simon henry - credit suisse european oil & gas conference - june 9, 2011

1 Copyright of Royal Dutch Shell plc 9/06/2011

ROYAL DUTCH SHELL PLC

CREDIT SUISSEEUROPEAN OIL & GAS CONFERENCE

LONDONJUNE 9, 2011


SIMON HENRYCHIEF FINANCIAL OFFICER



DEFINITIONS AND CAUTIONARY NOTE

Reserves: Our use of the term “reserves” in this presentation means SEC proved oil and gas reserves for all 2009 and 2010 data, and includes both SEC proved oil and gas reserves and SEC proven mining reserves for 2008 data. Resources: Our use of the term “resources” in this presentation includes quantities of oil and gas not yet classified as SEC proved oil and gas reserves or SEC proven mining reserves. Resources are consistent with the Society of Petroleum Engineers 2P and 2C definitions.Organic: Our use of the term Organic includes SEC proved oil and gas reserves and SEC proven mining reserves (for 2008) excluding changes resulting from acquisitions, divestments and year-average pricing impact.

The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate entities. In this presentation “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 presentation 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 “associated companies” or “associates” and companies in which Shell has joint control are referred to as “jointly controlled entities”. In this presentation, 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 presentation 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’’, ‘‘objectives’’, ‘‘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 presentation, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserves 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 potential litigation and regulatory measures as a result of climate changes; (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 presentation 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 31 December, 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 presentation, 9 June 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 presentation. There can be no assurance that dividend payments will match or exceed those set out in this presentation in the future, or that they will be made at all.

We may use certain terms in this presentation, such as resources and oil in place, that the United States Securities and Exchange Commission (SEC) guidelines strictly prohibit us from including in filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website www.sec.gov. You can also obtain these forms from the SEC by calling 1-800-SEC-0330.

http://www.shell.com/investor

http://www.sec.gov/


ROYAL DUTCH SHELLSTRATEGY UPDATE


Injuries – TRCF per million working hours

‘GOAL ZERO’ ON SAFETY

EMPLOYEES AND CONTRACTORS PER MILLION WORKING HOURS; SHELL OPERATED FACILITIES

SHELL

Customer and partner focus

Profitability & performance

Sustainability & growth

Value added technology

Focus on personal and process safetyIndustry leader in Sustainable Development


NATURAL GAS DEMAND

NATURAL GAS OUTLOOK

SHELL GAS CAPABILITIES

CCGT: COMBINED CYCLE GAS TURBINE

Abundant, Affordable, AcceptableGlobal gas resources ~250 years reserves at current productionCCGT: gas-fired power compared to coal:

• 40% more energy efficient• 50-70% less CO2• Better complements with wind power

BCM

SOURCE: IEA

ATTRACTIVE ECONOMICS FOR ELECTRICITY PRODUCERS

SOURCE: SHELL ANALYSIS BASED ON EU DATA

GALLINA LNG SHIP - SINGAPORE

CAPITAL COST

NATURAL GAS ADVANTAGE: EXAMPLE CCGT

Inaugural cargo QatarGas 4 arriving at Hazira terminal

$/MW hour

LONG-RUN MARGINAL COST


STRATEGY FRAMEWORK

NEW WAVE OF PRODUCTION GROWTH

PERFORMANCE FOCUS

MATURING NEXT GENERATION PROJECT OPTIONS


ROYAL DUTCH SHELLPERFORMANCE FOCUS


CONTRACTING & PROCUREMENT DOWNSTREAM PORTFOLIO

CONTINUOUS IMPROVEMENT

OFFSHORING

# of staff in shared service centres

Shifting support functions to low cost shared service centres

Reducing headcount in higher cost locations

# of Retail sites ‘000

COSTS (RHS)

DIRECT SITES INDIRECT SITES

Low cost indirect operating model

Margin retention + enhancement

• Brand + customer focus + differentiated products

$1 billion cost savings target 2011-12

Procurement from emerging markets

$Mln # of Suppliers

Sourcing from China, India, Russia and Mexico

Up to 20 % savings versus market alternatives

High end specifications

SPENDQUALIFIED

BEING QUALIFIEDSUPPLIERS


ASSET SALES + CAPITAL EFFICIENCY

>$30 BILLION DIVESTMENTS – 5 YEARS

$ Bln - cumulative

DOWNSTREAM

UPSTREAM

CORPORATE

ASSET SALES PROGRESS 2010 & 2011 YTD

Allocating capital to high impact growth

Exit from late-life + non-core positions

$5 billion 2011E

Divestment /Exit announced or proposed

Downstream

Stanlow

14 countriesAfrica

Chile

GOM Assets

Cano Sur

Wilcat Hills/Woodenhouse

Clyde

Pakistan South Texas

Upstream

U.S. Car CareUS retail

Nigeria

Finland & Sweden

Syria

StatfjordHeide & Harburg refineries

10 % Woodside

Deal Complete

LPG business worldwide

Panama & Costa Rica

El Salvador

New Zealand

Greece


REFOCUSING DOWNSTREAM

REFOCUSING REFINERY PORTFOLIO

Shell refining capacity – Mln bbl/d

EUROPE & AFRICA ASIA PACIFICAMERICAS

-30%4.7

3.3

%

MARKETING REFOCUS

Aviation Fuelsmarkets

Lubricantsmarkets

Retailsites

Bulk Fuelsmarkets

DIRECT EXITSINDIRECT/PART EXIT


ROYAL DUTCH SHELLGROWTH DELIVERY


GROWTH DELIVERYCONVERTING RESOURCES TO PRODUCTIONBln Boe resources

Longer-term upside

GorgonNA tight gas

SakhalinBC-10

PreludePearls (CMOC)

ON-STREAM STUDYUNDER CONSTRUCTION

PreludeMalikai

AOSP debottleneckNA tight gasSchiehallion

Clair

Pearl GTLQG-4

Oman EORSchoonebeek

Others

~10 billion barrels on stream~11 billion barrels under construction

~10 billion barrels new options

Mars-BBC-10 Phase2

AOSP-Exp 1Gjoa

PerdidoGbaran UbieNA tight gas

NA tight gasAustralia

Cardamom DeepAppomattox

Vito

PRODUCTION


GROWTH DELIVERY DELIVERING ON NEW PROJECTSKEY POST-FID PROJECTS

OIL & GAS

REFINING & CHEMICALS

INTEGRATED GAS 2010-11

2014+2012-13

START-UP DATE

Gumusut-Kakap

Pluto(Woodside)

Qatargas 4

BC-10 Ph 2

Gbaran Ubie Ph 1 Qarn Alam

Pearl GtL Perdido

Gjoa

SchoonebeekAOSP-1

NA Tight gas

Port Arthur

GorgonT1-3

Amal Steam North Rankin BBonga

NW

Mars B

Iraq FCP/IPT

ONSTREAM

~11 billion Boeresources

20 Upstream start-ups 2011-14 planned

Under Construction

Onstream

Study

RESOURCES

Kboe/d

2010 - Bln boe

OIL & GAS PRODUCTION GROWTH

11 billion boe resources under construction :

> 800 kboe/d potential 2014

ENTITLEMENT AT $80/BBL; OUTLOOK ASSUMES LICENSE EXTENSIONS + 2010 ANNOUNCED ASSET DISPOSALS

Singapore Chemicals

OIL & GAS 2010 ASSET SALES


QATARGAS 4 (QATAR)

GROWTH DELIVERY 2011 KEY START-UPS

Inaugural Qatargas 4 cargo arriving at Shell Hazira Regasification Terminal

AOSP-1 (CANADA)

Part of ~600 kboe/d 2011-12 production growth for Shell

7.8 mtpa LNG + 70 kboe/d condensates

First gas into plant – Jan 2011

First LNG export – Feb 2011

Shell 30%

AOSP-1 mine expansion 2010 -adds ~100 kboe/d

Upgrader expansion H1-2011

255 kboe/d capacity built in ~10 years

Next focus: optimization + debottlenecking

Shell 60% (operator)

AOSP Jackpine mine Pearl GtL plant under construction

PEARL GTL (QATAR)

Commissioning underway; ~12 months start-up

1.6 bcf/d wet gas:

• 120 kboe/d NGL/ethane

• 140 kboe/d GTL

100% Shell in partnership with QP


ROYAL DUTCH SHELLMATURING NEXT GENERATION PROJECT OPTIONS


MATURING NEXT GENERATION OF PROJECT OPTIONS MATURING NEW PROJECTSOIL & GAS RESOURCES

2010 Resources in Bln boe

UNDER CONSTRUCTION

ON STREAM

Longer-term upside

>10 billion boe resources

> 30 new projects

> 1 mln boe/d potential 2018-20...

... and maturing further options

STUDY

Portfolio can support profitable growth to ~2020

Long-term growth and investment

Options to flex annual spending with macro

Capex and growth outcomes

Investment decisions driven by

Portfolio fit

Affordability

Profitability

TIGHT GAS – N. AMERICA PRELUDE - AUSTRALIA

ARROW - AUSTRALIA APPOMATTOX - USA


2011 investment: ~$3 billion; >400 wells

PRODUCTION GROWTH

Growth potential: ~ 300 kboe/d 2012; >400 kboe/d potential 2015

Mmscf/dKboe/d

Haynesville JV

Pinedale

Groundbirch

Eagle Ford

Marcellus

Deep Basin

Foothills

40 Tcfe resources potentialSHELL ASSET BREAK EVEN PRICE

BREAKEVEN PRICE ENTRY COST

$/mcfe – End 2010

Canada

USA

MATURING NEXT GENERATION OF PROJECT OPTIONS NORTH AMERICA TIGHT GAS


USA – MARS-B

MATURING NEXT GENERATION OF PROJECT OPTIONS RECENT PROJECT FINAL INVESTMENT DECISIONS

AUSTRALIA – PRELUDE FLNG

TLP capacity ~100 kboe/d

New resources at Mars field

West Boreas + South Deimos

Water depth 950 meters


First FID ever on Floating LNG

Largest floating operating facility in the world

110 kboe/d production; 3.6 mtpa LNG capacity

Fast development from Prelude discovery (2007) to FID



FIRST FID ON FLNG IN THE INDUSTRY

PRELUDE FLOATING LNG


FINANCIAL FRAMEWORK



INVESTING FOR NEW GROWTH

ITALIC: PLANNED

CONVERTING INVESTMENT TO CASHFLOW: 2009-12

CAPITAL UNDER CONSTRUCTION EXPLORATION & EVALUATION

OTHER

CANADA

QATAR

$ Bln

START-UPS

FID / DEALSPearl GtL

Qatargas 4AOSP Expansion I

Caesar Tonga

Gorgon LNG

Mars-B

BC-10 Phase 2Singapore Chemicals

Gumusut-Kakap

DuvernayPort Arthur

Sakhalin

BC-10

Perdido

AOSP mine

East Resources

Gbaran Ubie Ph 1

Singapore Chemicals

2011START-UPS

Nigeria T6

Afam GasUrsa Princess Waterflood

NWS T5

Ormen LangeChangbei

QatarGas 4Pearl GtL

AOSP upgrader

PreludeMalakai

NA tight gas

AOSP debottle ph-1

SchoonebeekOman EOR

Port Arthur

ClairSchiehallion

$ Bln

2010CAPITAL UNDER CONSTRUCTION

2012-13Corrib

Gumusut-Kakap

Majnoon FCP

BC-10 Ph 21.8 BAB/SASKashagan Ph 1

North Rankin 2


Divestments up to $3 bn/year; capital efficiency

FID pace + industry costs drive capex range

Tight gas + exploration spend flexibility

EXPLORATION

2012-14 CAPITAL INVESTMENT EXCLUDES IRAQ FULL FIELD DEVELOPMENTS

CAPITAL SPENDING + OUTLOOK

UPSTREAM

% Capital investment

DOWNSTREAM

% Capital investment

REFINING

CHEMICALS

MARKETING

HEAVY OIL & EOR

TIGHT GAS

INTEGRATED GAS

DEEPWATER

TRADITIONAL

SOUR

ASIA PACIFIC

EUROPE

AMERICAS

OTHERS

NET CAPITAL INVESTMENT

$ Bln

NET CAPITAL INVESTMENT

2012-14 INVESTMENT CHOICES & FLEXIBILITY


SIMON HENRYCHIEF FINANCIAL OFFICER



2011-12 OUTLOOK

PERFORMANCE FOCUS

NEW WAVE OF PRODUCTION GROWTH

MATURING NEXT GENERATION OF PROJECT OPTIONS

PRIORITIES

Studying > 30 new projects; 10 FIDs planned2011-12

Upstream growth potential to ~2020

Selective Downstream growth

>20 projects under construction

+6% production 2010-12

On track for 2012 cashflow targets

$1 billion Downstream cost savings

Continuous improvement embedded in Shell

Up to $8 bln asset sales; capital efficiency

OUTLOOK

Competitive performance – Profitable growth – Sharper delivery


ROYAL DUTCH SHELLCREDIT SUISSEEUROPEAN OIL & GAS CONFERENCE

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simon henry - credit suisse european oil & gas conference - june 9, 2011

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