Downstream

HIGHLIGHTS

• Inaugurated the expansion of our joint-venture refinery in Port Arthur, Texas, more than doubling crude oil distillation capacity there to 620 thousand b/d. It is flexible, able to process many types of crude oil and vary the mix of final products based on demand.
• In Australia, the Clyde refinery was converted to a terminal.
• Optimised ethylene delivery in Supply and distribution, resulting in a 20% increase in throughput capacity and improved operating flexibility.
• Continued to demonstrate innovation in fuels technology and superior customer experience in Retail with the first launch of Shell V-Power Nitro+, which is now available in six countries. In China we also had the first launch of Shell V-Power in Tianjin province and signed an agreement with China Union Pay to enable faster and more convenient payment options.
• Making good progress with the Raízen biofuels joint venture in Brazil, which has a 35 thousand b/d ethanol production capacity. In its first full year of operations, Raízen contributed more than 10% to our 2012 Oil products earnings.
• Bought the remaining shares in Gasnor, a Norwegian supplier of LNG for shipping and trucking. It gives us a foothold in a growing market for cleaner-burning gas as a transport fuel.
• Entered into an agreement with joint venture partners to purchase assets at the Coryton refinery in Essex and worked with our partners to develop a state-of-the-art import and distribution terminal. This investment will support growth in our UK retail business, which acquired 253 retail sites in 2011.
• Agreed to acquire Neste Oil Corporation’s network of 105 retail sites in Poland. These sites are unmanned and located in major cities throughout the country.
• Progressed the proposed world-scale petrochemicals project in Ras Laffan Industrial City in Qatar by awarding, with venture partner Qatar Petroleum, the front-end engineering and design contract.
• Agreed with our partner SABIC to expand Sadaf, our long-standing Chemicals joint venture in Saudi Arabia – including proposed construction of new derivative units.