Asia (including Middle East)

Brunei

Shell and the Brunei government are 50:50 shareholders in Brunei Shell Petroleum Company Sendirian Berhad (BSP). BSP has long-term oil and gas concession rights onshore and offshore Brunei, and sells most of its gas production to Brunei LNG Sendirian Berhad (see “Integrated Gas”). BSP started up the Champion Intermediate Deep (expected peak production of around 9 thousand boe/d) and Champion Waterflood B2-B3 (expected peak production of around 10 thousand boe/d) projects in 2016.

In addition to our interest in BSP, we are the operator for the Block A concession (Shell interest 53.9%), which is under exploration and development, and also the operator for exploration Block Q (Shell interest 50%). We have a 35% non-operating interest in the Block B concession, where gas and condensate are produced from the Maharaja Lela field.

We also have non-operating interests in deep-water exploration Block CA-2 (Shell interest 12.5%) and in exploration Block N (Shell interest 50%), both under PSCs.

The non-Shell-operated ML South development (Shell interest 35%) achieved first production in 2016.

Iran

Shell transactions with Iran are disclosed separately. See RDS Form 20-F for the year ended December 31, 2016.

Iraq

We have a 45% interest in the Majnoon oil field that we operate under a development and production services contract that expires in 2030. The other partners in Majnoon are PETRONAS (30%) and the Iraqi government, which is represented by the Missan Oil Company (25%). Majnoon is located in southern Iraq and is one of the world’s largest oil fields. Production at Majnoon averaged 215 thousand boe/d in 2016, compared with 206 thousand boe/d in 2015. We also have a 20% interest in the development and production services contract for the West Qurna 1 field, which is operated by ExxonMobil. This is subject to an ongoing sales process.

We also have a 44% interest in the Basrah Gas Company, which gathers, treats and processes associated gas produced from the Rumaila, West Qurna 1 and Zubair fields that was previously being flared. The processed gas and associated products, such as condensate and liquefied petroleum gas (LPG), are sold primarily to the domestic market with the potential to export any surplus. In 2016, Basrah Gas processed over 570 million scf/d of associated gas into dry gas, condensate and LPG, and executed its first exports of LPG and condensates.

Kazakhstan

As a result of the BG acquisition, we are the joint operator of the onshore Karachaganak oil and condensate field (Shell interest 29.25%), where we have a licence until the end of 2037. Karachaganak produced around 390 thousand boe/d, on a 100% basis, in 2016.

We have a 16.8% interest in the North Caspian Sea Production Sharing Agreement which covers, among others, the Kashagan field in the Kazakh sector of the Caspian Sea, where first crude oil was exported on October 29, 2016, and the Commencement of Commercial Production milestone was achieved on November 1, 2016. The North Caspian Operating Company is the operator. This shallow-water field covers an area of approximately 3,400 square kilometres. Phase 1 development of the field is expected to lead to plateau oil production capacity of about 370 thousand b/d, on a 100% basis, with the possibility of increases with additional phases of development. Production started in October 2016.

We also have an interest of 55% in the Pearls PSC, covering an area of approximately 900 square kilometres in the Kazakh sector of the Caspian Sea. It includes two oil discoveries, Auezov and Khazar.

We also have a 7.43% interest in Caspian Pipeline Consortium, which owns and operates an oil pipeline running from the Caspian Sea to the Black Sea across parts of Kazakhstan and Russia.

Malaysia

We explore for and produce oil and gas offshore Sabah and Sarawak under 17 PSCs, in which our interests range from 20% to 75%.

Offshore Sabah, we operate five producing oil fields (Shell interests ranging from 29% to 50%). These include the Gumusut-Kakap deep-water field (Shell interest 29%) where production is via a dedicated floating production system. We have additional interests ranging from 30% to 40% in PSCs for the exploration and development of four blocks. These include the Malikai deep-water field (Shell interest 35%), which we are developing as the operator and where we started production from the Malikai TLP. We also have a 21% interest in the Siakap North-Petai deep-water field and a 30% interest in the Kebabangan field, both operated by third parties.

In 2016, we agreed to sell our 50% interest in the 2011 North Sabah EOR Production Sharing Contract in Malaysia, subject to obtaining regulatory and partner approval.

Offshore Sarawak, we are the operator of 12 producing gas fields (Shell interests ranging from 37.5% to 70%). Nearly all of the gas produced is supplied to Malaysia LNG in Bintulu and to our gas-to-liquids plant in Bintulu. See “Integrated Gas”.

We also have a 40% interest in the 2011 Baram Delta EOR PSC and a 50% interest in Block SK-307. Additionally, we have interests in four exploration PSCs: SK318, SK319, SK320 and SK408.

Oman

We have a 34% interest in Petroleum Development Oman (PDO); the Omani government has a 60% interest. PDO is the operator of more than 160 oil fields, mainly located in central and southern Oman, over an area of 85,823 square kilometres. The concession expires in 2044.

We are also participating in the Mukhaizna oil field (Shell interest 17%).

United Arab Emirates

In Abu Dhabi, we have a 15% interest in the licence of Abu Dhabi Gas Industries Limited (GASCO), which expires in 2028. GASCO exports propane, butane and heavier-liquid hydrocarbons, which it extracts from the wet gas associated with the oil produced by the Abu Dhabi Company for Onshore Oil Operations.

In 2016, we decided to exit the joint development of the Bab sour gas reservoirs (Shell interest 40%) with the Abu
Dhabi National Oil Company in the emirate of Abu Dhabi, and to stop further work on the project.