2010 OIL SANDS PERFORMANCE REPORT Cautionary Note the Companies in Which Royal Dutch Shell Plc Directly and Indirectly Owns Investments Are Separate Entities

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2010 OIL SANDS PERFORMANCE REPORT Cautionary Note the Companies in Which Royal Dutch Shell Plc Directly and Indirectly Owns Investments Are Separate Entities 2010 OIL SANDS PERFORMANCE REPORT Cautionary Note The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate 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 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 report 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 “associ- ated companies” or “associates” and companies in which Shell has joint control are referred to as “jointly controlled entities”. In this report, 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 24% shareholding in Woodside Petroleum Ltd.) ownership interest held by Shell in a venture, partnership or company, after exclusion of all third-party interest. This report 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’’, ‘‘objec- tives’’, ‘‘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 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 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 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 factors that may affect future results are contained in Royal Dutch Shell’s 20-F for the year ended December 31, 2010 (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 report, April 14, 2011. 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 report. We may have used certain terms in this report that SEC’s guidelines strictly prohibit us from including in filings with the SEC such as recoverable bitumen. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, avail- able on the SEC website www.sec.gov. You can also obtain these forms from the SEC by calling 1-800-SEC-0330. Scotford Upgrader ABOUT THIS REPORT This report to our stakeholders is an important As this is an expansion of scope over last year’s the joint venture partners. Data presented for part of Shell’s continuing dialogue with govern- report, which only covered the Muskeg River in situ operations is 100% Shell share. ments, industry, environmental groups, com- Mine (MRM) and Scotford Upgrader, certain munity stakeholders, Aboriginal Peoples and the data sets will differ, particularly because in situ All monetary amounts referenced in this public about our oil sands operations. oil sands extraction processes differ from those document are in Canadian dollars unless used in mining. Historical data presented prior otherwise noted. SCOPE to 2010 has been retroactively updated to in- In this report we provide discussion on our corporate in situ performance where applicable. performance in five key areas: CO2, water, IN SCOPE: tailings, land and reclamation, and people, A regulatory application for an 80,000 barrel- n Muskeg River and Jackpine Mines communities and engagement. The scope of per-day expansion of Shell’s in situ Peace River n Scotford Upgrader (base operations) this 2010 report has expanded over that for operations submitted in January, 2010, is not n In situ: Peace River, Orion, Seal, 2009 to include performance data for Shell’s included in the scope of this report because it Cliffdale, Chipmunk mineable and in situ oil sands operations in is not operational. The expansion portion of the production as well as upgrading in Canada. Scotford Upgrader (60% Shell share), which was OUT OF SCOPE: This 2010 report also includes performance under construction in 2010 is also not in scope. n Scotford Upgrader Expansion data for the Jackpine Mine (JPM), which came n Proposed Peace River Expansion onstream in late August, 2010. Data presented Unless otherwise stated, all data presented for n Proposed Jackpine Mine Expansion for the JPM accounts for the whole of 2010 the MRM, JPM and Scotford Upgrader is in n Proposed Pierre River Mine capturing both constuction activities leading to reference to total Athabasca Oil Sands Project n Grosmont startup and its four months of production. (AOSP) performance before division amongst SHELL PERFORMANCE REPORT 2010 1 OVERVIEW In situ drilling pads AN OVERVIEW OF SHELL’S OIL SANDS operations Global energy demand is growing at an deposits located near the earth’s surface are long horizontal or vertical wells without the accelerated rate. All energy sources will be recovered through open pit mining using large need for heat. needed to meet this demand and the oil sands shovels and trucks. are an important resource in a world with Once the bitumen is separated from the oil increasing energy needs. Where deposits are too deep to mine, they sands, it is either converted into synthetic crude may be recovered in situ (in place) using con- at an upgrader or sold to refineries with up- Shell operates in all of Alberta’s oil sands ventional drilling techniques. Shell employs grading capability to produce gasoline, diesel areas – Athabasca, Cold Lake and Peace two methods to extract bitumen in situ: thermal fuel and other consumer products. River – with billions of barrels of recoverable recovery and cold production. Thermal bitumen. The term oil sands, when used in this recovery techniques include injecting steam Athabasca Oil Sands report, refers to all of Shell’s mining, upgrading underground to heat the bitumen to allow Project (AOSP) and in situ operations. it to flow. It is then pumped to the surface, The AOSP is a joint venture between Shell leaving the sand and clay in place. Where (60%), Chevron Canada Limited (20%) and Oil sands are a mixture of water, sand, clay the bitumen is more mobile, cold production Marathon Oil Canada Corporation (20%). and bitumen, a heavy hydrocarbon. Bitumen involves pumping product to the surface via The AOSP includes the MRM and JPM open 2 SHELL PERFORMANCE REPORT 2010 OIL SANDS operations MAP Shell employee at Scotford Complex Edmonton PERFORMANCE MANAGEMENT ISO 14001 www.iso.org Muskeg River Mine ATHABASCA OIL SANDS PROJECT ISO 14001 is an international, externally Jackpine Mine verified standard for environmental man- agement systems. Registration demon- Peace River Oil Sands Area strates that an organization has a sound Athabasca Oil Sands Area environmental policy
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