re-shaping shell to create a world-class investment …...royal dutch shell november 9, 2016 royal...

Royal Dutch Shell November 9, 2016

Royal Dutch Shell plcNovember 9, 2016

Brazil Shareholder visit 2016Re-shaping Shellto create a world-class investment case

“Let’s make the future”


Wael SawanEVP DeepwaterRoyal Dutch Shell plc

Royal Dutch Shell November 9, 2016 3

Definitions & cautionary note

Reserves: Our use of the term “reserves” in this presentation means SEC proved oil and gas reserves.

Resources: Our use of the term “resources” in this presentation 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.

Discovered and prospective resources: Our use of the term “discovered and prospective resources” are consistent with SPE 2P + 2C + 2U definitions.

Organic: Our use of the term Organic includes SEC proved oil and gas reserves excluding changes resulting from acquisitions, divestments and year-average pricing impact.

Shales: Our use of the term ‘shales’ refers to tight, shale and coal bed methane oil and gas acreage.

Underlying operating cost is defined as operating cost less identified items. A reconciliation can be found in the quarterly results announcement.

The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate legal entities. In this release “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 release refer to companies 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 a venture, partnership or company, after exclusion of all third-party interest.

This release 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’’, ‘‘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 release, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable 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. There can be no assurance that future dividend payments will match or exceed previous dividend payments. All forward-looking statements contained in this release 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 20-F for the year ended December 31, 2015 (available at www.shell.com/investor and www.sec.gov ). These risk factors also expressly qualify all forward looking statements contained in this release and should be considered by the reader. Each forward-looking statement speaks only as of the date of this release, November 9, 2016. 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 release.

With respect to operating costs synergies indicated, such savings and efficiencies in procurement spend include economies of scale, specification standardisation and operating efficiencies across operating, capital and raw material cost areas.

We may have used certain terms, such as resources, in this release that United States Securities and Exchange Commission (SEC) strictly prohibits us from including in our 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.


Deep waterWorld class position

Shell’s deep water heartlands

244

206

13335

Production 618 kboe/d

17% RDS total

Gulf of Mexico

Malaysia

Nigeria

Brazil

2016 YTD production kboe/d

Safety

Deep waterRDS

TRCF/million working hours

0

0.5

1

1.5

2

12 13 14 15 16Q2


Deep water capabilities

Leading deep water developer

Success through innovation and leveraging technology

Brazil in moderate depth

Auger 1993

Mars1996

Olympus2014

Ram-Powell1997

Bonga 2005

Cognac 1978

Malikaiin progress

Ursa1999

Gumusut-Kakap2014

BC-102010

Na Kika2003

Perdido2010

Stones2016

Bullwinkle1998

LulaNon-operated

Appomattoxin progress


Advantaged portfolio

EUR = estimated ultimate recovery of resources versus first oil view

% increase

Current EUR versus first oil view

Cumulative resources added million boe

Exploration in Gulf of Mexico

Near field exploration and tie-backs to fill hubs

New heartland discoveries for growth

0%

100%

200%

300%

0 5 10 15 20

Auger

Mars + Mars B

Ursa

Ram PowellBrutus

Perdido

Bonga

0

500

1000

2010 2011 2012 2013 2014 2015 Q32016

AppomattoxVito

Cardamom South Deimos

VicksburgVito appraisal

Appomattox appraisal

RydbergKaikias

Powernap

Kaikias appraisalPowernap appraisal

Kepler NorthFort Sumter

years since start-up


0

200

400

600

800

1000

2015 2020

Portfolio shift and structural cost reduction lowering the future project break even prices

Production and free cash flow growth

0

2

4

6

8

10

13 14 15 2016E 2017/18

7

Competitive growth Thousand boe per day

Production

$ billion

$6-7 billion

Capital investment

Pre-FID funnel break even price $ per barrel

Capital discipline

2016

2014

BrazilGulf of Mexico Other

2013-15 capital investment excludes BG

% of outstanding capitalUnder constructionOn-stream FEED

0

10

20

30

40

50

60

70

80

0% 50% 100%


Production excellence $ per boe

Deep water direct unit operating costs

%

Deep water availability

Structural operating cost reductions

Disciplined approach to maximize availability

0

5

10

15

2014 2015 2016E

-30%

80

85

90

2013 2014 2015 2016 YTD


Norphlet case study $ per boe breakeven price

Appomattox potential

Shell leaseDiscovery

Fort Sumter

Rydberg

VicksburgAppomattox

future Appo TLP

Mississippi canyon Desoto canyon

TLP

0

20

40

60

2015FID

Futuretie-backs

PotentialCurrentestimate

CompetitiveScoping

+Efficient

Execution+

Supply ChainTransformation

Advantaged portfolio: new discoveries allow

opportunity to further lower BEP

Competitive growth: continue to reduce costs

since investment decision

Production excellence: driving top quartile

performance through “Fit for the future”

program


Shell deep water Brazil

Shell operated mature assets in Campos Basin

Petrobras operated growth assets in Santos Basin

Future exploration potential

BC-10

BJSA

Santos

Basin

Campos

Basin

Lula

Sagitario

(exploration)

Lapa

Sapinhoá

Berbigão, Sururu

and Atapu

Libra

BMS-54

(exploration)

Iracema


Brazil: Campos Basin Legacy operated assets

80% Shell operator

On-stream in 2003

Maximize economic life and abandon efficiently

Bijupira Salema

50% Shell operator

On-stream in 2009

Focus on reducing opex and infill opportunities

BC-10

Shell deep water Brazil operating experience

Production ~30 kboe/d


0

10

20

30

40

50

Santos Basin UKNorth Sea

Gulf of MexicoDeepwater

AngolaDeepwater

NigeriaDeepwater

Produced

12

1 Source: Wood Mackenzie Upstream Data Tool August 2016 for the produced / remaining reserves and Exploration Tool March 2016 for the yet to find resource

Industry off-shore resource base1

Significant growth and resource potential

Santos basin top tier deep water acreage

early in life-cycle

Significant learning curve potential and

upside

Billion barrels

RemainingTotal including yet to find

Brazil: Santos BasinAdvantaged portfolio


1 The Berbigão, Sururu and Atapu accumulations are subject to unitisation agreements

Petrobras operated

Significant development in progress

Impressive delivery track record

BM-S-50

BM-S-09

BM-S-11

BM-S-11

1

2

3

Iracema25%

Leased FPSO commissioning

Sapinhoá30%

4

Replicant FPSO under construction

9

8

7

6

5

Sururu25%1

Lula25%

Lapa30%

BM-S-09

Future Leased FPSO

Leased FPSO producing

BM-S-11

Berbigão25%1

Atapu25%1

Committed FPSO

Oilcapacity(Kbbl/d)

1st oil

1 Lula Pilot 100 On stream

2 Sapinhoá South 120 On stream

3 Lula NE 120 On stream

4 Sapinhoá North 150 On stream

5 Iracema South 150 On stream

6 Iracema North 150 On stream

7 Lula Alto 150 On stream

8 Lula Central 150 On stream

9 Lapa 100 2016

10 Lula South 150 2017

11 Lula North 150 2017

12 Berbigão 150 2018

13Lula ExtremeSouth

150 2018

14 Atapu South 150 2019

15 Atapu North 150 2021+

%Shell share interest

Brazil: Santos BasinCompetitive growth


0 15 30 45

14

Brazil: Santos BasinCompetitive growth

Average number of days

Drill and complete time

$ per barrel forward looking breakeven price

Brazil pre-salt breakeven price

Top 10 pre-salt producer wells - ANP

Well performance

Learning curve resulting in significant cost reduction

Exceptional well productivity

Low breakeven prices

0

100

200

300

2010 2013 2016

Lula #1Lula #2Lula #3

JubarteLula #4

Sapinhoa #1Lula #5

Lula #6Sapinhoa #2Sapinhoa #3

Shell equity No Shell equity Flow rate in kboe per day

-70%

Lula FPSO Cidade de Saquarema0

10

20

50

40

30

Future volumes

Producing assets Development assets

100%50%0%


Former BG assets driving free cash flow

through competitive growth and production

excellence

15

Brazil: Santos Basin

Capital investment and production excludes Libra + Campos Basin

$ billion

0

1

2

3

2016 2017 2018 2019

Capital investment

Thousand boe per day

0

200

400

2016 ~2020

Production

P66 FPSO BrasFELS Shipyard


Brazil: Libra

Libra

Shell Interest

Libra EWT FPSO

Petrobras operated with 5 company

consortium

Shell interest 20%

Strong partnership with close collaboration

EWT 50kboe/d FPSO first oil expected in

2017

Lula

2ANP2A

C-1

C-2

NW-5

NW-4

NW-1

NW-3

NW-2

NW-7

Drilled Wells

Ongoing Wells


Partnering with Petrobras

Deepening the partnership between the top two deep water

players in industry

Leveraging Shell’s global experience in the pre-salt

Joint efforts to unlock additional value from assets


Deep water summary

Strong deep water capabilities combined with advantaged

portfolio

Brazil pre-salt best in class deep water basin

Disciplined investment in competitive growth with a strong

focus on production excellence

Positioned for 2020s cash engine with free cash flow delivery


Questions & Answers


Wael SawanEVP DeepwaterRoyal Dutch Shell plc


Royal Dutch Shell plcNovember 9, 2016

Brazil Shareholder visit 2016Re-shaping Shell,to create a world-class investment case

“Let’s make the future”

re-shaping shell to create a world-class investment …...royal dutch shell november 9, 2016 royal...

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