Business and property

Oil and natural gas production, exploration and development

Australia

We operate the Queensland Curtis LNG (QCLNG) venture’s natural gas operations, including wells, compression stations and processing plants, in Queensland’s Surat Basin. We have interests ranging from 44% to 74% in 25 field compression stations and six central processing plants. Our production of natural gas from the onshore Surat Basin supplies the QCLNG liquefaction plant and the domestic gas market.

We have a 50% interest in Arrow, a Queensland-based joint venture with China National Petroleum Corporation (CNPC). Arrow owns coalbed methane assets and a domestic power business.

In addition, Shell has interests in offshore production, LNG liquefaction and exploration licences in the Browse Basin and in the North West Shelf (NWS) and Greater Gorgon areas of the Carnarvon Basin. Woodside is the operator on behalf of the NWS joint venture (Shell interest 16.7%). We have a 25% interest in the Chevron-operated Gorgon LNG joint venture that includes offshore production.

In the Browse Basin, Shell is the operator for the Prelude field (Shell interest 67.5%); the Crux gas and condensate development field (Shell interest 84.5%), where a final investment decision was taken in May 2022; and other backfill projects for Prelude FLNG.

We are also a partner in the Browse joint arrangement (Shell interest 27%) covering the Brecknock, Calliance and Torosa gas fields, which are under development and operated by Woodside.

Barbados

In 2022, we farmed into two exploration blocks (Shell interest 40%), where our partner is the operator.

Bolivia

We hold a 37.5% participating interest in the Caipipendi block where we produce and deliver natural gas to domestic and export markets. We also have a 25% interest in the Tarija XX West block where we produce from the Itaú field.

In 2022, we exited the Iñiguazu exploration block (operated by Repsol) where we held a 15% participating interest.

Canada

In Canada, we produce and market natural gas, natural gas liquids and condensate. We hold mineral acres, primarily in the Montney play in British Colombia and Alberta. We operate four natural gas processing area facilities at our Groundbirch asset in British Colombia.

China

We develop and produce from the onshore Changbei tight-gas field under a production-sharing contract (PSC) with CNPC.

Colombia

We have 50% interests in three blocks that we operate, and 60% interests in two other deep-water blocks where Chevron is the operator.

Egypt

We have a 25% interest in the Burullus Gas Company (Burullus) joint venture, which operates the West Delta Deep Marine concession (Shell interest 50%) and supplies gas to the domestic market and the Egyptian LNG plant. We have a 50% interest in the Rashid Petroleum Company (Rashpetco) joint venture, which operates the Rosetta concession (Shell interest 100%). We have a 30% interest in the El Burg Offshore Company (EBOC) joint venture, which operates the El Burg offshore concession (Shell interest 60%).

We have participating interests in several exploration concessions in the Nile Delta, the wider East Mediterranean and the Red Sea.

Indonesia

We have a 35% interest in the INPEX Masela Ltd joint venture, which owns and operates the offshore Masela block.

Oman

We have a concession to develop and produce natural gas from Block 10 (Shell interest 53.45%). We also have a separate gas sales agreement for gas produced from the block. In September 2022, Shell and its partners signed an exploration and production sharing agreement with the government of Oman for the exploration, evaluation and development of natural gas resources and condensate in Block 11 (Shell interest 67.5%).

Qatar

We operate the Pearl GTL plant (Shell interest 100%) in Qatar under a development and production sharing contract with the government. The fully integrated facility has the capacity to produce, process and transport 1.6 billion standard cubic feet per day (scf/d) of gas from Qatar’s North Field.

We have a 30% interest in Qatargas 4, which comprises integrated facilities to produce around 1.4 billion scf/d of gas from Qatar’s North Field, an onshore gas-processing facility. In July 2022, QatarEnergy selected us to participate in the North Field East (NFE) expansion project in Qatar. In December 2022, QatarEnergy and Shell closed the transaction resulting in Shell purchasing 25% of the shareholding in a joint venture (JV) which owns a 25% interest in the overall NFE project. Thus, Shell’s ownership of NFE via its JV shareholding is 6.25%. In October 2022, we were also selected as a partner in the North Field South project (Shell interest 9.375%). Shell participation in the North Field South project remains subject to clearance of remaining customary conditions precedent.

Russia

Shell announced in the first quarter 2022 its intent to withdraw from its ventures in Russia with Gazprom and related entities, and to end its involvement in the Nord Stream 2 pipeline project.

See Note 6, which is incorporated by reference into the Strategic Report, for the actions we have taken since these announcements and for the impact on the consolidated financial statements.

Tanzania

We operate and have a 60% interest in Blocks 1 and 4 off the coast of southern Tanzania under a production sharing agreement with the government of Tanzania that expires in 2024.

Trinidad and Tobago

We have interests in three concessions with producing fields: Central Block (Shell interest 65%), North Coast Marine Area (Shell interest 80.5%), and East Coast Marine Area (Shell interest 100%). In 2022, production started on Block 22 (Shell interest 90%) and NCMA-4 (Shell interest 80%) in the North Coast Marine Area.

Our interests range from 35% to 100% in exploration Blocks 5(d), 5(c)REA, 6(d), and Atlantic Area Block 5.

Turkey

In 2022, we released our exploration licence in the Western Black Sea.

Seven Borealis pipelay vessel adjacent to the Poinsetta production facility for the Colibri Project in Trinidad and Tobago. (photo) — Photo: Seven Borealis pipelay vessel adjacent to the Poinsettia production facility conducting pipelay activities for the Colibri project.

Colibri gas for LNG export and domestic use in Trinidad and Tobago

In 2022, we produced gas for the first time from the Shell-operated Colibri project in Trinidad and Tobago. Most of Colibri’s gas is exported as liquefied natural gas (LNG). Gas will also be used in the country’s petrochemical sector and to generate electricity for the country.

The final investment decision on Colibri was taken in March 2020. The team continued to implement the project and first gas was reached in March 2022, despite termination of operations by a key supplier. We delivered safely, within budget and ahead of schedule.

Colibri is expected to reach about 250 million standard cubic feet of gas per day at peak production through a series of four subsea gas wells. The wells are tied back to the existing Poinsettia platform in the North Coast Marine Area (NCMA).

Shell seeks to provide more affordable, reliable, and cleaner energy to our customers. While the vast majority of Colibri’s gas will be exported, about 25% will be supplied to Trinidad and Tobago’s National Gas Company (NGC), which will deliver it to the local power utility, Trinidad & Tobago Electricity Commission, to power homes and businesses. The NGC also supplies gas to petrochemicals plants in Trinidad, a major exporter of ammonia and methanol.