SHELL – JAPAN DELIVERING THROUGH PARTNERSHIP the Joint Qatari-Japanese Energy Forum September 2010

IEEJ: Octorber 2010

QATAR – SHELL – JAPAN DELIVERING THROUGH PARTNERSHIP The Joint Qatari-Japanese Energy Forum September 2010

Andy Brown Executive Vice President

Ras Laffan

Not to scale

Al Khor

Courtesy of Qatargas Qatargas 4 Doha QATAR

Not to scale

Shipping services to Nakilat

Qatar Shell Research & Technology Centre Pearl Academy Pearl GTL

 1.6 Bcf/d of wet gas: 260kbbl/d of products – 120 kbbl/d NGLs/ethane Offshore Platforms – 140 kbbl/d GTL products

 Major construction complete Q4 2010 Feedgas preparation  2011 start up – 2012 full production Ethane LPG  ~$18-$19 billion development cost * Condensate  Profit sharing contract Two train GTL plant  100% Shell in partnership with Qatar Petroleum GTL Naphtha N-Paraffin GTL Kerosene GTL Gas Oil GTL Base Oil

Full integration from offshore to refined products

0 500 M

Storage Feed Gas Liquid  Utilities Preparation Processing 50,000 workers at peak Buildings (CB&I) (KBR) (CHIYODA/HHI) Unit (STRABA (TOYO/HEC G) )  Unique project scale + operating environment

 Multiple lump-sum contractors Effluent Treatment Plant (AJ/OTV/SPM)  Shell & Project Management Contractor

Air Separation Units (PMC) (LINDE)  Japanese contractors involved in >50% of GTL Process (JGC) scope Pipelines & Main Automation Contractor Jetty & Pipeline corridor platforms (HONEYWELL) (JGC/KBR) (MCDERMOTT)

Project Management Contractor (JGC/KBR)

Lump Sum Japanese Contractors

.GTL is constructed by JGC under an Reimburseable EPCM Contract

.GTL process plant convert natural gas and oxygen into GTL waxes, it houses 24 of the largest reactors on site, weighing 1200 tonnes each.

.Total forecasted numbers:

. Concrete: 110,000 m3

. Steel &Pipe: 77,000 tonnes

. E/I cabling:1,600km

.Spent over 1.9 million hrs in home office and 92 million hrs on site

.HSSE record of 40 million hours without an

. Lost Time Incident

FGP is constructed by CHC (Chiyoda / HHI Consortium) under a Lump Sum Contract Total forecasted number:

— Concrete: 101,000 m3 — Steel &Pipe: 44,000 tonnes — E/I cabling: 3,300km Spent over 2.3 million home office hours and 49 million hrs construction HSSE record of 23 million manhours without an Lost Time Incident,

LPU is constructed by THC (Toyo/ Hyundai E&C) under a Lump Sum Contract LPU is the plant’s refinery converting GTL wax to finished products, with one of the world’s largest hydrocrackers and steam methane reformers Total forecasted number:

— Concrete: 36,000 m3 — Steel &Pipe: 36,000 tonnes — E/I cabling: 1,500 km Spent over 1.7 million home office hours and 35 million hrs construction HSSE record of 24 million hours without an Lost Time Incident

ONE PROJECT – ONE TEAM

 Leadership commitments reaffirmed at regular CEO summits – five held so far

 Forging a “One Project – One Team” mindset

 CEOs reinforced their commitment to  Safety and welfare  Productivity Pearl GTL CEO Summit – June 2010  Cooperation and quality in finishing COMMITMENT CHARTERS

Courtesy of Qatargas

Copyright of Royal Dutch Shell Plc IEEJ: Octorber 2010 IMPROVING WELFARE IN PARTNERSHIP WITH QP BUILDING A COMMUNITY – DELIVERING PERFORMANCE

Focus on Safety & Welfare Pearl Village – 40,000 workers Training Centre – 200,000 courses Recreation, culture, well being World class safety – 77 mln hrs LTI free

PRODUCT SLATE END PRODUCTS MARKET

Ethane (~30kboe/d) NGLs +Ethane LPG (~30kbbl/d)

Condensate (~60 kbbl/d)

Naphtha and Normal Paraffin Chemicals and detergent (~35 kbbl/d) feedstock

Kerosene (~25 kbbl/d) Jet Fuel GTL

Gasoil (~50 kbbl/d) Diesel

Base Oil (~30 kbbl/d) Finished Lubricants

CLEANER BURNING + SMOKELESS GTL FUELS GTL N-PARAFFIN: A COST EFFECTIVE FEEDSTOCK

Emissions improvement range for light duty diesel engines vs. refinery Pearl Our Customers Refinerydiesel diesel 10% Min - GTL N Linear Household emissions Paraffin Alkylbenzene Formulations Max 40% 25% 45% Improvement e.g. washing using GTL powder 60% Refinery

85% N Kerosene Zero emissions Paraffin

HIGHER VALUE NAPHTHA FEEDSTOCK

 GTL Fuels Cleaner Burning LOW VALUE CHEMICALS  GTL N-Paraffin cost effective detergent feedstock generates premium over Kerosene HIGH VALUE CHEMICALS  GTL Naphtha is a higher value feedstock for •Ethylene chemical manufacturing • Propylene • Butadiene • Benzene

Copyright of Royal Dutch Shell Plc IEEJ: Octorber 2010 IN MARKET PARTNERSHIP - SYNTHETIC FUEL IN (MOU TOKYOsigned between TMG, Toyota-Hino, Showa Shell & Shell on Nov 2008

.Successful field demonstration of GTL with Hybrid buses used for public transportation services (Toei Buses) in 2009 .Local emissions benefits .Particulate trap stress reduction .Noise benefits on transition between electric and engine .Semi-optimised engine .Ease of refuelling, lower odour and better touch Currently expanding the use of Synthetic Fuel* in other Toei Buses with conventional engine (July 2010). *Synthetic Fuel is a blend of GTL & HVO fuels.

Offshore Platforms 1.4 Bcf/day Wet gas : ~280 kboe/d

 7.8 mtpa LNG

 ~70 kbbl/d NGLs/Ethane

QG3 QG4 Construction complete Q4 2010 2011 ramp-up ~$2 billion development cost*

Joint storage Tax & royalty contract 30% Shell, 70% Qatar Petroleum

Full integration from offshore to LNG offtake

PROJECT OPERATIONS SHIPPING MARKETING

Joint Asset Helping Qatargas Nakilat SPA Delivery Development Operating Company Team •COO Operations •Qatar Gas Transport •Dubai company • 40 Shell secondees •Maintenance Manager •China supplementing Qatargas •25 LNG Tankers under •Engineering Manager capabilities Shell operational •Further opportunities •Terminal Manager management •> 30 secondees •1200 Officers and crew recruited and trained

Pictures by courtesy of Qatargas

Copyright of Royal Dutch Shell Plc IEEJ: Octorber 2010 QATAR (QPI) & SHELL TAKING THE PARTNERSHIP GLOBALLY... Proposed complex, China

MOU signing, June 2007

Nov 2009

QPI/Shell QSRTC Inauguration – Petrochemical JV – Apr 2009 Nov 2009

Pearl GTL - DPSA signing – Jul 2004 Abdulla Salatt Rig Visit – Jun 2009

H.E. Abdulla bin Hamad Al-Attiyah & First commercial flight on GTL Pearl GTL – Stone Laying – Feb 2007 Pearl GTL - Stone laying – Feb 2007 delegation – Visit to The Hague – Jun 2009 fuel – Oct 2009

Abdulla Salatt Rig Visit – 2009 May 2010 - House of May 2010 - Block D - Lords Signing Minister in London – May 2010 Pearl GTL - Start of Commissioning – Oct 2009

SHELL GLOBAL LNG PORTFOLIO SHELL EQUITY LNG SALES: JAPAN

BAJA O PERA TIO N CO N STRUCTIO N

LN G SUPPLY: SPAI N DUBAI HAZIRA REG A S C A PA C I TY: ALTAMIRA

SAKHALIN II COV E POIN T

BRUN EI LN G ELBA I SLAN D

* Indirect interest MALAYSIA LNG

QATARGAS 4 NIGERIA LNG QALHAT* PLUTO *

GORGON LNG OMAN LNG N O RTH W EST SHELF

Source: Woodmac (Long term sales only) SHELL EQUITY LNG GROWTH HIGHLIGHTS: JAPAN

• Shell equity LNG accounts for 8 to 9% of the current Japanese imports

Copyright of Royal Dutch Shell Plc IEEJ: Octorber 2010 GAS AFFORDABILITY ATTRACTIVE ECONOMICS FOR ELECTRICITY PRODUCERS Gas plants more energy efficient than coal plants Solar Thermal - 55-60% vs. 34-42% Wind Onshore Gas has much lower capital

costs per MW installed: Nuclear  50% of coal Coal  20% of nuclear Total Cost  15% of wind CCGT Capital Costs

0 50 100 150 200 250 key for cash-strapped US$ / MWh

economies! Price Assumptions: CCGT: Combined Cycle Gas Turbine Gas - $8/MMBtu Total Cost = Capital + Fuel + Operating Total cost for gas is the cheapestCoal: $60/t CO2: $40/t

Gas is the cleanest-burning fossil fuel IGCC Gas plants emit: Old  50% less CO2 than a modern Coal coal plant USC  60-70% less CO2 than an old coal plant With CCS CCGT No CCS There are still hundreds of old 0 200 400 600 800 1000 1200 coal plants in operation today kg CO2 / MWh Gas CCS cost  coal per MWh IGCC: Integrated Gasification Combined Cycle Coal USC: Ultra Super Critical Coal CCGT: Combined Cycle Gas Turbine Source: Shell Internal Analysis

GTL AND LNG FINANCIAL PERFORMANCE  Qatari Government wise decision to invest in GTL production

 GTL provides Qatar with a natural hedge to gas markets

PEARL GTL LNG AT HH PRICES

Contact: [email protected]