DEVEX Conference 2016

UK Ageing Assets Through

The Spyglass

May 2016

G Forsyth

Subsidiary of Royal Dutch Shell

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Reserves: Our use of the term “reserves” in this presentation means SEC proved oil and gas reserves.

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. 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 excluding changes resulting from acquisitions, divestments and year-average pricing impact.

Shales: Our use of the term ‘shales’ refers to tight, shale and coal bed methane oil and gas acreage.

The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate legal 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 over which Royal Dutch Shell plc either directly or indirectly has control. Entities and unincorporated arrangements over which Shell has joint control are generally referred to “joint ventures” and “joint operations” respectively. Entities over which Shell has significant influence but neither control nor joint control are referred to as “associates”. The term “Shell interest” is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in a venture, par tnership 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’’, ‘‘goals’’, ‘‘intend’’, ‘‘may’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘plan’’, ‘‘probably’’, ‘‘project’’, ‘‘risks’’, “schedule”, ‘‘seek’’, ‘‘should’’, ‘‘target’’, ‘‘will’’ 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 regulatory measures addressing climate change; (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 risk factors that may affect future results are contained in Royal Dutch Shell’s 20-F for the year ended December 31, 2015 (available at www.shell.com/investor and www.sec.gov ). These risk factors also expressly qualify all forward looking statements contained in this presentation and should be considered by the reader. Each forward-looking statement speaks only as of the date of this presentation, 18 May 2016. Neither Royal Dutch Shell plc 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.

We may have used certain terms, such as resources, in this presentation that United States Securities and Exchange Commission (SEC) strictly prohibits us from including in our 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.

Shell April 2016

What do we mean by

“Through the Spyglass”?

• Late life field Assets – very few remaining brownfield development opportunities

No margin for error

• Need to maximise Value: Cash Flow Positive – How?

• Value of delaying CoP vs. Kick off Decommissioning Projects

• Under scrutiny from joint ventures & governmental bodies

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Optimise Cost

Enhanced Recovery & Performance

UK Operate Legacy Strategy

4

Main Lessons learned:

1- Projects are sufficiently robust and adhere to FEL process

2- Ensure economic stability promised on 3rd party business volumes - tariff

Varg

Rev (Existing)

Maria Horst

(Existing well)

Armada Hub AHID Phase 8

NW Seymour

(Existing)

Maria Terrace

(Existing well)

Maria Terrace

Infill/STGaupe

(Existing)

Seymour Horst

Prospect NW

Seymour

Infill

Lomond Hub Bridge Linked Platform

Erskine

(Existing)

Lomond

BLP

Columbus

Arran

Armada Hub Example

Excellent to Outstanding Recovery vs FDP

Developments Series of low side outcomes

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1997 ¦ 1ST Production Armada Fields

2002/3 ¦ SWS & Add Armada Wells 1st Prod

Compressor Rewheleed

2006 ¦ NWS-14 1st Prod

2008 ¦ Maria 1st Prod

2011 ¦ NWS-15 1st Prod

2012 ¦ Gaupe Field Tieback

• 2009 ¦ FEL Flotel Campaign

• Rev Field 3rd Party tieback

2013 ¦ Varg Gas Export project (Through Rev)

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UK Operate

How to excel in current environment?

• Review Operating Unit Cost

• Highly Focused Team

• Monitor Performance & Value

Created an overall sense of asset purpose and

ownership along with an efficient, cost conscious and

value driven organisation

UK Operate Asset Focused Areas

• New Operating Model Strategy

– Highly focused and integrated asset team – UOC reduced

– Clear asset targets and KPIs

– Review of assurance, guidelines and standards tailored for UK Operate

• Brownfield Projects:

– Portfolio reassessment including review under recent TAX changes

– Portfolio review for near-field, 3rd party tie-backs and Infill opportunities

– Everest MLC2 Compressor System Rewheeled - additional volumes

Promised for 2015 – Delivered

– Erskine Future brownfield project – beyond 2020

– Top side Brownfield mods to delay technical CoP

• Intensive Bullheading Foamer Injection Trials in Armada Hub Subsea Wells

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UK Operate Asset Focused Areas

• Risk-Reward strategy with service companies for complex well

interventions

• Review of all cash flow positive well intervention opportunities

• Back to basis modelling

• Mind set change: From growth to late life field & abandonment phase

– Sound integrated Asset & Decommissioning project teams

• Synchronised support between asset economics and technical limits –

Right time to kick off

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Nine KPIs Track Our performance

Business Strategy

UK Operate 2013-2015

Portfolio strategy reviews outcome

• Late Life field assets

– Armada Hub Strategy Review 25km

radius – Late 2012 & 2014

– Lomond Hub Strategy Review – 40km

radius – 2013 & 2014

– Everest Strategy Review inc Exploration

Basin study 2014 & 2015

• Opportunities:

• Near field potential

• 3rd EEE Infill

• Potential 3rd Party tie-back options for both

Lomond & Everest

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Everest - EEE 3rd Infill Opportunity

– Outstanding EEE wells performance since start-up Mar’13

– Possible to tap in Maureen sst - Modelling progressing

– Opportunity to increase EEE area recovery

– Potential in this competitive cost environment to reduce

costs estimates and/or accelerate execution

– Potential to delay COP, hence incremental value could

increase

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EEE Production

Pipeline

• 6 km

EEE Manifold

• 2 EEE wells

• 1 Flow tie-in

capacity

• Modification of SDU

EEE SSIV Skid

• 1 WYE tie-in

EEE

Umbilical

• 6 km

3rd EEE Infill

LAD

East Everest – Maureen Sands

Jaere

n H

igh

Top Maureen

EEV

3Km

LAF

LAA

3rd Well

EEEFleming F5

linear sand lobe

constrained by

Jaeren High to E

Fleming

RGB Blend Spectral Frequencies(28, 36, 48hz)

Evidence of compartmentalization

between EEV & EEE.

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2836

Erskine Brownfield Future Development

Project – Erskine Beyond 2020

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EoL 1 Train

EoL 2 Trains

EoL Sep trains

5. Different Host

3. EoL

4. LoE EPM

1. Status Quo

2. SQ + EPM Investment

New partner - Serica (18%) – Jul 2015

Good performance after necessary campaign investment

Some EoL/LoE options still being assessed

Pipeline Blockage remediation ongoing

New Host?

Intensive Bullheading Foamer Injection trials

Subsea Wells

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ME OH

Injection(initial start-up)

FlowlineProd.

Choke

Well

bo

re

Xmas Tree

DH CI

Mandrel

Wing

Valve

DHCIVMEG/Foamer

Maria Terrace and Gaupe North

Injection while producing and/or SI

10.9 km

• Initial Objective– Maria flowline deliquification

– Gaupe Production

• Trial Results– Successful on Terrace/ Maria flowline

deliquification

– Flowline accumulated liquids were recovered

Well Intervention Opportunities – Cash

Flow Model

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Well Background Input Payback Conclusion

Armada Assisted Kick

off

CoS 50% Below 6

months

Supported

Everest Survey &

velocity string

CoS 76% Below 6

months

Supported

Everest Survey & Re-

perf

CoS 50% Below 6

months

Supported

i.e. Armada Hydraulic Frac CoS 70% Above 6

months

Unsupported

• Cash Flow workflow to BP16

Journey From Late Life Operations Into Decommissioning Armada Hub – Technical/Operations limit

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• Flow assurance uncertainty at

lower rates

• Cooling medium concern with

Compression system on Recycle

• OIW issues

• Weak wells “ok” while no trips –

struggle to reinstate on

production - Foamer required for

kick off

R

a

t

e

Good cyclic wells

performance

Risked

Unrisked-

Technical

Min

Compressor

rate

Time

Top side Brownfield mods to delay

Technical CoP & Improve EUR

• Attend key areas of asset integrity

• Lower compressor suction pressure

• Fuel gas supply options

• Well interventions – success rate (Benchmark report)

• Reinstatement of S/I wells (i.e. LT-02 in Lomond & ET-03 in Everest)

• Reviewed asset sand management strategy

• Intensive Foamer campaign for cyclic/weak wells

• Improve anti-foamer efficiency & OIW issues (CETCO effc)

• Continuous review of operational efficiency – Evaluate improvement win-

win options

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Asset Transition to Decommissioning

Armada Hub Asses stage completed

RR4 planned for 2017

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Mature Operations: Maximum Economic Recovery

(MER) Milestone

Pre Cessation of Production: Reduce UOC & Prepare

for Decom

Wells P&A: Overlap phase

MER CoP Milestone

Decommissioning

Hydrocarbon free & Lift Milestones (as needed)

Disposal & Reuse

Topsides & Substructure recycling. Environmental &

Commercial diligence. Site remediation

Thank you

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