From Bintulu Shell MDS to

Pearl GTL in Qatar

Bilbao, 15 March 2005

2

Shell MDS in Malaysia

Shell GTL Technology

Bintulu Learnings

Marketing of GTL Products

From Bintulu Shell MDS to Pearl GTL in Qatar

Progress of Pearl GTL Project

Conclusions

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SARAWAK

BintuluShell MDS Plant

SABAH

PENINSULARMALAYSIA

Kuala Lumpur

Head Office

INVESTMENTInitial capital investmentof US$850 million2003 debotteneckinginvestment of US$50 million

STRUCTUREShell MDS (Malaysia) Sdn. Bhd.Shareholders: Shell, Mitsubishi, Petronas, Sarawak State

SCOPEConversion of 110 mmscf/d NG into 575 kt/a (14,700 b/d) of GTL productsProduces clean fuels and specialityproductsWorldwide marketing

Shell MDS in Malaysia

4Byproducts: Nitrogen, Water, Biosludge

Air

Air Separation

NG Feed

Gasification

Synthesis

Conversion

Separation

- Specialities- Chemicals- Waxes

HydrocarbonProducts

- Naphtha- Kerosene- Gasoil- Waxy Raffinate

Shell GTL Technology Processes

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Challenges in Industrial Scale GTL

Gas processes without intermediate storage

Extreme conditions

Exothermic processes

High degree of process and utilities integration

Large-scale equipment

Specific HSE challenges

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LTI-free man-hours: 12.2 mlnRC-free man-hours: 1.7 mln(Status December, 2004)

FAT0

LTI0

Restricted Work Case0

Medical Treatment Case0

First Aid Case6

Near Misses6

LMHRisk potential

67%99.4%94.4%

33%0.5%2.2%

00.1%3.4%

61HSE Audit findings1027Unsafe Conditions356Unsafe Acts

HSE Achievements – 2004 Performance

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Fundamental Lessons Learned in Bintulu

Achieving high catalyst performance

Scale-up of reactors and other equipment

Proving reactor internals and systems for heat removal

Proving the suitability of construction materials

Proving the suitability of many prototype pieces of equipment

Proving the operability and dynamic control of the integrated complex

8 Max

imum

day

s be

twee

n co

mpl

ex s

hutd

owns

0

50

100

150

200

250

300

350

400

450

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

5679

141

8571

114

157

270

430

Continous Reliability Improvements

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L-P

Wax

Solvents, LDF,WR, waxes

Solvents

LDF,HDF

Naphtha

L-P

Wax

WaxWRHDF

Gasoil

Solvents, LDF,WR, waxes

Wax

LDF,HDF

Naphtha

LDF = Light Detergent Feedstock (n-paraffins)HDF = Heavy Detergent FeedstockWR = Waxy Raffinate

Gasoil

Worldwide GTL Products Marketing

10 10

Retail Sales of Shell GTL Blends

Shell Pura

Diesel

Thailand

Shell V-Power

Diesel

GermanyNetherlands

Shell Diesel2004

Athens

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Shell GTL Fuel Trials

Daimler Chrysler bus Trial

Toyota Trial

Volkswagen Trial

Berlin

Tokyo

ShanghaiLondon

California

Mitsubishi Trial

Pudong Bus Trial

Yosemite Waters Trial

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NOx Partikel·10 HC CO

0,1

0

0,2

0,3

Em

issi

onsw

erte

[g/

km]

Grenzwerte EU IV Diesel < 10ppm SShell GTL∆NOx= - 6,4% ∆Part. = - 26%

∆HC = - 63% ∆CO = - 91%

EU IV

Emissions Performance – Volkswagen Test

Berlin Fleet test 2003 - VW Golf with Shell GTL Fuel

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North Field

Pearl GTL - Project Overview

RasLaffan

Doha

Fully integrated project: “From Reservoir to Market’

Development & Production Sharing Agreement

1,600 MMscf/d well head gas

140,000 b/d GTL products

Substantial volumes LPG & condensate

Two phases, start-up end 2009 and ~ one year later

Capital costs to implement ~ USD 6 bln

EthanePropaneButaneCondensateSulphurGTL NaphthaGTL Gasoiln-ParaffinsBaseOilsWater

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Tangible Progress in QatarSeismic

800 km2 3 D seismics completed in 2003

Providing info for appraisal drilling and for subsurface modelling of allocated area

Appraisal Well DrillingFirst well spud on 14th February and completed31st August 2004

Second well spud on 4th September and completed 19th December 2004

Geotechnical Site InvestigationsFirst phase completed Dec.’03 – April ’04

Detailed FEED work in progress

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Tangible Progress: FEED Activities

Onshore EPC Contracting:– Strategy: single Lump Sum– EPC pre-qualification completed and ITB

issued January 2005

Onshore FEED:

– Conducted by JGC, primarily in the London offices of MW Kellogg (joint venture of JGC & KBR), during March 2004 – May 2005

– Close to 500,000 man-hours

Offshore Front-End-Engineering-Design (FEED):

– Conducted in Shell offices, Aberdeen during March 2004 to February 2005

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Onshore Project Scope: Huge Dimensions

1440 meters 1610 meters

FEED:Number P&IDs ~ 900Number documents ~ 4,000

Number Volumes ~ 140

Construction:Plot area: 230 haEquipment number 2,300 itemsEquipment weight 100,000 tons Piping 50,000 tons Structural steel 30,000 tons Concrete 200,000 m3

Cables 1,800 kmInsulation 700,000 m2

Heavy lifts > 1,200 tons > 24

Commissioning & Start-up:Mitigation of ~ 2000 ‘flaws’Checks > 2 millionActivities: ~15,000

Process:Shaft power consumption 1,100 MWHeat consumption 850 MWSteam generation 8,000 tons/hrCatalysts (5 processes) 5,630 tonsControl loops 4,000

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Construction ChallengesConcurrent Projects in Ras Laffan:

– Dolphin, RasGas 5,6&7, QatarGas II, QatarGas III, Oryx II, AKG II & III, Sasol/Chevron GTL, Methanol, DME, Exxon GTL, Marathon GTL, ConocoGTL, harbour & other infrastructure expansion, ….

– During 2005 – 2008 potentially several billions USD per quarter

0

10000

20000

30000

40000

50000

60000

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

2004 2005 2006 2007 2008 2009 2010

Total (incl. Shell)

Shell only

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From Bintulu Shell MDS to Pearl GTL in Qatar

Shell has obtained vast commercial GTL experience through elevenyears of operation of the Shell MDS plant in Bintulu, a period of continuous learning

Bintulu has demonstrated that GTL technology on a commercial scale can be safe, efficient, reliable and profitable

The Pearl GTL project is fully underpinned by the Bintulu experience

The Pearl GTL project has already seen sustained progress in many areas and the resources are in place to ensure this progress is maintained through to the planned completion date

The Pearl GTL project is of huge dimensions and poses many challenges – but challenges that are manageable

As the first world-scale GTL plant, Pearl GTL signifies the birth of an exciting, new growth industry based on unique products that will deliver long-term value for both Qatar and Shell

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