected to
close in the second quarter of 2018.

16 INTEGRATED GAS SHELL INVESTORS’ HANDBOOK 2013-2017

▪ In Brazil, we executed an existing put option agreement to
sell our 16.8% interest in Companhia de Gas de São
Paulo (Comgás) to Cosan S.A. Indústria e Comércio
(Cosan). We exchanged our common shares in Comgás
for Cosan shares plus cash.
▪ In Australia, we sold our 13.3% interest in Woodside.
In January 2018, Partners Group signed an agreement to
join the Borssele III and IV offshore wind project in the
Netherlands, diluting our interest in the consortium from 40%
to 20%.

Integrated Gas key statistics

2017 2016 2015 2014 2013
Earnings ($ million) 5,078 2,529 3,170 10,610 8,998
Earnings excluding identified items ($ million) 5,268 3,700 5,057 10,332 8,999
Cash flow from operating activities ($ million) 6,467 9,132 7,728 12,689 12,273
Liquids production (thousand b/d) [A] 203 223 204 221 224
Natural gas production (million scf/d) [A] 3,969 3,832 2,469 2,666 2,557
Total production (thousand boe/d) [A][B] 887 884 631 682 665
LNG liquefaction volumes (million tonnes) 33.2 30.9 22.6 24.0 19.6
LNG sales volumes (million tonnes) 66.0 57.1 39.2 39.5 30.5
Capital investment ($ million) 3,827 26,214 5,178 9,124 11,822
Capital employed ($ million) 87,462 86,631 62,481 62,127 60,657
Employees (thousands) 11 13 13 11 10
[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

$ billion mboe/d mtpa
15 1.0 80

60
10

0.5 40
b
5
20
a
0 0 0
2013 2014 2015 2016 2017 2013 2014 2015 2016 2017

Earnings a Liquids (mboe/d) LNG liquefaction volumes (mtpa)

Cash flow from operating activities b Gas (mboe/d) LNG sales volume (mtpa)

[A] excluding identified items

Integrated Gas & New Energies

LIQUEFIED NATURAL GAS (LNG)

L N G INCREASED SUPPLY

8TH
LNG SUPPLY FROM
17 COUNTRIES

887 33 2 LNG CARGOES

LOADED EVERY DAY CONSECUTIVE
KBOE/D MT 90 LNG CARRIERS QUARTER LNG
OPERATED OR CONTRACTED
SALES VOLUME
TOTAL PRODUCTION LNG LIQUEFACTION LNG CUSTOMERS
70 IN 25 COUNTRIES GROWTH

13 LNG PLANTS

GAS TO LIQUIDS (GTL) POWER

PEARL GTL CAPACITY OF 1.6 BLN SCF/D
TO PRODUCE 260 KBOE/D OF
LIQUID PRODUCTS
MORE THAN 10,000 MW
POWER MANAGED IN NORTH AMERICA
1/3 FROM RENEWABLES

FINANCIAL PERFORMANCE
14 EUROPEAN MARKETS WHERE
SHELL TRADES POWER

$87.5 $6.5 $5.3

billion billion billion
CASH FLOW FROM EARNINGS EXCLUDING
CAPITAL EMPLOYED OPERATIONS IDENTIFIED ITEMS

Data as of end 2017

SHELL INVESTORS’ HANDBOOK 2013-2017 INTEGRATED GAS 17

LNG Shell is involved in every stage of the LNG value chain.
We find gas fields, extract and liquefy gas, trade and
The LNG Outlook finds that, since the start of the century,
the number of countries importing LNG has quadrupled,
ship LNG, and turn it back into gas before distributing while the number of countries supplying LNG has almost
it to customers. Our acquisition of BG underscored doubled. LNG trade increased from 100 million tonnes in
Shell’s role as a leading independent producer and 2000 to nearly 300 million tonnes in 2017.
marketer of LNG.
LNG trade is changing to mirror the shifting needs of
Shell launched its second LNG Outlook in February buyers, including shorter-term, lower-volume contracts with
2018. Drawing on a broad range of independent greater flexibility.
industry data and internal analysis, the Outlook highlights
key trends in 2017 and focuses on future global demand The LNG Outlook is designed to offer a balanced and
and supply (www.shell.com/lngoutlook). informative outlook for LNG. It highlights the critical role of
gas in the energy industry and in the transition to a low-
The global LNG market continues to defy expectations, carbon future.
growing by 29 million tonnes in 2017, according to
Shell's latest LNG Outlook. Based on current demand
projections, Shell sees potential for a supply shortage
developing in the mid-2020s, unless new LNG production
project commitments are made soon.

Emerging LNG supply-demand gap LNG liquefaction capacity additions

MTPA (DES) MTPA (FOB)
600 50 100

500 c
40
75
400
30
300 50
b 20
200
25
100 a 10

0 0 0
2000 2005 2010 2015 2020 2025 2035 2015 2016 2017 2018 2019 2020
a LNG supply in operation Nameplate capacity additions
b LNG supply under construction Share online (nameplate capacity)
c Demand forecasts

Source: Shell interpretation of IHS Markit, Wood Mackenzie, FGE, BNEF and Source: Shell interpretation of IHS Markit Q4 2017 data, relating to assets
Poten & Partners Q4 2017 data under construction

GROWING SUPPLY

In August 2017, QGC, in which Shell has a majority interest, started up the Charlie project: a development
involving the construction of about 340 wells, a field compression station with a capacity of 240 terajoules a
day, and associated pipelines and facilities that feed into existing gas-processing and water infrastructure at
Woleebee Creek, South West Queensland, Australia. QGC supplies natural gas to the domestic market and
LNG to international customers and can produce up to 8.5 mtpa of LNG.

18 INTEGRATED GAS SHELL INVESTORS’ HANDBOOK 2013-2017

SHELL’S APPROACH
LNG customers
We are the largest LNG marketer amongst all
% total sales – geographic split
independent oil and gas companies (IOCs), with
competitive positions in countries such as Japan, South 12%
Korea and China, but also in emerging LNG importing 21%
countries such as Malta and Jordan. At the other end of
11% g
the chain, we are managing our supply portfolio for a
f
reliability and cost of supply. Through our joint ventures,
we have the largest LNG liquefaction capacity among 5% e

IOCs – with 13 plants – in all major supply basins. d

b
9% c
We supplement this capacity with both long- and short- 29%
term third-party offtake contracts for additional flexibility 13%
and cost optimisation. In the middle of this value chain,
we continuously optimise how we deliver LNG to our a China e South America
customers, depending on market conditions. We take b Japan, Korea, Taiwan f Middle East
advantage of the flexibility of our portfolio – our trading c Asia Pacific g Europe
and optimisation capabilities – and our established d North America
position in shipping and regasification. Integration is not
only a competitive advantage, it also makes us more
Our approach includes:
resilient because we can capture value as it shifts to
different parts of the LNG value chain. ▪ evolving our business models in mature markets and
replicating them in new markets;
▪ securing valuable positions in priority growth markets;
▪ trading portfolio optimisation;
▪ growing downstream LNG fuel markets; and
▪ advocating for gas.

Create and secure demand

Gasnor
Canada Rotterdam
Dragon
Barcelona Europe
USA Cove Point
Elba Attiki China
Costa Azul Lake Charles Hangzhou
Altamira Hazira
Qatar Mahanagar Gas
India

Singapore
Brazil Indonesia

Australia

LNG Import terminals (incl. capacity rights) D-LNG fuel markets

Natural gas distribution D-LNG fuel target markets
LNG markets Gas and power marketing and trading

SHELL INVESTORS’ HANDBOOK 2013-2017 INTEGRATED GAS 19

 LNG FOR TRANSPORT first in the world powered by LNG. In February 2018,
The world needs cleaner vehicles and fuels to meet the Shell signed a further agreement with Sovcomflot to time
increasing demand for transport with lower emissions. charter and fuel two of their tankers, demonstrating that
LNG is emerging as a cost-competitive and cleaner- LNG is being chosen in more segments of shipping to
burning fuel for shipping, heavy-duty road transport, and comply with the IMO's 2020 sulphur cap.
industrial applications. The International Energy Agency
(IEA) estimates that use of LNG for transport could grow by In December 2017, RedStar – a joint venture between
as much as 14% between 2016 and 2022. Shell and Shaanxi Yanchang Group Company – opened
an LNG retail site in Shaan’Xi, northwest China. China is
Shell has access to import and storage capacity at the the largest LNG for transport market in the world, with
GATE LNG terminal in the Netherlands, allowing us to more than 200,000 trucks and buses using it.
supply LNG to marine and road transport customers in
northwest Europe. To deliver LNG to customers in
northwest Europe, in 2017, Shell took delivery of
Cardissa, a state-of-the-art LNG bunker vessel able to hold
around 6,500 cubic metres (m3) of LNG fuel. The vessel
will deliver fuel from the GATE terminal in Rotterdam to
customers across Europe.

In the USA, Shell finalised a similar agreement for an LNG

bunker barge with the capacity to carry 4,000 m3 of
LNG fuel. It is the first US-based ocean-going barge of its
kind. It will supply LNG to marine customers along the
southern East Coast and support growing cruise-line
demand for LNG marine fuel. LNG carrier Gemmata, pictured here, at anchor in
Honningsvåg, Norway.

In April 2017, Shell signed an agreement with

Sovcomflot, a Russian shipping company, to supply LNG
to four of its crude oil tankers. The oil tankers, which
operate in the Baltic Sea and northern Europe, will be the

20 INTEGRATED GAS SHELL INVESTORS’ HANDBOOK 2013-2017

GTL Our GTL technology turns natural gas into valuable,
high-quality transport fuels, motor oils and ingredients
for everyday necessities such as plastics, detergents
and cosmetics. It is the result of more than 40 years of
research, development and commercial experience.
It enables natural gas resource holders to access the
global oil products market, which helps those who want
to diversify risk.

Shell has achieved a leading competitive position in gas-

to-liquids, with uniquely differentiated premium products,
that enable us to capture a strong margin uplift across
Shell’s end-to-end integrated value-chain; we are adding
value at every turn.
Our proprietary Shell GTL technology is at the heart of
our GTL plants. We have filed more than 3,500 patents in
developing our gas-to-liquids process.
Engineer overlooking the Pearl GTL plant in Qatar.
Natural gas is abundant, versatile and affordable. GTL
can help countries with natural gas resources grow their
economies, as new gas supplies come on-stream to satisfy
growing global demand for liquid products.

In 1993, we opened the world’s first commercial GTL GTL products are colourless, odourless liquid
plant in Bintulu, Malaysia with a capacity of 14,700 hydrocarbons of very high quality that have very low
boe/d. levels of impurities like sulphur, aromatics and nitrogen.

In 2011, we started up Pearl GTL in Qatar with a They are very similar to oil-derived products but, when
capacity of about 140 thousand boe/d of high-quality burned, produce fewer pollutants and particulate matter.
liquid hydrocarbon products and 120 thousand boe/d of As urbanisation around the world increases, we believe
natural gas liquids (NGL) and ethane. GTL provides governments with a viable solution to
improve local air quality.
Recognising the market demand for mid-sized GTL facilities
between the scales of SMDS (Bintulu) and Pearl GTL, Shell
has developed a more-flexible technology that can be
used for a range of GTL plant sizes.

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

Gasnor

Dragon LNG Gas Access to Europe (GATE)

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

Peru LNG North West Shelf Prelude FLNG

Gorgon
QCLNG

L iquefaction R egasification GT L

On stream
Under construction

SHELL INVESTORS’ HANDBOOK 2013-2017 INTEGRATED GAS 21

New Energies We formed a New Energies business in 2016. We
pursue two main areas of opportunity.
The first is new fuels for transport – such as advanced
biofuels, hydrogen and charging for battery-electric
vehicles. These activities are designed to benefit from our
existing oil products and retail business.
The second is power, including from low-carbon sources
such as wind and solar, as well as natural gas, the
cleanest-burning hydrocarbon. Our approach focuses on
meeting commercial, industrial and residential customer
needs, bolstered by our activities in electricity generation,
trading and supply, as well as our ability to optimise supply
and demand.
Digital ventures complement our activities in both new fuels
and power.
New Energies companies are subject to Shell’s control
framework. We are working to bring them into compliance
with Shell’s control framework in a fit-for-purpose manner.
NEW FUELS
BIOFUELS
We continue to invest in new ways to produce biofuels
from sustainable feedstocks such as waste and cellulosic
biomass from non-food plants. In 2017, we completed
construction of a demonstration plant at the Shell
Technology Centre Bangalore, India. This plant will
demonstrate a technology called IH2 (a trademark of the
Gas Technology Institute) that turns waste into transport fuel.
In addition, we continue to look for opportunities to invest
in third-party technologies and to collaborate in scaling
these up for commercialisation.
HYDROGEN ELECTRIC
Shell is taking part in several initiatives to encourage the
adoption of hydrogen-electric energy as a transport fuel. In
Germany, the government is supporting the deployment of
a national network of hydrogen fuelling stations across the
country by 2023. We are working on this project with our
joint-venture partners in H2 Mobility Germany – Air Liquide,
Daimler, Linde, OMV and Total. At the end of 2017, Shell
already had nine hydrogen filling stations at its retail sites
in Germany.
In the UK, we are partnering with ITM Power to make
hydrogen fuel available at three retail sites in the south east
of the country. The first station was inaugurated in February
2017 at our Cobham retail site.
In the USA, we also have two hydrogen stations in Los
Angeles, California. In 2017, we began working with
Honda and Toyota, and with the support of the California
state government, to build seven new stations in
Northern California.
We are assessing the potential for similar projects in
Austria, Belgium, France, Luxembourg, the Netherlands,
Switzerland and the USA.
CHARGING FOR BATTERY-ELECTRIC VEHICLES
In 2017, we acquired Netherlands-based NewMotion, a
company with one of Europe’s biggest networks of EV
charging points. It operates more than 30,000 private
electric charge points in the Netherlands, Germany, France
and the UK. It also provides 100,000 registered charge-
card users access to over 50,000 public charge points in
25 European countries.
22 INTEGRATED GAS SHELL INVESTORS’ HANDBOOK 2013-2017
In 2017, we also signed an agreement with charging
operator IONITY to offer high-powered charging points in
10 European countries, starting with 80 of its biggest
highway stations, which will allow EV drivers to travel long
distances. IONITY is a joint venture between BMW,
Daimler, Ford and Volkswagen, which was formed to create
a network of 350-kilowatt chargers alongside major
highways in Europe.
POWER
Shell aims to develop an integrated and signficant power
business, over time. To achieve this, we will continue to
grow our power generation and trading capabilities and
expand our marketing offers to more customers.
We are also working to deliver more electricity generated
by renewable energy, including developing wind and solar
projects and selling power from renewable sources.
Shell first entered the onshore wind business in the USA in
2001. Today, we have interests in six onshore wind power
projects in North America and two offshore wind projects
in Europe.
Our share of capacity from wind power projects in the USA
is more than 400 megawatts (MW).
In the Netherlands, we have an interest in the consortium that
was awarded the concession by the Dutch government in
December 2016 to develop the Borssele III and IV offshore
wind farm projects, which are to be located 20 kilometres
off the Dutch coast. In January 2018, Partners Group signed
an agreement to join the projects, diluting our interest in the
consortium from 40% to 20%.
Also in the Netherlands, we have a 50% interest in the
Noordzeewind joint venture with Nuon, which has been set
up for the development, construction and management of the
Egmond aan Zee offshore wind farm. The farm comprises
36 wind turbines, each with a capacity of 3 MW.
We are exploring ways to deploy solar technologies to
lower the carbon intensity of our operations.
We are also looking at how best to combine wind and solar
power with our existing business and capabilities.
We are developing a solar power plant at our Moerdijk
chemicals site in the Netherlands, with construction planned
to begin in 2018. The plant is estimated to provide an
approximate peak capacity of 20 MW of renewable
power. The power produced will be used by the Shell
Moerdijk site.
In December 2017, we signed an agreement to buy First
Utility, a leading independent UK household energy and
broadband provider. The transaction was completed in
February 2018.
In January 2018, we announced an agreement to acquire a
43.83% interest in Silicon Ranch Corporation, a leading US
developer, owner, and operator of solar assets. The
transaction was completed in March 2018.

A Silicon Ranch solar farm, Georgia, USA.
DIGITAL VENTURES
Digital ventures complement our activities in both new fuels
and power.
In the Netherlands, we have developed a fill-up-and-go
system which allows drivers to pay online for fuel from their
vehicles. This secure payment system saves drivers time.
In the USA, the Fitcar™ app transforms a regular car into a
“connected car” and provides maintenance alerts and
information on the engine, the location of nearby services
and tracks users’ driving style, helping drivers save money,
stay safe and take care of their vehicle.
New Energies: focus areas
New fuels
Biofuels
Hydrogen
Gas for transport
Electric mobility
Connected mobility
• Digital ventures • Technology ventures • City solutions •
SHELL INVESTORS’ HANDBOOK 2013-2017 INTEGRATED GAS
We have developed an app, called Farepilot, that helps
self-employed drivers to identify high demand areas to swiftly
find their next fare and potentially save fuel. We have
invested through Shell Technology Ventures in tiramizoo, a
German start-up whose online technology connects retailers
with customers.
We are collaborating on an online tool that efficiently
schedules local deliveries in over 150 towns and cities in
Germany and Austria. This approach improves customer
service, lowers costs and, if widely adopted, could reduce
urban traffic and, in turn, help improve local air quality.
Going forward, we are exploring services we could offer to
home energy users. We have already developed a digital
programme which helps customers in the UK bring all their
energy bills together in one place and finds ways for them to
save money.
Our approach to digital ventures involves exploring a range
of options, and moving on swiftly if we conclude that a
venture is not commercially viable.
Power
Integrated energy solutions
Wind
Solar
Natural gas
Energy storage
Energy access
Power trading & marketing
Connected energy
23
In Focus: We expect that over this century, the energy system
will become increasingly electrified. Around 20% of
gave us scale, market knowledge, and an established
customer base from which to expand electricity delivery in

Power energy is currently consumed as electricity. And, with a

gradual transition towards a lower-carbon energy
the USA and deploy new energy management tools.

system, electricity’s role in the energy mix could grow
to as much as 50% by 2060. The market shows that
this is starting to happen, with battery-electric cars
probably the most visible example in Europe and the
USA, but also China. However, the pace of this
development will differ greatly around the world.
Shell sees opportunities in different parts of the power
value chain and sees additional value delivery through
the integration of these parts. We will start developing
this value chain from the customer-end, as we develop
our commercial, industrial and residential power customer
base in selected markets. Over time, Shell aims to
develop an integrated and significant power business.
Besides the large growth potential, the second reason for
our focus on power and new fuels is adjacency to our
traditional businesses and the expertise we bring.
We have well-established regional power trading
businesses in North America and Europe, and we are
beginning to expand in other areas around the world.
During 2017, we started marketing gas in Australia and
Mexico, and power in Brazil.
We are present in 14 European power markets,
including the offtake of renewable power from wind
farms and solar parks in the UK and mainland Europe.
We also provide wholesale power to independent retail
energy providers in the UK and we currently supply
electricity directly to industrial and commercial customers
in the UK, Germany and Italy.
Within our New Energies business, we are growing our
lower-carbon power generation portfolio, focusing on the
profitable development of solar and offshore wind
projects (see New Energies on page 22), complemented
by natural gas. We are also building a portfolio of
customer-led energy solutions, including supplying energy
directly to homes and a portfolio of distributed energy
solutions that can increase the reliability and flexibility of
the power system.
We are looking into how to best serve an increasing
number of electric-vehicle drivers, both on our forecourts
and in other locations. We are also supporting a
transition to electric vehicles by looking at how charging
can be more effectively integrated into power supply and
demand networks. (also see New Energies on page 22).

Over the past decade, we have consistently been ranked

in the top three wholesale power sellers in the USA and
Canada. Currently, we manage more than 10,000 MW
of power generation, with more than one-third of that
power generated from renewables.

In September 2017, we acquired MP2 Energy, a power-

management company that provides market-
based solutions for commercial and industrial customers.
The acquisition strengthened our position by providing
direct access to the large commercial and industrial
electricity markets in Texas and the eastern USA. It also
Wind turbines at Mount Storm, West Virginia, USA.

24 INTEGRATED GAS SHELL INVESTORS’ HANDBOOK 2013-2017

Europe GREECE
In January 2017, Attiki Gas Supply Company S.A. was
unbundled into separate supply and distribution
companies, in line with Greek legislation. As a result, we
have a 49% interest in both Attiki Gas Supply Company
S.A. and Attiki Natural Gas Distribution Company S.A.

NETHERLANDS
We have access to import and storage capacity at the
GATE LNG terminal in the Netherlands (Shell capacity
rights 1.4 mtpa), enabling us to supply LNG to marine
and road transport customers in northwest Europe. We are
also using the terminal to supply LNG to our growing truck- Cardissa LNG bunker vessel that refuels boats in Europe.
refuelling network in the Netherlands. In August 2017, we
took delivery of the Cardissa LNG bunker vessel, a UK
purpose-built vessel which supplies LNG to marine and We have a 50% interest in the Dragon LNG regasification
industrial customers. terminal, with long-term arrangements in place governing
the use of capacity rights.
NORWAY
Gasnor AS (Shell interest 100%) provides LNG fuel for
ships and industrial customers and has a natural gas
pipeline network.

Asia (including BRUNEI

We have a 25% interest in Brunei LNG Sendirian Berhad,

Middle East and which sells most of its LNG on long-term contracts to
customers in Asia.
Russia) CHINA
We jointly develop and produce from the onshore
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. In
December 2017, we took the final investment decision on
the Changbei II Phase 1 project, and project execution
began that month. Shell remains the operator of
Changbei II.
In 2016, we handed back the Zitong and Fushun blocks
in Sichuan to CNPC, and we expect to complete the
handover of the Jinqiu block to CNPC in 2018.
INDIA
We have a 30% interest in the producing oil and gas field
Panna/Mukta. We also have a 30% interest in the Mid
Tapti and South Tapti fields, which ceased production in
the first quarter of 2016.
We have a 32.5% interest in MGL, a natural gas
distribution company in Mumbai.
We have a 74% interest in the Hazira regasification
terminal in the state of Gujarat on the west coast.
INDONESIA
We have a 35% interest in the INPEX Masela Ltd joint
venture, which owns and operates the offshore Masela
block. In April 2016, the joint venture received a
notification from the Indonesian government authorities
instructing it to re-propose a plan for the Abadi gas field
based on an onshore LNG project. The partners are
committed to working together with the Indonesian
government to move the project forward.
IRAN
Shell transactions with Iran are disclosed separately. See
RDS Form 20-F for the year ended December 31, 2017.
An employee during a routine inspection at the Hazira LNG
regasification plant in India.
MALAYSIA
We have a 15% interest in Malaysia LNG Tiga located in
Bintulu. We also operate a GTL plant, Shell MDS (Shell
interest 72%), adjacent to the Malaysia LNG facilities.
Using Shell technology, the plant converts gas into high-
quality middle distillates, drilling fluids, waxes and
specialty products.
OMAN
We have a 30% interest in Oman LNG LLC, which mainly
supplies Asian markets under long-term contracts. We also
have an 11% interest in Qalhat LNG, which is part of the
Oman LNG complex.
QATAR
We operate the Pearl GTL plant (Shell interest 100%) in
Qatar under a development and production-sharing
contract with the government. The fully-integrated facility
has capacity for production, processing and transportation
of 1.6 billion standard cubic feet per day (scf/d) of gas
from Qatar’s North Field. It has an installed capacity of
about 140 thousand boe/d of high-quality liquid
hydrocarbon products and 120 thousand boe/d of NGL
and ethane.
Due to unforeseen maintenance required on the gasifier
units, Pearl GTL operated at a reduced rate of production
from December 2016 until a controlled shutdown in
February 2017. The plant resumed full production in July
2017 after the gasifier unit repairs were completed. In
2017, Pearl produced around 3.5 million tonnes of
GTL products.

SHELL INVESTORS’ HANDBOOK 2013-2017 INTEGRATED GAS 25

 We have a 30% interest in Qatargas 4, which comprises
integrated facilities to produce about 1.4 billion scf/d of
gas from Qatar’s North Field, an onshore gas-processing
facility, and one LNG train with a collective production
capacity of 7.8 mtpa of LNG and 70 thousand boe/d of
condensate and NGL.
RUSSIA
We have a 27.5% interest in Sakhalin-2, an integrated oil
and gas project located in a subarctic environment.
We have a 50% interest in the Salym fields in western
Siberia, Khanty Mansiysk Autonomous District, where
production was approximately 120 thousand boe/d
in 2017.
We have a 50% interest in Khanty-Mansiysk
Petroleum Alliance.
We have a 100% interest in the North Vorkutinsky 1,
North Vorkutinsky 2 and Syriaga exploration and
production licences in Komi Republic (Timan Pechora).
As a result of European Union and US sanctions
prohibiting certain defined oil and gas activities in Russia,
we suspended our support to Salym and Khanty-Mansiysk
Petroleum Alliance in relation to shale oil activities in
2014. Salym and Khanty-Mansiysk Petroleum Alliance
also suspended any shale oil related activities in 2014.
Africa EGYPT
We have interests of 35.5% and 38%, respectively, in
trains one and two of the Egyptian LNG (ELNG) plant. In
January 2014, force majeure notices were issued under
the LNG agreements as a result of domestic gas diversions
severely restricting volumes available to ELNG. These
notices remain in place. See “Oil and gas information” on
page 89.
MOZAMBIQUE
In 2014, we signed a memorandum of understanding
(MOU) with Mozambique national oil and gas company
Empresa Nacional de Hidrocarbonetos (ENH) to formalise
a partnership to conduct a full feasibility study for a
potential GTL project. Following the outcome of the
Mozambique domestic gas allocation public tender
process in January 2017, where we were announced as
one of three winners, we signed an MOU with the
government for the project development work programme.
NIGERIA
We have a 25.6% interest in Nigeria LNG Ltd, which
operates six LNG trains.
Oceania AUSTRALIA
We have interests in offshore production and exploration
licences in the North West Shelf (NWS) and Greater
Gorgon areas of the Carnarvon Basin, as well as in the
Browse Basin and Timor Sea. Woodside (of which Shell’s
13.3% interest was sold in 2017) is the operator on
behalf of the NWS joint venture, which produced more
than 450 thousand boe/d of gas and condensates
in 2017.
We have a 25% interest in the Gorgon LNG project,
which involves the development of some of the largest gas
discoveries to date in Australia, beginning with the
26 INTEGRATED GAS SHELL INVESTORS’ HANDBOOK 2013-2017
SINGAPORE
We have a 50% interest in a joint venture with KS
Investments (the investment arm of Keppel Group) that
holds a licence to supply LNG fuel for vessels in the Port of
Singapore. We currently have the first aggregator licence
to import LNG into Singapore. The exclusivity period has
ended with the issuance of the second import licence in
October 2017 to both Shell Eastern Trading (Pte) Ltd (Shell
interest 100%) and Pavilion Gas Pte Ltd.
THAILAND
We have a 22.2% interest in the Bongkot and G12/48
fields in the Gulf of Thailand and a 66.7% interest in
exploration Blocks 7 and 8, where activity is currently
suspended due to overlapping claims by Thailand and
Cambodia. We have an agreement over Block 9a under
which we receive royalties. Production from the Bongkot
field supplies around 20% of the country’s gas demand.
In September, Shell and KUFPEC agreed to cancel the
January sale and purchase agreement for the sale of our
22.2% interest in the Bongkot field and adjoining acreage
offshore Thailand. Subsequently, in January 2018, we
agreed to sell our interest to PTTEP. The transaction is
pending regulatory and other approvals, and is expected
to close in the second quarter of 2018.
TANZANIA
We have a 60% interest in, and are the operator of,
Blocks 1 and 4 offshore southern Tanzania. The blocks
cover approximately 4,000 square kilometres of the
Mafia Deep Offshore Basin and the northern part of the
Rovuma Basin. In 2016, we completed drilling on all
remaining wells. We continue to develop a potential LNG
project with partners in Block 2 in line with the Block 1
and 4 appraisal programme agreed with the Tanzanian
government. This includes discussion between the
government and the partners in Blocks 1, 2 and 4 to
agree the investment framework for the potential project.
To enable the agreed appraisal programme to be carried
out and progress the development of the project, the Block
1 licence was extended and we are engaging with the
government to extend the Block 4 licence. The government
has confirmed that the Block 4 licence, which was initially
due to expire on October 31, 2017, remains in full force
pending the grant of the licence extension.
REST OF AFRICA
We have a 17.9% share in the West African Gas
Pipeline Company.
offshore Gorgon and Jansz-lo fields. Gorgon LNG began
production in March 2016. The third and final train
began operation in March 2017.
We are the operator of a permit in the Browse Basin in
which two separate gas fields were found: Prelude and
Concerto (Shell interest 67.5% in each). Our development
concept for these fields is based on our FLNG technology.
The Prelude FLNG project is expected to produce about
110 thousand boe/d of gas and NGL, 3.6 mtpa of
LNG, 1.3 mtpa of condensate and 0.4 mtpa of LPG.
Major milestones during 2017 were the sail away of the
facility from the construction yard in South Korea and the
 start of hook-up and commissioning activities on site. Our
other interests in the basin include a joint arrangement,
with Shell as the operator, for the undeveloped Crux gas
and condensate field (Shell interest 82%).
We are also a partner in the Browse joint arrangement
(Shell interest 27%) covering the Brecknock, Calliance and
Torosa gas fields, and the undeveloped Sunrise gas field
in the Timor Sea (Shell interest 26.6%), both of which are
operated by Woodside. We are a partner in both Shell-
operated and other exploration joint arrangements in
multiple basins – including Bonaparte, Browse, Exmouth
Plateau, Greater Gorgon and Outer Canning.
We have a 50% interest in Arrow, a Queensland-based
joint venture with CNPC. Arrow owns coal-bed methane
assets and a domestic power business.
We have a 50% interest in train one and a 97.5% interest
in train two of the Shell-operated QCLNG venture. The
two-train liquefaction plant has an installed capacity of
North America CANADA
In 2014, we entered into a joint venture (Shell interest
50%) to evaluate an investment in an LNG export facility
in Kitimat on the west coast of Canada. The evaluation,
which we are carrying out together with our partners,
is progressing.
USA
We have offtake rights to 100% of the capacity (2.5
mtpa) of the Kinder Morgan-owned Elba Island
liquefaction plant, which is under construction. Elba Island
also has a regasification terminal in which we have
contracted capacity of 11.6 mtpa.
South America BOLIVIA
We have a 100% interest 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, and
we are also drilling an exploration well. We also have a
25% interest in the Tarija XX West block where we
produce from the Itaú field. We have the rights to explore
and further develop the onshore Huacareta block (Shell
interest 100%), and plan to drill an exploration well
in 2018.
PERU
We have a 20% interest in an LNG liquefaction plant.
SHELL INVESTORS’ HANDBOOK 2013-2017 INTEGRATED GAS
8.5 mtpa. Our production of onshore natural gas from the
Surat Basin supplies both this plant and the
domestic market.
In December 2017, we signed a gas sales agreement
between Arrow and QCLNG, under which uncontracted
gas from Arrow’s Surat Basin fields would flow to the
QCLNG venture, that would then both sell gas to local
customers and export it through its gas plant on
Curtis Island.
NEW ZEALAND
During 2017, we sold our 50% interest in the Kapuni
gas field.
In March 2018, Shell reached an agreement to sell its
shares in Shell entities in New Zealand, including our
interests in the Maui (83.75%) and Pohokura (48%) natural
gas fields. Shell has also entered into an agreement to sell
its interest in (and operatorship of) the Great South
Basin venture.
We have 13.1 mtpa of contracted capacity in the Lake
Charles regasification terminal in Louisiana. We are also
evaluating a project to convert the existing regasification
facility owned by Energy Transfer into a liquefaction plant
in which we would have capacity rights.
TRINIDAD AND TOBAGO
We are the largest shareholder in all four trains at Atlantic
LNG. We also have an interest in three concessions with
producing fields – Central Block, ECMA and NCMA
blocks. In May 2017, we acquired Centrica’s interest in
the NCMA block, increasing our interest from 45.88% to
63.19% and in August, we acquired Chevron’s interests in
Trinidad and Tobago, which included increasing our
interest in the Shell-operated ECMA block from 50% to
100%. We also have interests ranging from 35% to 100%
in exploration activities in blocks 5(c), 5(d), 6(d), and
Atlantic Area blocks 3, 5, 6 and 7.
REST OF SOUTH AMERICA
We have interests in a gas pipeline connecting Uruguay
to Argentina.
In December 2017, we sold our interest in Comgás, a
natural gas distribution company in Brazil, to Cosan. We
exchanged our common shares in Comgás for Cosan
shares plus cash.
27
Upstream Upstream
overview
Our Upstream business explores for
and extracts crude oil, natural gas KEY MILESTONES

and natural gas liquids. It also PORTFOLIO EVENTS

▪ In February 2017, we took the FID to execute Phase 1
of the Kaikias deep-water project in the USA, and Phase
markets and transports oil and gas, 2 was approved in April 2017. Kaikias (Shell interest
80%) is a subsea tie-back to the Shell-operated Ursa
and operates the infrastructure platform. Phase 1 will include three wells and Phase 2
will add an additional well, which collectively are
necessary to deliver them to market. expected to reach a peak production of approximately
40 thousand boe/d. First oil is expected in June 2018

The Upstream business spans all three for both Kaikias Phase 1 and Phase 2.
▪ In December, Maersk Oil, as operator, announced the
of Shell’s strategic-theme timescales. FID for the redevelopment of the Tyra gas field (Shell
interest 36.8%) in Denmark. When completed in 2022,

Conventional Oil and Gas is one of peak production is expected to be around 60 thousand
boe/d.

Shell’s cash engines, Deep water is
one of our company’s growth
priorities and our Shales business is
▪ In January 2018, we announced the FID for the
redevelopment of the Penguins oil and gas field (Shell
interest 50%) in the UK North Sea. The decision
authorises the construction of an FPSO vessel, which is
expected to have a peak production (100%) of around
45 thousand boe/d.

themed as an emerging opportunity.
CONVENTIONAL OIL AND GAS
Cash engine
Also in January 2018, we announced one of our largest
US Gulf of Mexico exploration finds in the past decade
from the Whale deep-water well. Whale is operated by
Shell (60%) and co-owned by Chevron U.S.A. Inc. (40%).
It was discovered in the Alaminos Canyon Block 772,
DEEP WATER
adjacent to the Shell-operated Silvertip field and
Growth priority approximately 16 kilometres from the Shell-operated
Perdido platform. Evaluation of the discovery is ongoing.

OPERATIONAL MILESTONES
SHALES
▪ In Brazil, we announced first production at the Lula
Emerging opportunity South deep-water development (Shell interest 100%) via
FPSO P66 in the Brazilian pre-salt block of the Santos
Basin.
▪ Also in Brazil, together with our partners, we won
35-year production-sharing contracts for three pre-salt
exploration blocks in the Santos Basin. Two blocks are
adjacent to the Gato do Mato field (Shell interest 80%
as operator) and the non-Shell-operated Sapinhoá field
(Shell interest 30%), where Shell is already present, and
IN THIS CHAPTER the third is Alto Cabo Frio West (Shell interest 55% as
operator).
28 Upstream overview
▪ Also in Brazil, together with our partners, we announced
30 Conventional Oil & Gas
the start of production testing at the Libra field FPSO in
30 Deep water
the Santos Basin. Petrobras, the operator, announced
31 Shales
that the Libra consortium (Shell interest 20%) had
31 Conventional exploration
submitted the declaration of commerciality and signed a
32 In Focus: Pre-FID option map contract to charter the first production FPSO of the north-
33 Europe west block of Libra, now called Mero. The FPSO is
34 Asia (including Middle East) expected to have a capacity of 180 thousand boe/d
35 Africa and is scheduled to start production in 2021.
36 North America
37 South America ▪ In Nigeria, we announced first production at Phase 2 of
38 In Focus: Fit for the future the Gbaran-Ubie integrated oil and gas development
(Shell interest 30%) in the Niger Delta region. Expected
peak production is around 175 thousand boe/d.
▪ In the UK, the non-Shell-operated Schiehallion
redevelopment (Shell interest approximately 45%)
reached first production.

28 UPSTREAM SHELL INVESTORS’ HANDBOOK 2013-2017

▪ In the USA, we purchased the Turritella FPSO (previously
leased) for the Stones deep-water development in the
Gulf of Mexico. Transitioning the ownership and
operations of the vessel to Shell allows the company to
pursue additional efficiencies and achieve cost
improvements to deliver shareholder value at Stones with
a continued commitment to operational excellence and
safety. The FPSO has a daily production capacity of
approximately 60 thousand barrels of oil and 15 million
standard cubic feet of natural gas.
▪ In January 2018, we won nine exploration blocks in the
deep-water bid round in Mexico, four blocks on our
own, four with our partner Qatar Petroleum International
Limited, and one with our partner Pemex Exploración y
Producción.
DIVESTMENTS
▪ In Canada, we sold all of our in-situ and undeveloped
oil sands interests and our 60% interest in the Athabasca
Oil Sands Project (AOSP). Separately, we acquired a
50% interest in Marathon Oil Canada Corporation,
which holds a 20% interest in the AOSP.
▪ In the UK, we sold a package of North Sea assets in
November. This consisted of our interests in the Buzzard,
Beryl, Bressay, Elgin-Franklin, J-Area, Everest, Lomond
and Erskine fields and the Greater Armada cluster, and
a 10% interest in the Schiehallion field.
▪ In Gabon, we sold all of our onshore oil and gas
operations and related infrastructure: five Shell-operated
fields (Rabi, Toucan/Robin, Gamba/Ivinga, Koula/
Damier, and Bende/ M’Bassou /Totou), non-Shell-
operated interests in the Atora, Avocette, Coucal, and
Tsiengui West fields, and the associated infrastructure of
the onshore pipeline system from Rabi to Gamba and
the Gamba Southern export terminal.
▪ In the USA, we sold approximately 5,300 acres and
associated producing assets in the East Haley area of
the Delaware Permian Basin in West Texas.
▪ In Ireland, we reached an agreement with CPP
Investment Board Europe S.A.R.L., a subsidiary of
Canada Pension Plan Investment Board, to sell our 45%
interest in the Corrib gas project. The transaction, which
represents Shell’s exit from the upstream business in
Ireland, is subject to partner and regulatory approval
and is expected to conclude in the second quarter of
2018.

Upstream key statistics

2017 2016 2015 2014 2013
Earnings ($ million) 1,551 (3,674) (8,833) 5,231 3,640
Earnings excluding identified items ($ million) 3,091 (2,704) (2,255) 6,754 6,644
Cash flow from operating activities ($ million) 16,337 7,662 5,453 19,150 17,841
Liquids production (thousand b/d) [A] 1,622 1,615 1,305 1,263 1,317
Natural gas production (million scf/d) [A] 6,699 6,781 5,911 6,593 7,059
Total production (thousand boe/d) [A][B] 2,777 2,784 2,323 2,399 2,534
Capital investment ($ million) 13,648 47,507 18,349 22,169 28,481
Capital employed ($ million) 119,253 128,782 84,727 88,692 93,135
Employees (thousands) 18 22 22 22 21
[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

$ billion mboe/d
25 3

20

15 2
b
10

5 1
a
0

−5 0
2013 2014 2015 2016 2017 2013 2014 2015 2016 2017

Earnings a Liquids
Cash flow from operating activites b Gas

[A] excluding identified items.

SHELL INVESTORS’ HANDBOOK 2013-2017 UPSTREAM 29

Conventional The Conventional Oil and Gas business is a cash
engine for Shell. It plays a key role in improving and
In this strategic theme, we have been improving cash
margins through operational excellence, a relentless focus

Oil and Gas sustaining oil and gas production. By producing safely
and reliably, this business should deliver resilient and
attractive returns and free cash flow, to fund the
development of new opportunities for Shell.
The portfolio contains a large range of assets that produce
both oil and gas from onshore and offshore locations. We
produce from more established basins – such as in the
North Sea, Nigeria, Malaysia, Oman and Brunei –
to more recent positions, such as in Egypt, Iraq, Italy
and Kazakhstan.
In our Conventional Oil and Gas operations, we have
always worked with a high level of government
involvement and regulatory control and we partner with
others to conduct operations and share risk. We have a
proven capability to sustain deep relationships, spanning
many decades, with governments, national oil companies,
other IOCs and independents.
on controlling operating costs, and unlocking value and
resources through new deals with host governments.
We have been high-grading the portfolio through selective
divestments. We also see opportunities for selective
growth to offset the production and cash flow reduction
from these divestments.
We have a robust pipeline of projects in Conventional Oil
and Gas. Our projects under construction in Egypt, Italy,
Oman and the UK will add new production in the next
two years.
The focus on operational excellence and competitive
project delivery allows us to maintain Conventional Oil
and Gas as a powerful cash engine, expected to deliver
$5 billion to $6 billion organic cash flow by the end of
the decade.

Deep water Deep water is the Upstream growth priority for Shell. We
have advantaged positions in Brazil, the Gulf of Mexico,
Nigeria and Malaysia – with substantial and profitable
growth potential. Our global, deep-water production from
already discovered fields is on track to exceed 900
thousand boe/d by 2020. Near-field exploration could
add further growth, such as our announced Whale
discovery in the Gulf of Mexico. We have shaped our
deep-water business with economically resilient projects
that are scoped, designed and safely operated to meet
market conditions with an average forward-looking break-
even price for pre-FID projects that we believe is less than
$30 a barrel1. Appomattox hull arrival in Ingleside, Texas, the USA.

Forty years ago, we pioneered deep-water development
in the US Gulf of Mexico and have since led the industry
on technological achievements. We remain focused on
safely ramping up production at our Stones project, which
began operations in late 2016. Our Appomattox project
has seen an approximate 25% cost reduction since the FID
was taken, after already achieving a 20% cost reduction
against initial concept. In addition, we have six other
major producing assets in the Gulf of Mexico with subsea
tie-back connections to several fields. In early 2017, we
sanctioned the Kaikias project, which is a 40 thousand
boe/d tie-back to the Ursa platform.
In Brazil, we delivered approximately 45% of our global
deep-water production from operated and non-operated
assets in 2017. We have significant acreage in the
Santos Basin Pre Salt, which is one of the best deep-water
provinces with low break-even prices and continued
growth potential, with new FPSOs planned through the
early 2020s. We have interests in 11 FPSOs currently
operating in the Santos Basin, including one FPSO
testing the Libra Pre Salt oil field. Following a 2017 bid
round, we increased our operated leases in the country
with two new operated blocks and one new non-
operated block.
Shell has been in Nigeria for more than 50 years and the
country remains an important part of our deep-water
portfolio, with clear growth potential. The Shell-operated
Bonga field was Nigeria’s first deep-water development in
depths of more than 1,000 metres; it began production in
2005 and has produced more than 600 million barrels of
oil. We brought the Bonga North West deep-water tie-
back on stream in 2014. In 2015, we increased
production after completing the third phase of infill drilling
from the Bonga Main field.
With a 125-year history in Malaysia, Shell pioneered the
oil and gas industry in the country and fuelled its growth.
Offshore Malaysia, Shell operates five producing oil
fields, including the Gumusut-Kakap deep-water field
where production began in 2014. Malikai, Shell’s second
deep-water project in Malaysia, features the country’s
first tension-leg platform and began production in
December 2016.

1 The forward-looking breakeven price for pre-FID projects is calculated based on all forward-looking costs associated with pre-FID projects in our development
portfolio. Accordingly, this typically excludes exploration and appraisal costs, lease bonuses, exploration seismic and exploration-team overhead costs. The
forward-looking breakeven price for pre-FID projects is calculated based on our estimate of resources volumes that are currently classified as 2C under the Society
of Petroleum Engineers’ Resource Classification System. As these pre-FID projects are expected to be multi-decade producing projects, the less than $30 per
barrel projection will not be reflected either in earnings or cash flow in the next five years.

30 UPSTREAM SHELL INVESTORS’ HANDBOOK 2013-2017

Shales We have substantial acreage positions in basins in
North America and Argentina, and have shifted focus
Americas shales
to accelerate select liquids development in the Permian
Basin in the USA and Fox Creek (Duvernay) in Canada.
We continue to improve our cost effectiveness, drilling
times and well quality, resulting in reduced economic Western
Canada Gas Western Canada LRS
break-even points in geological sweet spots. We are on Fox Creek
track to create a significant, sustainable growth
business for Shell from around 2020. Appalachia

Shell’s North America shales acreage centres on liquids- Permian Haynesville

rich shales in the Delaware Permian Basin in West Texas
and the Duvernay and Montney plays in Alberta, Argentina
Canada. Key holdings of natural gas resources include Dry gas
positions in the Marcellus and Utica shales in Liquids rich
Pennsylvania, Haynesville in Louisiana, and a strong
shales footprint in Western Canada. We also hold a
position in liquids-rich shale in the Vaca Muerta of
Argentina, which we intend to grow.

Conventional In conventional exploration, we are executing a

strategy focused on both short-term value through
In 2017, we made a notable discovery from the Whale
deep-water well in the US Gulf of Mexico, potentially one of

exploration established ventures and mid-term growth by

expanding our heartlands with selective investments in
emerging basins and limited frontier positions.
Since the BG combination, we have sustained our focus on
cost reduction, continued to build stronger portfolio positions,
and reduced our planned spend in exploration to around $2
billion for 2018. Our investments are balanced between:
▪ exploration near our existing assets, which can be
brought on stream and start to generate value quickly;
▪ testing new geological concepts and finding new oil
and gas resources within our existing heartlands; and
▪ focusing on areas where hydrocarbons have been
discovered by us or others without yet becoming major
producing regions, making them less risky propositions
with a higher chance of success than true frontier
positions.
our largest exploration finds there in the past decade. The well
encountered more than 427 metres of oil-bearing pay. Whale
is operated by Shell (60%). It was discovered in the Alaminos
Canyon Block 772, adjacent to the Shell-operated Silvertip
field and approximately 16 kilometres from the Shell-operated
Perdido platform. Evaluation of the discovery is ongoing, and
the first appraisal well to further delineate the discovery has
been completed. In addition, we made a further 12
discoveries close to our existing assets across our
global portfolio.
In 2017, we restocked our Conventional Oil and Gas
portfolio by adding exploration acreage in Brazil, Egypt,
Malaysia, Mexico, Norway, the UK and the US Gulf
of Mexico.

Conventional exploration and appraisal wells

Norway Russia

Albania
Algeria
USA Egypt
Oman
Myanmar
Trinidad
&Tobago
Nigeria Brunei
Malaysia

Bolivia

2018 Targets

Heartlands
Frontier

SHELL INVESTORS’ HANDBOOK 2013-2017 UPSTREAM 31

In Focus: The map below shows projects that we are working to take final investment decisions on over the next five years.
Today, these projects look attractive and are expected to help to deliver growth well into the middle part of the next

Upstream pre-FID decade. As you can see from the map, we have significant opportunities across all our themes, with the potential to
add around 700 thousand boe/d at peak production (Shell share).
options
Pre-FID option map

Jackdaw KGK expansion Ph1 Kashagan CC01

■ 40 kboe/d ■ 40 kboe/d ■ 100 kboe/d
■ Shell 74% ■ Shell 29% ■ Shell 17%
Pierce Ormen Lange Late
Clair South Depressurisation Troll Ph3 Life Recovery Pearls Khazar Kalamkas
■ 60 kboe/d ■ 25 kboe/d ■ 255 kboe/d ■ 60 kboe/d ■ 40 kboe/d ■ 55 kboe/d
■ Shell 28% ■ Shell 92.52% ■ Shell 8.1% ■ Shell 18% ■ Shell 55% ■ Shell 17%

North America
shales options
Val D’Agri Ph2
■ 65 kboe/d
Marjoram/
■ Shell 39%
Rosmari
Vito ■ 60 kboe/d
■ 100 kboe/d ■ Shell 75%
■ Shell 63.11%
PDO
enhanced Jerun
recovery & ■ 95 kboe/d

waterflood ■ Shell 30%

Libra 2 projects
■ ~180 kboe/d ■ 50 kboe/d
■ Shell 20% ■ Shell 34%

Libra 3+4
■ TBD
Bonga main
■ Shell 20%
life extension HI development Assa North
■ 90 kboe/d ■ 75 kboe/d ■ 60 kboe/d
■ Shell 55% ■ Shell 40% ■ Shell 30%

Argentina Bonga South West Gbaran Ph3 Uzu development

shales options ■ 175 kboe/d ■ 50 kboe/d ■ 45 kboe/d
■ Shell 42.95% ■ Shell 30% ■ Shell 30%

32 UPSTREAM SHELL INVESTORS’ HANDBOOK 2013-2017

Europe DENMARK
We have a non-operating interest in a producing
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.
In December 2017, the FID for the Tyra redevelopment
project was taken to ensure continued production from
Denmark’s largest gas field.
IRELAND
In July 2017, we agreed to sell our 45% interest in the
Corrib gas project. The transaction is expected to be
completed in the second quarter of 2018.
ITALY
We have a 39.23% interest in the Val d’Agri producing
concession, operated by ENI.
We also have a 25% interest in the Tempa Rossa
concession operated by Total. The Tempa Rossa field is
under development and first oil is expected in 2018.
NETHERLANDS
Shell and ExxonMobil are 50:50 shareholders in
Nederlandse Aardolie Maatschappij B.V. (NAM). An
important part of NAM’s gas production comes from the
onshore Groningen gas field, in which EBN, a Dutch
government entity, has a 40% interest and NAM a
60% interest.
Production from the Groningen field induces earthquakes
that cause damage to houses and other structures in the
region leading to complaints from the local community.
NAM is working with the Dutch government and
stakeholders to fulfil its commitments to the residents of the
area, including the payment of all earthquake related cost.
In addition, since 2013, the Dutch Minister of Economic
Affairs and Climate Policy (the Minister) has set an annual
production level for the Groningen field taking into
account all interests, including that of the safety of the
residents, the security of supply of the domestic gas market
and the supply commitments to offtakers in European
Union member states. Production is capped at 21.6 billion
cubic metres for the current gas year ending
September 2018.
In January 2018, an earthquake occurred that triggered
the need for additional measures. The Dutch Mining
Regulator has advised the Minister to further reduce the
annual production from the Groningen field to a level of
approximately 12 billion cubic metres. Before the end of
September 2018, the Minister will take a decision on the
production level for the next gas year based on all
interests at stake. The level for the gas year ending
September 2019 is expected to be lower than the
current level.
Apart from production reductions, a variety of measures
have been taken by NAM, the Minister and the
government, including an in-depth study and measuring
programme (both sub-surface and above surface), the
issuance of specific building regulations and the
establishment of a damage claims handling process under
government supervision.
The Dutch government and the shareholders in NAM are
in discussions regarding the future of their cooperation in
production from the Groningen field.
NAM also has a 60% interest in the Schoonebeek oil
field, and operates a significant number of other onshore
gas fields and offshore gas fields in the North Sea.
NORWAY
We are a partner in 38 production licences on the
Norwegian continental shelf. We are the operator in 17
of these, of which four are producing: the Draugen oil
field (Shell interest 44.6%), the Gaupe field (Shell interest
60%), the Knarr field (Shell interest 45%), and the Ormen
Lange gas field (Shell interest 17.8%). We have interests
in the producing fields Troll, Gjøa, Kvitebjørn, Sindre and
Valemon, where we are not the operator.
Nyhamna plant in Norway, where gas from the Ormen Lange field
is processed.
UK
We operate a significant number of our interests on the UK
continental shelf on behalf of a 50:50 joint arrangement
with ExxonMobil. In addition to our oil and gas production
from North Sea fields, we have various interests in the
Atlantic Margin area where we are not the operator,
principally in the West of Shetland area (Clair, Shell
interest approximately 28%, and Schiehallion, Shell
interest approximately 45%).
In November 2017, we sold our interests in the UK North
Sea assets Buzzard, Beryl, Bressay, Elgin-Franklin, J-
Area, Everest, Lomond and Erskine fields and the Greater
Armada cluster, as well as a 10% interest in Schiehallion.
In January 2018, we announced the FID for the
redevelopment of the Penguins oil and gas field (Shell
interest 50%) in the UK North Sea. Discovered in 1974,
the field was first developed in 2002. The decision
authorises the construction of an FPSO, the first new
manned installation for Shell in the northern North Sea in
almost 30 years. The FPSO is expected to have a peak
production (100%) of around 45 thousand boe/d. The
field is in 165 metres of water, approximately 240
kilometres north east of the Shetland Islands.
REST OF EUROPE
We also have interests in Albania, Bulgaria, Cyprus,
Germany and Greenland.
SHELL INVESTORS’ HANDBOOK 2013-2017 UPSTREAM 33
Asia (including BRUNEI
Shell and the Brunei government are 50:50 shareholders
Middle East) in Brunei Shell Petroleum Company Sendirian Berhad
(BSP). BSP has long-term oil and gas concession rights
onshore and offshore Brunei, and sells most of its gas
production to Brunei LNG Sendirian Berhad (See
“Integrated Gas” on page 18), with the remainder
(approximately 13%) sold in the domestic market.
In April 2017, BSP and the government of Brunei
announced exploration success in the Lumut area, with the
Layang-Layang well discovery.
In addition to our interest in BSP, we are the operator of
the Block A concession (Shell interest 53.9%), which is
under exploration and development, and the operator of
exploration Block Q (Shell interest 50%). We have a 35%
non-operating interest in the Block B concession, where
gas and condensate are produced from the Maharaja
Lela field.
We also have non-operating interests in deep-water
exploration Block CA-2 (Shell interest 12.5%) and in
exploration Block N (Shell interest 50%), both under PSCs.
IRAN
Shell transactions with Iran are disclosed separately. See
RDS Form 20-F for the year ended December 31, 2017.
IRAQ
In 2017, we had a 20% interest in the development and
production services contract for the West Qurna 1 field,
which is operated by ExxonMobil. In March 2018, Shell
agreed and completed the sale of its stake in the West
Qurna 1 oil field to a subsidiary of Itochu Corporation.
We also have a 44% interest in the Basrah Gas
Company, which gathers, treats and processes associated
gas produced from the Rumaila, West Qurna 1 and
Zubair fields that was previously being flared. The
processed gas and associated products, such as
condensate and LPG, are sold mainly to the domestic
market and surplus condensate and LPG are exported. In
2017, Basrah Gas processed on average around 700
million scf/d of associated gas into dry gas, condensate
and LPG.
We have a 45% interest in the Majnoon oil field that we
operate under a development and production services
contract. In September 2017, the Iraqi government and
Shell announced that we will exit the Majnoon
development and production services contract and hand
over the operations to the Iraqi government or its nominee.
KAZAKHSTAN
We are the joint operator of the onshore Karachaganak
oil and condensate field (Shell interest 29.25%), where
we have a licence to the end of 2037. Karachaganak
produced around 393 thousand boe/d, on a 100%
basis, in 2017.
We have a 16.8% interest in the North Caspian Sea
Production Sharing Agreement which covers, among
others, the Kashagan field in the Kazakh sector of the
Caspian Sea. The North Caspian Operating Company is
the operator. This shallow-water field covers an area of
approximately 3,400 square kilometres. Phase 1
development of the field is expected to lead to plateau oil
production capacity of about 370 thousand barrels per
day (b/d) by 2019, on a 100% basis, with the possibility
of increases with additional phases of development.
Production started in 2016.
34 UPSTREAM SHELL INVESTORS’ HANDBOOK 2013-2017
We also have an interest of 55% in the Pearls PSC in the
Kazakh sector of the Caspian Sea. It includes two oil
discoveries, Auezov and Khazar. The Pearls PSC acreage
decreased from around 900 square kilometres to around
520 in 2017, due to relinquishment of the Naryn and
Tulpar licences, which were no longer deemed
economically viable.
We also have a 7.43% interest in Caspian Pipeline
Consortium, which owns and operates an oil pipeline
running from the Caspian Sea to the Black Sea across
parts of Kazakhstan and Russia.
MALAYSIA
We explore for and produce oil and gas offshore Sabah
and Sarawak under 17 PSCs, in which our interests range
from 20% to 75%. This includes the SK319 PSC which
expired at the end of 2017 and for which we have
applied for an extension of the exploration period.
Offshore Sabah, we operate five producing oil fields
(Shell interests ranging from 29% to 50%). These include
the Gumusut-Kakap deep-water field (Shell interest 29%),
where production takes place via a dedicated floating
production system, and the Malikai deep-water field (Shell
interest 35%). We also have a 21% interest in the Siakap
North-Petai deep-water field and a 30% interest in the
Kebabangan field, both operated by third parties.
The Gumusut-Kakap field was the first deep-water opportunity for
Shell in Malaysia.
In 2017, we acquired a 25.1% non-operating interest in
Block N.
In 2016, we agreed to sell our 50% interest in the 2011
North Sabah EOR Production Sharing Contract. This
transaction is expected to complete in the first quarter
of 2018.
Offshore Sarawak, we are the operator of 12 producing
gas fields (Shell interests ranging from 37.5% to 50%). The
M3S field (Shell interest 70%) has reached the end of its
life and will be abandoned. Nearly all of the gas
produced offshore Sarawak is supplied to Malaysia LNG
in Bintulu and to our gas-to-liquids plant in Bintulu. See
“Integrated Gas” on page 21.
We also have a 40% interest in the 2011 Baram Delta
EOR PSC and a 50% interest in Block SK-307.
Additionally, we have interests in four exploration and
development PSCs: SK318, SK319, SK320 and SK408.
OMAN
We have a 34% interest in Petroleum Development Oman
(PDO); the Omani government has a 60% interest. PDO is
the operator of more than 160 oil fields, mainly located in
central and southern Oman, over an area of 85,823
square kilometres. The concession expires in 2044.
We also have a 17% interest in the Mukhaizna oil field.
 UNITED ARAB EMIRATES
In Abu Dhabi, we have a 15% interest in the licence of
ADNOC Gas Processing (previously named Abu Dhabi
Gas Industries Limited, or GASCO), which expires in
2028. ADNOC Gas Processing exports propane, butane
and heavier-liquid hydrocarbons, which it extracts from the
Africa EGYPT
We have a 50% interest in the Badr Petroleum Company
(BAPETCO), a self-operated joint venture between Shell
and the Egyptian General Petroleum Corporation (EGPC).
BAPETCO onshore operations are in the Western Desert
where we have an interest in nine oil and gas producing
development leases, as well as four exploration
concessions (North East Obaiyed, North Matrouh, North
East Alam El Shawish and North Umbaraka).
We have interests in two gas-producing areas offshore the
Nile Delta. We have a 40% interest in the Rashid
Petroleum Company, a self-operated joint venture between
Shell, EGPC and Edison, which operates the Rosetta
concession (Shell interest 80%).
We also have a 25% interest in the Burullus Gas
Company (Burullus), a self-operated joint venture between
Shell, EGPC and PETRONAS. Burullus operates the West
Delta Deep Marine concession (Shell interest 50%), which
supplies gas to both the domestic market and an Egyptian
LNG plant (see “Integrated Gas” on page 18).
We also have a 60% interest in the development rights
over the Harmattan Deep discovery and in the Notus
discovery offshore the Nile Delta.
GABON
In October 2017, we sold our interests in eight onshore
mining concessions and related infrastructure. We
continue to hold 75% interests in Shell-operated Gabon
deep-water exploration licences.
NIGERIA
Our share of production, onshore and offshore, in Nigeria
was 266 thousand boe/d in 2017, compared with 258
thousand boe/d in 2016. Security issues, sabotage and
crude oil theft in the Niger Delta continued to be
significant challenges in 2017.
ONSHORE
The Shell Petroleum Development Company of Nigeria
Limited (SPDC) is the operator of a joint arrangement (Shell
interest 30%) that has 17 Niger Delta onshore oil mining
leases (OML), which expire in 2019; the renewal
application process has started. Of the Nigeria onshore
proved reserves, 89 million boe are expected to be
produced before the expiry of the current licences, and
450 million boe beyond. To provide funding, modified
carry agreements and alternative funding arrangements
are in place for certain key projects and are being
successfully implemented.
In 2017, we announced first production at Phase 2 of the
Gbaran-Ubie integrated oil and gas development (Shell
interest 30%) in the Niger Delta region. Expected peak
production is around 175 thousand boe/d.
wet gas associated with the oil produced by ADNOC
Onshore (previously named Abu Dhabi Company for
Onshore Oil Operations, or ADCO).
REST OF ASIA
We also have interests in Jordan, Kuwait, Mongolia,
Myanmar, State of Palestine, the Philippines and Turkey.
SPDC supplies gas to Nigeria LNG Ltd (see “Integrated
Gas” on page 18) mainly through its Gbaran-Ubie and
Soku projects.
OFFSHORE
Our main offshore deep-water activities are carried out by
Shell Nigeria Exploration and Production Company
Limited (SNEPCO, Shell interest 100%), which has
interests in four deep-water blocks, under PSC terms, in
which production is via two FPSOs – Bonga and Erha.
SNEPCO operates OMLs 118 (including the Bonga field
FPSO, Shell interest 55%) and 135 (Bolia and Doro, Shell
interest 55%) and has a 43.75% non-operating interest in
OML 133 (including the Erha FPSO) and a 50% non-
operating interest in oil prospecting licence (OPL) 245
(Zabazaba, Etan).
Authorities in various countries are investigating our
investment in Nigerian oil block OPL 245 and the 2011
settlement of litigation pertaining to that block. See RDS
Form 20-F for the year ended December 31, 2017.
SNEPCO also has an approximate 43% interest in the
Bonga South West/Aparo development via its 55%
interest in OML 118. Following the decision to delay the
Bonga South West/Aparo project, a reframing exercise is
under way to make this project economically viable in the
current business environment. FID is not expected
before 2019.
SPDC also has three shallow-water licences (OMLs 74,
77, and 79) and a 40% interest in the non-Shell-operated
Sunlink joint venture that has one shallow-water licence
(OML 144); all four OMLs expire in 2034.
In our Nigerian operations, we face various risks and
adverse conditions which could have a material adverse
effect on our operational performance, earnings, cash
flows and financial condition. There are limitations to the
extent to which we can mitigate these risks. We carry out
regular portfolio assessments to remain a competitive
player in Nigeria for the long term. We support the
Nigerian government’s efforts to improve the efficiency,
functionality and domestic benefits of Nigeria’s oil and
gas industry, and we monitor legislative developments.
We monitor the security situation and liaise with host
communities, governmental and non-governmental
organisations to help promote peace and safe operations.
We continue to provide transparency of spills
management and reporting, along with our deployment of
oil-spill response capability and technology. We execute a
maintenance strategy to support sustainable equipment
reliability, and have implemented a multi-year programme
to reduce routine flaring of associated gas. See RDS Form
20-F for the year ended December 31, 2017.
REST OF AFRICA
We also have interests in Algeria, Kenya, Namibia, South
Africa, Tanzania and Tunisia.
SHELL INVESTORS’ HANDBOOK 2013-2017 UPSTREAM 35
North America CANADA
We have about 1,500 mineral leases in Canada, mainly
in Alberta and British Columbia. We produce and market
natural gas, natural gas liquids, synthetic crude oil and
bitumen. In addition, we have significant exploration
acreage offshore.
SHALES
We have around 1,200 mineral leases with more than
2.6 million net mineral acres. Our position is primarily in
the Duvernay play in Alberta and the Montney play in
British Columbia. Activity includes drill-to-fill of our existing
infrastructure and an investment focus on our liquid-rich
shale acreage. As part of our Shales focus, we sold all of
our in-situ assets in May 2017. Our share of shales
production averaged 129 thousand boe/d in 2017.
In 2017, we drilled 86 wells. We have interests in 882
productive wells. We operate four natural gas processing
and sulphur-extraction plants in Alberta and four natural
gas processing plants in British Columbia.
BITUMEN AND SYNTHETIC CRUDE OIL
Synthetic crude oil is produced by mining bitumen-
saturated sands, extracting the bitumen from the sands and
transporting it to a processing facility where hydrogen is
added to produce a wide range of feedstocks for
refineries. In May 2017, we sold all of our in-situ and
undeveloped oil sands interests and sold our share in the
Athabasca Oil Sands Project (AOSP). Separately, we
acquired a 50% interest in Marathon Oil Canada
Corporation, which holds a 20% interest in the AOSP, and
we continue to operate the upgrader.
CARBON CAPTURE AND STORAGE
As part of AOSP, we operate the Quest CCS project,
which captured and safely stored more than 1 million
tonnes of carbon dioxide (CO2) in 2017.
OFFSHORE
We have a 31.3% interest in the Sable Offshore Energy
project, a natural-gas complex off the east coast of
Canada, and other acreages in deep-water offshore
Nova Scotia and Newfoundland. We have relinquished
all licences for the Shelburne exploration project offshore
Nova Scotia. We have a number of exploration licences
off the west coast of British Columbia and in the
Mackenzie Delta in the Northwest Territories.
USA
We have nearly 32,000 mineral leases in the USA. We
produce oil and gas in deep water in the Gulf of Mexico,
heavy oil in California and oil and gas from shale in
Pennsylvania, Texas and Louisiana. The majority of our oil
and gas production interests are acquired under leases
granted by the owner of the minerals underlying the
relevant acreage, including many leases for federal
onshore and offshore tracts. Such leases usually run on an
initial fixed term that is automatically extended by the
establishment of production for as long as production
continues, subject to compliance with the terms of the
lease (including, in the case of federal leases, extensive
regulations imposed by federal law).
36 UPSTREAM SHELL INVESTORS’ HANDBOOK 2013-2017
The central processing facility for our Permian asset in West Texas,
USA. The facility separates the oil from associated gas, water
and sand.
GULF OF MEXICO
The Gulf of Mexico is our major production area in the
USA and accounts for around 57% of our oil and gas
production in North America. We have an interest in
around 180 federal offshore production leases and our
share of production averaged 247 thousand boe/d
in 2017.
In January 2018, we announced one of our largest US
Gulf of Mexico exploration finds in the past decade from
the Whale deep-water well. Whale is operated by Shell
(60%) and co-owned by Chevron U.S.A. Inc. (40%). It
was discovered in the Alaminos Canyon Block 772,
adjacent to the Shell-operated Silvertip field and
approximately 16 kilometres from the Shell-operated
Perdido platform. Evaluation of the discovery is ongoing.
We are the operator of eight production hubs – Mars A,
Mars B, Auger, Perdido, Ursa, Enchilada/Salsa, Ram
Powell and Stones – as well as the West Delta 143
Processing Facilities (Shell interests ranging from 38% to
100%). We also have non-operating interests in Nakika
(Shell interest 50%) and Caesar Tonga (Shell interest
22.5%). Our operated interest in Coulomb (100%) is tied
into Nakika.
We continue with development of the Appomattox project,
with first oil expected in 2019. In 2018, we completed
the purchase of the Turritella FPSO for the Stones deep-
water development. The FPSO has a daily production
capacity of approximately 60 thousand barrels of oil and
15 million standard cubic feet of natural gas.
Kaikias is a subsea tie-back to the Shell-operated Ursa
platform. In 2016, Shell began the drilling campaign for
Kaikias Phase 1 (Shell interest 80%). In February 2017,
Shell fully sanctioned Phase 1 of the Kaikias deep-water
project and Phase 2 was approved in April 2017. Phase
1 will include three wells and Phase 2 will add an
additional well, which collectively will be system
constrained at the peak production of approximately 40
thousand boe/d. First oil is expected in June 2018 for
both Kaikias Phase 1 and Phase 2.
SHALES
We have approximately 30,000 mineral leases with
nearly 1.5 million net mineral acres. Our activity is
focused in the Permian Basin in West Texas and the
Marcellus and Utica plays in Pennsylvania. We also have
a non-Shell-operated interest in the Haynesville shale gas
formation in Northern Louisiana.
In 2017, we drilled 153 wells. We have interests in more
than 2,300 productive wells and operate four central
processing facilities. The USA represents nearly 70% of
 our shales proved reserves and 88% of our shales liquids
proved reserves. Our share of shales production averaged
137 thousand boe/d in 2017.
CALIFORNIA
We have a 51.8% interest in Aera Energy LLC, which
operates around 15,000 wells in the San Joaquin Valley
in California, mostly producing heavy oil and
associated gas.
ALASKA
In 2017, we relinquished our last remaining federal lease
in the Chukchi Sea and have no further plans for frontier
exploration offshore Alaska. With the exception of two
South America ARGENTINA
SHALES
We have more than 260,000 net mineral acres in the
Vaca Muerta basin, a liquids and gas-rich play located in
the Neuquén Province. We have interests in 29 productive
wells. We drilled 10 wells in 2017 in our core operated
acreage. We have 90% ownership in our operated
Sierras Blancas / Cruz de Lorena central
processing facility.
BRAZIL
We operate several producing fields in the Campos
Basin, offshore Brazil. They consist of the Bijupirá and
Salema fields (Shell interest 80%) and the BC-10 field
(Shell interest 50%).
In the Santos Basin, we have a 30% interest in the BM-S-9
concession, that operates in the Sapinhoa and Lapa fields,
as well as 25% interests in the BM-S-11 concession that
operates in the Lula, Iracema, Berbigão, Sururu and Atapú
West fields. The Lula, Sapinhoa, Berbigão, Sururu and
Atapú West field accumulations are subject to unitisation
agreements. Within these fields we have 10 producing
FPSOs, of which the tenth (P66) reached first oil in 2017
and is expected to ramp-up to full production capacity in
2018. Four further FPSOs are expected to be brought
online and ramped up over the period 2018-2020 (Lula
North, Lula Extreme South, Berbigão and Atapú). A 15th
FPSO has been sanctioned, potential options for its
deployment are being matured and discussed with
the operator.
We have further development and exploration leases in
the Santos Basin within the Libra (Shell interest 20%) and
Gato-do-Mato BM-S-54 (Shell interest 80%) fields and
have a further 20% non-Shell-operated interest in the
remaining positions in the long-established North Slope
area, we have exited all other leases. We retain a non-
operating interest in 13 federal leases, operated by ENI,
which was increased from 40% to 50% at zero cost. An
exploratory drilling operation for this joint venture was
permitted by ENI and is under way. We continue to
evaluate our 18 state leases at nearby Western Harrison
Bay, which have geologic affinity with recent discoveries
announced by other North Slope operators.
REST OF NORTH AMERICA
We also have interests in Honduras and Mexico.
Sagitario BM-S-50 offshore exploration block, also in the
Santos Basin. In 2017, together with our partners, we
announced the start of production testing at the Libra field
FPSO. A contract was signed to charter the first production
FPSO, which is expected to have a capacity of 180
thousand boe/d and production is scheduled to start
in 2021.
FPSO Fluminense, off the coast of Brazil.
We operate 10 offshore exploration blocks in the
Barreirinhas Basin (Shell interests ranging from 50% to
100%). Together with our partners, we won three 35-year
production-sharing contracts for pre-salt blocks located in
the Santos Basin. Two blocks are adjacent to the Gato do
Mato field (Shell interest 80% as operator) and the non-
Shell-operated Sapinhoá field (Shell interest 30%), where
Shell is already present, and the third is Alto Cabo Frio
West (Shell interest 55% as operator).
REST OF SOUTH AMERICA
We also have interests in Colombia and Uruguay.
SHELL INVESTORS’ HANDBOOK 2013-2017 UPSTREAM 37
In Focus: Upstream works relentlessly to operate assets more
safely, reliably and cost effectively, to make the
We also focus on optimising production through
improved well, reservoir and facility management.

Fit for the future
business more competitive, resilient and fit for
the future.
Low oil prices and our acquisition of BG have been
significant catalysts for change in our business. In
response, we developed a continuous improvement
programme called ‘Fit for the future’.
The programme has helped reduce upstream operating
expenses by more than 20% since 2015, while the
combined Shell and BG upstream businesses increased
production by 20%.
UNLEASHING POTENTIAL
The programme challenges every Shell organisation to
define its maximum potential and develop relentless
improvement plans to approach that potential. In weekly
meetings, teams rigorously review improvement initiatives
and achievements, focusing on areas where progress has
fallen short of expectations.
MORE THAN 7,000 INITIATIVES
Since we started the programme, more than 7,000
improvement initiatives have been or are being actioned.
Increases in production can also be achieved by
reducing the impact of planned maintenance. For
example, by increasing the intervals between planned
maintenance shutdowns, we have already saved about
$200 million (gross) in costs and gained
around 20 million barrels of production, without
impacting asset integrity. This is a sustainable and
structural change that significantly reduces safety risks,
costs and production losses – now and in the future.
Interventions made in 2017 have the potential to unlock
up to 74 thousand boe/d (Shell share before royalties)
by the end of 2018, for an investment of around
$60 million.
Other than operational excellence, we also work on
making our new projects more resilient. We have
fundamentally changed the way we conceptualise and
execute projects; break-even price has now priority over
engineering achievements or maximising net present
value. Also see P&T in Focus on page 51.
WHY REINVENT WHEN YOU CAN
REPLICATE?
We focus on the competitive scope of our designs,
effective execution, and leveraging our supply chains.
We standardise our platform designs so they can be
replicated. By doing so, we expect to develop our
SK408 project in Malaysia for 30% less cost than what is
now best in class in the industry.
By simplifying the concept for our Vito project in the Gulf
of Mexico, we reduced the cost by around 70%
compared to what we initially estimated.
By opting for a modular construction of a tight-oil
processing plant in Canada, we have kept the project
five months ahead of schedule while keeping costs
around 30% below those for competitors' plants.
Our work to reduce costs, improve operational efficiency
and upgrade our portfolio is starting to show in our
financial results.

38 UPSTREAM SHELL INVESTORS’ HANDBOOK 2013-2017

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, biofuels,
aviation fuel, marine fuel, lubricants,
bitumen and sulphur. In addition, we
produce and sell petrochemicals for
industrial use worldwide.
OIL PRODUCTS
Cash engine
IN THIS CHAPTER
39 Downstream overview
41 Oil Products
46 Chemicals
47 In Focus: Shell V-Power™ bolsters Marketing earnings growth
Downstream
overview
KEY MILESTONES
We continued to high-grade our portfolio in 2017, and
we continue to look for the right opportunities to grow our
Downstream business.
In September 2017, we opened our first Mexican retail
service station on the outskirts of Mexico City. Assuming
market conditions continue to develop at their current rate,
we plan to open more sites in Mexico over the next
few years.
We also continued to divest selected assets and restructure
parts of our portfolio. In 2017 this included:
▪ In the USA, the separation of assets, liabilities and
businesses of the Motiva Enterprises LLC (Motiva) joint
venture took place, in which Shell held a 50% interest
(Motiva transaction). Shell assumed sole ownership of
the Norco and Convent refineries in Louisiana, 11
distribution terminals and Shell-branded markets in
Alabama, Mississippi, Tennessee, Louisiana, a portion
of the Florida panhandle, and the north-eastern region
of the USA, and received cash in return which was
reported in Divestments. This transaction, completed in
early 2017, impacts Shell’s ongoing reporting and
therefore the comparison with 2016. With effect from
May 2017, Shell reports revenue and costs from assets
which were previously part of the Motiva joint venture,
instead of reporting a share of joint venture profit.
▪ In the USA, we issued 10.46 million new common units
in Shell Midstream Partners, L.P., bringing the total
common units issued and outstanding to
187.78 million.
CHEMICALS
Growth priority
▪ In Saudi Arabia, we sold our 50% share in the SADAF
petrochemicals joint venture located in Al Jubail. The
joint venture encompassed six petrochemical plants with
a total output of more than 4 million tonnes per year.
The sale marked an early termination of the joint venture
agreement which was due to expire in 2020. Shell’s
other activities in the country are not impacted.
▪ We completed the sale of our 20% interest in Vivo
Energy to Vitol Africa B.V. (Vitol). As part of the
transaction, a long-term brand licence agreement was
renewed with Vitol to ensure that the Shell brand will
remain visible in more than 16 countries across Africa.
▪ In Australia, we sold our aviation business.
▪ In Hong Kong and Macau, we completed the first
phase of the sale of our LPG businesses to DCC Energy.
The previously agreed sale of A/S Dansk Shell, which
included the Fredericia refinery and local trading and
supply activities in Denmark, was cancelled.
SHELL INVESTORS’ HANDBOOK 2013-2017 DOWNSTREAM 39
 Downstream – key statistics
2017 2016 2015 2014 2013
CCS earnings ($ million), of which: 8,258 6,588 10,243 3,411 3,869
Oil Products 5,576 4,940 8,654 1,994 2,026
Chemicals 2,682 1,648 1,589 1,417 1,843
CCS earnings excluding identified items ($ million) 9,082 7,243 9,748 6,265 4,466
Cash flow from operating activities ($ million) 12,429 3,556 14,076 11,292 7,903
Oil Products sales volumes (thousand b/d) 6,599 6,483 6,432 6,365 6,164
Chemicals sales volumes (thousand tonnes) 18,239 17,292 17,148 17,008 17,386
Refinery processing intake (thousand b/d) 2,572 2,701 2,805 2,903 2,915
Refinery availability (%) 91 90 90 93 94
Chemical plant availability (%) 92 90 85 85 92
Capital investment ($ million) 6,416 6,057 5,119 5,910 5,528
Capital employed ($ million) 56,431 52,672 46,280 48,925 64,507
Employees (thousands) 40 40 43 47 48

Downstream CCS earnings and ROACE [A] Downstream capital investment

$ billion % $ billion

10 20 6

5 10 3
b
c

a a
0 0 0
2013 2014 2015 2016 2017 2013 2014 2015 2016 2017

a Marketing c Chemicals a Asset integrity

b Refining & trading ROACE (right axis) b Growth

[A] Earnings and ROACE on CCS basis, excluding identified items

40 DOWNSTREAM SHELL INVESTORS’ HANDBOOK 2013-2017

Oil Products REFINING AND TRADING
REFINING
We have interests in 21 refineries worldwide. They have
the capacity to process a total of around 2.9 million
barrels of crude oil a day (Shell share) into a wide range
of products, including gasoline, diesel, heating oil,
aviation fuel, marine fuel, lubricants, LPG, sulphur and
bitumen. Approximately 36% of our refining capacity is in
Europe and Africa, with 40% in the Americas and 24% in
Asia and Oceania.
Efficiency improvements have contributed to a reduction in
greenhouse gas emissions from our refineries and
petrochemicals plants. Achieving even greater efficiency
and operational reliability will also help us improve
profitability. The average availability of our refineries, a
measure of their operational performance, was some 91%
in 2017, an improvement over 2016.
In May 2017, we separated the assets, liabilities and
businesses of Motiva. Upon completion of the transaction,
Shell assumed sole ownership of the Norco and Convent
refineries in Louisiana, 11 distribution terminals and Shell-
branded markets in various regions of the USA. Saudi
Refining Inc. assumed full ownership of the Motiva
Enterprises LLC name and legal entity, including the
refinery at Port Arthur, Texas and 24 distribution terminals.
Motiva retains the right to exclusively sell Shell-branded
gasoline and diesel in other regions in the USA.
In 2018, Shell and Dansk Olieselskab ApS determined
the conditions had not been met for the sale of A/S Dansk
Shell, which includes the Fredericia refinery and local
trading and supply activities. Shell stopped the overall A/
S Dansk Shell divestment process, and will not actively
market the business for the foreseeable future.
TRADING AND SUPPLY
Shell Trading and Supply is one of the largest energy
trading operations in the world. This global organisation
combines our network of trading companies, industry-
leading shipping and maritime capabilities, and an
Refining and Trading
Fully integrated and highly dynamic global system
OPTIMISING CRUDE SAFELY OPERATING MAKING PRODUCTS
AND FEEDSTOCK REFINERIES THE WORLD NEEDS
EACH DAY SHELL REFINERIES MANUFACTURE ENOUGH
PHYSICALLY TRADES MORE THAN
GASOLINE
8 MILLION TO FUEL
BARRELS PER DAY
OF CRUDE OIL WORLDWIDE, WE OPERATE
2.1 MILLION CARS
14 REFINERIES
AVIATION FUEL FOR
IN
8 DIFFERENT
COUNTRIES
WITH A REFINING CAPACITY OF
2.9 MILLION BARRELS*
150+ OIL TANKERS
ON TIME CHARTER;
2700+ SPOT CHARTER
VOYAGES IN 2017
*Includes Shell equity share in other interests
integrated network of supply and distribution activities to
act as the central nervous system for Royal Dutch Shell.
Our trading capability, deep market knowledge, global
portfolio and end-to-end integration within Shell effectively
creates opportunities to deliver value for our customers and
for Shell across our Upstream, Downstream and Integrated
Gas businesses.
Through our main trading offices in London, Houston,
Singapore, Dubai and Rotterdam, we trade crude oil,
natural gas, LNG, electricity, refined products, chemical
feedstocks and environmental products. We have the
experience and international scope to capitalise on
trading opportunities inherent in Shell’s asset and market
positions around the world to deliver sustained and
growing cash returns.
Operating in around 25 countries, with more than 125
Shell and joint venture terminals, we believe our supply
and distribution infrastructure is well positioned to make
deliveries around the world. This includes supplying
feedstocks for our refineries and chemical plants and
finished products such as gasoline, diesel and aviation
fuel to our Marketing businesses and customers.
Our shipping and maritime business has a high level of
expertise and decades of experience. It is responsible for
ensuring that all of our global maritime activities are safely
managed, including a fleet of around 40 LNG carriers
and 10 oil tankers. In addition, we have more than 240
oil and LNG vessels on time charter. There are around
2,000 vessels associated with Shell on the water on any
given day, including the ships, barges, drilling rigs, supply
boats, FPSOs, floating storage and regasification units,
single buoy moorings, and the related operations that take
place in ports and terminals.
DELIVERING WHAT
CUSTOMERS NEED
PHYSICALLY DELIVERS MORE THAN
DIESEL
TO FILL UP
650,000
COMMERCIAL TRUCKS
6 MILLION BARRELS
OF REFINED PRODUCTS PER DAY
TO THIRD PARTY CUSTOMERS AND
SHELL'S MARKETING BUSINESSES
WITH MORE THAN
125
SHELL AND JV
DISTRIBUTION
335 COMMERCIAL AIRPLANES TERMINALS
IN AROUND
25 COUNTRIES
MARINE FUEL FOR AND 100s OF OUTSIDE SUPPLY POINTS
WE DELIVER GLOBALLY, INCLUDING
250 LARGE TO THE MAJORITY OF THE
CONTAINER SHIPS
44,000
SHELL RETAIL STATIONS
SHELL INVESTORS’ HANDBOOK 2013-2017 DOWNSTREAM 41
 MARKETING retail sales. In some markets, such as Switzerland and
Marketing includes retail, business to business (B2B), Eastern Europe, there are more non-fuels transactions than
lubricants, biofuels as well as pipelines. Our products are fuel at every moment of the day.
marketed around the world for domestic, industrial and
transport use and include gasoline, diesel, biofuel, heating Our experience in fuel development, gained over more
oil, aviation fuel, marine fuel, lubricants, bitumen than 100 years, underpins our position today as a
and sulphur. leading provider of innovative fuels. Differentiated fuels
with unique formulations designed to improve performance
RETAIL are available in more than 60 countries under the Shell V-
Our global retail business deploys a range of operating Power brand. We are the leading supplier of premium
platforms. In our invested operating platforms, Shell owns fuels among the international oil companies. In 2009, we
the assets and manages the revenues. Assets and revenues launched the Shell FuelSave range, now available in more
of non-invested platforms are owned and managed by the than 30 countries. Shell is committed to developing world-
dealer, wholesaler or licensee. These models enable our class fuels for our customers and, in 2017, we launched a
business to optimise performance, depending on the new generation of Shell fuels designed for greater
country we are operating in. efficiency. Our new DYNAFLEX Technology has been
developed to help clean and protect key components of
our customers’ engines. We are also one of the largest
Global brand preference
blenders and distributors of biofuels in the world.
%
25 As engines, vehicles and transport systems continue to
a evolve we change with them. Our goal is to deliver the
20
energy our customers require today and in the decades
15 ahead. We have a close innovation partnership with
Scuderia Ferrari. Our fuel has helped the Ferrari motor
10 b racing team to achieve 10 Formula One World
Constructors’ and 12 World Championship Drivers’ titles.
5
This partnership enables our scientists and engineers to
0 develop cutting-edge fuel technologies for the racetrack
2013 2014 2015 2016 2017 that can be used to make better road fuels for
a Shell
our customers.
b Other Oil Majors
People are at the heart of the Shell culture. We pride
ourselves on having more than 500,000 front-line service
Our branded fuel retail network is the world’s largest, with champions who are confident, empowered and proud to
more than 44,000 branded service stations in more than represent the Shell brand. We have one of the largest
70 countries. We serve around 30 million customers global employee-recognition programmes, in which the
every day and sell 200 billion litres of fuel each year, as best front-line service champions from across the world are
well as making around $6 billion in annual convenience invited to an annual event where the best service
champion is crowned.

Retail business footprint

THE WORLD’S LARGEST

MOBILITY RETAILER

500K
44K+SHELL BRANDED SITES
FRONT-LINE SERVICE CHAMPIONS
70+ COUNTRIES

Around the world

30 MILLION +
customers served daily SHELL FUEL CARDS USED

2 million
times daily
APPROXIMATELY

200 BILLION
LITRES OF FUEL
52 million

close to

450
$6
SHELL LOYALTY CLUB
BILLION 250
350
350
CONVENIENCE MILLION
MILLION MILLION
MILLION
RETAIL SALES

CUPS OF COFFEE COLD BEVERAGES UNITS OF SNACKS

42 DOWNSTREAM SHELL INVESTORS’ HANDBOOK 2013-2017

Retail is investing in enhanced digital experiences for our
customers, with digital screens available at pumps in the
UK, the Netherlands, Malaysia, Oman and Thailand. The
Shell digital experience also gives customers access to fast
and flexible mobile payments, a Shell station locator map
and connected-car technology. We are also testing a
number of innovative digital pilots including ‘Deli2Order’,
which enables motorists to get refreshments delivered to
their car while filling up, and Shell TapUp – an app-based
fuel delivery service in the Netherlands.
We are working closely with a number of technology
partners and car manufacturers to allow customers to do
more from inside their car, including paying for fuel. In
February 2017, we announced that Jaguar and Land
Rover drivers in the UK can use their car’s touchscreen to
pay for fuel via the Shell app. From December 2017,
drivers of cars made by General Motors can find Shell
SHELL INVESTORS’ HANDBOOK 2013-2017 DOWNSTREAM
stations, earn savings with our Fuel Rewards® programme
and find amenities on their new in-car e-commerce
platform, called ‘Marketplace’. In January 2018, in
collaboration with IBM, we trialed fast-checkout
technology that scans the entire contents of a shopper’s
basket instantly. This makes it 16 times faster than a
traditional self-checkout.
The Shell app is available in 36 markets and the Shell
station locator is available in 40 markets.
Fleet Solutions is an important part of the Shell Retail
business, with two million daily customers using Shell
cards at more than 200,000 roadside locations
worldwide. We also have around 52 million contactable
loyalty customers.
43
 GLOBAL COMMERCIAL Petroleum Institute. In 2017, Shell launched similar
We sell fuels and speciality products and services to a formulations for its other global markets under the Shell
broad range of commercial customers. Rimula brand.

Shell is active across the full value chain in lubricants. We
manufacture and buy a number of base oil grades and
blend them with additives at Shell-owned or joint venture
blending plants, creating a range of branded products with
different specifications. We then market, sell and distribute
those products, either ourselves or via partners, in more than
100 countries. We have around 1,200 accredited
distributors, in locations that make sense for our customers.
We sell to both individual consumers and to business
customers. Shell also owns Jiffy Lube® franchised service
centres in North America.
We offer market-leading brands for a broad range of
applications, including passenger car motor oils, heavy-duty
engine oils, process oils, hydraulic fluids, industrial engine
oils and greases.
Since 2014, we have launched a number of new premium
products made from natural gas – Pennzoil Platinum in North
America, Shell Helix Ultra outside of North America, and
Shell Advance Ultra. They contain Shell PurePlus Technology,
a patented process which converts natural gas into a clear
base oil, the main component of motor oils. These premium
products offer better lubrication compared to base oils made
from crude oil. They help to extend engine life, reduce
maintenance costs and oil consumption, maintain fuel
economy and improve engine cleanliness.
Today, the Ferrari Formula One, BMW Motorsport D™ and
Hyundai Motorsport World Rally Championship teams all
use Shell Helix Ultra with PurePlus Technology. The Ducati
MotoGP team uses Shell Advance Ultra with
PurePlus Technology.
In 2016, we launched the Shell Rotella range of heavy-duty
engine oils, an industry-first offering of oils compatible with
the latest specifications prescribed by the American
Shell Lubricants has been recognised as the global market
leader for the 11th consecutive year, reflecting our long-
standing leadership in the industry. This accolade was
confirmed in the recently published Kline & Company’s 15th
Global Lubricants Industry: Market Analysis and Assessment:
2016-2026 report. The report covers the sector in 2016.
Shell Aviation has a presence at about 850 airports in
around 30 countries and refuels an aircraft every 14
seconds, on average.
Our marine business supplies around 90 grades of
lubricants and nine types of fuels, as well as dedicated
technical services for marine vessels powered by diesel,
steam-turbine and gas-turbine engines.
Shell Bitumen is a leading international marketer of bitumen,
with over 1,600 customers across 30 countries, and
supplies enough bitumen to resurface 450 kilometres of road
lanes every day. We have also developed innovative
bitumen products that can be mixed and laid at lower
temperatures than conventional asphalt, which helps reduce
energy use and CO2 emissions. In 2015, Shell Bitumen
was recognised by the International Road Federation for its
odour-neutralising product Shell Bitufresh.
Shell Sulphur Solutions is a dedicated business which
manages the complete value chain of sulphur, from refining
to marketing. The business provides sulphur for industries
such as mining and textiles and also develops products
which incorporate sulphur, such as fertilisers. In 2016, we
licensed our Shell Thiogro technology to Office Chérifiendes
des Phosphates (OCP), one of the world’s largest fertiliser
producers, to produce premium sulphur-enhanced fertilisers
at their production facility in Jorf Lasfar, Morocco.

Global Commercial

MORE THAN 4 40 LUBRICANT

PLANTS 5 BASE OIL
PLANTS 10 GREASE
PLANTS

1 million
DIRECT AND INDIRECT
GLOBAL RESEARCH
AND TECHNOLOGY
CENTRES
CUSTOMERS IN 200 SCIENTISTS

150 COUNTRIES

AVIATION MARINE LUBRICANTS BITUMEN SULPHUR

PRESENT AT AROUND DELIVERS MARINE

1 9 CARS LARGEST INTERNATIONAL

5TH
IN

850
LUBRICANTS TO OVER MARKETER OF BITUMEN

10,000 1 10
AND

AIRPORTS IN
~30 COUNTRIES VESSELS
IN 450 KM LARGEST GLOBAL PRODUCER

TRUCKS OR
#1
OF ROAD PAVED EVERY DAY,
WORLDWIDE VIA EQUIVALENT OF

700 PORTS VANS

4x
REFUELING AN IN
AIRCRAFT EVERY IN ARE PROTECTED BY
SHELL LUBRICANTS
15 COUNTRIES
14 SECONDS 59 COUNTRIES WORLDWIDE AROUND THE WORLD/YEAR

44 DOWNSTREAM SHELL INVESTORS’ HANDBOOK 2013-2017

BIOFUELS
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 one of the world’s 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.
In 2011, Shell and Cosan launched the Raízen biofuels
joint venture (Shell interest 50%) in Brazil to produce
ethanol, sugar and electricity, as well as supply, distribute
and sell transport fuels. With a production capacity of
more than 2 billion litres a year of ethanol from sugar
cane, Raízen is one of the world’s largest sugar-cane
ethanol producers. The deal marked our first move into the
mass production of biofuels. In 2015, Raízen opened a
second-generation biofuels plant, which uses technology
from our earlier programmes with Iogen Energy. In 2017,
the plant produced almost 10 million litres of cellulosic
ethanol from sugar-cane residues. It is expected to
produce 40 million litres a year once fully operational.
We continue to invest in the research and development of
new ways to produce biofuels from sustainable feedstocks,
such as waste and cellulosic biomass from non-food
plants. In 2017, we completed construction of a
demonstration plant at Shell Technology Centre Bangalore,
India. This plant will demonstrate a technology called IH2
that turns waste into transport fuel.
PIPELINES
Shell Pipeline Company LP operates seven tank farms
across the USA and transports more than 1.5 billion
barrels of crude oil and refined products annually through
about 6,000 kilometres of pipelines in the Gulf of Mexico
and five US states. Our various non-operated ownership
interests add about 13,000 pipeline kilometres to our
portfolio, unlocking multiple interfaces to share best
practices with other pipeline operators.
We carry more than 40 kinds of crude oil and more than
20 grades of gasoline, as well as diesel fuel, aviation
fuel, chemicals, and ethylene.
Shell Midstream Partners is a fee-based, growth-oriented
master limited partnership formed by Royal Dutch Shell to
own, operate, develop and acquire pipelines and other
midstream assets. Shell Midstream Partners L.P. is listed on
the New York Stock Exchange under the ticker symbol
“SHLX”. Shell Midstream Partners' assets consist of
pipelines, oil storage and terminal systems that serve as
key infrastructure to transport and store onshore and
offshore crude oil production to Gulf Coast and Midwest
refining markets and to deliver refined products from Gulf
Coast markets to major demand centres. Shell controls the
general partner.

Shell Midstream Partners portfolio

Anacortes
Seattle

LOUISIANA MISSISSIPPI
Portland Baton Rouge

Norco/
Convent St. Charles
St. James
Lake Alliance
Charles Erath MP 69P Des Plaines
Houma
Clovelly
Lockport
Caillou
Island

SMI 205A

GULF OF MEXICO

Permian Basin
Gas Gathering

Colex

TERMINALS & GATHERING &

OFFSHORE ONSHORE
STORAGE PROCESSING

■ Auger ■ Na Kika ■ Bengal ■ LOCAP ■ Anacortes ■ Lockport ■ PermianBasin

■ Cleopatra ■ Odyssey ■ Colonial ■ Refinery ■ Colex ■ Portland Gas Gathering
■ Endymion ■ Poseidon ■ Delta Gas Pipelines ■ Des Plaines ■ Seattle

■ Mars ■ Proteus ■ Explorer ■ Zydeco

Updated: January 2018

SHELL INVESTORS’ HANDBOOK 2013-2017 DOWNSTREAM 45

Chemicals We have more than 80 years of experience in the
chemicals industry and produce and supply 18 mtpa of
chemicals to about 1,000 large industrial customers
worldwide. Our plants produce a range of base and
intermediate chemicals. We have the capacity to produce
about 6 mtpa of ethylene.
Our products are used to make numerous everyday items,
from clothing and cars to detergents and bicycle helmets.
Over many decades, we have developed proprietary
technologies, processes and catalysts that enable us to
compete strongly in our core petrochemical markets. For
example, Shell Chemicals has launched Shell GTL fluids
and solvents, which are high-purity paraffinic fluids and
solvents made from GTL products manufactured at our
Pearl facility in Qatar. We are the first company to offer a
range of natural gas-based fluids and solvents to the
chemicals industry worldwide.
We will continue to focus on increasing synergies
between our petrochemical plants, refineries, Integrated
Gas and Upstream businesses to increase supplies of the
best available feedstock to our facilities.
Chemicals is a growth priority for Shell. Petrochemicals is
the fastest-growing hydrocarbon demand sector, with
annual growth of 3.7% over the last 10 years, and we
expect this to continue. Shell’s Chemicals strategy focuses
on activities with a clear competitive advantage. We
optimise returns from using different feedstocks, invest in
our existing first-class footprint, and continue to focus on
enhancing our customer relationships and service. With a
competitive edge in chemical feedstocks, underpinned by
a strong product portfolio and proprietary Shell
technology, the business is entering a new period
of growth.
Our Chemicals strategy is based on investment at existing
sites to increase capacity, improve efficiency and
integration, and to strengthen our feedstock sources.
Securing new integrated growth projects and developing
technologies to convert gas into chemicals are also critical
strategy components.
46 DOWNSTREAM SHELL INVESTORS’ HANDBOOK 2013-2017
The Shell Rheinland Refinery, Germany.
In November 2017, we announced the start of the main
construction phase of our major petrochemicals complex in
Pennsylvania, USA. The site will have a 1.6-mtpa
polyethylene capacity, using ethane from the lowest-cost
shale gas basin in North America to produce polyethylene
at scale. Commercial production is expected to begin
early in the next decade.
We are making good progress on the main construction of
our fourth linear alpha olefins (AO) unit at the chemicals
manufacturing site in Geismar, Louisiana, the USA. We
are on track to begin commercial production in the second
half of 2018. The 425,000-tonne-per-year capacity
increase will make Shell’s Geismar site the largest AO
producer in the world.
In China, Shell and China National Offshore Oil
Corporation’s expansion project is progressing well
towards start-up in the first half of 2018. The project
includes the construction of a new ethylene cracker and
ethylene derivatives units, which are expected to increase
ethylene capacity by more than 1 mtpa when completed.
In January 2017, we agreed to sell our 50% interest in the
SADAF petrochemicals joint venture with SABIC in Saudi
Arabia. In 2016, the joint venture’s production was
around 4 million tonnes. The transaction was completed in
August 2017.
We will continue to focus on selective and prudent
investments with a competitive advantage to ensure
profitable growth in the future.
In Focus: Harnessing the strength of the energy sector’s leading
brand, Shell has the most successful Marketing

Shell V-Power™ business in the industry. Differentiated, premium fuels

have been a key ingredient in the recipe for success.
bolsters Marketing Twenty years ago, Shell V-Power™ changed the belief
earnings growth that all fuels are the same. We established a new
category of fuel. Shell V-Power™ has continued to grow
in popularity ever since and we plan to grow our
premium fuel category further.

The Shell V-Power™ story begins in the technological

melting pot of Formula 1. Demand for greater power and
fuel efficiency from Shell’s innovation partner, Scuderia
Ferrari, led to the development of a racing fuel that has
99% the same types of compounds as the Shell V-
Power™ unleaded fuels customers can buy on
Shell forecourts.
V-Power fuel station in Bangkok.
Our innovation partnership with Scuderia Ferrari and
other world-class brands, including Ducati Motors, also
provide the opportunity to create powerful joint marketing
and promotional campaigns.

We estimate that Shell V-Power™ is now the best-selling
premium fuel in the world1, delivering high performance
for our customers and attractive margins. It sets us apart
from the competition and has strong impact on our
bottom line.
The UK fuel market provides a relevant case study.
Despite the launch of differentiated fuels by traditional
competitors BP and Esso – and some of the larger
hypermarket chains – Shell’s share of the premium fuels
market remains at close to 60%.

In 2017, about 20% of our branded fuel sales volumes In key growth markets where we are expanding our Retail
were Shell V-Power™. networks, Shell V-Power™ is the fuel of choice for a
growing number of motorists. In Indonesia, for example,
we are already seeing more than 30% penetration of our
V-Power™ penetration: branded sales total fuel sales which exceeds our global average.
% market share
30 Shell V-Power™ is a key driver of our profitability in
marketing and intimately links our brand to technology
and innovation. We are confident this success story
20 will continue.

10

0
2013 2015 2017 2020E

1 Shell estimate based on number of markets selling Shell V Power™ and extrapolated from public data where available

SHELL INVESTORS’ HANDBOOK 2013-2017 DOWNSTREAM 47

Projects & Technology Projects &
Technology
Shell’s Projects & Technology (P&T) overview
organisation manages the delivery of
major oil and gas projects and The realisation of Shell’s business strategy depends on
these capabilities:
develops and deploys technology to ▪ planning, designing, engineering and constructing oil
increase value for Shell. It also and gas projects — including the drilling of wells — so
that they return the most value per dollar invested;
manages global contracts with ▪ developing nascent technologies into value-generating
propositions through internal and external research &
suppliers and provides technical development (R&D) programmes; and
▪ maintaining the operational performance of assets at a
services that keep Shell’s Integrated high level.

Gas, Upstream and Downstream P&T manages these capabilities for Shell. In addition, it
provides the functional leadership for Shell’s global
assets operating not only safely but contracting and procurement programme and for its global
safety commitment, helping to ensure that Shell’s operations
also efficiently—in both economic remain competitive and do not harm people or
the environment.

and environmental terms.

Project delivery

P&T is responsible for delivering capital projects. These

can involve oil and gas fields, transnational pipelines,
crude-oil refineries, natural-gas liquefaction trains or
petrochemical plants. Some projects entail constructing
entirely new facilities, some involve expansions of existing
facilities, and some may require outdated facilities to be
decommissioned and dismantled. But in every case, we
constantly seek opportunities to improve efficiency and
reduce costs no matter the scale or scope of the project.
(See In Focus on page 51)

These efforts, which have been intensified in recent years

because of the challenging market conditions, are paying
off. Compared to a few years ago, we can create more
value for every dollar spent. As at the end of 2017, we
have delivered ca. $10 billion in capital-efficiency
savings, contributing to a 35% reduction in Shell’s average
unit field-development cost (UDC) over the same period.
We are working to further reduce the UDC over the next
few years.
IN THIS CHAPTER
48 Projects & Technology overview
48 Project delivery
49 Asset support
49 Technology commercialisation
50 Contracting and procurement
50 Safety and environment
51 In Focus: P&T’s improvement programme in deep water

The Nanhai chemical plant, China.

48 PROJECTS & TECHNOLOGY SHELL INVESTORS’ HANDBOOK 2013-2017

Asset support Once a project is up and running, the nature of the work
around it changes. The day-to-day responsibilities associated
with the project pass from P&T to one of Shell’s main
businesses: Integrated Gas, Upstream or Downstream. Still,
P&T can remain involved. About 15% of all work done by
P&T relates to asset support aimed at upholding operational
excellence. P&T seeks to deliver these services in an
integrated, productive and cost-effective way.
Technology P&T develops and deploys technology to increase the value
or reduce the cost of Shell’s energy projects, or otherwise
commercialisation enhance the performance and profitability of Shell’s own
and its customers’ businesses. To this end, P&T operates a
global network of technology centres, with major hubs in
Houston in the USA, Amsterdam in the Netherlands and
Bangalore in India. Thousands of people across the network
work on various R&D projects that seek, for example, to turn
natural gas into cleaner and more energy-saving fuels, to
unlock oil from rock layers thousands of metres below the
sea surface, and to reduce Shell’s net carbon footprint.
Overall, R&D spending in 2017 amounted to
$922 million.
The majority of our R&D focuses on the near term. It is
intended to help our existing businesses to reduce capital
and operating costs, and to enhance customer products and
services. This research also aims to reduce energy
consumption and, consequently, Shell’s carbon footprint. For
the long term, we seek to rapidly acquire deeper insights
into the science and engineering that underpins new energy
technologies that can help create a lower-carbon future.
Projects & Technology
PROJECT MANAGEMENT
COMPANY OF THE YEAR
ACCORDING TO THE ASSOCIATION FOR PROJECT MANAGEMENT
IMPROVING
$6
BILLION
CAPITAL IN CAPITAL
EFFICIENCY
EFFICIENCY
■ SUPPLY CHAIN
SAVINGS
■ COMPETITIVE SCOPING RELATIVE TO 2014
■ EFFICIENT EXECUTION
■ AFFORDABLE TECHNOLOGY
$
SHELL INVESTORS’ HANDBOOK 2013-2017 PROJECTS & TECHNOLOGY
Our R&D projects often involve collaborations with public or
private entities, including universities, government
laboratories, technology start-ups and incubators. We have
three programmes through which entrepreneurs can share
the rewards (and risks) of commercialising technology with
us. These span both short- and longer-term
technology developments.
SHELL GAMECHANGER
This programme provides financial and technical support to
prove the commercial and technical viability of ideas that
could transform the energy industry. It connects with early-
stage start-ups and new-business incubators around
the world.
SHELL TECHNOLOGY VENTURES
This is our corporate venturing arm. It invests in companies
that are developing promising technologies that complement
Shell’s businesses – mainly in oil and gas, new energies and
information technology.
SHELL TECHWORKS (STW)
Based in Cambridge, Massachusetts, STW aims to
accelerate the adoption of proven technologies from other
industries and apply these to the energy sector. Since its
founding in 2013, STW has collaborated with companies,
universities, research institutes and start-ups to help develop
and deploy technology quickly and cost-effectively.
35%
REDUCTION IN
AVERAGE UNIT
$922
FIELD-DEVELOPMENT
COST
RELATIVE TO 2014
MILLION
SPENT ON R&D IN 2017
49
Contracting and P&T manages the contracts with tens of thousands of
vendors through which more than $40 billion a year is

procurement spent on goods and services. One of the main aims of

P&T’s improvement programme has been to increase the
value derived from every dollar of third-party spend. To
that end, very competitive supply chains have been put
together. P&T intends to build on this progress with supply-
chain partners, introducing new methods of collaboration
based on greater trust and transparency.

Safety and Safety is central to the responsible delivery of energy. We

develop and operate our facilities with the aim of
We carefully consider the potential environmental impact
of our activities and how local communities might be

environment preventing any incidents that may harm our employees,

contract staff or nearby communities, or cause damage to
our assets or adversely impact the environment. We
manage safety risks across our businesses through clear
standards, controls and compliance systems combined
with a safety-focused culture. We focus on the three areas
of safety with the highest risks associated with our
activities: personal, process and transport.
We continue to strengthen the safety culture and safety
leadership among our employees and contract staff, with
the focus on caring for people. Our safety goal is to
achieve no harm and no leaks across all of our
operations. We refer to this as our Goal Zero ambition.
Process safety is about keeping hazardous substances
inside pipes, tanks and vessels so they do not cause any
harm to people or the environment. Our global standards
and operating procedures define the controls and physical
barriers we require to prevent incidents. We regularly
inspect, 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.
affected during the lifetime of our projects and operations.
We seek to comply with environmental regulations, to
continually improve our performance and to prepare to
respond to future challenges and opportunities.
While we continually work to minimise the likelihood of
incidents, some do occur. For example, in 2017, there
were fires at the Shell-operated Enchilada platform in the
US Gulf of Mexico and at our Bukom manufacturing site in
Singapore. Sadly, a contractor died in a road accident in
Canada and we had a fatality in Nigeria. Not reflected
in our safety indicators is a devastating road-tanker
incident that occurred in Pakistan in June 2017. More
information on our 2017 safety and environmental
performance can be found in Shell's Sustainability Report.
We investigate all incidents to understand the underlying
causes and seek to translate these into improvements in
standards or ways of working that can be applied broadly
across similar facilities in Shell.

50 PROJECTS & TECHNOLOGY SHELL INVESTORS’ HANDBOOK 2013-2017

In Focus: A chronology of four deep-water projects in the Gulf of Mexico illustrates the effect that P&T’s sweeping capital-
efficiency improvement programme has had since it was launched in 2015.
P&T’s
improvement STONES
▪ FID in 2013
programme in ▪ First oil in 2016
deep water ▪ Expected peak production of 50,000 boe/d
In 2015, when our drive for capital efficiency really got
rolling, this project was already under execution. Even so,
we were still able to make significant improvements to the
project. A leaner approach in well engineering and
execution, for example, reduced drilling times of deep
and complex wells from 150 to 60 days. The oil-price
drop provided the right backdrop to permanently
transform the nature of Shell’s relationship with the
suppliers involved.
APPOMATTOX
▪ FID in 2015
▪ First oil expected in 2018-2019
▪ Expected peak production of 175,000 boe/d
The Appomattox project was sanctioned after a rigorous
competitive scoping exercise; an exercise to critically
reassess the functional requirements of a project. To this
end, we systematically applied the accumulated
knowledge from the design and construction of our
previous floating production platforms, standardising
topside equipment and well designs wherever possible.
In doing so, we carefully balanced cost/value/risk trade-
offs in the project’s technical specifications. Our efforts to
enhance the project’s capital efficiency did not stop there.
After FID, costs were reduced by an additional ~25%
without compromising safety or quality. A significant part
of the follow-on improvement has come through further
competitive scoping, greater standardisation in well
design and more efficient execution through speedy well-
to-well learning.
SHELL INVESTORS’ HANDBOOK 2013-2017 PROJECTS & TECHNOLOGY
KAIKIAS
▪ FID in 2016
▪ First oil expected in 2018
▪ Expected peak production of 40,000 boe/d
For this project, P&T and the deep-water business took a
fully integrated approach in which innovative technology,
competitive scoping and efficient execution were all
brought to bear to achieve significant capital-efficiency
improvements. For example, exploration and appraisal
wells were adapted to serve as producing wells, and the
designs of newer production wells and subsea facilities
were simplified. These changes were matched with a
rigorous assessment of how the supply chain could also
contribute to the improvements. All these efforts combined
have delivered a 30% overall cost reduction since the
project was sanctioned. We expect this project’s cost and
schedule performance to set the best-in-class benchmark.
VITO
▪ Project progressing towards an FID expected in 2018
When new information on Vito’s underlying geology
came to light during the field-development planning, P&T
returned to the design phase to extract greater capital
efficiency from supply-chain collaboration, standardised
structural design and new, compact equipment. It drew
on the sustained improvements in performance it has
achieved since 2015 in design, engineering, drilling and
construction. The result is that the project’s wells and its
new concept for the subsea and topside facilities are
expected to cost 70% less than the initial estimates from
the original design.
51
Corporate segment Treasury

The Corporate segment covers the The holdings and treasury organisation manages many of
non-operating activities supporting the Corporate entities and is the point of contact between
Shell and the external capital markets. Its daily operations

Shell. It comprises our holdings and include liquidity and foreign exchange management,
advising and financing subsidiaries and joint ventures,
investing surplus funds and managing Shell’s bank
treasury organisation, our self- account infrastructure.

insurance activities and our The treasury organisation maintains Shell’s credit ratings
and debt platforms, issues short- and long-term capital-
headquarters and central functions. market instruments and executes the Royal Dutch Shell
dividend, scrip and share-buyback programmes.
All finance income and expense as
well as related taxes are included in Risk and insurance
the Corporate segment earnings,
rather than in the earnings of the We use robust methodologies and processes to assess,

business segments. mitigate and manage risk in order to drive down our total
cost. This includes the valuation of risk so that it can be
properly taken into account in decision-making. Risk and
Insurance also requires the causes of losses to be analysed
and understood so that losses can be reduced in the future.
To support this, our insurable risks are mainly aggregated
and retained within insurance subsidiaries, which means
that we self-insure most of our risk exposure.

The insurance subsidiaries form a key part of our approach

to risk management. They provide insurance coverage to
Shell entities, usually limited to Shell’s percentage interest in
the relevant entity. We seek to ensure that the capital held
to support the self-insurance obligations is at a level at least
equivalent to what would be held in the third-party
insurance market.

Headquarters and
central functions

Headquarters and central functions provide services to the

businesses (Upstream, Integrated Gas and Downstream) as
well as other functions. They also provide support for
Shell’s shareholder-related activities. The services they
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.

The majority of the headquarters and central function costs

are recovered from the business segments. Those costs that
For further information on the Corporate segment, please see the Annual Report and are not recovered are retained in Corporate.
Form 20-F for the year ended December 31, 2017.

52 CORPORATE SEGMENT SHELL INVESTORS’ HANDBOOK 2013-2017

Maps
Europe
NORTH-WEST EUROPE

"

ICELAND
NORWEGIAN SEA

"
" Draugen

Ormen Lange "

" Nyhamna

"
"
" Knarr NORWAY SWEDEN
Penguins ""

Clair
" Gjoa
Loyal "
"
"
"
" Kvitebjorn
" ""
" " " Mongstad
"
"
""" # Gasnor
"
"
Brent Troll Kollsnes
Schiehallion OSLO

" Snurrevarden

" Kingfisher

" Gaupe "

St. Fergus " Nelson """"""

NORTH "
" ""
ATLANTIC OCEAN Gannet A "
""
"" """""""" "" Pierce
Shearwater "
" "
"
"
"
Curlew """
"
"

Mossmorran ""
" DENMARK
Grangemouth Refinery "
"
" " BraefootBay "
Hound Point COPENHAGEN
"
" "" " Fredericia
"" """
"
""

Corrib "
NORTH SEA

G14
"
" Delfzijl-Terminal
K/L Blocks "
"
Emden
"
"" " Groningen
IRELAND DUBLIN ""
" " """
" """"
" "
"
" " " " Schwedt
"" ""
"""" ""
" """
"
"" "" """
""
""
" " " " "" "
" Stanlow " "
"""
" " """
""
"
"
""" "
" " ""
" ""
"
"
" ""
"
""""
""
"
""
"
"
"" "
"""
""
"
"
"" "
"
"""
""
"
""
"
"
"
"
"
"
"
"
"
"
"
"""
"" " """ "" POLAND
"""""
" " ""
"
"""""""
"
"
""
" "
""" " " " """"
" " "
" ""
" """ ""
"
""
" " ""
""" """" " "" "" BERLIN
Bacton " "" """" "" " "
"
" ""
"
""
" "" "" """
"
"
"
" "" "
""
" " """"
"""
"" " " ""
Leman "" "
"" ""
" ""
" "
"
""
" "
"""
""
"
"
"
"
" "
"
UNITED KINGDOM AMSTERDAM"""""
" ""

# NETHERLANDS Schoonebeek
GATE """"""""
# Dragon LNG ""
""
" """
"
"" """
" "
Pernis """
""""
"
"
"
""
" "
Moerdijk "" " "
"
LONDON
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 2017 frontier/heartlands discovery or appraisal success Concession licences

SHELL INVESTORS’ HANDBOOK 2013-2017  MAPS 53

GREENLAND ITALY

HUNGARY
SLOVENIA
Cascina Alberto CROATIA

BOSNIA AND
GREENLAND HERZEGOVINA
SEA SAN MARINO
FRANCE

Block 9 - Umimmak
ITALY ADRIATIC SEA

Block 14 - Nerleq
ROME

NAPLES
GREENLAND Gorgoglione
"""
Val D'Agri """""
TYRRHENIAN SEA Tempa Rossa

"

SCORESBYSUND IONIAN SEA

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

ALBANIA CYPRUS

TURKEY
NICOSIA
ALBANIA MACEDONIA

TIRANA CYPRUS

ADRIATIC SEA

Block 2

MEDITERRANEAN SEA
Block 3

ITALY

Cyprus
GREECE Aphrodite
Licence

IONIAN SEA

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 2017 frontier/heartlands discovery or appraisal success Concession licences

54 MAPS  SHELL INVESTORS’ HANDBOOK 2013-2017

Africa

EGYPT

West Delta
Deep Marine "
" "
" "
"
"""
"""""" "" "
" "
" " "
"
"
" "

"" North
" Rosetta Gamasa
MEDITERRANEAN SEA "
Northeast El Burg Offshore
"
Obaiyed
MATRUH # Egyptian LNG
PORT SAID
North ALEXANDRIA
Umbaraka "" "
North Matruh

Obaiyed TANTA

EGYPT
"
"
"
" " CAIRO SUEZ
" "" "
"
"
""" "" " ""
"" " ""
" ""
"""
" " ""
"" """""
"" "
" "
N.Alam
"" ""
""
"
El Shawish

EL-FAIYUM

0 25 50 75 100 km

ALGERIA AND TUNISIA GABON

LIBREVILLE
SÃO TOMÉ
AND PRÍNCIPE

MEDITERRANEAN SEA

PORT GENTIL LAMBARENE

ALGIERS TUNIS

GABON

Boughezoul

Ben Sahloul "" Hannibal

Trapsa " " Miskar
" Hasdrubal
Gabes LPG "
BC 9

ALGERIA TUNISIA
BCD 10

MAYUMBA

LIBYA
ATLANTIC OCEAN CONGO
Timissit

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

SHELL INVESTORS’ HANDBOOK 2013-2017  MAPS 55

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

ZIMBABWE
KENYA

WINDHOEK BOTSWANA MOMBASA

"
Block L10A
Block L10B

NAMIBIA

JOHANNESBURG

DAR ES SALAAM

TANZANIA INDIAN OCEAN

SOUTH AFRICA LESOTHO
PEL 39 DURBAN "
Durban Refinery
"
"
Block 4
"
"

"

"
"" Block 1
CAPE TOWN "
"

INDIAN OCEAN

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 2017 frontier/heartlands discovery or appraisal success Concession licences

56 MAPS  SHELL INVESTORS’ HANDBOOK 2013-2017

Asia

TURKEY AND BULGARIA KAZAKHSTAN

" Karachaganak

BULGARIA BLACK SEA

KAZAKHSTAN

BURGAS
1-14 Khan Kubrat

" Bolashak
ATYRAU
RUSSIA
AR/TPO 3920
Kashagan " " Kairan
ASTRAKHAN Aktote
Kashagan SW " "

" Kalamkas-more
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 "
"
"

AMMAN

"
JERUSALEM West Qurna
"
"
Gaza Marine Licence "
Central Oil Shale "
GAZA IRAQ IRAN
"

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

"
"" "
"

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

EGYPT

KUWAIT

THE GULF

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

SHELL INVESTORS’ HANDBOOK 2013-2017  MAPS 57

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

KHOLMSK
YUZHNO-SAKHALINSK

LNG Plant
Oil Export Terminal
SURGUT

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

# Sakhalin LNG

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

QATAR AND SAUDI ARABIA OMAN

QATAR

ABU DHABI
GULF OF OMAN
SUHAR

UNITED MUSCAT
ARAB EMIRATES OMAN
"
"" ""
" Al Jubail "" ""
""
""
" """
Oman LNG # SUR
" " " " Qalhat LNG
" " " ""
""""
" "
"" "
" " "
"" " "
"
"" " "
""
" "
" "" " "
" " " "
" " ""
"
"" "
"" "
SAUDI ARABIA "
" ""
"
""
Qatargas 3 & 4 "
"
"
"North, Central
"" " "
"
"
"
& South Oman
"""
BAHRAIN "
"" "
Pearl 1 & 2 "" "
"
" "" "
Pearl GTL Plant ## Qatargas LNG Plant
## """ "
" ""
" "" "
" "" " "" "
"" "
"
Mukhaizna
" """ " "
""
" " "" "
""
"
""""
" "
"" " " "" ""
"
" ""
""" "
"""""""
"" " """
" "" ""
""" """"
"""" ""
"
" ""
"""""
"
""""
" "" " ""
"" "" "
"
" " "" "
"
" "" "
"
"
"""" """
"" """"""
"""
""
"" ""
"
SAUDI ARABIA QATAR DOHA THE GULF """"
"
"" """ "
""
""
"
""
""
YEMEN ARABIAN SEA

RAYSUT

0 25 50 75 100 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 2017 frontier/heartlands discovery or appraisal success Concession licences

58 MAPS  SHELL INVESTORS’ HANDBOOK 2013-2017

CHINA JAPAN

BEIJING

CB207
YINCHUAN "
" Changbei

CHINA JAPAN
SHANGHAI
TOKYO
" Mizue (Toa)

" Yokkaichi

" Yamaguchi

TAIWAN
Nanhai "
HONG KONG
MYANMAR VIETNAM
(BURMA) PACIFIC OCEAN
LAOS SOUTH CHINA SEA

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

INDIA AND PAKISTAN MYANMAR AND THAILAND

MYANMAR

LAOS
NAYPYIDAW
PAKISTAN

" Karachi AD2 A4

BAY OF BENGAL

AD5 A7
INDIA THAILAND

BANGKOK

CAMBODIA

# Hazira
Blocks 7, 8, 9, 9A
"
Mid and South Tapti Field "

GULF OF THAILAND

Panna and Mukta Fields " "

"
ARABIAN SEA Mahanagar Gas " MUMBAI Bongkot """
"
" "
"
"
""
""
"

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

SHELL INVESTORS’ HANDBOOK 2013-2017  MAPS 59

SINGAPORE PHILIPPINES

MANILA

MALAYSIA

BATANGAS " Tabangao

"
Malampaya Gas Plant

SOUTH CHINA SEA PHILIPPINES

SINGAPORE

" Jurong Island SINGAPORE

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 "
" KBB " SULU SEA
"
"
"
" Cluster
Block N " Kebabangan
"
"
Block G
(Malikai)
Petai " " Block G KOTA KINABALU (JESSELTON)
Gumusut""" (Petai)
CA2
" Maharaja Lela"""
"
" SK318 "
"
"
"#LIF
"
"
"
"
""
""""
"
""" PHILIPPINES
"
" " " "
"
" " "
" """ SK320 "
"
"""
""
"
" "
"" "
"
" " BANDAR SERI BEGAWAN
" "" " " " " "" "
"" """"
""
" "
"
" "" "
"
"
""
"
" """ #
""
"
"" BLNG
"
"
" " " SK408 " "
""
"
"
" Brunei Shell Refinery
"" " " MIRI
SK319 "
"
"" BRUNEI
" "

"

ND6 ND7

Shell MDS # 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 2017 frontier/heartlands discovery or appraisal success Concession licences

60 MAPS  SHELL INVESTORS’ HANDBOOK 2013-2017

Oceania

WEST AUSTRALIA AND INDONESIA EAST AUSTRALIA

CORAL SEA

INDONESIA TOWNSVILLE
"
"
"

TIMOR SEA
MACKAY

DARWIN
Moranbah Gas Processing Facility " ""
""
""
"
"
"
" "
""
"
"
"
"""
" ""
Torosa " #
"
"" Prelude "

Calliance "" Brecknock ""

"""
"
" "
"
" " Queensland Curtis LNG
"" "
"""""
""
"""""
"" # GLADSTONE
""
""
""
"
AUSTRALIA
"
"
""
"""" """
DERBY """"
""
"" """"
""
""
"" "" "
""
"
"""""
"
BROOME ""
""
""
"""
""
"
"
""
"
""
"
"
"
"" ""
""""
""
"
""" """
"
"""""" ""
"
"""
" ""
"""
" " " "" ""
"""
""
" "" "" """
"" "" """""
""" " "" " """ "" ""
"
"" "
"""
"""
""
"
"
""
"""
"""
""
" " " "
""
"" ""
""
""""
" " """ "
" """ " BRISBANE
"" """
" "
" #NWS LNG AUSTRALIA """"
""""
"
""" "
"
"
""
# DAMPIER " " "
"
Gorgon LNG

EXMOUTH Western Australia Queensland

South
Australia New South Wales

INDIAN
CARNARVON
OCEAN

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

NEW ZEALAND

AUCKLAND

NEW PLYMOUTH " "" Pohokura

TASMAN SEA "
""
"

WELLINGTON

NEW ZEALAND

CHRISTCHURCH

DUNEDIN

Great South Basin

PACIFIC OCEAN

0 100 200 300 400 km

SHELL INVESTORS’ HANDBOOK 2013-2017  MAPS 61

North America

ALASKA, YUKON AND NORTHWEST TERRITORIES NOVA SCOTIA

BEAUFORT SEA

BARROW
West
Harrison Bay
Nova Scotia
Mackenzie
Delta HALIFAX

INUVIK
UNITED STATES
OF AMERICA CANADA
Sable Island
Alaska Yukon Northwest Territories

Central ATLANTIC OCEAN

Mackenzie Valley

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

ALBERTA, BRITISH COLUMBIA AND NORTH-WEST USA

FORT ST. JOHN " "

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

GRANDE PRAIRIE
" "
" ""

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

"
CANADA "
""

Scotford "
British Columbia Alberta EDMONTON Saskatchewan

"
"
"" "
" "
""
"
" """
"
""
" "
""
" an Are
a
" Klapp

"
" DA
CA NA

VANCOUVER " Shellburn Distribution "

""
""" ITE D
STA
TES

" " UN

"
" " " CALGARY
"
"
n
Saskatchewa

" Puget Sound

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

"

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 2017 frontier/heartlands discovery or appraisal success Concession licences
Oil sands

62 MAPS  SHELL INVESTORS’ HANDBOOK 2013-2017

SOUTH-WEST USA AND MEXICO NORTH-EAST USA AND CANADA

Idaho CANADA UNITED STATES OF AMERICA

Wyoming Nebraska " Sarnia Refinery
New York

BINGHAMTON
""""""""
"
""
"
"" "
""
" "
""" "
"
" "" "
Tioga
" "
"
Nevada Utah Colorado Kansas "
" Bradford
" Martinez Marcellus
UNITED STATES New
OF AMERICA Jersey
Ohio PITTSBURGH Pennsylvania
Okla-
homa
California Arizona New Mexico
Maryland
LOS ANGELES

West Virginia Delaware

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

Kentucky Virginia
PACIFIC MEXICO
OCEAN Chittim ATLANTIC
Ranch OCEAN

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

SOUTH USA AND GULF OF MEXICO

SHREVEPORT

Haynesville
Texas Louisiana Mississippi Alabama

UNITED STATES Mobile "

OF AMERICA MOBILE Florida

BATON ROUGE

" Geismar
# " Convent
Lake Charles NEW IBERIA Norco " NEW ORLEANS

HOUSTON " Deer Park

HOUMA

" Ram-Powell
"

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

GULF OF MEXICO
Silvertip
Tobago "" Stones
Great White
Perdido ""
" "" Whale

0 50 100 150 200 km

SHELL INVESTORS’ HANDBOOK 2013-2017  MAPS 63

MEXICO
"
""

4 3
7
6

MEXICO " Altamira GULF OF MEXICO

20 21 23

28
MEXICO CITY

Area 15

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 2017 frontier/heartlands discovery or appraisal success Concession licences

64 MAPS  SHELL INVESTORS’ HANDBOOK 2013-2017

South America

COLOMBIA AND TRINIDAD AND TOBAGO NORTH BRAZIL

NORTH
ATLANTIC OCEAN

CARIBBEAN SEA

TRINIDAD
"
AND
Sin Off 7 ""
" " " TOBAGO
BARRANQUILLA
PORT OF SPAIN
Atlantic LNG # "
" ""
"
"
Starfish 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 BOLIVIA BRAZIL

LA PAZ BC-10
" ""
BRAZIL "

Huacaya
Huacareta
Margarita La Vertiente
Campo Itau Los Suris
Palo Marcado
CHILE Acambuco I & II PARAGUAY """ Bijupirá-Salema
RIO DE JANEIRO

PACIFIC
""
OCEAN

Berbigão "
" Mero
ARGENTINA URUGUAY
""
" Atapú West
BUENOS AIRES " ""
"
Sururu
Buenos Aires Refinery Iracema
"
Lapa " ""
""
Lula
"
"
La Escalonada Aguila Mora "
" Sapinhoá
Rincón la Ceniza ""
" Cruz de Lorena Blocks 8, 9,13
Bajada de Añelo "
"
" Coirón Amargo Sur Oeste

Sierras Blancas SOUTH

SOUTH ATLANTIC OCEAN
ATLANTIC OCEAN

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

SHELL INVESTORS’ HANDBOOK 2013-2017  MAPS 65

Employee data
Average number of employees by country Thousands
2017 2016 2015 2014 2013
Europe
France [A] [A] 1 1 1
Germany 5 4 5 5 5
Netherlands 8 9 9 9 8
Norway 1 1 1 1 1
Poland 3 3 2 2 2
UK 5 6 5 6 6
Other [B] 2 2 2 1 2
Total Europe 24 25 25 25 25
Asia
China 2 2 3 4 4
India 7 5 4 3 3
Iraq 1 1 1 [A] [A]
Kazakhstan 1 1 – – –
Malaysia 5 6 7 7 6
Philippines 4 4 4 4 4
Qatar 1 1 1 1 1
Russia 1 1 1 1 1
Singapore 3 3 3 3 3
Thailand 1 1 – – –
Turkey 1 1 1 1 1
United Arab Emirates 1 1 1 1 1
Other [B] 1 1 3 3 3
Total Asia 29 28 29 28 27
Oceania
Australia 2 2 1 2 2
New Zealand [A] [A] [A] [A] 1
Total Oceania 2 2 1 2 3
Africa
Gabon 1 1 1 1 1
Nigeria 1 1 1 1 1
South Africa 1 1 1 1 1
Other [B] [A] 1 [A] [A] [A]
Total Africa 3 4 3 3 3
North America
Canada 5 8 9 9 9
USA 19 21 22 22 22
Other [B] [A] [A] [A] 1 [A]
Total North America 24 29 31 32 31
South America
Argentina 3 2 2 2 2
Brazil 1 1 1 1 1
Other [B] [A] 1 1 1 [A]
Total South America 4 4 4 4 3
Total 86 92 93 94 92
[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 2013-2017

Average number of employees by segment Thousands
2017 2016 2015 2014 2013
Integrated Gas 11 13 13 11 10
Upstream 18 22 22 22 21
Downstream 40 40 43 47 48
Corporate [A] 17 17 15 14 13
Total 86 92 93 94 92
[A] Includes all employees working in business services centres irrespective of the segment they support.

Employee expense $ million

2017 2016[A] 2015 2014 2013
Remuneration 10,855 11,985 12,558 13,092 12,047
Social security contributions 844 867 830 944 907
Retirement benefits 1,815 2,181 2,984 1,516 2,849
Share-based compensation 802 693 750 804 572
Total 14,316 15,726 17,122 16,356 16,375
[A] In addition, there were redundancy costs of $1,441 million.

SHELL INVESTORS’ HANDBOOK 2013-2017 EMPLOYEE DATA 67

Financial data
Financial statements information

Consolidated statement of income $ million

2017 2016 2015 2014 2013
Revenue 305,179 233,591 264,960 421,105 451,235
Share of profit of joint ventures and associates 4,225 3,545 3,527 6,116 7,275
Interest and other income 2,466 2,897 3,669 4,123 1,089
Total revenue and other income 311,870 240,033 272,156 431,344 459,599
Purchases 223,447 162,574 194,644 327,278 353,199
Production and manufacturing expenses 26,652 28,434 28,095 30,038 28,386
Selling, distribution and administrative expenses 10,509 12,101 11,956 13,965 14,675
Research and development 922 1,014 1,093 1,222 1,318
Exploration 1,945 2,108 5,719 4,224 5,278
Depreciation, depletion and amortisation 26,223 24,993 26,714 24,499 21,509
Interest expense 4,042 3,203 1,888 1,804 1,642
Total expenditure 293,740 234,427 270,109 403,030 426,007
Income before taxation 18,130 5,606 2,047 28,314 33,592
Taxation charge/(credit) 4,695 829 (153) 13,584 17,066
Income for the period 13,435 4,777 2,200 14,730 16,526
Income/(loss) attributable to non-controlling interest 458 202 261 (144) 155
Income attributable to Royal Dutch Shell plc shareholders 12,977 4,575 1,939 14,874 16,371

Reconciliation of CCS earnings to income for the period $ million

2017 2016 2015 2014 2013
Earnings on a current cost of supplies basis (CCS earnings) 12,471 3,692 4,155 19,096 16,879
Attributable to non-controlling interest (390) (159) (313) (55) (134)
Earnings on a current cost of supplies basis attributable to
Royal Dutch Shell plc shareholders 12,081 3,533 3,842 19,041 16,745
Current cost of supplies adjustment 964 1,085 (1,955) (4,366) (353)
Non-controlling interest (68) (43) 52 199 (21)
Income attributable to Royal Dutch Shell plc shareholders 12,977 4,575 1,939 14,874 16,371
Non-controlling interest 458 202 261 (144) 155
Income for the period 13,435 4,777 2,200 14,730 16,526

Segment earnings are presented on a current cost of supplies basis (CCS earnings), which is the earnings measure used by the Chief Executive Officer for the
purposes of making decisions about allocating resources and assessing performance. On this basis, the purchase price of volumes sold during the period is based
on the current cost of supplies during the same period after making allowance for the tax effect. CCS earnings therefore exclude the effect of changes in the oil
price on inventory carrying amounts. Sales between segments are based on prices generally equivalent to commercially available prices. CCS earnings is a
non-GAAP measure.

Earnings per share [A] $

2017 2016 2015 2014 2013
Basic earnings per share 1.58 0.58 0.31 2.36 2.60
Diluted earnings per share 1.56 0.58 0.30 2.36 2.60
[A] Ordinary shares of €0.07 each.

Shares Million
2017 2016 2015 2014 2013
Basic weighted average number of A and B shares 8,223.4 7,833.7 6,320.3 6,311.5 6,291.1
Diluted weighted average number of A and B shares 8,299.0 7,891.7 6,393.8 6,311.6 6,293.4
Shares outstanding at the end of the period 8,312.8 8,145.3 6,397.5 6,295.0 6,295.4

68 FINANCIAL DATA SHELL INVESTORS’ HANDBOOK 2013-2017

Taxation charge/(credit) $ million unless specified
2017 2016 2015 2014 2013
Current tax 6,591 2,731 7,058 13,757 18,582
Deferred tax (1,896) (1,902) (7,211) (173) (1,516)
Total taxation charge/(credit) 4,695 829 (153) 13,584 17,066
As a % of income before taxation 26 15 (7) 48 51

Consolidated balance sheet (at December 31) $ million

2017 2016 2015 2014 2013
Assets
Non-current assets
Intangible assets 24,180 23,967 6,283 7,076 4,394
Property, plant and equipment 226,380 236,098 182,838 192,472 191,897
Joint ventures and associates 27,927 33,255 30,150 31,558 34,613
Investments in securities 7,222 5,952 3,416 4,115 4,715
Deferred tax 13,791 14,425 11,033 8,131 5,785
Retirement benefits 2,799 1,456 4,362 1,682 3,574
Trade and other receivables 9,394 9,553 8,717 8,304 9,191
311,693 324,706 246,799 253,338 254,169
Current assets
Inventories 25,223 21,775 15,822 19,701 30,009
Trade and other receivables 49,869 45,664 45,784 58,470 63,638
Cash and cash equivalents 20,312 19,130 31,752 21,607 9,696
95,404 86,569 93,358 99,778 103,343
Total assets 407,097 411,275 340,157 353,116 357,512
Liabilities
Non-current liabilities
Debt 73,870 82,992 52,849 38,332 36,218
Trade and other payables 4,428 6,925 4,528 3,582 4,065
Deferred tax 13,007 15,274 8,976 12,052 11,943
Retirement benefits 13,247 14,130 12,587 16,318 11,182
Decommissioning and other provisions 24,966 29,618 26,148 23,834 19,698
129,518 148,939 105,088 94,118 83,106
Current liabilities
Debt 11,795 9,484 5,530 7,208 8,344
Trade and other payables 56,663 53,417 52,770 64,864 70,112
Taxes payable 7,250 6,685 8,233 9,797 11,173
Retirement benefits 594 455 350 377 382
Decommissioning and other provisions 3,465 3,784 4,065 3,966 3,247
79,767 73,825 70,948 86,212 93,258
Total liabilities 209,285 222,764 176,036 180,330 176,364
Equity
Share capital 696 683 546 540 542
Shares held in trust (917) (901) (584) (1,190) (1,932)
Other reserves 16,932 11,298 (17,186) (14,365) (2,037)
Retained earnings 177,645 175,566 180,100 186,981 183,474
Equity attributable to Royal Dutch Shell plc shareholders 194,356 186,646 162,876 171,966 180,047
Non-controlling interest 3,456 1,865 1,245 820 1,101
Total equity 197,812 188,511 164,121 172,786 181,148
Total liabilities and equity 407,097 411,275 340,157 353,116 357,512

SHELL INVESTORS’ HANDBOOK 2013-2017 FINANCIAL STATEMENTS INFORMATION 69

Consolidated statement of cash flows $ million
2017 2016 2015 2014 2013
Income for the period 13,435 4,777 2,200 14,730 16,526
Adjustment for:
Current tax 6,591 2,731 7,058 13,757 18,582
Interest expense (net) 3,365 2,752 1,529 1,598 1,448
Depreciation, depletion and amortisation 26,223 24,993 26,714 24,499 21,509
Net gains on sale of non-current assets and businesses (1,640) (2,141) (3,460) (3,212) (382)
(Increase)/decrease in working capital (3,158) (6,289) 5,521 6,405 2,988
(Increase)/decrease in inventories (2,079) (5,658) 2,827 7,958 608
(Increase)/decrease in current receivables (1,686) 2,038 9,852 (1,541) 5,648
Decrease/(increase) in current payables 607 (2,669) (7,158) (12) (3,268)
Share of profit of joint ventures and associates (4,225) (3,545) (3,527) (6,116) (7,275)
Dividends received from joint ventures and associates 4,998 3,820 4,627 6,902 7,117
Deferred tax, retirement benefits, decommissioning and
other provisions (3,918) (823) (5,827) (1,720) (2,701)
Other 286 (1,226) 2,648 2,500 2,937
Tax paid (6,307) (4,434) (7,673) (14,299) (20,309)
Cash flow from operating activities 35,650 20,615 29,810 45,044 40,440
Capital expenditure (20,845) (22,116) (26,131) (31,676) (39,975)
Acquisition of BG Group plc, net of cash and cash equivalents
acquired – (11,421) – – –
Investments in joint ventures and associates (595) (1,330) (896) (1,426) (1,538)
Proceeds from sale of property, plant and equipment and businesses 8,808 2,072 4,720 9,873 1,212
Proceeds from sale of joint ventures and associates 2,177 1,565 276 4,163 538
Interest received 724 470 288 174 175
Other 1,702 (203) (664) (765) (558)
Cash flow from investing activities (8,029) (30,963) (22,407) (19,657) (40,146)
Net (decrease)/increase in debt with maturity period within three
months (869) (360) (586) (3,332) 3,126
Other debt:
New borrowings 760 18,144 21,500 7,778 9,146
Repayments (11,720) (6,710) (6,023) (4,089) (6,877)
Interest paid (3,550) (2,938) (1,742) (1,480) (1,307)
Change in non-controlling interest 293 1,110 598 989 (51)
Cash dividends paid to:
Royal Dutch Shell plc shareholders (10,877) (9,677) (9,370) (9,444) (7,198)
Non-controlling interest (406) (180) (117) (116) (252)
Repurchases of shares – – (409) (3,328) (5,000)
Shares held in trust: net (purchases)/sales and dividends received (717) (160) (39) 232 (565)
Cash flow from financing activities (27,086) (771) 3,812 (12,790) (8,978)
Currency translation differences relating to cash and cash equivalents 647 (1,503) (1,070) (686) (170)
Increase/(decrease) in cash and cash equivalents 1,182 (12,622) 10,145 11,911 (8,854)
Cash and cash equivalents at January 1 19,130 31,752 21,607 9,696 18,550
Cash and cash equivalents at December 31 20,312 19,130 31,752 21,607 9,696

Free cash flow $ million

2017 2016 2015 2014 2013
Cash flow from operating activities 35,650 20,615 29,810 45,044 40,440
Cash flow from investing activities (8,029) (30,963) (22,407) (19,657) (40,146)
Free cash flow 27,621 (10,348) 7,403 25,387 294

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 STATEMENTS INFORMATION SHELL INVESTORS’ HANDBOOK 2013-2017

Financial ratios

The following three non-GAAP measures are used to evaluate the efficiency of Shell’s 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

2017 2016 2015 2014 2013
Income for the period 13,435 4,777 2,200 14,730 16,526
Interest expense after tax 2,995 2,730 2,030 938 808
Income before interest expense 16,430 7,507 4,230 15,668 17,334
Capital employed – opening 280,988 222,500 218,326 225,710 213,936
Capital employed – closing 283,477 280,988 222,500 218,326 225,710
Capital employed – average 282,233 251,744 220,413 222,018 219,823
ROACE 5.8% 3.0% 1.9% 7.1% 7.9%

Calculation of ROACE on CCS basis excluding identified items [A] $ million unless specified
2017 2016 2015 2014 2013
CCS earnings excluding identified items [A] 15,764 7,185 11,446 23,051 20,018
Capital employed – opening 280,988 222,500 218,326 225,710 213,936
Capital employed – closing 283,477 280,988 222,500 218,326 225,710
Capital employed – average 282,233 251,744 220,413 222,018 219,823
ROACE on CCS basis excluding identified items [A] 5.6% 2.9% 5.2% 10.4% 9.1%
[A] Attributable to shareholders.

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

2017 2016 2015 2014 2013
Income for the period 13,435 4,777 2,200 14,730 16,526
Add: Depreciation on exploration and evaluation assets after tax 198 351 399 366 720
Add: Interest expense after tax 2,995 2,730 2,030 938 808
Income before depreciation on exploration and evaluation assets and
interest expense 16,628 7,858 4,628 16,034 18,054
Capital employed excluding assets under construction and exploration
and evaluation assets – opening 216,475 156,749 145,702 155,049 147,746
Capital employed excluding assets under construction and exploration
and evaluation assets – closing 222,784 216,475 156,749 145,702 155,049
Capital employed excluding assets under construction and exploration
and evaluation assets – average 219,630 186,612 151,226 150,376 151,397
Return on average capital in service 7.6% 4.2% 3.1% 10.7% 11.9%

Gearing (at December 31) $ million unless specified

2017 2016 2015 2014 2013
Current debt 11,795 9,484 5,530 7,208 8,344
Non-current debt 73,870 82,992 52,849 38,332 36,218
Total debt 85,665 92,476 58,379 45,540 44,562
Less: Cash and cash equivalents (20,312) (19,130) (31,752) (21,607) (9,696)
Net debt 65,353 73,346 26,627 23,933 34,866
Add: Total equity 197,812 188,511 164,121 172,786 181,148
Total capital 263,165 261,857 190,748 196,719 216,014
Gearing 24.8% 28.0% 14.0% 12.2% 16.1%

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 Shell’s capital structure.

SHELL INVESTORS’ HANDBOOK 2013-2017 FINANCIAL STATEMENTS INFORMATION 71

Quarterly data by segment

Quarterly earnings by segment $ million

2017 2016
Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year
Integrated Gas 1,822 1,191 1,217 848 5,078 905 982 614 28 2,529
Upstream
Europe 309 (138) 27 1,560 1,758 (86) (820) 12 495 (399)
Asia 251 284 85 477 1,097 (18) (83) 91 (113) (123)
Oceania – – – – – – – – – –
Africa 69 176 394 1,124 1,763 (92) 34 269 (139) 72
North America (1,166) (520) 46 (854) (2,494) (1,153) (1,061) (917) 56 (3,075)
South America 7 (346) 23 (257) (573) (1) (44) 160 (264) (149)
Total Upstream (530) (544) 575 2,050 1,551 (1,350) (1,974) (385) 35 (3,674)
Downstream (CCS basis)
Refining & Trading 870 193 571 19 1,653 181 509 (42) (72) 576
Marketing 895 1,376 1,104 548 3,923 1,113 981 1,117 1,153 4,364
Oil Products 1,765 1,569 1,675 567 5,576 1,294 1,490 1,075 1,081 4,940
Chemicals 815 588 730 549 2,682 406 227 521 494 1,648
Total Downstream 2,580 2,157 2,405 1,116 8,258 1,700 1,717 1,596 1,575 6,588
Corporate (410) (774) (394) (838) (2,416) (456) (423) (306) (566) (1,751)
Non-controlling interest (81) (110) (105) (94) (390) 15 (63) (71) (40) (159)
CCS earnings attributable to shareholders 3,381 1,920 3,698 3,082 12,081 814 239 1,448 1,032 3,533
CCS adjustment for Downstream [A] (157) 375 (389) (725) (896) (330) 936 (73) 509 1,042
Income attributable to Royal Dutch Shell plc shareholders 3,538 1,545 4,087 3,807 12,977 484 1,175 1,375 1,541 4,575
[A] Attributable to shareholders.

Quarterly identified items by segment $ million

2017 2016
Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year
Integrated Gas 641 22 (65) (788) (190) (89) 114 (317) (879) (1,171)
Upstream
Europe 86 (331) (67) 1,065 753 (21) (597) 140 (40) (518)
Asia – – (44) 210 166 (3) (24) (15) (246) (288)
Oceania – – – – – – – – – –
Africa (90) (8) (98) 389 193 (5) (11) 86 (8) 62
North America (1,136) (361) 42 (1,081) (2,536) (52) (354) (478) 404 (480)
South America 70 (183) 180 (183) (116) 168 337 (122) (129) 254
Total Upstream (1,070) (883) 13 400 (1,540) 87 (649) (389) (19) (970)
Downstream (CCS basis)
Refining & Trading 155 (567) (320) (77) (809) (481) 50 (313) (149) (893)
Marketing (43) 231 (23) (240) (75) 142 (128) (148) 407 273
Oil Products 112 (336) (343) (317) (884) (339) (78) (461) 258 (620)
Chemicals (21) (36) 80 37 60 29 (21) (21) (22) (35)
Total Downstream 91 (372) (263) (280) (824) (310) (99) (482) 236 (655)
Corporate (63) (451) (90) (553) (1,157) (525) (189) (152) (101) (967)
Non-controlling interest 28 – – – 28 98 17 (4) – 111
CCS earnings impact (373) (1,684) (405) (1,221) (3,683) (739) (806) (1,344) (763) (3,652)

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. These items, either individually or collectively, can cause
volatility to net income, in some cases driven by external factors, which may hinder the comparative understanding of Shell’s financial results from period to period.
A description of Shell’s identified items per quarter can be found in the Quarterly Results Announcements.

72 FINANCIAL STATEMENTS INFORMATION SHELL INVESTORS’ HANDBOOK 2013-2017

 $ million
2015 2014 2013
Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year
1,139 1,335 (429) 1,125 3,170 3,183 3,963 2,331 1,133 10,610 2,858 2,240 2,006 1,894 8,998

957 (76) (40) 241 1,082 863 469 438 782 2,552 1,225 829 649 727 3,430
195 114 (26) (206) 77 504 448 476 216 1,644 539 509 470 496 2,014
– – – – – – – – – – – (1) – – (1)
1,484 220 173 (98) 1,779 513 500 217 682 1,912 805 423 549 34 1,811
(882) (762) (7,827) (977) (10,448) 256 (1,371) 608 22 (485) 403 (2,102) (296) (867) (2,862)
(354) (57) (494) (418) (1,323) 108 (189) (121) (190) (392) (9) (217) (88) (438) (752)
1,400 (561) (8,214) (1,458) (8,833) 2,244 (143) 1,618 1,512 5,231 2,963 (559) 1,284 (48) 3,640

1,136 1,192 1,043 733 4,104 – – – – – – – – – –

978 1,051 930 1,591 4,550 – – – – – – – – – –
2,114 2,243 1,973 2,324 8,654 (1,481) 884 1,145 1,446 1,994 1,133 468 303 122 2,026
400 503 508 178 1,589 476 387 456 98 1,417 555 335 603 350 1,843
2,514 2,746 2,481 2,502 10,243 (1,005) 1,271 1,601 1,544 3,411 1,688 803 906 472 3,869
(171) (68) 109 (295) (425) 77 100 (301) (32) (156) 491 (73) 88 (134) 372
(121) (91) (67) (34) (313) (34) (44) 17 6 (55) (49) (17) (36) (32) (134)
4,761 3,361 (6,120) 1,840 3,842 4,465 5,147 5,266 4,163 19,041 7,951 2,394 4,248 2,152 16,745
(331) 625 (1,296) (901) (1,903) 44 160 (803) (3,568) (4,167) 225 (657) 429 (371) (374)
4,430 3,986 (7,416) 939 1,939 4,509 5,307 4,463 595 14,874 8,176 1,737 4,677 1,781 16,371

$ million
2015 2014 2013
Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year
(352) (68) (1,347) (120) (1,887) (1) 1,279 (695) (305) 278 299 (401) 38 63 (1)

547 43 (153) (174) 263 15 17 (6) 311 337 (5) 16 50 (24) 37

(31) (3) (111) (30) (175) (40) (68) (6) – (114) (48) 1 4 – (43)
– – – – – – – – – – – – – – –
1,417 (2) (2) (29) 1,384 (7) – (72) 341 262 (4) 79 (1) (371) (297)
(84) (168) (7,037) (93) (7,382) (83) (1,757) 52 183 (1,605) 11 (1,986) (238) (488) (2,701)
(254) 38 (329) (123) (668) 54 (216) (194) (47) (403) – – – – –
1,595 (92) (7,632) (449) (6,578) (61) (2,024) (226) 788 (1,523) (46) (1,890) (185) (883) (3,004)

(126) (121) (1) 22 (226) – – – – – – – – – –

3 (34) (111) 960 818 – – – – – – – – – –
(123) (155) (112) 982 592 (2,576) (76) (185) (58) (2,895) (158) (362) 2 (130) (648)
(9) (60) (24) (4) (97) (4) – (7) 52 41 (2) (3) 12 44 51
(132) (215) (136) 978 495 (2,580) (76) (192) (6) (2,854) (160) (365) 14 (86) (597)
(88) (27) 619 (141) 363 1 (1) 17 72 89 403 4 (47) (61) 299
– 3 – – 3 – – – – – 15 – – 15 30
1,023 (399) (8,496) 268 (7,604) (2,641) (822) (1,096) 549 (4,010) 511 (2,652) (180) (952) (3,273)

SHELL INVESTORS’ HANDBOOK 2013-2017 FINANCIAL STATEMENTS INFORMATION 73

Additional segmental information and capital data

Additional segmental information $ million

2017 2016 2015 2014 2013
Integrated Gas
Segment earnings 5,078 2,529 3,170 10,610 8,998
Including:
Exploration 141 494 1,290 1,439 1,457
Depreciation, depletion and amortisation 4,965 4,509 2,597 2,661 2,176
Share of profit of joint ventures and associates 1,714 1,116 1,471 4,324 4,270
Production and manufacturing expenses 5,120 5,786 3,102 3,538 3,314
Selling, distribution and administrative expenses 237 584 546 607 692
Cash flow from operating activities 6,467 9,132 7,728 12,689 12,273
Of which: Working capital movements (2,149) 2,842 (444) (2,324) 488
Capital employed 87,462 86,631 62,481 62,127 60,657
Upstream
Segment earnings 1,551 (3,674) (8,833) 5,231 3,640
Including:
Exploration 1,804 1,614 4,429 2,785 3,821
Depreciation, depletion and amortisation 17,303 16,779 20,404 15,207 14,773
Share of profit of joint ventures and associates 623 222 491 1,178 1,850
Production and manufacturing expenses 12,119 13,396 14,914 16,555 15,157
Selling, distribution and administrative expenses 5 556 464 448 502
Cash flow from operating activities 16,337 7,662 5,453 19,150 17,841
Of which: Working capital movements (482) (2,833) 408 854 824
Capital employed 119,253 128,782 84,727 88,692 93,135
Downstream
Segment CCS earnings 8,258 6,588 10,243 3,411 3,869
Including:
Depreciation, depletion and amortisation 3,877 3,681 3,667 6,619 4,421
Share of profit of joint ventures and associates 1,956 2,244 2,215 1,693 1,525
Production and manufacturing expenses 9,519 9,208 9,994 9,845 9,807
Selling, distribution and administrative expenses 9,789 10,117 10,531 12,489 13,114
Cash flow from operating activities 12,429 3,556 14,076 11,292 7,903
Of which: Working capital movements (325) (6,272) 3,457 6,777 400
Capital employed 56,431 52,672 46,280 48,925 64,507
Corporate
Segment earnings (2,416) (1,751) (425) (156) 372
Including:
Net interest and investment income/(expense) (2,413) (1,824) (995) (913) (832)
Foreign exchange (losses)/gains (292) 3 (731) (263) (189)
Taxation and other 289 70 1,301 1,020 1,393
Cash flow from operating activities 417 265 2,553 1,913 2,423
Of which: Working capital movements (202) (26) 2,100 1,098 1,276
Capital employed 20,331 12,903 29,012 18,582 7,411
Royal Dutch Shell
CCS earnings 12,471 3,692 4,155 19,096 16,879
Non-controlling interest (390) (159) (313) (55) (134)
CCS earnings attributable to shareholders 12,081 3,533 3,842 19,041 16,745
Cash flow from operating activities 35,650 20,615 29,810 45,044 40,440
Of which: Working capital movements (3,158) (6,289) 5,521 6,405 2,988
Capital employed 283,477 280,988 222,500 218,326 225,710

74 FINANCIAL STATEMENTS INFORMATION SHELL INVESTORS’ HANDBOOK 2013-2017

Operating expenses $ million
2017 2016 2015
Production and manufacturing expenses 26,652 28,434 28,095
Selling, distribution and administrative expenses 10,509 12,101 11,956
Research and development 922 1,014 1,093
Operating expenses 38,083 41,549 41,144
Less identified items:
Redundancy and restructuring charges (565) (1,870) (430)
Provisions 38 (915) (1,150)
BG acquisition costs – (422) –
(527) (3,207) (1,580)
Underlying operating expenses 37,556 38,342 39,564

Operating expenses is a measure of Shell's total operating expenses performance, comprising the following items from the Consolidated Statement of Income:
production and manufacturing expenses; selling, distribution and administrative expenses; and research and development expenses. Underlying operating
expenses measures Shell's total operating expenses performance excluding identified items. Underlying operating expenses is a non-GAAP measure (see definition
of identified items in the "Quarterly data per segment" section on page 72).

Divestments $ million
2017 2016 2015 2014 2013
Proceeds from sale of property, plant and equipment and businesses [A] 8,808 2,072 4,720 9,873 1,212
Proceeds from sale of joint ventures and associates [A] 2,177 1,565 276 4,163 538
Share and contingent consideration [B] 3,046 275 – – –
Proceeds from sale of interests in entities while retaining control [C] 278 1,108 595 1,012 –
Other 3,031 [D] (36) (51) (29) (12)
Total 17,340 4,984 5,540 15,019 1,738
Integrated Gas 3,077 352 269 4,819 567
Upstream 11,542 1,726 2,478 5,770 519
Downstream 2,703 2,889 2,282 4,410 643
Oil Products 1,892 2,880 2,279 4,360 586
Chemicals 811 9 3 50 57
Corporate 18 17 511 20 9
[A] Included within cash flow from investing activities in the “Consolidated Statement of Cash Flows”.
[B] With effect from 2017, this is valued at the date of the related divestment, instead of when these shares are disposed of or the contingent consideration is realised. There is also no impact on divestments as a
result of any revaluation. Comparative information, which only affects the Upstream segment in 2016, has been adjusted. In 2017, it mainly comprises $2,829 million for shares in Canadian Natural
Resources Limited received as partial consideration in the oil sands divestment.
[C] Included within "Change in non-controlling interest" in Cash flow from financing activities in the "Consolidated Statement of Cash Flows".
[D] Includes proceeds of $2,635 million from the sale of shares in Woodside Petroleum Limited.

Divestments is a non-GAAP measure used to monitor the progress of Shell’s 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 for any share consideration received or contingent consideration initially recognised upon the related divestment, as well as proceeds from the sale of interests
in entities while retaining control (for example, proceeds from sale of interests in Shell Midstream Partners, L.P.).

SHELL INVESTORS’ HANDBOOK 2013-2017 FINANCIAL STATEMENTS INFORMATION 75

Capital employed [A] (at December 31) $ million
2017 2016 2015 2014 2013
Integrated Gas 87,462 86,631 62,481 62,127 60,657
Upstream 119,253 128,782 84,727 88,692 93,135
Downstream 56,431 52,672 46,280 48,925 64,507
Oil Products 41,186 38,926 34,444 38,512 53,459
Chemicals 15,245 13,746 11,836 10,413 11,048
Corporate 20,331 12,903 29,012 18,582 7,411
Total 283,477 280,988 222,500 218,326 225,710
[A] Consists of total equity, current debt and non-current debt.

Capital investment $ million

2017 2016 2015 2014 2013
Capital expenditure
Integrated Gas 3,515 3,994 4,580 6,054 10,517
Upstream
Europe 1,376 2,198 2,729 3,420 4,193
Asia 773 1,624 2,272 2,733 2,983
Oceania – – – – 1
Africa 625 1,142 2,441 2,452 2,473
North America 6,951 5,682 8,507 10,512 11,065
South America 1,664 2,064 457 847 3,230
Total Upstream 11,389 12,710 16,406 19,964 23,945
Downstream
Oil Products 3,472 3,322 3,231 3,718 4,110
Chemicals 2,354 1,987 1,757 1,802 1,193
Total Downstream 5,826 5,309 4,988 5,520 5,303
Corporate 115 103 157 138 210
Total capital expenditure 20,845 22,116 26,131 31,676 39,975
Capital investment related to the acquisition of BG Group plc – 52,904 – – –
Exploration expense [A] 1,048 1,274 2,948 2,244 2,506
Leases and other adjustments [B] 1,518 2,253 (1,114) 1,993 2,022
New equity in joint ventures and associates 535 868 61 523 856
New loans to joint ventures and associates 60 462 835 903 682
Capital investment 24,006 79,877 28,861 37,339 46,041
Comprising:
Integrated Gas 3,827 26,214 5,178 9,124 11,822
Upstream 13,648 47,507 18,349 22,169 28,481
Downstream 6,416 6,057 5,119 5,910 5,528
Oil Products 3,952 3,595 3,352 4,091 4,334
Chemicals 2,464 2,462 1,767 1,819 1,194
Corporate 115 99 215 136 210
Total 24,006 79,877 28,861 37,339 46,041
Of which
Organic capital investment 22,177 26,913 28,403 34,082 37,930
Inorganic capital investment 1,829 52,964 458 3,257 8,111
[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 comprises capital
expenditure, exploration expense excluding well write-offs, new investments in joint ventures and associates, new finance leases and investments in Integrated
Gas, Upstream and Downstream securities, all of which are on an accruals basis. In 2016, it also included the capital investment related to the acquisition of BG
Group plc. 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 STATEMENTS INFORMATION SHELL INVESTORS’ HANDBOOK 2013-2017

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 2017 $ million

North America
Europe Asia Oceania Africa USA Other[A] South America Total
Revenue
Third parties 1,193 2,708 1,414 1,872 1,080 339 689 9,295
Sales between businesses 7,120 9,061 2,400 3,218 5,119 2,938 5,245 35,101
Total 8,313 11,769 3,814 5,090 6,199 3,277 5,934 44,396
Production costs excluding taxes 2,509 2,469 1,110 1,365 2,558 1,571 1,218 12,800
Taxes other than income tax [B] 89 556 119 287 98 1 1,691 2,841
Exploration 243 245 42 129 868 142 276 1,945
Depreciation, depletion and amortisation 2,560 2,892 1,777 1,863 3,410 3,886 3,374 19,762
Other costs/(income) (157) 1,073 (382) 145 114 1,050 469 2,312
Earnings before taxation 3,069 4,534 1,148 1,301 (849) (3,373) (1,094) 4,736
Taxation charge/(credit) 1,689 2,969 (202) (361) 363 (1,486) (294) 2,678
Earnings after taxation 1,380 1,565 1,350 1,662 (1,212) (1,887) (800) 2,058

$/boe
Revenue 43.71 36.72 31.76 35.57 39.13 38.70 39.36 38.02
Production costs excluding taxes 13.19 7.70 9.24 9.54 16.15 18.55 8.08 10.96
Taxes other than income tax [B] 0.47 1.73 0.99 2.01 0.62 0.01 11.22 2.43
Exploration 1.28 0.76 0.35 0.90 5.48 1.68 1.83 1.67
Depreciation, depletion and amortisation 13.46 9.02 14.80 13.02 21.53 45.89 22.38 16.92
Other costs/(income) (0.83) 3.35 (3.18) 1.01 0.72 12.40 3.11 1.98
Earnings before taxation 16.14 14.15 9.56 9.09 (5.36) (39.83) (7.26) 4.06
Taxation charge/(credit) 8.88 9.26 (1.68) (2.52) 2.29 (17.55) (1.95) 2.29
Earnings after taxation 7.26 4.88 11.24 11.62 (7.65) (22.28) (5.31) 1.76
[A] Comprises Canada, Honduras and Mexico.
[B] Includes cash paid royalties to governments outside North America.

SHELL INVESTORS’ HANDBOOK 2013-2017 EXPLORATION AND PRODUCTION DATA 77

Shell subsidiaries 2016 $ million
North America
Europe Asia Oceania Africa USA Other[A] South 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 [B] 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 [B] 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] Comprises Canada, Honduras and Mexico.
[B] Includes cash paid royalties to governments outside North America.

Shell subsidiaries 2015 $ million

North America
Europe Asia Oceania Africa USA Other[A] South 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 [B] 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 [B] 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] Comprises Canada and Mexico.
[B] Includes cash paid royalties to governments outside North America.

78 EXPLORATION AND PRODUCTION DATA SHELL INVESTORS’ HANDBOOK 2013-2017

Shell subsidiaries 2014 $ million
North America
Europe Asia Oceania Africa USA Canada South 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 [A] 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 [A] 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 cash paid royalties to governments outside North America.

Shell subsidiaries 2013 $ million

North America
Europe Asia Oceania Africa USA Canada South 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 [A] 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 [A] 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 cash paid royalties to governments outside North America.

SHELL INVESTORS’ HANDBOOK 2013-2017 EXPLORATION AND PRODUCTION DATA 79

Shell share of joint ventures and associates 2017–2013 $ million
North America
Europe Asia Oceania Africa USA Canada South America Total
Third-party revenue 1,646 4,503 58 – – – – 6,207
Production costs excluding taxes 337 729 93 – – – – 1,159
Taxes other than income tax 631 705 4 – – – – 1,340
Exploration 7 57 4 – – – – 68
Depreciation, depletion and amortisation 188 1,654 40 – – – – 1,882
Other (income)/costs (83) 511 (60) – – – – 368
Earnings before taxation 566 847 (23) – – – – 1,390
Taxation charge 173 197 – – – – – 370
Earnings after taxation 393 650 (23) – – – – 1,020
2016 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

80 EXPLORATION AND PRODUCTION DATA SHELL INVESTORS’ HANDBOOK 2013-2017

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
2017 2016 2015 2014 2013
Europe 368 442 428 608 798
Asia 1,783 1,642 1,576 1,682 1,724
Oceania 132 128 138 140 163
Africa 463 529 579 691 651
North America – USA 899 491 560 711 991
North America – Canada
Oil and NGL 22 18 22 44 29
Synthetic crude oil 649 [B] 2,014 1,941 1,763 1,731
Bitumen – 2 3 428 422
South America 946 992 56 63 112
Total including year-average price effects 5,262 6,258 5,303 6,130 6,621
[A] Includes proved reserves associated with future production that will be consumed in operations.
[B] Includes 325 million barrels of synthetic crude oil attributable to non-controlling interest in Shell subsidiaries.

Proved natural gas reserves for Shell subsidiaries and the Shell share of joint ventures and Thousand
associates [A][B] (at December 31) million scf
2017 2016 2015 2014 2013
Europe 8,225 10,238 11,386 12,296 13,275
Asia 16,786 15,827 16,055 16,101 16,161
Oceania 7,997 9,082 5,946 6,078 7,001
Africa 2,082 2,225 2,236 2,621 2,257
North America – USA 2,569 675 754 1,561 2,199
North America – Canada 1,272 844 955 1,611 1,500
South America 1,501 1,650 43 48 80
Total including year-average price effects 40,432 40,541 37,375 40,316 42,473
[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
2017 2016 2015 2014 2013
Europe 1,786 2,207 2,391 2,728 3,087
Asia 4,677 4,371 4,344 4,458 4,510
Oceania 1,511 1,694 1,163 1,188 1,370
Africa 822 913 965 1,143 1,040
North America – USA 1,342 607 690 980 1,370
North America – Canada 890 2,180 2,131 2,513 2,441
South America 1,205 1,276 63 71 126
Total including year-average price effects 12,233 13,248 11,747 13,081 13,944
Year-average price effects 487 (1,480) (1,707) 44 48
[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.

SHELL INVESTORS’ HANDBOOK 2013-2017 EXPLORATION AND PRODUCTION DATA 81

Changes to 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 changes Million
for Shell subsidiaries and the Shell share of joint ventures and associates [A] (at December 31) barrels
2017 2016 2015 2014 2013
Revisions and reclassifications 612 284 (252) 62 351
Improved recovery 76 24 4 9 412
Extensions and discoveries 375 127 48 68 182
Purchases of minerals in place 666 1,207 2 – 48
Sales of minerals in place (2,058) (12) (76) (86) (4)
Total additions including year-average price effects (329) 1,630 (274) 53 989
Production (667) (675) (553) (544) (564)
[A] Includes proved reserves associated with future production that will be consumed in operations.

Proved natural gas reserves changes for Shell subsidiaries Thousand

and the Shell share of joint ventures and associates [A][B] (at December 31) million scf
2017 2016 2015 2014 2013
Revisions and reclassifications 1,938 (765) 114 1,767 2,530
Improved recovery 141 10 7 – 160
Extensions and discoveries 1,936 586 249 762 721
Purchases of minerals in place 277 7,537 86 287 54
Sales of minerals in place (248) (77) (139) (1,375) (55)
Total additions including year-average price effects 4,044 7,291 317 1,441 3,410
Production (4,153) (4,125) (3,258) (3,598) (3,729)
[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
2017 2016 2015 2014 2013
Revisions and reclassifications 946 152 (232) 367 787
Improved recovery 100 26 5 9 440
Extensions and discoveries 709 228 91 199 306
Purchases of minerals in place 714 2,506 16 49 57
Sales of minerals in place (2,101) (25) (100) (323) (13)
Total additions including year-average price effects 368 2,887 (220) 301 1,577
Year-average price effects 487 (1,480) (1,707) 44 48
Total additions excluding year-average price effects (119) 4,367 1,487 257 1,529
Total additions excluding acquisitions, divestments and year-average
price effects 1,268 1,886 1,571 531 1,485
Production (1,383) (1,386) (1,114) (1,164) (1,207)
[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 Million
for Shell subsidiaries and the Shell share of joint ventures and associates [A] (at December 31, 2017) barrels
North America South
Europe Asia Oceania Africa USA Canada America Total
Oil and Oil and Oil and Oil and Oil and Oil and Synthetic Oil and All
NGL NGL NGL NGL NGL NGL crude oil Bitumen NGL products
Revisions and reclassifications 67 229 13 23 235 8 (3) 2 38 612
Improved recovery – 38 – – 38 – – – – 76
Extensions and discoveries – 96 – – 242 7 – – 30 375
Purchases of minerals in place – – – – 2 – 664 – – 666
Sales of minerals in place (50) – – (14) – – (1992) (2) – (2058)
Total additions including year-
average price effects 17 363 13 9 517 15 (1,331) 0 68 (329)
Production (91) (222) (9) (75) (109) (11) (34) (2) (114) (667)
[A] Includes proved reserves associated with volumes consumed in operations.

82 EXPLORATION AND PRODUCTION DATA SHELL INVESTORS’ HANDBOOK 2013-2017

Proved natural gas reserves changes for Shell subsidiaries Thousand
and the Shell share of joint ventures and associates [A][B] (at December 31, 2017) million scf
North America
Europe Asia Oceania Africa USA Canada South America Total
Revisions and reclassifications (830) 1,631 (565) 287 958 412 45 1,938
Improved recovery – 67 – – 74 – – 141
Extensions and discoveries 2 560 – – 1,163 205 6 1,936
Purchases of minerals in place – – 204 – 3 43 27 277
Sales of minerals in place (224) – – (7) (11) (6) – (248)
Total additions including year-average price
effects (1,052) 2,258 (361) 280 2,187 654 78 4,044
Production (961) (1,299) (724) (423) (293) (226) (227) (4,153)
[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 Million boe
and associates [A][B] (at December 31, 2017) 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 Oil and All
and Gas and Gas and Gas and Gas and Gas and Gas crude oil Bitumen NGL products
Revisions and reclassifications (76) 510 (84) 72 400 79 (3) 2 46 946
Improved recovery – 49 – – 51 – – – – 100
Extensions and discoveries – 193 – – 443 42 – – 31 709
Purchases of minerals in place – – 35 – 3 7 664 – 5 714
Sales of minerals in place (89) – – (15) (2) (1) (1,992) (2) – (2,101)
Total additions including year-
average price effects (165) 752 (49) 57 895 127 (1,331) – 82 368
Year-average price effect 97 24 52 6 235 83 (44) – 34 487
Production (256) (446) (134) (148) (160) (50) (34) (2) (153) (1,383)
Reserves replacement ratio
excluding acquisitions,
divestments and year-average
price effects 92%
Total additions excluding
acquisitions and divestments
but including year-average
price effects 1,755
Reserves replacement ratio
including acquisitions,
divestments and year-average
price effects 27%
[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.

SHELL INVESTORS’ HANDBOOK 2013-2017 EXPLORATION AND PRODUCTION DATA 83

Oil, gas, synthetic crude oil and bitumen production

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

2017 2016 2015 2014 2013
SUBS JV&A SUBS JV&A SUBS JV&A SUBS JV&A SUBS JV&A
Europe
Denmark 67 – 64 – 70 – 75 – 82 –
Germany 25 – 26 – 30 – 34 – 37 –
Ireland 25 – 21 –
Italy 30 – 24 – 38 – 40 – 41 –
Netherlands – 166 – 192 – 207 – 279 – 346
Norway 168 – 174 – 159 – 160 – 161 –
UK 206 – 203 – 105 – 90 – 91 –
Total Europe 521 166 512 192 402 207 399 279 412 346
Asia
Brunei 17 118 16 121 12 128 13 124 11 133
China 21 – 21 – 22 – 25 – 28 –
Iraq 20 – 54 – 55 – 53 – 23 –
Kazakhstan 119 – 94 –
Malaysia 178 – 178 – 183 – 160 – 155 –
Oman 212 – 220 – 215 – 205 – 204 –
Philippines 23 – 24 – 22 – 22 – 22 –
Russia 62 95 63 93 62 90 67 89 71 89
Thailand 34 – 33 –
Other [C] 192 77 253 77 228 78 250 85 226 236
Total Asia 878 290 956 291 799 296 795 298 740 458
Oceania
Australia 298 9 214 20 77 40 77 52 76 61
New Zealand 31 – 35 – 34 – 43 – 38 –
Total Oceania 329 9 249 20 111 40 120 52 114 61
Africa
Egypt 76 – 88 – 48 – 39 – 33 –
Gabon 27 – 35 – 34 – 33 – 29 –
Nigeria 266 – 259 – 277 – 303 – 270 –
Tunisia 23 – 22 –
Total Africa 392 – 404 – 359 – 375 – 332 –
North America
USA 434 – 426 – 411 – 441 – 424 –
Canada 136 – 149 – 134 – 124 – 130 –
Total North America 570 – 575 – 545 – 565 – 554 –
South America
Bolivia 34 – 38 –
Brazil 337 – 229 – 38 – 45 – 21 –
Trinidad and Tobago 35 – 38 –
Other [C] 7 – 5 – 6 – 7 – 7 9
Total South America 413 – 310 – 44 – 52 – 28 9
Total oil and gas production 3,103 465 3,006 503 2,260 543 2,306 629 2,180 874
Synthetic oil production 91 – 146 – 137 – 129 – 126 –
Bitumen production 5 – 13 – 14 – 16 – 19 –
Grand total 3,199 465 3,165 503 2,411 543 2,451 629 2,325 874
[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 2017 production was lower than 20 thousand boe/d or where specific disclosures are prohibited.

84 EXPLORATION AND PRODUCTION DATA SHELL INVESTORS’ HANDBOOK 2013-2017

Crude oil and natural gas liquids production available for sale [A] Thousand b/d
2017 2016 2015 2014 2013
SUBS JV&A SUBS JV&A SUBS JV&A SUBS JV&A SUBS JV&A
Europe
Denmark 42 – 42 – 48 – 52 – 57 –
Italy 24 – 19 31 32 33
Norway 54 – 59 – 38 – 41 – 40 –
UK 124 – 113 – 57 – 41 – 40 –
Other [B] 2 3 3 2 2 4 2 5 3 5
Total Europe 246 3 236 2 176 4 168 5 173 5
Asia
Brunei 3 43 3 48 2 51 2 51 2 55
Iraq 20 – 54 – 55 – 53 – 23 –
Kazakhstan 81 – 58 – – – – – – –
Malaysia 73 – 74 – 63 – 46 – 42 –
Oman 212 – 220 – 215 – 205 – 204 –
Russia 60 30 61 30 60 28 65 28 69 29
Other [B] 63 22 80 21 67 22 73 29 68 182
Total Asia 512 95 550 99 462 101 444 108 408 266
Total Oceania [B] 25 24 3 22 8 25 10 26 13
Africa
Gabon 27 – 35 – 34 – 33 – 30 –
Nigeria 154 – 171 – 186 – 192 – 175 –
Other [B] 25 – 26 – 17 – 14 – 11 –
Total Africa 206 – 232 – 237 – 239 – 216 –
North America
USA 299 – 281 – 286 – 271 – 237 –
Canada 30 – 30 – 24 – 23 – 21 –
Total North America 329 – 311 – 310 – 294 – 258 –
South America
Brazil 304 – 214 – 36 – 45 – 21 –
Other [B] 9 – 8 – 2 – 1 – 1 9
Total South America 313 – 222 – 38 – 46 – 22 9
Total 1,631 98 1,575 104 1,245 113 1,216 123 1,103 293
[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 2017 production was lower than 20 thousand b/d or where specific disclosures are prohibited.

SHELL INVESTORS’ HANDBOOK 2013-2017 EXPLORATION AND PRODUCTION DATA 85

Natural gas production available for sale [A] Million scf/d
2017 2016 2015 2014 2013
SUBS JV&A SUBS JV&A SUBS JV&A SUBS JV&A SUBS JV&A
Europe
Denmark 143 – 129 – 132 – 136 – 146 –
Germany 132 – 141 – 160 – 183 – 200 –
Ireland 144 – 122 – – – – – – –
Netherlands – 940 – 1,100 – 1,177 – 1,592 – 1,976
Norway 667 – 663 – 693 – 691 – 703 –
UK 477 – 520 – 277 – 286 – 300 –
Other [B] 36 – 27 – 44 – 43 – 42 –
Total Europe 1,599 940 1,602 1,100 1,306 1,177 1,339 1,592 1,391 1,976
Asia
Brunei 82 435 74 426 58 446 61 425 51 451
China 120 – 119 – 127 – 145 – 164 –
Kazakhstan 221 – 211 – – – – – – –
Malaysia 607 – 606 – 697 – 663 – 655 –
Philippines 118 – 123 – 114 – 110 – 108 –
Russia 11 378 11 364 11 361 11 352 12 347
Thailand 166 – 163 – – – – – – –
Other [B] 792 324 1,049 323 947 324 1,041 324 928 317
Total Asia 2,117 1,137 2,356 1,113 1,954 1,131 2,031 1,101 1,918 1,115
Oceania
Australia 1,622 51 1,145 100 362 185 364 241 344 276
New Zealand 142 – 159 – 153 – 189 – 168 –
Total Oceania 1,764 51 1,304 100 515 185 553 241 512 276
Africa
Egypt 335 – 397 – 178 – 148 – 126 –
Nigeria 648 – 503 – 534 – 643 – 552 –
Other [B] 99 – 95 – – – – – – –
Total Africa 1,082 – 995 – 712 – 791 – 678 –
North America
USA 785 – 845 – 724 – 989 – 1,081 –
Canada 615 – 693 – 641 – 588 – 635 –
Total North America 1,400 – 1,538 – 1,365 – 1,577 – 1,716 –
South America
Bolivia 163 – 184 – – – – – – –
Brazil 192 – 85 8 8 2
Trinidad and Tobago 200 – 214 – – – – – – –
Other [B] 23 – 22 – 27 – 26 – 31 1
Total South America 578 – 505 – 35 – 34 – 33 1
Total 8,540 2,128 8,300 2,313 5,887 2,493 6,325 2,934 6,248 3,368
[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 2017 production was lower than 115 million scf/d or where specific disclosures are prohibited.

86 EXPLORATION AND PRODUCTION DATA SHELL INVESTORS’ HANDBOOK 2013-2017

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

2017 2016
Developed Undeveloped Developed Undeveloped
Gross Net Gross Net Gross Net Gross Net
Europe 6,463 2,071 14,119 6,187 6,556 2,197 18,216 10,241
Asia 25,975 9,139 35,305 18,730 26,003 9,199 58,463 36,298
Oceania 3,296 1,255 22,406 13,985 1,939 822 37,876 24,109
Africa 4,663 1,938 33,453 20,811 5,083 2,315 41,517 29,152
North America – USA 1,936 1,134 2,718 1,937 2,002 1,197 4,151 2,577
North America – Canada 953 651 16,714 15,005 976 670 26,149 19,402
South America 1,302 606 9,338 6,196 1,315 547 17,759 14,643
Total 44,588 16,794 134,053 82,851 43,874 16,947 204,131 136,422

Oil and gas acreage (at December 31) Thousand acres

2015 2014 2013
Developed Undeveloped Developed Undeveloped Developed Undeveloped
Gross Net Gross Net Gross Net Gross Net Gross Net Gross Net
Europe 7,152 2,194 14,623 7,732 9,603 2,693 16,161 8,563 9,614 2,698 15,978 6,225
Asia 25,581 9,181 36,658 22,995 25,724 9,252 46,487 25,155 26,349 9,275 56,373 27,791
Oceania 2,041 530 51,740 16,975 1,657 433 57,939 18,991 1,659 466 74,055 29,811
Africa 4,650 2,071 40,435 27,058 5,174 2,232 39,297 26,409 5,217 2,245 37,811 24,553
North America – USA 1,659 1,158 5,033 4,262 1,635 1,131 6,133 5,047 1,901 1,213 8,432 6,613
North America –
Canada 1,227 745 32,706 25,716 1,132 748 33,094 27,223 1,259 832 33,307 28,677
South America 100 52 7,851 3,621 100 52 8,637 4,081 162 89 15,116 7,210
Total 42,410 15,931 189,046 108,359 45,025 16,541 207,748 115,469 46,161 16,818 241,072 130,880

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

2017 2016
Oil Gas Oil Gas
Gross Net Gross Net Gross Net Gross Net
Europe 1,156 303 1,235 392 1,215 321 1,232 403
Asia 9,410 3,132 711 283 9,261 3,141 656 263
Oceania – – 3,499 1,926 – – 3,257 1,734
Africa 380 155 180 122 662 289 191 127
North America – USA 15,408 7,817 1,636 717 15,532 7,892 3,046 2,136
North America – Canada – – 892 794 283 283 941 781
South America 111 47 55 32 73 28 50 26
Total 26,465 11,454 8,208 4,266 27,026 11,954 9,373 5,470
[A] The number of productive wells with multiple completions (more than one formation producing into the same well bore) at December 31, 2017, was 1,946 gross (761 net); 2016: 1,721 gross, corrected
from 1,754 gross (686, corrected from 691)

SHELL INVESTORS’ HANDBOOK 2013-2017 EXPLORATION AND PRODUCTION DATA 87

Number of productive wells [A] (at December 31)
2015 2014 2013
Oil Gas Oil Gas Oil Gas
Gross Net Gross Net Gross Net Gross Net Gross Net Gross Net
Europe 1,272 344 1,229 392 1,256 332 1,209 333 1,315 349 1,193 334
Asia 8,271 2,853 334 190 7,529 2,643 353 198 8,187 2,578 340 192
Oceania – – 624 234 44 3 625 235 44 5 655 244
Africa 821 334 129 86 887 349 116 79 921 350 109 71
North America – USA 15,331 7,893 2,522 2,403 15,313 7,760 2,555 1,849 15,347 8,150 4,316 2,878
North America –
Canada 286 286 1,209 1,059 325 320 1,125 878 337 331 1,238 949
South America 25 15 7 2 25 15 7 2 74 31 7 2
Total 26,006 11,725 6,054 4,366 25,379 11,422 5,990 3,574 26,225 11,794 7,858 4,670
[A] The number of productive wells with multiple completions (more than one formation producing into the same well bore) at December 31, 2015, was 1,811 gross (760 net); 2014: 1,802 gross (762 net);
2013: 2,200 gross (805 net).

Number of net productive wells and dry holes drilled (at December 31)
2017 2016
Productive Dry Productive Dry
Exploratory [A]
Europe – 1 – –
Asia 3 5 2 4
Oceania 2 – – –
Africa 2 3 4 2
North America – USA 9 6 40 2
North America – Canada 30 5 – –
South America 6 – – –
Total 52 20 46 8
Development
Europe 5 – 10 1
Asia 312 4 265 –
Oceania 63 – 184 –
Africa 24 3 15 –
North America – USA 237 – 137 –
North America – Canada 56 1 50 –
South America 1 – 3 –
Total 698 8 664 1
[A] Productive wells are wells with proved reserves allocated. Exploratory wells in the process of drilling are excluded.

Number of net productive wells and dry holes drilled (at December 31)
2015 2014 2013
Productive Dry Productive Dry Productive Dry
Exploratory [A]
Europe 1 2 1 2 1 3
Asia – 11 2 10 2 9
Oceania – 3 – 1 – 1
Africa 5 – 4 4 6 3
North America – USA 35 8 53 89 173 33
North America – Canada 73 5 39 2 17 2
South America – 1 – 1 – 5
Total 114 30 99 109 [B] 199 56
Development
Europe 10 – 8 1 6 2
Asia 252 2 243 9 218 6
Oceania 2 – 6 1 12 –
Africa 24 – 23 2 24 –
North America – USA 433 – 392 3 447 2
North America – Canada 20 2 22 – 57 1
South America 3 1 3 – 4 –
Total 744 5 697 16 768 11
[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.

88 EXPLORATION AND PRODUCTION DATA SHELL INVESTORS’ HANDBOOK 2013-2017

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 2010–2020 In operation Leased 1969
Costa Azul Baja California, Mexico 2.7 2008–2028 In operation Leased 2008
Cove Point Lusby, MD, USA 1.8 2003–2023 In operation Leased 2003
Dragon LNG Milford Haven, UK 2.8 2009–2029 In operation 50 2009
Elba Island Expansion Elba Island, GA, USA 4.2 2010–2035 In operation Leased 2010
Elba Island Elba Island, GA, USA 2.8 2006–2036 In operation Leased 2006
Elba Island Elba Island, GA, USA 4.6 [B] 2003–2027 In operation Leased 2003
GATE (Gas Access Rotterdam, 1.4 [C] 2015–2031 In operation Capacity rights 2015
to Europe) The Netherlands
Hazira Gujarat, India 2.2 [D] from 2005 operationIn 74 2005
Lake Charles Lake Charles, LA, USA 4.4 2002–2030 operationIn Leased 2002
Lake Charles Expansion Lake Charles, LA, USA 8.7 2005–2030 operationIn Leased 2005
Singapore Singapore up to 3.0 [E] 2013–2023 operationIn Import rights 2013
Singapore Singapore up to 1.0 [F] from 2017 not yet in Import rights 2018
operation
Shell LNG Gibraltar Gibraltar up to 0.04 [G] 2018-2038 LNG terminal 51 2018
under construction
[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] Capacity rights are valid until the end of the lease for the port company, which is 2035 currently. It is highly probable the lease will be extended beyond that. Capacity rights sit with Shell Gas B.V. rather than
SITME. 100% of the capacity rights are held by the Hazira JV. Shell as a 74% JV partner has equity capacity rights. However, this requires approval of the other JV partner Total ( 26%) since both partners have
veto rights on all key business decisions.
[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.
[F] Second licence to import LNG and sell regassified LNG in Singapore. Licence issued in October 2017. Start-up expected Q2 2018.
[G] Start-up expected Q2 2018. Non-operated joint venture – Shell 51% equity; Her Majesty’s Government of Gibraltar (HMGoG) 49%.

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 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 16.7 16.9
Gorgon LNG T1 Barrow Island 25.0 5.2
Gorgon LNG T2 Barrow Island 25.0 5.2
Gorgon LNG T3 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/T3 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 2013-2017 ADDITIONAL INTEGRATED GAS DATA 89

LNG liquefaction plants under construction
Asset Location Shell interets (%) 100% capacity (mtpa)
Oceania
Australia Prelude Browse Basin 67.5 3.6

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

2017 2016 2015 2014 2013
Australia 11.1 9.5 3.4 3.7 3.7
Brunei 1.6 1.6 1.6 1.5 1.7
Egypt 0.2 0.2 – – –
Malaysia 1.3 1.3 1.8 2.7 2.6
Nigeria 5.2 4.5 5.0 5.0 4.4
Norway 0.1 0.1 – – –
Oman 2.0 2.0 1.9 1.8 2.0
Peru 0.9 0.9 0.7 0.8 –
Qatar 2.4 2.4 2.4 2.4 2.3
Russia 3.1 3.0 2.9 2.9 2.9
Trinidad and Tobago 5.3 5.4 2.9 3.2 –
Total 33.2 30.9 22.6 24.0 19.6

90 ADDITIONAL INTEGRATED GAS DATA SHELL INVESTORS’ HANDBOOK 2013-2017

Downstream data
Oil products

The tables below reflect Shell subsidiaries, the 50% Shell interest in Motiva in the USA (until completion of the separation of assets in May 2017), 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 %
2017 2016 2015 2014 2013
Average worldwide 91 90 90 93 94

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

2017 2016 2015 2014 2013
Total 46.78 34.47 40.91 82.76 90.36
[A] Includes Upstream margin on crude oil supplied by Shell subsidiaries, joint ventures and associates.

Thousand b/
Crude distillation capacity [A] calendar day[B]
2017 2016 2015 2014 2013
Europe 970 973 1,037 1,033 1,033
Asia 704 808 816 810 810
Oceania – – – 80 118
Africa 82 82 82 82 82
Americas 1,176 1,223 1,219 1,212 1,212
Total 2,932 3,086 3,154 3,217 3,255
[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

2017 2016 2015 2014 2013
Europe 892 898 870 941 1,010
Asia 528 563 685 688 706
Oceania – – – 59 116
Africa 54 68 56 69 61
Americas 997 1,088 1,150 1,149 1,100
Total 2,471 2,617 2,761 2,906 2,993
[A] Includes natural gas liquids, share of joint ventures and associates and processing for others.

Refinery processing intake [A] Thousand b/d

2017 2016 2015 2014 2013
Crude oil 2,364 2,317 2,596 2,716 2,732
Feedstocks 208 384 209 187 183
Total 2,572 2,701 2,805 2,903 2,915
Europe 892 896 903 941 933
Asia 539 568 627 639 634
Oceania – – – 64 105
Africa 54 67 56 69 54
Americas 1,087 1,170 1,219 1,190 1,189
Total 2,572 2,701 2,805 2,903 2,915
[A] Includes crude oil, natural gas liquids and feedstocks processed in crude oil distillation units and in secondary conversion units.

SHELL INVESTORS’ HANDBOOK 2013-2017 DOWNSTREAM DATA 91

Refinery processing outturn [A] Thousand b/d
2017 2016 2015 2014 2013
Gasolines 955 1,021 1,012 1,049 1,049
Kerosines 290 326 316 331 368
Gas/diesel oils 925 942 972 1,047 1,014
Fuel oil 265 277 290 316 274
Other products 334 386 449 395 389
Total 2,769 2,952 3,039 3,138 3,094
[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 Hydro-
Location Asset class (%)[A] capacity coking cracking cracking
Europe
Denmark Fredericia [C] 100 67 25 – –
Germany Miro [D] 32 287 34 87 –
Rheinland 100 325 44 – 80
Schwedt [D] 38 214 40 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] 32 43 – – –
Philippines Tabangao 55 96 31 – –
Saudi Arabia Al Jubail [D] 50 292 62 – 45
Singapore Pulau Bukom 100 463 72 34 55
Africa
South Africa Durban [D] 36 165 23 34 –
Americas
Argentina Buenos Aires 100 100 18 20 –
Canada
Alberta Scotford 100 92 – – 74
Ontario Sarnia 100 73 4 19 9
USA
California Martinez 100 145 43 65 38
Louisiana Convent [E] 50 223 – 79 30
Norco [E] 50 229 25 107 39
Texas Deer Park 50 312 78 63 53
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] The previously agreed sale of our Fredericia refinery has been cancelled.
[D] Not operated by Shell.
[E] In 2017, we assumed 100% ownership as a result of the Motiva transaction.

Integrated refinery and chemical complex.

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

92 DOWNSTREAM DATA SHELL INVESTORS’ HANDBOOK 2013-2017

Oil sales and retail sites

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

2017 2016 2015 2014 2013
Europe
Gasolines 317 309 403 405 415
Kerosines 272 258 251 264 226
Gas/diesel oils 758 765 779 841 962
Fuel oil 170 183 186 176 194
Other products 362 287 240 205 168
Total 1,879 1,802 1,859 1,891 1,965
Asia
Gasolines 399 388 379 343 325
Kerosines 216 195 214 191 191
Gas/diesel oils 516 519 533 515 483
Fuel oil 349 354 340 325 322
Other products 536 593 489 441 256
Total 2,016 2,049 1,955 1,815 1,577
Oceania
Gasolines – – – 52 87
Kerosines 23 55 51 48 51
Gas/diesel oils – – – 64 115
Fuel oil – – – – –
Other products – – – 10 19
Total 23 55 51 174 272
Africa
Gasolines 43 41 37 36 45
Kerosines 13 10 9 9 9
Gas/diesel oils 78 66 57 52 43
Fuel oil 2 1 1 – 3
Other products 6 7 15 7 14
Total 142 125 119 104 114
Americas
Gasolines 1,415 1,331 1,325 1,268 1,149
Kerosines 212 205 204 206 234
Gas/diesel oils 545 540 584 583 519
Fuel oil 92 69 86 68 96
Other products 275 307 249 256 238
Total 2,539 2,452 2,448 2,381 2,236
Total product sales [C]
Gasolines 2,174 2,069 2,144 2,104 2,021
Kerosines 736 723 729 718 711
Gas/diesel oils 1,897 1,890 1,953 2,055 2,122
Fuel oil 613 607 613 569 615
Other products 1,179 1,194 993 919 695
Total 6,599 6,483 6,432 6,365 6,164
[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 Raízen's sales volumes.
[C] Certain contracts are held for trading purposes and reported net rather than gross. The effect in 2017 was a reduction in oil products sales of approximately 596,000 b/d (2016: 839,000 b/d; 2015:
1,158,000 b/d; 2014: 1,067,000 b/d; 2013: 921,000 b/d).

SHELL INVESTORS’ HANDBOOK 2013-2017 DOWNSTREAM DATA 93

Sales by product as percentage of total product sales %
2017 2016 2015 2014 2013
Gasolines 32.9 31.9 33.3 33.1 32.8
Kerosines 11.2 11.2 11.3 11.3 11.5
Gas/diesel oils 28.7 29.2 30.4 32.3 34.4
Fuel oil 9.3 9.4 9.5 8.9 10.0
Other products 17.9 18.4 15.5 14.4 11.3
Total 100.0 100.0 100.0 100.0 100.0

Branded retail sites Year-end number

2017 2016 2015 2014 2013
Europe 7,822 7,768 7,829 7,971 9,038
Asia [A] 9,711 9,596 9,386 9,726 9,276
Oceania 920 850 850 888 923
Africa 2,464 2,277 2,262 1,932 2,099
Americas 23,386 22,855 22,385 22,344 21,970
Total 44,303 43,346 42,712 42,861 43,306
[A] Asia includes Turkey and Russia.

94 DOWNSTREAM DATA SHELL INVESTORS’ HANDBOOK 2013-2017

Chemicals

Chemical plant availability %

2017 2016 2015 2014 2013
Average worldwide 92 90 85 85 92

Chemicals sales volumes [A] Thousand tonnes

2017 2016 2015 2014 2013
Europe
Base chemicals 4,059 3,670 3,000 3,287 3,423
Intermediates and others 2,056 2,073 1,936 2,019 2,281
Total 6,115 5,743 4,936 5,306 5,704
Asia
Base chemicals 2,515 2,200 2,319 2,220 2,266
Intermediates and others 3,243 2,927 3,576 2,901 2,989
Total 5,758 5,127 5,895 5,121 5,255
Oceania
Base chemicals – – – –
Intermediates and others – – 35 62
Total – – 35 62
Africa
Base chemicals – – – –
Intermediates and others 22 37 43 47
Total 22 37 43 47
Americas
Base chemicals 3,839 4,041 3,036 3,251 3,218
Intermediates and others 2,527 2,359 3,244 3,252 3,100
Total 6,366 6,400 6,280 6,503 6,318
Total product sales
Base chemicals 10,413 9,911 8,355 8,758 8,907
Intermediates and others 7,826 7,381 8,793 8,250 8,479
Total 18,239 17,292 17,148 17,008 17,386
[A] Excludes feedstock trading and by-products.

Ethylene capacity [A] Thousand tonnes/year

2017 2016 2015 2014 2013
Europe 1,702 1,702 1,702 1,659 1,659
Asia 1,904 2,222 2,222 1,922 1,922
Oceania – – – –
Africa – – – –
Americas 2,267 2,235 2,235 2,212 2,212
Total 5,873 6,159 6,159 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 2013-2017 DOWNSTREAM DATA 95

 Thousand tonnes/year,
Major chemical plants in operation [A] Shell share capacity[B]
Styrene Ethylene Higher Additional
Location Ethylene monomer glycol olefins[C] products
Europe
Germany Rheinland 315 – – – A
Netherlands Moerdijk 972 816 153 – A, I
UK Mossmorran [D] 415 – – – –
Stanlow [D] – – – 315 I
Asia
China Nanhai [D] 475 320 175 – A, I, P
Singapore Jurong Island 281 1,069 1,158 – A, I, P, O
Pulau Bukom 1,148 – – – A, I
Americas
Canada Scotford – 485 520 – A, I
USA Deer Park 836 – – – A, I
Geismar – – 400 965 I
Norco 1,431 – – – A
Total 5,873 2,690 2,406 1,280
[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.

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.

96 DOWNSTREAM DATA SHELL INVESTORS’ HANDBOOK 2013-2017

Additional investor information
Share information

Growth in the value of a hypothetical Historical TSR performance of Royal Dutch Shell plc
€100 holding and £100 holding
over nine 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
€ £
300 300

200 200

100 100

0 0
Dec Dec 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 17 08 09 10 11 12 13 14 15 16 17

RDSA RDSB
Euronext 100 FTSE 100

The following table shows the high, Share prices

low and year-end prices of the Euronext Amsterdam New York Stock Exchange
Company’s registered A shares A ADSs
ordinary shares:
High Low Year-end High Low Year-end
▪ of €0.07 nominal value on the € € € $ $ $
London Stock Exchange; 2013 27.06 23.40 25.91 73.00 62.65 71.27
▪ of €0.07 nominal value on 2014 31.13 24.30 27.66 83.42 60.84 66.95
Euronext Amsterdam; and 2015 29.59 19.58 21.10 67.16 43.26 45.79
▪ in the form of ADSs on the New 2016 26.39 16.53 25.99 56.29 35.80 54.38
York Stock Exchange (each ADS 2017 28.25 22.73 27.77 66.92 50.32 66.71
represents two shares – two A
shares in the case of RDS.A or London Stock Exchange New York Stock Exchange
two B shares in the case of
B shares B ADSs
RDS.B.).
High Low Year-end High Low Year-end
pence pence pence $ $ $
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
2017 2,513 2,037 2,509 68.48 53.10 68.29

SHELL INVESTORS’ HANDBOOK 2013-2017 ADDITIONAL INVESTOR INFORMATION 97

Dividends A and B shares $
2017 2016 2015 2014 2013
Q1 0.47 0.47 0.47 0.47 0.45
Q2 0.47 0.47 0.47 0.47 0.45
Q3 0.47 0.47 0.47 0.47 0.45
POLICY Q4 0.47 0.47 0.47 0.47 0.45
Total announced in respect of the year 1.88 1.88 1.88 1.88 1.80
Our policy is to grow the US dollar
dividend through time in line with our
view of Shell’s underlying earnings A shares €[A]
and cash flow. When setting the 2017 2016 2015 2014 2013
dividend, the Board of Directors looks Q1 0.42 0.42 0.42 0.35 0.34
at a range of factors, including the
Q2 0.39 0.42 0.42 0.36 0.34
macroeconomic environment, the
Q3 0.40 0.44 0.43 0.38 0.33
current balance sheet and future
Q4 0.38 0.44 0.42 0.43 0.32
investment plans.
Total announced in respect of the year 1.59 1.72 1.69 1.53 1.34
SCRIP DIVIDEND Amount paid during the year 1.65 1.70 1.71 1.42 1.34
PROGRAMME [A] Euro equivalent, rounded to the nearest euro cent.

The Company’s Scrip Dividend B shares Pence[A]

Programme, until the third quarter of
2017 2016 2015 2014 2013
2017, enabled shareholders to
increase their shareholding by Q1 37.12 32.98 30.75 28.03 28.99
choosing to receive new shares Q2 36.28 35.27 30.92 29.09 28.67
instead of cash dividends (if approved Q3 35.02 37.16 31.07 30.16 27.51
by the Board). Only new A shares Q4 33.91 38.64 32.78 31.20 26.88
were issued under the programme, Total announced in respect of the year 142.33 144.05 125.52 118.48 112.05
including to shareholders who hold Amount paid during the year 147.06 138.19 123.94 114.16 113.96
B shares. [A] Sterling equivalent.

A and B ADSs $
2017 2016 2015 2014 2013
Q1 0.94 0.94 0.94 0.94 0.90
Q2 0.94 0.94 0.94 0.94 0.90
Q3 0.94 0.94 0.94 0.94 0.90
Q4 0.94 0.94 0.94 0.94 0.90
Total announced in respect of the year 3.76 3.76 3.76 3.76 3.60
Amount paid during the year 3.76 3.76 3.76 3.72 3.56

Scrip issuance A shares Number of shares in million

2017[A] 2016 2015[B] 2014[B] 2013
Q1 47.8 65.7 – 38.0 25.6
Q2 33.9 50.6 23.4 26.6 23.6
Q3 33.8 44.1 23.9 – 39.1
Q4 52.7 58.9 49.0 – 37.3
Total 168.2 219.3 96.3 64.6 125.6
[A] Our Scrip Dividend Programme was cancelled with effect from the fourth quarter 2017 interim dividend.
[B] 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

2017 2016 2015[B] 2014 2013
Q1 – – 12.7 32.4 16.1
Q2 – – – 9.5 56.2
Q3 – – – 21.4 45.4
Q4 – – – 24.4 27.2
Total – – 12.7 87.7 144.9
[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.

98 ADDITIONAL INVESTOR INFORMATION SHELL INVESTORS’ HANDBOOK 2013-2017

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 April 1, 2018)

S&P Moody’s
Short-term Long-term Short-term Long-term
rating rating Outlook rating rating Outlook
Royal Dutch Shell plc A–1 A+ Positive P–1 Aa2 Stable
Debt of Shell International Finance
B.V. A–1 A+ Positive P–1 Aa2 Stable

Publicly listed bonds, current outstanding

Maturity Settlement Currency Million Coupon Listing ISIN
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
3-month EURIBOR
15 Sep 2019 15 Sep 2015 EUR 1,200 + 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 2013-2017 ADDITIONAL INVESTOR INFORMATION 99

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

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

100 ADDITIONAL INVESTOR INFORMATION SHELL INVESTORS’ HANDBOOK 2013-2017

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

CO2 carbon dioxide

Units of measurement
EOR enhanced oil recovery
acre approximately 0.004 square kilometres
FCF Free cash flow
b(/d) barrels (per day)
FID final investment decision
boe(/d) barrels of oil equivalent (per day); natural gas volumes
FLNG floating liquefied natural gas
are converted into oil equivalent using a factor of 5,800
FPSO floating production, storage and offloading
scf per barrel
IFRS International Financial Reporting Standard(s)
kboe(/d) thousand barrels of oil equivalent (per day)
JV&A Shell share of joint ventures and associates
km kilometres
LRS liquids-rich shale
mboe(/d) million barrels of oil equivalent (per day)
OML oil mining lease
MMBtu million British thermal units
P&T Projects & Technology
mtpa million tonnes per annum
PSC production-sharing contract
MT million tonnes
R&D research and development
MW megawatts
ROACE return on average capital employed
per day volumes are converted to a daily basis using a calendar

year SEC US Securities and Exchange Commission

scf(/d) standard cubic feet (per day) SUBS Shell subsidiaries

TSR total shareholder return

Products
WTI West Texas Intermediate
GTL gas to liquids

LNG liquefied natural gas

LPG liquefied petroleum gas

NGL natural gas liquids

SHELL INVESTORS’ HANDBOOK 2013-2017 ADDITIONAL INVESTOR INFORMATION 101

About this Reserves: Our use of the term “reserves” in this publication
means US Securities and Exchange Commission (SEC)
publication proved oil and gas reserves.
Resources: Our use of the term “resources” in this
publication includes quantities of oil and gas not yet
classified as SEC proved oil and gas reserves. Resources
are consistent with the Society of Petroleum Engineers (SPE)
2P + 2C definitions.
Shales: Our use of the term “shales” refers to tight, shale
and coal-bed methane oil and gas acreage.
All amounts shown throughout this publication are
unaudited. All peak production figures in Portfolio
Developments are quoted at 100% expected production.
The companies in which Royal Dutch Shell plc directly and
indirectly owns investments are separate legal entities. In this
report “Shell”, “Shell group” and “Royal Dutch Shell” are
sometimes used for convenience where references are made
to Royal Dutch Shell plc and its subsidiaries in general.
Likewise, the words “we”, “us” and “our” are also used to
refer to Royal Dutch Shell plc and its subsidiaries in general or
to those who work for them. These terms are also used where
no useful purpose is served by identifying the particular entity
or entities. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell
companies” as used in this report refer to entities over which
Royal Dutch Shell plc either directly or indirectly has control.
Entities and unincorporated arrangements over which Shell
has joint control are generally referred to as “joint ventures”
and “joint operations”, respectively. Entities over which Shell
has significant influence but neither control nor joint control are
referred to as “associates”. The term “Shell interest” is used for
convenience to indicate the direct and/or indirect ownership
interest held by Shell in an entity or unincorporated joint
arrangement, after exclusion of all third-party interest.
This report contains forward-looking statements (within the
meaning of the US Private Securities Litigation Reform Act of
1995) concerning the financial condition, results of operations
and businesses of Royal Dutch Shell. All statements other than
statements of historical fact are, or may be deemed to be,
forward-looking statements. Forward-looking statements are
statements of future expectations that are based on
management’s current expectations and assumptions and
involve known and unknown risks and uncertainties that could
cause actual results, performance or events to differ materially
from those expressed or implied in these statements. Forward-
looking statements include, among other things, statements
concerning the potential exposure of Royal Dutch Shell to
market risks and statements expressing management’s
expectations, beliefs, estimates, forecasts, projections and
assumptions. These forward-looking statements are identified
by their use of terms and phrases such as “aim”, “ambition’,
‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’,
‘‘goals’’, ‘‘intend’’, ‘‘may’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘plan’’,
‘‘probably’’, ‘‘project’’, ‘‘risks’’, “schedule”, ‘‘seek’’, ‘‘should’’,
‘‘target’’, ‘‘will’’ and similar terms and phrases. There are a
number of factors that could affect the future operations of
Royal Dutch Shell and could cause those results to differ
materially from those expressed in the forward-looking
statements included in this report, 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
102 ADDITIONAL INVESTOR INFORMATION SHELL INVESTORS’ HANDBOOK 2013-2017
suitable potential acquisition properties and targets, and
successful negotiation and completion of such transactions; (i)
the risk of doing business in developing countries and
countries subject to international sanctions; (j) legislative, fiscal
and regulatory developments including regulatory measures
addressing climate change; (k) economic and financial market
conditions in various countries and regions; (l) political risks,
including the risks of expropriation and renegotiation of the
terms of contracts with governmental entities, delays or
advancements in the approval of projects and delays in the
reimbursement for shared costs; and (m) changes in trading
conditions. No assurance is provided that future dividend
payments will match or exceed previous dividend
payments. All forward-looking statements contained in this
report are expressly qualified in their entirety by the cautionary
statements contained or referred to in this section. Readers
should not place undue reliance on forward-looking
statements. Additional risk factors that may affect future results
are contained in Royal Dutch Shell’s Form 20-F for the year
ended December 31, 2017 (available at www.shell.com/
investor and www.sec.gov). These risk factors also expressly
qualify all forward-looking statements contained in this report
and should be considered by the reader. Each forward-
looking statement speaks only as of the date of this report,
April 12, 2018. Neither Royal Dutch Shell plc nor any of its
subsidiaries undertake any obligation to publicly update or
revise any forward-looking statement as a result of new
information, future events or other information. In light of these
risks, results could differ materially from those stated, implied or
inferred from the forward-looking statements contained in
this report.
Also, in this report we may refer to “Shell’s net carbon footprint”,
which includes Shell’s carbon emissions from the production of
our energy products, our suppliers’ carbon emissions in
supplying energy for that production and our customers’ carbon
emissions associated with their use of the energy products we
sell. Shell only controls its own emissions but, to support society
in achieving the Paris Agreement goals, we aim to help and
influence such suppliers and consumers to likewise lower their
emissions. The use of the terminology “Shell’s net carbon
footprint” is for convenience only and not intended to suggest
these emissions are those of Shell or its subsidiaries.
We may have used certain terms, such as resources, in this
report that the SEC strictly prohibits us from including in our
filings with the SEC. US 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.
April 12, 2018
The information in this Report reflects the unaudited
consolidated financial position and results of Royal Dutch
Shell plc. Company No. 4366849, Registered Office:
Shell Centre, London, SE1 7NA, England, UK.
Contacts:
▪ Linda Szymanski, Company Secretary
▪ Investor Relations: International + 31 (0) 70 377
4540; North America +1 832 337 2034
▪ Media: International +44 (0) 207 934 5550; USA
+1 713 241 4544
LEI number of Royal Dutch Shell plc:
21380068P1DRHMJ8KU70
 FINANCIAL CALENDAR IN 2018
The Annual General Meeting will be held on May 22, 2018.
2017 Fourth 2018 First 2018 Second 2018 Third
quarter [A] quarter [B] quarter [B] quarter [B]
Results announcements February 1 April 26 July 26 November 1
Interim dividend timetable
Announcement date February 1 [C] April 26 July 26 November 1
Ex-dividend date [D] February 15 May 10 August 9 November 15
Record date February 16 May 11 August 10 November 16
Closing date for currency election [E] March 2 May 25 August 24 November 30
Euro and sterling equivalents announcement date March 9 June 4 September 3 December 6
Payment date March 26 June 18 September 17 December 19
[A] In respect of the financial year ended December 31, 2017.
[B] In respect of the financial year ending December 31, 2018.
[C] The Directors do not propose to recommend any further distribution in respect of 2017.
[D] The New York Stock Exchange (NYSE), with effect from September 5, 2017, reduced the standard settement cycle in accordance with the SEC amendments to Exchange Act Rule 15c6-1(a).
Under these rules, regular settlement will occur on a T+2 basis for trades occurring on or after the SEC’s implementation date of September 5, 2017. As a result, RDS A and B ADSs traded on the
NYSE markets will now settle in line with RDS A and B shares traded on European markets, which moved to a T+2 settlement basis for trades in 2014, resulting in the same ex-dividend date for RDS A
and B shares, and RDS A and B ADSs. Record dates will not change.
[E] A different 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.

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
under number 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

Equiniti Shares (ADSs) order@shell.com
Aspect House BNY Mellon Shareowner Services
Spencer Road PO Box 505000 Annual Report/20-F service for US residents
Lancing Louisville, KY 40233-5000 +1 888 301 0504
West Sussex BN99 6DA USA
United Kingdom
0800 169 1679 (UK) Overnight correspondence to:
+44 (0)121 415 7073 BNY Mellon Shareowner Services
462 South 4th Street Suite 1600
For online information about your holding Louisville, KY 40202
and to change the way you receive your USA
company documents: +1 888 737 2377 (USA)
www.shareview.co.uk +1 201 680 6825 (international)

shrrelations@cpushareownerservices.com
www.mybnymdr.com
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