Capital expenditure and portfolio

Cash capital expenditure

Cash capital expenditure in 2022 was $8.1 billion, compared with $6.2 billion in 2021. The increased expenditure in 2022 was mainly a result of the Brazil Atapu Transfer of Rights and a ramp-up in projects, partially offset by the slippage of activities across the portfolio and divestments. Our cash capital expenditure is expected to be around $8 billion in 2023.

Portfolio and business development

We took the following key portfolio decisions during 2022:

• In Brazil, in April 2022, we signed a production-sharing contract (PSC) to formally acquire a 25% stake in the Atapu Field.
• In Brazil, in May 2022, we started production at the FPSO Guanabara in the Mero field, in the offshore Santos Basin.
• In Malaysia, in September 2022, together with PETRONAS Carigali Sdn Bhd, we took the final investment decision (FID) to develop the Rosmari-Marjoram gas project.
• In the UK, in July 2022, we took the final investment decision (FID) to develop the Jackdaw North Sea gas field.
• In the US Gulf of Mexico, in March 2022, we started the production at PowerNap, a subsea development.
• In the US Gulf of Mexico, in February 2023, we started production at Vito, a Shell-operated floating production facility.

We continued to divest assets during 2022, including:

• In Malaysia, in December 2022, we agreed to sell our stake in two offshore production-sharing contracts (PSCs) in the Baram Delta to Petroleum Sarawak Exploration & Production Sdn. Bhd. (“PSEP”). The sale concerns non-operated interests of 40% in the Amended 2011 Baram Delta EOR PSC and 50% in the SK 307 PSC. The remaining interests in both PSCs are held by the operator, PETRONAS Carigali Sdn Bhd (“PCSB”). Sale completion is expected in 2023.
• In the Philippines, in November 2022, we sold our 100% shareholding in Shell Philippines Exploration B.V. (SPEX) to Malampaya Energy XP Pte Ltd (MEXP), a subsidiary of Prime Infrastructure Capital Inc (Prime Infra).
• In the USA, in February 2023, we sold our 100% interest in Shell Onshore Ventures LLC, which holds a 51.8% membership interest in Aera Energy LLC to IKAV.

Shell announced in the first quarter of 2022 its intent to withdraw from its ventures in Russia with Gazprom and related entities.

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.