Respecting & Safeguarding people

Shell’s people again played a key role in our success in 2005. The value we place on people is refl ected in the ongoing emphasis on the management of Health, Safety, Security and the Environment (HSSE) in all parts of our business. Safety remains our number one priority. Shell took important steps to protect staff and customers in 2005 as part of our continued focus on maintaining a safe operating environment. Safety is an ongoing concern and we measure performance over the long-term to reflect this.

Our key performance indicators include:

• The number of injuries sustained by staff or contractors which result in time off work (lost time incidents).
• The severity of a lost time injury, measured by the number of days off work resulting from an injury.
• The total number of reportable cases which covers any injury requiring some medical treatment.

Unfortunately, our safety performance in our Exploration and Production activities
in 2005 was unsatisfactory with a disappointing level of injuries, reversing the trend
from fewer injuries in the previous two years. Increased injuries coincided with increased project activities, however, there were also increased injuries in base operations. Most injuries were minor, “low potential”, and occurred during "routine” activities.

During 2005, there were a number of initiatives aimed at improving health and safety leadership, site supervision and the better use of tools at site. The focus was on halting the “low potential” harm injuries. A number of the initiatives require more time and support to take effect.

Highlights of 2005 included a greater focus on both the quantity and quality of actual incident and near-miss reporting across all businesses, as well as the implementation of Shell’s global “Hearts and Minds” behavioural safety and awareness programmes in selected businesses. While some businesses continued to maintain a consistently strong HSSE performance, there was room for improvement identified in others. Specificareas of focus in the short to medium term will include road safety of our contracted carriers and staff, as well as safety and security management of retail site staff and their facilities.

Sixty leaders from Shell and STOS got together for the first time as a leadership group in 2005, with the objective to spend time together to build a stronger leadership community across Shell.

Hearts & Minds is a global initiative that puts health and safety first across all of Shell’s operations. Shell is investing more than $2 million in the retail business on improving the security features at our sites to make sure they are safer, and are less attractive to criminals.

Safeguarding People

Safety Statistics  - Exploration & Production	2004	2005
Lost Time Incidents	2	5
Lost Time Incident Frequency (Lsot time incidents per million hours worked)	0.65	2.32
Total Reportable Cases (Lost time injuries together with medical cases)	8	16
Total Reportable Case Frequency (Total reportable cases per million hours worked)	5.17	7.41
Average Days off Work (Severity)	2 days	7.4 days

Note: Data is for STOS staff and contractors.

Note: These statistics cover all Shell New Zealand oil product operational activities. This incldues Shell staff, contractors, bulk transport hired carriers, service stations and Shell-owned subsidiary companies. These statistics do not cover join venture companies where Shell has less than 50% interest.