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Simon Henry, Deutsche Bank – Oil & Gas Conference, London, 24 September 2009

Simon Henry, Chief Financial Officer, presented an update of Shell’s Strategy & Portfolio at the Deutsche Bank 2009 Oil & Gas conference.

Mr. Henry started with an overview of Shell’s priorities in today’s challenging market conditions. He highlighted that Shell is sharpening its focus on delivery and affordability and is constructing a large growth programme that will add ~1 million boe/d of new production and 3.9 mtpa of new LNG capacity leading to growth in Upstream in 2011-12. He also emphasized that Shell has introduced a restructuring programme, called Transition 2009, which puts in place a simpler, delivery oriented organisation, that will lead to significant cost and staff reductions.

Mr. Henry then provided an overview of Shell’s strong Oil & Gas resource position that has been growing as a result of a successful exploration programme that has added over 1 billion boe per year at a low cost of $2-3/boe. He then turned to the Key Projects under construction. Including those recent project start-ups including the Sakhalin II integrated gas project in Russia and the BC-10 deepwater project in Brazil.

Mr. Henry then focussed on Shell’s liquefied natural gas (LNG) and gas-to-liquids (GTL) activities with overview of the massive Gorgon project, offshore West Australia that was launched by Shell and partners in early September, 2009. He also highlighted Shell’s Pearl (GTL) project in Qatar where a “small city” of 50,000 construction workers are building this massive integrated GTL project. that is on track for start-up in 2010/2011.

Mr. Henry also outlined the Downstream landscape and Shell’s focus on continuing to revitalise the manufacturing footprint and improve profitability. He mentioned that Shell has sold roughly 18% of its refining capacity and received some $15 billion over the past few years. Shell is planning to reduce its current refining capacity by further15%.

Mr. Henry closed with a discussion of Shell’ s production outlook that will more than offset the 5% annual decline rates beginning in the 2011/2012 timeframe. He also provided details on how he plans to manage the balance sheet over the coming years until that new production starts to generate significant new cash for Shell.

For enquiries please contact the Investor relations department: 


Royal Dutch Shell plc

Investor Relations

2501 AN, The Hague

The Netherlands

+31 (0)70 377 4540 / +44 207 934 3856

Fax: +31 (0)70 377 3115

e-mail: ir-hague@shell.com


Shell Oil Company

Investor Relations

630 Fifth Avenue, Suite 3166, New York

NY 10111, USA

+1 212 218 3113

Fax: +1 212 218 3114

e-mail: ir-newyork@shell.com


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