Shell generated $40.4 billion of cash flow from its operating activities in 2013. Our average organic reserves replacement ratio, which represents our ability to grow and maintain production, was around 112% over the last three years.
In 2013, Shell was part of a consortium that won the bidding process for the giant Libra field offshore Brazil. We have a 20% interest in this oil field, which is potentially one of the largest discoveries in the last decade.
We took the final investment decision on the Carmon Creek in-situ oil project in Canada during the year. Shell has a 100% working interest in this project that can potentially produce 80,000 barrels of oil a day. Co-generation and water recycling facilities have been integrated into the design to reduce its environmental impact. In 2013, we also took the final investment decision on the Gbaran Ubie Phase 2 (Shell interest 30%) and the Trans-Niger pipeline loop-line projects (Shell interest 30%), both in Nigeria, with a combined expected peak production of around 250,000 barrels of oil equivalent (boe) a day.
During the year we started up Phase 2 of the Parque das Conchas (BC-10) project (Shell interest 50%) off the coast of Brazil, the Amal steam (Shell interest 34%) enhanced oil recovery project in Oman as well as the Majnoon project in Iraq (Shell interest 45%). The Basrah Gas Company (Shell interest 44%) officially started operations in Iraq. It aims to use gas, that is currently being flared, for power generation or for export in the future. This is expected to increase production capacity from an initial 0.5 billion standard cubic feet a day (scf/d) to potentially 2.0 billion scf/d.
Shell’s oil and gas production in 2013 was 3.2 million boe a day, down slightly from 2012. Our sales of liquefied natural gas decreased to around 20 million tonnes. Exploration and commercial activities continued to add potential resources. This underpins our long-term growth plan.
In 2013, sustainable development continued to account for 20% of the company scorecard, which helps determine the annual bonus levels for all our employees, including members of the Shell Executive Committee (EC). In 2013, the EC’s sustainable development measures were split evenly between Shell’s safety and environmental performance, including targeted measures covering operational spills, energy efficiency and use of fresh water. Targets are set each year by the Board’s Remuneration Committee taking into account the performance achieved in the last three years.