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Regional Community Consultative Committee Northern Meeting

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Regional Community Consultative Committee Northern Meeting Regional Community Consultative Committee Northern Meeting 7 September, 2018 Copyright of Shell International CONFIDENTIAL September 2018 1 Agenda Order Item Welcome 1. Introductions 2. Safety moment – Slow down or go around 3. Adoption of minutes from previous meeting 4. Community feedback – Tell us what you think 5. Business update • Project Goog-a-binge update • Project Charlie update • Project Ruby update • Project Murrumgama • Well site /pipeline inspections • Water treatment report • Local road upgrades 6. Local content update 7. EconomX roadshows 8. QGC Pathways 2019 9. Caring for local wildlife 10. Social investment and community update 11. Pitch Competition - Business Navigators 12. Out and about in the community 13. Community feedback – Quarterly summary 14. Lunch 15. Meeting closes Copyright of Shell International CONFIDENTIAL September 2018 2 Safety Moment – Slow Down or Go Around Shell QGC has added prominent stickers to our vehicles in the Western Downs region to support our bid to make Queensland roads safer for everyone. Our drivers have been trained to drive safely to road conditions and must follow posted speed limits and speed advisory signs such as those found on corners and unsealed roads. Our vehicles are also speed monitored via GPS In-Vehicle-Monitoring-Systems to ensure adherence to safe speed limits. This means our drivers may drive at speeds below the posted speed limit to ensure they safely drive to the conditions of the roads. So, look out for our stickers and slow down or go around when safe to do so. Copyright of Shell International CONFIDENTIAL September 2018 3 Community Feedback - Tell us what you think Your feedback assists us to improve our knowledge and understanding of the community in which we operate. Copyright of Shell International CONFIDENTIAL September 2018 4 Business Update Copyright of Shell International CONFIDENTIAL September 2018 5 Project Goog-a-binge update As you know, QGC is currently planning its development for 2019 and beyond to ensure sustained gas supply to domestic and LNG customers. This will involve infill gas wells across our existing northern, central and southern operational areas. QGC submitted an application to the Federal Government on 10 August seeking environmental approval for new wells in our northern area. This application seeks approval for all wells contemplated in this area from 2019 and beyond. We will keep you updated on our By providing our full northern development scope, we can give the Government and community progress. certainty on the maximum development planned for the area. The majority of this development would be taking place within Iman traditional territory. In recognition of this, the Iman elders have provided the name ‘Goog-a-binge’. Copyright of Shell International CONFIDENTIAL September 2018 6 Project Charlie Update Charlie Field Compressor Station construction completed February 2018 with 12 compressors operational and flowing gas from the 337 wells. The personnel camp was demobilised, land has been rehabilitated, and there are minor commission works ongoing. Project Ruby Update Project Ruby is progressing successfully and safely to schedule. At the end of August 2018, 131 of the 161 wells had been drilled. Project milestone achieved putting the first well on production in May 2018. Copyright of Shell International CONFIDENTIAL September 2018 7 Project Murrumgama Shell continues to investigate the option of a new solar energy project on QGCs existing land in the Wandoan area, as part of a plan to deliver renewable energy sources. Shell is assessing viability; no final investment decision has been made. If the project is approved it will be called ‘Murrumgama’, the name of the original tribe whose land stretched from Charley’s Creek in Chinchilla to Woleebee Creek. We support Traditional Owners promoting their language and culture for the benefit of current and future generations. The Barrunggam people have provided the name ‘Murrumgama’. You may see staff visiting the site, from Shell and other companies - so we can gather information to feed into project planning. Copyright of Shell International CONFIDENTIAL September 2018 8 Well site inspections A team of 50 dedicated QGC operators are continuing their ongoing program to inspect each of QGC’s more than 2,500 wells once every fortnight. They take care to strictly adhere to land access and weed management rules for individual properties. Pipeline inspections Working in small teams, QGC operators have continued to inspect the 543km Wallumbilla Gladstone Pipeline easement to monitor the infrastructure and progress of vegetation rehabilitation. Activities include: Aerial inspections from west of Dalby (RubyJo site) to west of Wandoan (Woleebee Creek site) and between Chinchilla and Gladstone. Daily, on-ground easement inspections from west of Dalby (Ruby Jo site) to Gladstone. Copyright of Shell International CONFIDENTIAL September 2018 9 Water treatment update The Northern Water Treatment Plant, at Woleebee Creek south-west of Wandoan, and the Kenya Water Treatment Plant, south-west of Chinchilla, continue to process water produced in the surrounding gas fields. The two plants enabled 97% of produced water in the gas fields to be made available for beneficial use. The average daily production of each plant and the total volume of water processed in 2018 is summarised in the table below. Average daily 2018 year to date Water Treatment production production Plant June 2018 June 2018 Kenya 22.5 ML/d 4,070 ML Northern 24.2 ML/d 4,375 ML Northern water treatment plant at Woleebee Creek Copyright of Shell International CONFIDENTIAL September 2018 10 Local Road Upgrades QGC continues its maintenance program with Western Downs Regional Council, for local roads across our Operations. RYALS ROAD With QGC funding, Western Downs Regional Council will commence the upgrading of the Horse Creek Crossing on Ryals Road in August 2019. CHAPMANS ROAD Light grading of Chapmans road will be conducted to improve rideability. PERRETS ROAD Pavement repairs have been completed on Perretts Road. WIEAMBILLA ROAD QGC will fund repairs to both the sealed and unsealed sections of Wieambilla Road. The Western end of the road (approximately 3km) will be shaped and treated to reduce dust. FREEMANS ROAD QGC has treated approximately 8km of Freemans road to reduce dust emissions. SHULTZS ROAD Pavement repairs will be completed in the approach to the existing grid on Shultzs Road. Copyright of Shell International CONFIDENTIAL September 2018 11 Local Procurement - QGC 2018 Q2 Q2 statistics in graph $12.3 million in Western Downs $59 million upstream ‘local’ Western Downs $12.3 million Banana $5 million International $4 million Maranoa $3 million Western Downs Regional Council Banana Shire Council Maranoa Regional Council $ 38 million Toowoomba Regional Council Gladstone $11 million $ 110 million Gladstone Regional Council Rest of Queensland Interstate International $ 205 million 2018 to Date $25 million in Western Downs Copyright of Shell International CONFIDENTIAL Local Procurement – Contractors 2018 Q2 Q2 statistics in graph $9.6 million in Western Downs $24 million upstream ‘local’ International $1.3 million Western Downs Regional Council $8 million $9.6 million Banana $165 K Maranoa $1.6 million Banana Shire Council Maranoa Regional Council Central Highlands $47K Central Highlands Regional Council Toowoomba Regional Council $12.6 million Gladstone Regional Council Rest of Queensland $23 million Interstate International $12 million 2018 to Date $19.6 million in Western Downs Copyright of Shell International CONFIDENTIAL Local Living QGC DIRECT CONTRACTORS 37.5% upstream workers live locally ~29% upstream workers live locally 86 Western Downs Regional 144 259 Council 380 23 North Burnett, Central Highlands & Rockhampton Councils 257 Toowoomba, Banana & 157 Maranoa Councils Gladstone Regional Council 176 618 Rest of Queensland 1388 As at 30 June 2018 Copyright of Shell International CONFIDENTIAL Supply Chain Visibility - Update 12 month pilot of EconomX is currently underway, based on feedback from community that: The region does not need another ‘portal’ Suppliers want direct contact with buyers – no middle man The supplier network should include diverse economic sectors (reduce dependency on one sector) A community-led solution is preferred A link to existing Economic Development Organisations is critical The EconomX- QGC platform was launched in June. EconomX Pilot Project – Desired Outcomes • The community has improved visibility of and access to business opportunities in our supply chain • QGC has better visibility of and access to local and Indigenous suppliers Copyright of Shell International CONFIDENTIAL September 2018 15 Supply Chain Visibility - Next Steps To increase the number of local and Indigenous suppliers on EconomX , we will: Hold individual engagements with WD Chambers of Commerce [completed late August] Hold a roadshow to engage local businesses in each town (Dalby, Chinchilla, Miles, Wandoan, Tara, Jandowae) in mid September. Please provide feedback on EconomX to [email protected] . To be a successful program we need a joint partnership between QGC, Suppliers, Chambers & the community. Copyright of Shell International CONFIDENTIAL September 2018 16 QGC Pathways 2019 The 2019 QGC Pathways Program will be offering 12 positions within the following roles: . Electrical Instrumentation and Control (Dual Trade) Apprenticeship . Mechanical Fitting Apprenticeship
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