Investing in the Future of Iraq

Shell Iraq Petroleum Development BV 1

Iraq Finance 201218-19 September, London

Sharon PoulsonFinance Director, Shell Iraq BV

Disclaimer StatementThe companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate entities. In this presentation “Shell”, “Shell group” and “Royal Dutch

Shell” are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our”

are also used to refer to subsidiaries in general or to those who work for them. These expressions are also used where no useful purpose is served by identifying the

particular company or companies. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as used in this presentation refer to companies in which Royal Dutch Shell

either directly or indirectly has control, by having either a majority of the voting rights or the right to exercise a controlling influence. The companies in which Shell has

significant influence but not control are referred to as “associated companies” or “associates” and companies in which Shell has joint control are referred to as “jointly

controlled entities”. In this presentation, associates and jointly controlled entities are also referred to as “equity-accounted investments”. The term “Shell interest” is used

for convenience to indicate the direct and/or indirect (for example, through our 23% shareholding in Woodside Petroleum Ltd.) ownership interest held by Shell in a

venture, partnership or company, after exclusion of all third-party interest. This presentation contains forward-looking statements concerning the financial condition,

results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements.

Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and

unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-

looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements expressing

management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases

such as ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’, ‘‘intend’’, ‘‘may’’, ‘‘plan’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘probably’’, ‘‘project’’, ‘‘will’’, ‘‘seek’’, ‘‘target’’,

‘‘risks’’, ‘‘goals’’, ‘‘should’’ and similar terms and phrases. There are a number of factors that could affect the future operations of Royal Dutch Shell and could cause

2

‘‘risks’’, ‘‘goals’’, ‘‘should’’ and similar terms and phrases. There are a number of factors that could affect the future operations of Royal Dutch Shell and could cause

those results to differ materially from those expressed in the forward-looking statements included in this presentation, including (without limitation): (a) price fluctuations in

crude oil and natural gas; (b) changes in demand for the Shell’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserve estimates; (f) loss of

market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and

targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international

sanctions; (j) legislative, fiscal and regulatory developments including 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. All forward-looking statements

contained in this presentation are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue

reliance on forward-looking statements. Additional factors that may affect future results are contained in Royal Dutch Shell’s 20-F for the year ended December 31, 2011

(available at www.shell.com/investor and www.sec.gov ). These factors also should be considered by the reader. Each forward-looking statement speaks only as of the

date of this presentation, [June 2012]. Neither Royal Dutch Shell nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking

statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from

the forward-looking statements contained in this presentation. The United States Securities and Exchange Commission (SEC) permits oil and gas companies, in their filings

with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally

producible under existing economic and operating conditions. We may have used certain terms in this presentation that SEC's guidelines strictly prohibit us from

including in filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website

www.sec.gov. You can also obtain these forms from the SEC by calling 1-800-SEC-0330.

Agenda

Oil & Gas Industry in Iraq

Shell in Iraq – Progress to Date

Key Enablers to Facilitate Future Investment

3

Iraq Oil & Gas Industry

0

50

100

150

200

250

300

Thousand Million Barrels

OIL

4

Sources: 2008 BP Statistical Review of World Energy

0

10

20

30

40

50

60

Trillion Cubic Meters

Resources—Oil: 112 billion barrels (proven)—Gas: 110 trillion cubic feet (proven)

Development of these natural resources is key to the Iraq reconstruction programme

March 2012

GAS

Background: Iraq Licence Rounds I & II 2009

Akkas (No Deal)

4.8 Tcf

Qaiyarah (Sonangol)

5.4 Bln bbl Bai Hassan No Deal)11.0 Bln bbl

Najmah (Sonangol)

5.7 Bln bbl Kirkuk (No deal)

38.6 Bln bbl

Eastern Fields

(No Bids) 1.6 bbl Mansuriyah

No bids 3.3 Tcf

5

Middle Furat (No Bids) 2.2 Bln bbl

Field (IOC)STOIIP / GIIP (MoO)

East Baghdad (No Bids)

27.2 Bln bbl Badra (Kogas, Petronas)

1.2 Bln bbl

Missan (No Deal)7.8 Bln bbl Garraf

(Petronas /Japex)2.9 Bbl bbl

N/S Rumaila (BP/CNPC)

62.1 Bln bbl

West Qurna IEM/Shell

37.8 Bln bbl

West Qurna IEM/Shell

37.8 Bln bbl Majnoon

Shell / Petronas38.0 Bln bbl

MajnoonShell / Petronas38.0 Bln bbl

Halfaya(CNPC/Petronas/Total16.1 Bln bbl

West Qurna II (Lukoil/Statoil) 31.3 Bln bbl

DealNoDeal

Data Source: Ministry of Oil (License Rounds)

Population

2.5m – 2.7m population

3% growth rate

20 years median age

43% below 15 years; 80,000 people turn 15 each year

Workforce

1.4 m working age

Large unemployment amongst youth

Basrah

6

Large unemployment amongst youth

13% participation rate of women

Attitude to Foreign Companies(Main Expectation Areas):

Employment

Local capacity building

Improve infrastructure

Technology transfer

Community concerns

Power & Water scarcity

Influx of foreign workers versus local employment

1922-1972 Member of Iraq Petroleum Company

1964 INOC, takes over exploration of IPC

1972-1975 Nationalization of IPC

1980-1985 TSA on Ajil field (Reservoir simulation)

2001 Assistance with Kirkuk reservoir study

2004-2008 Kirkuk & Missan fields reservoir analysis

2005 Request from MoO for Gas Master Plan

History of Shell in Iraq

1927 - Kirkuk First Oil

77

2005 Request from MoO for Gas Master Plan

2005 - present Training assistance for the Ministry of Oil

2008 HoA Iraq South Gas Project

2009-2010 Licensing Round 2: Majnoon Oil Field

2011 Approval Iraq South Gas Project

2012 Chemicals MoUNew Lubricants Distributor

7

2005 - First training in NL with Missan Oil Co

2011 - Erecting mast of first drilling rig - Majnoon

Shell in Iraq TodayMajnoon Field Development� Shell 60%, Petronas 40% (Funding Interest)� Yearly average production ca. 40,000 boe/day

West Qurna 1� Exxon 80%, Shell (20% (Funding Interest)� Present production ca. 420,000 boe/day

Basrah Gas Company Joint Venture� Natural gas, LPG, condensate� Gas for local market and export of any surplus

88

� Gas for local market and export of any surplus

Crude Trading� Term lifting of crude oil from Basrah

Chemicals� MOU to develop petrochemicals industry in the

south of Iraq.

Technology Licenses & Lubricants� Providing licensed technologies and catalysts to

the Kirkuk, Basrah and Nasiriya refineries. New Lubricants Distributor since early 2012

Basrah Gas Company Joint Venture� Midstream JV: Basrah Gas Company

� South Gas Company (51%), Shell (44%) and Mitsubishi (5%)

� Self operated, incorporated JV, 25 year duration

� South Gas Company will contribute existing assets/second ~5000 staff

� Scope of Joint Venture

� Gather associated gas from Rumaila (BP), West

9

� Gather associated gas from Rumaila (BP), West Qurna 1 (ExxonMobil), Zubair (ENI)

� Process/treat raw gas to produce sales gas, LPG and condensate

� Sell domestic products to South Gas Company (Ministry of Oil affiliate)

� Potential export of products and gas/LNG that are surplus to domestic needs

� Projects in three categories:

� Rehabilitation of existing infrastructure

� Rejuvenation

� New capacity

Camp 1

Camp 2

Camp 3

W Qurna

50km

20km20km35km

North Rumaila NGL

Plant

50km

1

3

2

Shell / BGC Camps

Compressor Station

3

Rumaila

Compressor stations

Zubair

Compressor

Stations

Kor AL Zubair

NGL/LPG Plant

Umm Qasr storage

and marine terminal

West Qurna Compressor Stations

City of Basrah

Capturing Flared Gas – Progress to Date

� Quick Wins program to immediately reduce flaring – 30-60 MMscf/d so far

� New 50 MW power plant is under construction at Khor Al Zubair

� Procurement of new compressors underway for North Rumaila, South Rumaila and Zubair

1010

Rumaila and Zubair

� Working with South Gas Company to establish BGC – organisation, systems, procedures, processes, permits, registration, etc.

Control room at SGC facilities

Majnoon Oil Field Facts

� Discovered in 1976; STOIIP ~38 billion barrels*

� Borders Iran; littered with explosive remnants of war (ERW)

�Wetland area over northern portion of field

� Area is 900 km square; 13 Reservoir Horizons

� Development and Production Service Contract – 20 years

� Contract Effective Date – 1st March 2010

~ 5

2 K

m

~ 15Km

11

� Contract Effective Date – 1st March 2010

� Shell Iraq Petroleum Development BV (45%) is Operator, with Petronas Carigali Sdn. Bhd. (30%) and Missan Oil Company (25%) representing the Iraqi State

*Data source – Iraqi Ministry of oil

~ 5

2 K

m

Cleaning Up Explosive Remnants of War (ERW)

12

Around 90.000 m2 cleared per day

To date more than 15.000.000 m2 cleared/released

Currently 250 staff from 2 contractors (500 at Peak)

Well over 6,000 items removed and disposed of through controlled demolition by the Iraqi Army

Largest item 500 kg explosive

ERW Majnoon TeamHeavy contaminated area - 2010

Poppy field

Progress – Degas Station (DS) 1 and 2

20092012

DS 1

2010

13

20092012

June

DS 2

2010

2010 Aug 2012

Progress – Central Processing Facility (CPF)

14

2009 2012

Opening the Shat-Al-Arab Riverway

15

Corporate Social Responsibility in Iraq

Road safety awareness campaign at schools in Al Nashwa and Al Dayr

communities (37 schools)- Completed

Scholarships for young unemployedAwareness campaign at schools in Al Nashwa and Al Dayr

communities as part of the health

16

Equipment and training in Al Nashwa clinic (ultra sound and

ECG) - Completed

communities (37 schools)- Completed

Dredging of the canal in the Halechee village

Distribution of food parcels during Ramadan - Completed.

communities as part of the health prevention program

Environment

Understanding how we can develop the Majnoon oilfield responsibly in an international important wetland area by doing a Biodiversity Action Plan –The first of its kind in Iraq.

17

Waste Management facilities are limited. An IOC forum is exploring options for an integrated approach

Soil contamination from oil spills are being mapped and analyzed to help in planning for future remediation

Enabling Capital Investment

Transparency

Rule of Law

Contract Sanctity

Bureaucratic

Complexity

Tax Stability

Visas,

Customs

18

Complexity

Infrastructure

Education

Private Sector

Thank you!

19

20