22 UPSTREAM

SHELL INVESTORS’ HANDBOOK 2014

ASIA (INCLUDING MIDDLE EAST AND RUSSIA)

KEY FIGURES 2014 % of total HIGHLIGHTS ■ Production in Asia amounted to nearly Total production (thousand boe/d) [A] 1,093 35% 1.1 million boe/d in 2014. Liquids production (thousand b/d) [A] 552 41% Natural gas production (million scf/d) [A] 3,132 34% ■ After-tax earnings from the oil and gas Gross developed and undeveloped acreage (thousand acres) 72,211 27% exploration and production operations Proved oil and gas reserves excluding non-controlling interest (million boe) [B] 4,457 34% of our subsidiaries, joint ventures and [A] Available for sale. associates in the region were $9.8 billion. [B] Includes proved reserves associated with future production that will be consumed in operations.

■ We started up key projects including BRUNEI CHINA Gumusut-Kakap in Malaysia. Shell and the Brunei government are 50:50 We operate the onshore Changbei tight-gas fi eld shareholders in Brunei Shell Petroleum Company under a PSC with China National Petroleum ■ We took the fi nal investment decision on Sendirian Berhad (BSP). BSP has long-term oil and Corporation (CNPC). The PSC includes the Maharaja Lela South in Brunei. gas concession rights onshore and offshore Brunei, development of tight gas in different geological and sells most of its gas production to Brunei LNG layers of the block. In Sichuan, Shell and CNPC ■ We are participating in the development of Sendirian Berhad (BLNG, Shell interest 25%). BLNG have agreed to appraise, develop and produce four key projects in the region: Baronia/ was the fi rst LNG plant in Asia-Pacifi c and sells from tight-gas and liquids-rich shale formations in Tukau Timur and Malikai in Malaysia, most of its LNG on long-term contracts to customers the Jinqiu block under a PSC (Shell interest 49%) Kashagan Phase 1 in Kazakhstan, and in Asia. and have a PSC for shale-gas exploration, Rabab Harweel in Oman. development and production in the Fushun We are the operator for the Block A concession Yongchuan block (Shell interest 49%). We also (Shell interest 53.9%), which is under exploration have an interest in three offshore oil and gas and development, and are also operator for blocks in the Yinggehai basin, each under exploration Block Q (Shell interest 50%). We have a PSC (Shell interest 49%). a 35% non-operating interest in the Block B concession, where gas and condensate are INDONESIA produced from the Maharaja Lela fi e l d . I n F e b r u a r y We have a 35% participating interest in the 2014, the fi nal investment decision was taken on offshore Masela block where INPEX Masela is the the Maharaja Lela South development (Shell interest operator. The Masela block contains the Abadi gas 35%). It is expected to deliver a total peak fi eld. The operator has selected a fl oating LNG production of 35 thousand boe per day. (FLNG) concept for the fi eld’s development phase.

In addition, we have non-operating interests in IRAN deep-water exploration Block CA-2 (Shell interest Shell transactions with Iran are disclosed separately. 12.5%) and in exploration Block N (Shell interest For more information, see RDS Form 20-F for the 50%), both under PSCs. year ended December 31, 2014.

The Majnoon oil fi eld in Iraq. UPSTREAM 23

SHELL INVESTORS’ HANDBOOK 2014

IRAQ KAZAKHSTAN production in 2014, and a 30% interest in the We have a 45% interest in the Majnoon oil fi eld We have a 16.8% interest in the offshore Kashagan Kebabangan fi eld. Offshore Sarawak, we are the that we operate under a technical service contract fi eld, where the North Caspian Operating operator of 17 producing gas fi elds (Shell interests that expires in 2030. The other Majnoon Company is the operator. This shallow-water fi eld ranging from 37.5% to 70%). Nearly all of the gas shareholders are PETRONAS (30%) and the Iraqi covers an area of approximately 3,400 square produced is supplied to Malaysia LNG in Bintulu government (25%), which is represented by the kilometres. Phase 1 development of the fi eld is where we have a 15% interest in the Dua (where Missan Oil Company. Majnoon is located in expected to lead to plateau production of about our licence is due to expire in 2015) and Tiga LNG southern Iraq and is one of the world’s largest oil 300 thousand boe/d, on a 100% basis, increasing plants. We also have a 40% interest in the 2011 fi elds. In 2013, we successfully restarted production further with additional phases of development. After Baram Delta EOR PSC and a 50% interest in Block and Majnoon reached the milestone of fi rst the start of production from the Kashagan fi eld in SK-307. Additionally, we have interests in fi ve commercial production of 175 thousand boe/d. September 2013, operations had to be stopped exploration PSCs: Deep-water Block 2B; SK318; In 2014, production at Majnoon averaged in October 2013 due to gas leaks from the sour SK319; SK408; and SK320. 194 thousand boe/d. gas pipeline. Following investigations, it has been decided that both the oil and the gas pipeline will We operate a gas-to-liquids (GTL) plant (Shell We also have a 20% interest in the West Qurna be replaced. Replacement activities are ongoing, interest 72%) adjacent to the Malaysia LNG 1 fi eld. Our participating interest in the West Qurna with production expected to restart in 2017. facilities in Bintulu. Using Shell technology, the plant concession has increased from 15% to 20% when converts gas into high-quality middle distillates, the contract was renegotiated in 2014 and the We have an interest of 55% in the Pearls PSC, drilling fl uids, waxes and speciality products. government share reduced from 25% to 5% covering an area of approximately 900 square and prorated to the funding shareholders. kilometres in the Kazakh sector of the Caspian Sea. OMAN It includes two oil discoveries, Auezov and Khazar. We have a 34% interest in Petroleum Development According to the provisions of both contracts, Oman (PDO); the Omani government has a 60% Shell’s equity entitlement volumes will be lower MALAYSIA interest. PDO is the operator of more than 160 oil than interest implies. We explore for and produce oil and gas located fi elds, mainly located in central and southern Oman offshore Sabah and Sarawak under 19 PSCs, in over an area of around 114,000 square kilometres. We also have a 44% interest in the Basrah Gas which our interests range from 20% to 85%. The concession expires in 2044. During 2014, the Company, which gathers, treats and processes Offshore Sabah, we operate fi ve producing oil Amal steam enhanced oil recovery project has associated gas produced from the Rumaila, fi elds (Shell interests ranging from 29% to 50%). been ramping up towards its expected peak West Qurna 1 and Zubair fi elds that was These include the Gumusut-Kakap deep-water fi eld production following a successful start-up in 2013. previously being fl ared. The processed gas and (Shell interest 29%) where production via a We are also participating in the Mukhaizna oil associated products, such as condensate and dedicated fl oating production system commenced fi eld (Shell interest 17%) where steam fl ooding, liquefi ed petroleum gas (LPG), are sold primarily in October 2014. We have additional interests an enhanced oil recovery method, is being applied to the domestic market with the potential to export ranging from 30% to 50% in PSCs for the on a large scale. We have a 30% interest in any surplus. exploration and development of four deep-water Oman LNG, which mainly supplies Asian markets blocks. These include the Malikai fi eld (Shell interest under long-term contracts. We also have an 35%) which is currently being developed with Shell 11% indirect interest in Qalhat LNG, another as the operator. We also have a 21% interest in the LNG facility in the country. Siakap North-Petai fi eld, which commenced

The F14DR-A platform off the coast of Miri, Malaysia.

An engineer carrying out maintenance checks on a platform off the coast of Miri, Malaysia. 24 UPSTREAM

SHELL INVESTORS’ HANDBOOK 2014

ASIA (INCLUDING MIDDLE EAST AND RUSSIA) CONTINUED

QATAR (a 50:50 joint venture with Gazprom Neft) in Pearl in Qatar is the world’s largest GTL plant. three exploration licence blocks in western Siberia: Shell operates it under a development and South Lungorsky 1, Yuilsky 4 and Yuilsky 5. We production-sharing contract with the government. have a 50% interest in the Salym fi elds in western The fully integrated facility includes production, Siberia, where production was approximately transport and processing of approximately 130 thousand boe/d in 2014. As a result of 1.6 billion scf/d of gas from Qatar’s North Field. EU and US sanctions prohibiting defi ned oil It has an installed capacity of about 140 thousand and gas activities in Russia in 2014, we paused boe/d of high-quality liquid hydrocarbon products our shale oil exploration activities, which were and 120 thousand boe/d of NGL and ethane. being undertaken through Salym and Khanty- In 2014, Pearl produced approximately 4.5 million Mansiysk Petroleum Alliance V.O.F. tonnes of GTL products. Of Pearl’s two trains, the fi rst train is undergoing maintenance in the fi rst UNITED ARAB EMIRATES quarter of 2015, for an estimated two-month In Abu Dhabi, we held a concessionary interest period. We have a 30% interest in Qatargas 4, of 9.5% in the oil and gas operations run by which comprises integrated facilities to produce Abu Dhabi Company for Onshore Oil Operations about 1.4 billion scf/d of gas from Qatar’s North (ADCO) from 1939 to January 2014, when Field, an onshore gas-processing facility and an the licence expired. We have a 15% interest LNG train with a collective production capacity in the licence of Abu Dhabi Gas Industries Limited of 7.8 mtpa of LNG and 70 thousand boe/d of (GASCO), which expires in 2028. GASCO exports condensate and NGL. The LNG is shipped mainly propane, butane and heavier-liquid hydrocarbons, to China, Europe and the United Arab Emirates. which it extracts from the wet gas associated with the oil produced by ADCO. We also RUSSIA participate in a 30-year joint venture to potentially We have a 27.5% interest in Sakhalin-2, develop the Bab sour gas reservoirs in Abu Dhabi an integrated oil and gas project located in (Shell interest 40%). Shell and the Abu Dhabi a subarctic environment. In 2014, the project National Oil Company are in a period of produced approximately 320 thousand boe/d commercial and technical work that may lead and the output of LNG exceeded 10 million tonnes. to development, subject to the signing of the In 2014, we returned the Arkatoisky (in the Yamalo respective joint-venture agreements. Nenets Autonomous District) and the Barun-Yustinsky (in Kalmykia) licence blocks to the government. REST OF ASIA In 2015, the Lenzitsky block (also in the Yamalo Shell also has interests in India, Japan, Jordan, Nenets Autonomous District) was returned to the South Korea, the Philippines, Saudi Arabia, government. We also have a 50% interest through Singapore and Turkey. Khanty-Mansiysk Petroleum Alliance V.O.F.

Pipelines at the Pearl GTL plant in Qatar.

The Hazira LNG regasifi cation terminal in India. 44 MAPS

SHELL INVESTORS’ HANDBOOK 2014

ASIA

OMAN, QATAR, SAUDI ARABIA AND UNITED ARAB EMIRATES

" Al Jubail

WHP9 WHP7 " WHP8 IRAN "" " Pearl 1 BAHRAIN " Pearl 2 Pearl GTL Plant##Qatargas LNG Plant

Block D THE GULF

DOHA DUBAI

QATAR

ABU DHABI GULF OF OMAN SUHAR

Bab UNITED ARAB OMAN MUSCAT EMIRATES

"" " " """" "" "" Qalhat LNG# " " Oman LNG SUR "" " "" " " " """ """ " """ " " " " " " " " "" " " " " " " " " " " " " " " SAUDI ARABIA " "" " Qarn Alam Power Station " " " " " " " """ " " " " "" " " " "" " " " " " " " " " "

" "" " """ " " " " " " " "" " " " " " " " " " "" " " " North, Central " "" " """" " "" & South Oman "" " "" "" """ " " " " """ " " """ "" "" """" " " """" " " " """ " " " " """" " """"""" " """ " """"" " " "" """ " """ " """"" """"" "" " " """ "" Harweel 'A' Gath. Stn. "" """""" """" """" " " " " " " " " " " " YEMEN "" ARABIAN SEA ""

RAYSUT

0 50 100 150 200 km

Upstream facility Oil or mixed oil and gas project Shell oil pipeline Integrated gas facility Gas project Shell gas pipeline Downstream facility 2014 frontier/heartlands discovery or appraisal success Concession licences MAPS 45

SHELL INVESTORS’ HANDBOOK 2014

TURKEY

DW Block 3920 BLACK SEA GEORGIA

ISTANBUL

ANKARA

TURKEY

Dadas

ANTALYA

SYRIA IRAQ MEDITERRANEAN SEA

0 50 100 150 200 km

JORDAN

SYRIA IRAQ

MEDITERRANEAN AMMAN SEA

Central Oil Shale

ISRAEL JORDAN SAUDI ARABIA

South Oil Shale

EGYPT

0 255075100km 46 MAPS

SHELL INVESTORS’ HANDBOOK 2014

ASIA CONTINUED

RUSSIA – SIBERIA RUSSIA – SAKHALIN

OKHA

PA-B " Piltun-Astokhskoye North Vorkutinsky 1 & 2 PA-A "

VORKUTA OKHA

PA-B NOGLIKIPiltun-Astokhskoye

Onshore Processing Facility " " LUN-A Lunskoye Onshore Processing Lunskoye Facility (OPF)

A SEA OF RUSSIA RUSSIA OKHOTSK Sakhalin Sakhalin Yuzhno-Lungorsky-1 Yuilsky-4 & 5 BS 2 "

KHOLMSK YUZHNO-SAKHALINSK SURGUT LNG Plant Oil Export Terminal " West Salym " KHOLMSK " Vadelyp YUZHNO-SAKHALINSK Upper Salym " Sakhalin LNG#" Oil Export Terminal

0 200 400 600 800 km 0 100 200 300 400 km

KAZAKHSTAN IRAQ

KAZAKHSTAN

Majnoon "

ATYRAU " Bolashak West Qurna " "

RUSSIA Kairan " IRAQ IRAN Kashagan " " ASTRAKHAN Kashagan SW " " BASRA Aktote Kalamkas " " Auezov " Khazar " Basrah Gas Company

" Bautino Base

CASPIAN SEA

AKTAU KUWAIT THE GULF

" Kuryk

0 100 200 300 400 km 0255075100km

Upstream facility Oil or mixed oil and gas project Shell oil pipeline Integrated gas facility Gas project Shell gas pipeline Downstream facility 2014 frontier/heartlands discovery or appraisal success Concession licences MAPS 47

SHELL INVESTORS’ HANDBOOK 2014

BRUNEI AND MALAYSIA

" Block G KBB Cluster " SOUTH CHINA SEA " SULU SEA " " "

" SB311 " 2B " KOTA KINABALU (JESSELTON) " Limbayong-2 "" " """ CA2 " SOGT

" " " " "" Marjoram-1 SK318 " " LIF/LCOT "" "" " MALAYSIA PHILIPPINES "" Rosmari-1 " "" " " " " " " Pegaga-1 "" SK320 " " BSP/BSM Muara Base (Port) " " " " " " BANDAR SERI BEGAWAN " " " " " " " " SK408 " " " " " " " " " # BLNG " " "" " " " " " SCOT " SK307 " BSR SK319 " " MIRI " "" " " BRUNEI

"

" ND6 ND7

Bintulu#" SMDS MLNG

INDONESIA CELEBES SEA

0 50 100 150 200 km

PHILIPPINES CHINA

MANILA BEIJING

" YINCHUAN " Changbei

" BATANGAS Tabangao "

XI'AN

SOUTH CHINA SEA PHILIPPINES

" Zitong " Jinqiu SHANGHAI CHENGDU CHINA

" Fushun SC 38C San Martin "

SC 38B Malampaya " Camago " Destecado " SC 38A TAIWAN Nanhai " HONG KONG SAN JOSE MYANMAR VIETNAM DE BUENAVISTA (BURMA) 35/10 LAOS SOUTH CHINA SEA 62/02 SULU SEA 62/17 PHILIPPINES THAILAND

0255075100km 0 200 400 600 800 km