Royal Dutch Shell plc...Royal Dutch Shell plc Financial and Operational Information 2001–2005...

Royal Dutch Shell plcFinancial and Operational Information 2001–2005

PUBLICATION REQUESTS

Royal Dutch Shell plcc/o BanksideTel: +44 (0)1635 232700e-mail: [email protected]

PUBLICATIONS

Annual Report and Form 20-Ffor the year ended December 31, 2005A comprehensive overview of the Group.

Available at www.shell.com/annualreport

Annual Review and Summary FinancialStatements 2005A summarised overview of the Group and the operational and financial performance of the business.

Available at www.shell.com/annualreport

The above documents are available inboth English and Dutch from the addresslisted on the left.

De bovenstaande documenten zijn zowel in het Engels als in het Nederlandsverkrijgbaar bij het links vermelde adres.

Shell General Business PrinciplesFundamental principles that govern how each Shell company conducts its affairs.

Available at www.shell.com/sgbp

The Shell Sustainability Report 2005Report on progress in contributing to sustainable development.

Available at www.shell.com/envandsociety

Financial and Operational Information 2001 – 2005Five years’ financial and operationalinformation about the Group, including maps of exploration and production activities.

Available at www.shell.com/faoi

More information about the Group is available at www.shell.com

Royal Dutch Shell plc

Financial and Operational Inform

ation 2001– 2005

AR6788_Shell_FAOI_Cover_spine 25/5/06 4:09 pm

2005 Results:Revenue $306.7 billionIncome for the period $26.3 billion Cash flow from operating activities $30.1 billion

Earnings per share – IFRS $

04 2.74

05 3.79

Total assets less total liabilities – IFRS $ million

04 91,383

05 97,924

Dividends paid to shareholders – IFRS $ million

04 7,391

05 10,556

About this bookletThe Financial and Operational Information booklet contains forward-looking statements concerning thefinancial condition, results of operations and businesses of Royal Dutch Shell. All statements other thanstatements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s currentexpectations and assumptions and involve known and unknown risks and uncertainties that couldcause actual results, performance or events to differ materially from those expressed or implied inthese statements. Forward-looking statements include, among other things, statements concerning thepotential exposure of Royal Dutch Shell to market risks and statements expressing management’sexpectations, beliefs, estimates, forecasts, projections and assumptions. These forward-lookingstatements are identified by their use of terms and phrases such as ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’,‘‘estimate’’, ‘‘expect’’, ‘‘intend’’, ‘‘may’’, ‘‘plan’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘probably’’, ‘‘project’’,‘‘will’’, ‘‘seek’’, ‘‘target’’, ‘‘risks’’, ‘‘goals’’, ‘‘should’’ and similar terms and phrases. There are anumber of factors that could affect the future operations of Royal Dutch Shell and could cause thoseresults to differ materially from those expressed in the forward-looking statements included in thisbooklet, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes indemand for the Group’s products; (c) currency fluctuations; (d) drilling and production results; (e)reserve estimates; (f) loss of market and industry competition; (g) environmental and physical risks; (h)risks associated with the identification of suitable potential acquisition properties and targets, andsuccessful negotiation and completion of such transactions; (i) the risk of doing business in developingcountries and countries subject to international sanctions; (j) legislative, fiscal and regulatorydevelopments including potential litigation and regulatory effects arising from recategorisation ofreserves; (k) economic and financial market conditions in various countries and regions; (l) political

risks, project delay or advancement, approvals and cost estimates; and (m) changes in tradingconditions. All forward-looking statements contained in this booklet are expressly qualified in theirentirety by the cautionary statements contained or referred to in this section. Readers should not placeundue reliance on forward-looking statements. Each forward-looking statement speaks only as of thedate of this booklet. Neither Royal Dutch Shell nor any of its subsidiaries undertake any obligation topublicly update or revise any forward-looking statement as a result of new information, future events orother information. In light of these risks, results could differ materially from those stated, implied orinferred from the forward-looking statements contained in this booklet.

Please refer to the Annual Report on Form 20-F for the year ended December 31, 2005 for adescription of certain important factors, risks and uncertainties that may affect the businesses of theShell Group.

This booklet has not been subject to audit.

Cautionary Note to US InvestorsThe United States Securities and Exchange Commission (SEC) permits oil and gas companies, in theirfilings with the SEC, to disclose only proved reserves that a company has demonstrated by actualproduction or conclusive formation tests to be economically and legally producible under existingeconomic and operating conditions. Investors are urged to consider closely the disclosure in our AnnualReport on Form 20-F for the year ended December 31, 2005, File No 1-32575 and disclosure in ourForms 6-K file No 1-32575, available on the SEC’s website www.sec.gov. You can also obtain theseforms from the SEC by calling 1-800-SEC-0330.

Earnings per share – US GAAP $

02 1.41

03 1.81

01 1.45

Net assets before minority interest – US GAAP$ million

02

03

01

69,763

81,666

66,288

Dividends paid to shareholders – US GAAP$ million

02 5,522

03 6,352

01 5,188

Throughout this booklet, a billion = 1,000 million.

50040 Shell 5 Year_ ifc_03.qxd 25/5/06 1:15 pm Page ifc2

OUR STRATEGY OF MORE UPSTREAM AND PROFITABLE DOWNSTREAM AIMS TOREINFORCE OUR POSITION AS A LEADER IN THE INDUSTRY, WHICH AIMS TOPROVIDE INVESTORS WITH A COMPETIT IVE AND SUSTAINED TOTAL SHAREHOLDERRETURN.

THE OBJECTIVES OF THE SHELL GROUP ARE TO ENGAGE EFFICIENTLY, RESPONSIBLYAND PROFITABLY IN OIL, OIL PRODUCTS, GAS, CHEMICALS AND OTHER SELECTEDBUSINESSES. THE COMPANY PARTICIPATES IN THE SEARCH FOR AND DEVELOPMENTOF OTHER SOURCES OF ENERGY TO MEET EVOLVING CUSTOMER NEEDS AND THEWORLD’S GROWING DEMAND FOR ENERGY.

WE BELIEVE THAT OIL AND GAS WILL BE INTEGRAL TO THE GLOBAL ENERGYNEEDS FOR ECONOMIC DEVELOPMENT FOR MANY DECADES TO COME. OURROLE IS TO ENSURE THAT WE EXTRACT AND DELIVER THESE PROFITABLY, USINGENVIRONMENTALLY AND SOCIALLY RESPONSIBLE MEANS.

THIS BOOKLET SUPPLEMENTS THE ROYAL DUTCH SHELL PLC ANNUAL REPORT AND FORM 20-F FOR THE YEAR ENDEDDECEMBER 31, 2005, WHICH CONTAIN FINANCIAL STATEMENTS AND INFORMATION ON THE SHELL GROUP, INCLUDINGDETAILS OF THE ACCOUNTING POLICIES EMPLOYED. REFERENCE TO THIS ANNUAL REPORT WILL ASSIST THE UNDERSTANDINGOF THE INFORMATION IN THIS BOOKLET.

01 Nature of Group Financial Statements and operational data

02 Royal Dutch Shell shares03 Royal Dutch Shell dividends04 Financial Statements04 Consolidated Statement of Income and

earnings per share06 Consolidated Balance Sheet08 Consolidated Statement of Cash Flows10 Earnings by industry segment, Quarterly

earnings by industry segment12 Financial ratios, dollar exchange rates13 Capital investment14 Fixed assets

15 Depreciation, depletion and amortisation

16 Capital employed, Taxation17 Employee data18 Exploration & Production46 Gas & Power49 Oil Products50 Refining52 Oil sales53 Shipping54 Chemicals57 Other industry segments, Research58 Financial calendar

50040 Shell 5 Year_ ifc_03.qxd 25/5/06 1:16 pm Page i

In 2005, as a result of the Unification Transaction, Royal Dutch Shellbecame the single 100% parent company of Royal Dutch PetroleumCompany (“Royal Dutch”) and of Shell Transport and Trading CompanyLimited (previously known as The “Shell” Transport and Trading Company,p.l.c.) (“Shell Transport”) the two former public parent companies of theGroup.

The Unification Transaction did not result in the formation of a new reportingentity. Immediately after the Unification Transaction each former Royal Dutchand Shell Transport shareholder who participated in the UnificationTransaction held the same economic interest in Royal Dutch Shell as theshareholder held in the Group immediately prior to implementation of theUnification Transaction. Accordingly, the Unification Transaction has beenaccounted for using the carry-over basis of the historical costs of the assetsand liabilities of Royal Dutch, Shell Transport and the other companiescomprising the Group.

In this booklet “Group” is defined as Royal Dutch Shell together with all of itsconsolidated subsidiaries. The expression “Shell”, “Group”, “Shell Group”and “Royal Dutch Shell” are sometimes used for convenience wherereferences are made to the Group or Group companies in general.Likewise, the words “we”, “us” and “our” are also used to refer to Groupcompanies in general or to those who work for them. These expressions arealso used where no useful purpose is served by identifying the particularcompany or companies. The expression “Group companies” as used in thisbooklet refers to companies in which Royal Dutch Shell either directly orindirectly has control, by having either a majority of the voting rights or theright to exercise a controlling influence. The companies in which the Grouphas significant influence but not control are referred to as “associatedcompanies” or “associates” and companies in which the Group has jointcontrol are referred to as “jointly controlled entities”. In this booklet,associates and jointly controlled entities are also referred to as “equityaccounted investments”.

Except as otherwise specified, the figures shown in the tables in this bookletrepresent those in respect of Group companies only, without deduction of minority interests. However, where figures are given specifically for oilproduction (net of royalties in kind), natural gas production available for sale, and both the refinery processing intake and total oil product salesvolumes, the term “Group share” is used for convenience to indicate not only the volumes to which Group companies are entitled (without deduction in respect of minority interests in Group companies) but also the portion of the volumes of associated companies and jointly controlled entities towhich Group companies are entitled or which is proportionate to the Groupinterest in those companies.

Financial StatementsThe Consolidated Financial Statements include the accounts of Royal DutchShell and of those companies in which it, either directly or indirectly, hascontrol either through a majority of the voting rights or the right to exercise acontrolling influence or to obtain the majority of the benefits and be exposedto the majority of the risks. Investments in companies over which Shell Groupcompanies have significant influence but not control are classified asassociated companies and are accounted for on the equity basis. Interests injointly controlled entities are also recognised on the equity basis. Interests injointly controlled assets are recognised by including the Shell Group shareof assets, liabilities, income and expenses on a line-by-line basis.

The Consolidated Financial Statements have been prepared using the carry-over basis to account for the Unification and on the basis that the resultingstructure was in place throughout the periods presented.

The 2005 and 2004 Financial Statements contained in this booklet havebeen prepared in accordance with applicable laws in England and Walesand with International Financial Reporting Standards (“IFRS”) as adopted bythe European Union. As applied to Royal Dutch Shell, there are no materialdifferences with IFRS as issued by the International Accounting StandardsBoard. The 2003, 2002 and 2001 Financial Statements contained in thisbooklet have been prepared in accordance with US Generally AcceptedAccounting Principles (US GAAP), applied by the Group prior to its transitiondate to IFRS.

The key accounting and presentation differences between IFRS and USGAAP for the Shell Group relate to retirement benefits, discontinuedoperations, incorporated joint ventures, Group share of profit of equityaccounted investments, cumulative currency translation differences, share-based compensation, major inspection costs, unquoted equity securities,impairments and reversal of impairments.

Tables and disclosure that provide data over a five-year period show 2005and 2004 on an IFRS basis and 2003, 2002 and 2001 on a US GAAPbasis.

Except as otherwise noted, the figures shown in this booklet are inUS dollars. As used herein all references to “dollars” or “$” are to theUS currency.

Segment reportingInternal segment reporting is on a global basis. For the main segments an analysis of certain data is provided in this booklet between the USA and the world outside the USA.

Operational dataThe operational data represent the totals reported by the Group companies,reflecting their dealings with third parties and with equity accountedinvestments. Certain data also include the Group share of equity accountedinvestments and this is indicated on the pages concerned.

Currency translationAssets and liabilities of non-US dollar Group companies are translated to US dollars at year-end rates of exchange, whilst their statements of incomeand cash flows are translated at quarterly average rates. Translationdifferences arising on consolidation are taken directly to a currencytranslation differences account within equity. Upon divestment or liquidationof an entity, cumulative currency translation differences related to that entityare taken to income.

MapsThe maps on pages 20 to 30 are intended only to give an impression ofthe magnitude of the Group’s Exploration & Production activities in certainparts of the world. They must not be considered authoritative, particularly inrespect of delimitation of national, concession or other boundaries, nor inrespect of the representation of pipeline routes and landfalls, field sizes orpositions. The maps mainly describe the situation as at December 31, 2005.

1

NATURE OF GROUP FINANCIAL STATEMENTS AND OPERATIONAL DATA

50040 Shell 5 Year_ ifc_03.qxd 25/5/06 1:16 pm Page 1

2 Royal Dutch Shell plc

Royal Dutch Shell listing information

Class A Shares Class B Shares

Ticker Symbol London RDSA RDSB

Ticker Symbol Amsterdam RDSA RDSB

Ticker Symbol – New York (ADR*) RDS.A RDS.B

ISIN Code GB00B03MLX29 GB00B03MM408

CUSIP G7690A100 G7690A118

SEDOL Number – London B03MLX2 B03MM40

SEDOL Number – Euronext B09CBL4 B09CBN6

Weighted on FTSE as at 30/9/05 5.453% 3.911%

Weighted on AEX as at 30/9/05 16.155% not included

* One ADR is equal to two underlying shares

Share pricesRDSA and Royal Dutch ordinary shares – Amsterdam

a

€

RDSA Royal Dutch ordinary shares

2005b 2005b 2004 2003 2002 2001(Jul 20 to (Jan 1 toDec 31) Sep 30)

High 27.67 28.38 22.02 22.29 31.60 36.74Low 24.12 20.92 18.30 16.68 19.61 21.86Year end 25.78 25.80 21.18 20.90 20.98 28.45

RDSA – London

Pence

2005 2004 2003 2002 2001(July 20 to

December 31)

High 1,894 – – – –Low 1,633 – – – –Year end 1,771 – – – –

Class A ADRs and Royal Dutch New York Shares – New Yorkc

$

Class A ADRs Royal Dutch New York Shares

2005d 2005d 2004 2003 2002 2001(Jul 20 to (Jan 1 toDec 31) Oct 3)

High 68.08 67.45 57.79 52.70 57.30 64.15Low 57.79 55.37 45.79 36.69 38.60 39.75Year end 61.49 62.80 57.38 52.39 44.02 49.02

RDSB – Amsterdam

€

2005 2004 2003 2002 2001(July 20 to

December 31)

High 28.90 – – – –Low 25.41 – – – –Year end 27.08 – – – –

RDSB and Shell Transport Ordinary Shares – Londone

Pence

RDSB Shell Transport Ordinary Shares

2005d 2005d 2004 2003 2002 2001(Jul 20 to (Jan 1 toDec 31) Jul 19)

High 1,968 1,991 1,570 1,531 1,888 2,255Low 1,717 1,528 1,205 1,154 1,256 1,403Year end 1,858 1,838 1,545 1,446 1,423 1,643

Class B ADRs and Shell Transport ADRs – New Yorkf

$

Class B ADRs Shell Transport ADRs

2005f 2005f 2004 2003 2002 2001(Jul 20 to (Jan 1 toDec 31) Jul 19)

High 70.94 69.86 59.98 52.42 54.91 62.24Low 60.69 57.75 45.38 37.45 39.47 44.92Year end 64.53 64.56 59.63 52.24 45.15 48.09

Shares outstanding

Weighted averageAt year end number of shares

excluding shares excluding sharesAt year end held by the Group held by the Group

A shares2005 3,935,625,000 3,817,240,213 3,965,748,4812004 4,148,800,000 4,039,611,920 4,046,424,2522003 4,167,000,000 4,066,439,836 4,073,375,5102002 4,198,570,000 4,120,339,614 4,115,315,4742001 4,253,295,600 4,199,947,066 4,191,462,522

B shares2005 2,759,360,000 2,707,858,347 2,708,431,2862004 2,765,552,027 2,712,563,580 2,724,034,6712003 2,777,792,416 2,735,191,315 2,737,938,6652002 2,777,792,416 2,745,748,422 2,760,872,7392001 2,801,102,311 2,777,853,725 2,803,961,113

Total shares2005 6,694,985,000 6,525,098,560 6,674,179,7672004 6,914,352,027 6,752,175,500 6,770,458,9232003 6,944,792,416 6,801,631,151 6,811,314,1752002 6,976,362,416 6,866,088,036 6,876,188,2132001 7,054,397,911 6,977,800,791 6,995,423,635

a Pursuant to the terms of the Unification Transaction, holders of Royal Dutch ordinary shares receivedtwo Royal Dutch Shell plc Class A ordinary shares for each Royal Dutch ordinary share. To assistcomparison, the historical prices of the Royal Dutch ordinary shares have been divided by 2 toreflect such exchange ratio.

b Royal Dutch ordinary shares continued to trade on Euronext Amsterdam following the completionof the Unification Transaction until such shares were delisted on September 30, 2005.

c Pursuant to the terms of the Unification Transaction, holders of Royal Dutch New York Sharesreceived one Royal Dutch Shell plc Class A ADR for each Royal Dutch New York Shares. EachRoyal Dutch Shell plc Class A ADR represents two Royal Dutch Shell plc Class A ordinary shares.

d The New York Stock Exchange halted trading in the Royal Dutch New York Shares on October 3,2005, following delisting in Amsterdam, and resumed trading in the Royal Dutch New York Shareson October 31, 2005, following the joint public announcement by Royal Dutch Shell and RoyalDutch of the definitive terms of the Restructuring, in which all outstanding Royal Dutch shares wereexchanged for €52.21 (or the equivalent in loan notes). The above table excludes trading inRoyal Dutch New York Shares for the period from October 3 through their delisting onNovember 21, 2005.

e Pursuant to the terms of the Unification Transaction, holders of Shell Transport Ordinary Shares(including Shell Transport Ordinary Shares to which holders of Shell Transport bearer warrantswere entitled) received 0.287333066 Royal Dutch Shell plc Class B ordinary shares for eachShell Transport Ordinary Share. To assist comparison, the historical prices of the Shell TransportOrdinary Shares have been divided by 0.287333066 to reflect such exchange ratio.

f Pursuant to the terms of the Unification Transaction, holders of Shell Transport ADRs received0.861999198 Royal Dutch Shell plc Class B ADRs for each Shell Transport ADR. To assistcomparison, the historical prices of the Shell Transport ADRs have been divided by 0.861999198to reflect such exchange ratio. Each Royal Dutch Shell plc Class B ADR represents two Royal DutchShell plc Class B ordinary shares.

ROYAL DUTCH SHELL SHARES


DividendsIn setting the level of dividends, the Royal Dutch Shell Board intends to payquarterly dividends and provide per share increases in dividends at least inline with European inflation over time.

Royal Dutch Shell has two classes of shares – Class A ordinary shares andClass B ordinary shares. The Class A ordinary shares and Class B ordinaryshares have identical rights except in relation to the dividend source. TheCompany will declare its dividends in euro. Dividends declared on Class Aordinary shares will be paid in euro, although holders of Class A ordinaryshares will be able to elect to receive dividends in sterling. Dividendsdeclared on Class B ordinary shares will be paid in sterling, although holdersof Class B ordinary shares will be able to elect to receive payment in euro.Holders of ADRs will receive payment in dollars. Eligible shareholders mustmake currency elections the day before the declaration date.

DividendsClass A shares €

2005 2004 2003 2002 2001

Q1 0.23* – – – –Q2 0.23 – – – –Q3 0.23 – – – –Q4 0.23 – – – –Interim – 0.38* 0.37* 0.36* 0.35*Final/second interim – 0.52* 0.51* 0.50* 0.48*

Total 0.92 0.90 0.88 0.86 0.83

Amount paid during the year 1.21 0.89 0.87 0.84 0.81

* Historical data for Royal Dutch shares converted to Royal Dutch Shell equivalents.

Class B shares pence

2005 2004 2003 2002 2001


Total 63.01 58.99 54.81 53.08 51.51


* Historical data for Shell Transport shares converted to Royal Dutch Shell equivalents.

Class A ADRs $

2005 2004 2003 2002 2001


Total 2.26 2.23 2.06 1.80 1.49


* Historical data for Royal Dutch New York Shares converted to Royal Dutch Shell equivalents.

Class B ADRs $

2005 2004 2003 2002 2001


Total 2.24 2.21 1.88 1.68 1.49


* Historical data for Shell Transport ADRs converted to Royal Dutch Shell equivalents.

3

ROYAL DUTCH SHELL DIVIDENDS



Consolidated Statement of IncomeIFRS

$ million

2005 2004

RevenueExploration & Production 23,970 18,400Gas & Power 13,766 9,625Oil Products 237,210 210,424Chemicals 31,018 26,877Other industry segments and Corporate 767 1,060

Revenuea 306,731 266,386Cost of sales 252,622 223,259

Gross profit 54,109 43,127Selling, distribution and administrative expenses 15,482 15,098Exploration 1,286 1,809Share of profit of equity accounted investments 7,123 5,015Interest and other income 1,171 1,483Interest expense 1,068 1,059

Income before taxation 44,567 31,659Taxation 17,999 12,168

Income from continuing operations 26,568 19,491Income/(loss) from discontinued operations (307) (234)

Income for the period 26,261 19,257

Income attributable to minority interest 950 717

Income attributable to shareholders of Royal Dutch Shell plc 25,311 18,540

Research and development expenditure included in cost of sales 588 553

Depreciation, depletion and amortisation are included within the following expense headings as follows:Cost of sales 10,384 10,569Selling, distribution and administrative expenses 1,472 1,593Exploration 125 683

11,981 12,845a Revenue is stated after deducting sales taxes, excise duties and similar levies of $72,277 million in 2005 and $72,370 million in 2004.

Earnings per shareIFRS

$ million

2005 2004

Basic earnings per €0.07 ordinary sharea b 3.79 2.74Continuing operations 3.84 2.77Discontinued operations (0.05) (0.03)

Diluted earnings per €0.07 ordinary sharea b 3.78 2.74Continuing operations 3.83 2.77Discontinued operations (0.05) (0.03)

a Earnings per Royal Dutch Shell Class A ordinary and Class B ordinary shares are identical. The historical earnings per share following the Unification have been accounted for on a carry-over basis using theaggregate weighted average outstanding shares of the constituent businesses adjusted to the equivalent shares of Royal Dutch Shell for all periods presented.

b The basic earnings per share amounts shown relate to income attributable to shareholders of Royal Dutch Shell. The 2005 calculation uses a weighted-average number of shares of 6,674,179,767 (2004:6,770,458,950. The basic earnings per share number has been restated to exclude shares held by Share-Ownership Trusts for share-based compensation plans. For the purpose of the calculation, sharesrepurchased under the buyback programme are deemed to have been cancelled on purchase date. The diluted earnings per share are based on the same income figures. For this calculation, the followingweighted-average number of shares are used. 2005: 6,694,427,705; 2004: 6,776,396,429. The difference between the basic and diluted number of shares relates to share-based compensation plansas mentioned above.

F INANCIAL STATEMENTS

50040 Shell 5 Year_04_16.qxd 25/5/06 1:34 pm Page 4

Consolidated Statement of IncomeUS GAAP

$ million

2003 2002 2001

RevenueExploration & Production 12,224 11,640 11,808Gas & Power 7,377 4,254 5,947Oil Products 159,075 132,681 90,862Chemicals 18,843 14,125 13,260Other industry segments and Corporate 843 753 576

Revenuea 198,362 163,453 122,453Cost of sales 165,147 135,658 96,091

Gross profit 33,215 27,795 26,362Selling, distribution and administrative expenses 13,296 11,215 8,846Exploration 1,475 1,052 843Research and development 584 472 387

Operating profit of Shell Group companies 17,860 15,056 16,286Share of operating profit of associated companies 3,446 2,792 2,615

Operating profit 21,306 17,848 18,901Interest and other income 1,996 782 1,096Interest expense 1,324 1,291 1,023Currency exchange gains/(losses) (231) (25) (31)

Income before taxation 21,747 17,314 18,943Taxation 9,352 7,655 8,299

Income after taxation 12,395 9,659 10,644Income applicable to minority interests 353 175 360

Income from continuing operations 12,042 9,484 10,284Income from discontinued operations, net of tax 25 187 37Cumulative effect of a change in accounting principle, net of tax 255 – –

Income attributable to shareholders of Royal Dutch Shell plc 12,322 9,671 10,321

Depreciation, depletion and amortisation are included within the following expense headings as follows:Cost of sales 9,863 7,469 5,165Selling, distribution and administrative expenses 1,409 1,157 1,060Exploration 411 80 42Research and development 28 33 28

11,711 8,739 6,295

a Revenue is stated after deducting sales taxes, excise duties and similar levies of $65,527 million in 2003, $54,834 million in 2002 and $40,908 million in 2001.

Earnings per shareUS GAAP

$ million

2003 2002 2001

Basic earnings per €0.07 ordinary sharea b 1.81 1.41 1.45Continuing operations 1.77 1.38 1.45Discontinued operations – 0.03 –Cumulative effect of a change in accounting principle, net of tax 0.04 – –

Diluted earnings per €0.07 ordinary sharea b 1.81 1.41 1.45Continuing operations 1.77 1.38 1.45Discontinued operations – 0.03 –Cumulative effect of a change in accounting principle, net of tax 0.04 – –

a Earnings per Royal Dutch Shell Class A ordinary and Class B ordinary shares are identical. The historical earnings per share following the Unification have been accounted for on a carry-over basis using theaggregate weighted average outstanding shares of the constituent businesses adjusted to the equivalent shares of Royal Dutch Shell for all periods presented.

b The basic earnings per share amounts shown relate to income attributable to shareholders of Royal Dutch Shell. The 2003 calculation uses a weighted-average number of shares of 6,811,314,175;(2002: 6,876,188,213; 2001: 7,100,044,876). The basic earnings per share number has been restated to exclude shares held by Share-Ownership Trusts for share-based compensation plans. For thepurpose of the calculation, shares repurchased under the buyback programme are deemed to have been cancelled on purchase date. The diluted earnings per share are based on the same income figures.For this calculation, the following weighted-average number of shares are used. 2003: 6,813,444,740; 2002: 6,878,412,716; 2001: 7,105,915,746. The difference between the basic and dilutednumber of shares relates to share-based compensation plans as mentioned above.

Financial Statements 5


Consolidated Balance SheetIFRS

$ million

2005 2004

AssetsNon-current assets

Intangible assets 4,350 4,528Property, plant and equipment 87,558 87,918

Exploration & Production 51,275 50,889Gas & Power 7,256 6,251Oil Products 22,263 23,622Chemicals 5,945 6,348Other industry segments and Corporate 819 808

Investments:equity accounted investments 16,905 19,190financial assets 3,672 2,700

Deferred tax 2,562 2,789Prepaid pension costs 2,486 2,479Other 4,091 5,793

121,624 125,397

Current assetsInventories 19,776 15,375Accounts receivable 66,386 37,473Cash and cash equivalents 11,730 9,201

97,892 62,049

Total assets 219,516 187,446

LiabilitiesNon-current liabilities

Debt 7,578 8,858Deferred tax 10,763 12,930Retirement benefit obligations 5,807 6,795Other provisions 7,385 6,828Other 5,095 5,800

36,628 41,211

Current liabilitiesDebt 5,338 5,734Accounts payable and accrued liabilities 69,013 37,909Taxes payable 8,782 9,058Retirement benefit obligations 282 339Other provisions 1,549 1,812

84,964 54,852

Total liabilities 121,592 96,063

EquityOrdinary share capital 571 584Preference share capital – 20Treasury shares (3,809) (4,187)Other reserves 3,584 8,865Retained earnings 90,578 80,788

Equity attributable to shareholders of Royal Dutch Shell plc 90,924 86,070Minority interest 7,000 5,313

Total equity 97,924 91,383

Total liabilities and equity 219,516 187,446

Capital employeda 110,840 105,975

a Capital employed is Group total assets minus total liabilities before deduction of minority interests, plus short-term and long-term debt.




Consolidated Balance SheetUS GAAP

$ million

2003 2002 2001

Fixed assetsIntangible assets 4,735 4,696 939Property, plant and equipment 87,088 78,363 50,721

Exploration & Production 49,273 46,257 29,546Gas & Power 5,949 2,079 1,596Oil Products 24,773 23,763 14,129Chemicals 6,177 5,299 4,718Other industry segments and Corporate 916 965 732

Investments:equity accounted investments 19,371 17,945 18,331securities 2,317 1,719 1,914other 1,086 1,420 1,108

Total fixed assets 114,597 104,143 73,013

Other long-term assets 11,349 7,333 7,716

Current assetsInventories 12,690 11,338 6,580Accounts receivable 29,013 28,797 17,487Cash and cash equivalents 2,117 1,709 7,254

Total current assets 43,820 41,844 31,321

Current liabilities: amounts due within one yearShort-term debt 10,569 12,265 3,988Accounts payable and accrued liabilities 32,383 32,221 18,909Taxes payable 5,927 4,985 4,494

Total current liabilities 48,879 49,471 27,391

Net current assets/(liabilities) (5,059) (7,627) 3,930

Total assets less current liabilities 120,887 103,849 84,659

Long-term liabilities:Long-term debt 9,100 6,817 1,832Other 6,054 6,174 4,515

15,154 12,991 6,347

ProvisionsDeferred taxation 15,185 12,551 7,078Pensions and similar obligations 4,927 5,016 2,331Decommissioning and restoration costs 3,955 3,528 2,615

24,067 21,095 12,024

Group net assets before minority interest 81,666 69,763 66,288Minority interest (3,415) (3,568) (3,466)

Net assets 78,251 66,195 62,822

Shareholders’ equityEquity share capital 587 590 596Preference shares 20 20 20Additional paid in capital 5,372 5,375 5,385Treasury shares (3,428) (2,797) (1,933)Other comprehensive income (78) (6,971) (8,404)Retained earnings 75,778 69,978 67,178

78,251 66,195 62,822

Capital employeda 101,335 88,845 72,108



Consolidated Statement of Cash Flowsa

IFRS

$ million

2005 2004

Cash flow from operating activities:Income for the period 26,261 19,257Adjustment for:

Current taxation 19,435 13,081Interest (income)/expense 632 803Depreciation, depletion and amortisation 11,981 12,845(Profit)/loss on sale of assets (1,313) (3,087)Decrease/(increase) in net working capital (5,664) (4,062)Share of profit of equity accounted investments (7,123) (5,015)Dividends received from equity accounted investments 6,709 4,190Deferred taxation and other provisions (1,515) (1,007)Other (47) 292

Cash flow from operating activities (pre-tax) 49,356 37,297Taxation paid (19,243) (10,760)

Cash flow from operating activities 30,113 26,537

Cash flow from investing activities:Capital expenditure (15,904) (13,566)Investments in equity accounted investments (705) (1,058)Proceeds from sale of assets 2,310 5,142Proceeds from sale of equity accounted investments 4,313 1,316Proceeds from sale of/Additions to financial assets 362 1,739Interest received 863 463

Cash flow from investing activities (8,761) (5,964)

Cash flow from financing activities:Net increase/(decrease) in debt with maturity period within three months (956) 8Other debt:

New borrowings 2,057 2,044Repayments (2,656) (6,380)

Interest paid (1,124) (962)Change in minority interest 1,143 812Net issue/(repurchase) of shares (4,988) (698)Dividends paid to:

Shareholders of Royal Dutch Shell plc (10,556) (7,391)Minority interest (293) (264)

Payments to former Royal Dutch shareholders (1,651) –Treasury shares: net sales/(purchases) and dividends received 451 (761)

Cash flow from financing activities (18,573) (13,592)

Currency translation differences relating to cash and cash equivalents (250) 113

Increase/(decrease) in cash and cash equivalents 2,529 7,094Cash and cash equivalents at January 1 9,201 2,107

Cash and cash equivalents at December 31 11,730 9,201

a This statement reflects cash flows arising from the activities of Group companies as measured in their own currencies, translated into dollars at quarterly average rates of exchange. Accordingly, cash flows recorded exclude both the currency translation differences which arise as a result of translating the assets and liabilities of non-dollar Group companies to dollars at year-end rates of exchange (except forthose arising on cash and cash equivalents) and non-cash investing and financing activities.




Consolidated Statement of Cash FlowsUS GAAP

$ million

2003 2002 2001

Cash flow provided by operating activitiesIncome attributable to shareholders of Royal Dutch Shell plc 12,322 9,671 10,321Adjustments to reconcile net income to cash flow provided by operating activities

Depreciation, depletion and amortisation 11,711 8,739 6,295Profit on sale of assets (2,141) (367) (133)Movements in: – – –

inventories (236) (2,079) 1,375accounts receivable 1,834 (5,830) 8,518accounts payable and accrued liabilities (212) 6,989 (7,785)taxes payable (223) (744) (1,457)

Associated companies, dividends more/(less) than net income 511 117 666Deferred taxation and other provisions (621) 423 (207)Long-term liabilities and other (1,328) (1,326) (983)Income applicable to minority interests 366 175 326

Cash flow provided by operating activities 21,983 15,768 16,936

Cash flow used in investing activitiesCapital expenditure (including capitalised leases) (12,252) (12,102) (9,598)Acquisitions (Enterprise Oil, Pennzoil-Quaker State and additional shares in Equilon) – (8,925) –Proceeds from sale of assets 2,286 1,099 1,265New investments in associated companies (983) (1,289) (1,074)Disposals of investments in associated companies 708 501 507Proceeds from sale and other movements in investments 1,988 84 (180)

Cash flow used in investing activities (8,253) (20,632) (9,080)

Cash flow used in financing activitesLong-term debt (including short-term part)

New borrowings 572 5,267 180Repayments (2,740) (5,610) (1,115)

(2,168) (343) (935)Net increase/(decrease) in short-term debt (2,501) 7,075 (794)Change in minority interests (1,363) 421 (206)Repurchase of share capital, including expenses – (1,393) (4,001)Dividends paid to Royal Dutch and Shell Transport shareholders (6,532) (5,522) (5,188)Dividends paid to minority interests (300) (228) (221)

Cash flow used in financing activities (12,864) 10 (11,345)

Net investment in treasury stock and dividends received (633) (864) (773)Currency translation differences relating to cash and cash equivalents 175 173 (290)

Increase/(decrease) in cash and cash equivalents 408 (5,545) (4,552)Cash and cash equivalents at January 1 1,709 7,254 11,806

Cash and cash equivalents at December 31 2,117 1,709 7,254



Earnings by industry segmentIFRS

$ million $ million

2005 2004

World Worldoutside outside

USA USA Total USA USA Total

Exploration & Production 10,541 3,697 14,238 6,511 3,312 9,823Gas & Power 1,526 47 1,573 2,011 (196) 1,815Oil Products 7,726 2,256 9,982 5,677 1,920 7,597Chemicals 1,239 59 1,298 1,222 125 1,347Other industry segments (202) (145)

Total operating segments 26,889 20,437Corporate (321) (946)Minority interest

Income from continuing operations 26,568 19,491Income from discontinued operations, net of tax (307) (234)Cumulative effect of a change in accounting principle, net of tax – –

Income for the period 26,261 19,257

Minority interest 950 717

Income attributable to shareholders of Royal Dutch Shell plc 25,311 18,540

Quarterly earnings by industry segmentIFRS

$ million $ million

Quarters 2005 Quarters 20041st 2nd 3rd 4th Year 1st 2nd 3rd 4th Year

Exploration & ProductionWorld outside USA 2,010 1,644 4,051 2,836 10,541 1,955 1,168 1,556 1,832 6,511USA 945 1,101 926 725 3,697 752 687 787 1,086 3,312

Gas & PowerWorld outside USA 518 74 469 465 1,526 444 375 345 847 2,011USA (42) (63) 87 65 47 78 (41) 9 (242) (196)

Oil ProductsWorld outside USA 2,306 2,034 2,377 1,009 7,726 1,192 1,319 1,953 1,213 5,677USA 745 630 1,063 (182) 2,256 381 475 605 459 1,920

ChemicalsWorld outside USA 494 221 384 140 1,239 210 289 409 349 1,257USA 169 38 30 (178) 59 (9) 64 140 (70) 125

Other industry segments (8) (8) (76) (110) (202) (16) (8) (39) (82) (145)

Total operating segments 7,137 5,671 9,311 4,770 26,889 4,987 4,328 5,765 5,386 20,437Corporate

Interest income/(expense) (70) (74) 71 51 (22) (174) (196) (143) (223) (707)Currency exchange gains/(losses) (40) (6) 126 (145) (65) (7) (2) 35 42 68Other – including taxation (7) (130) (24) (73) (234) 20 (103) (59) (165) (307)Minority interest

Income from continuing operations 7,020 5,461 9,484 4,603 26,568 4,826 4,028 5,597 5,040 19,491Income from discontinued operations, net of tax (214) – (93) – (307) 20 22 23 (299) (234)Cumulative effect of a change in accounting principle, net of tax – – – – – – – – – –

Income for the period 6,806 5,461 9,391 4,603 26,261 4,846 4,050 5,620 4,741 19,257

Income attributable to minority interest 131 225 359 235 950 145 153 249 170 717

Income attributable to shareholders of Royal Dutch Shell plc 6,675 5,236 9,032 4,368 25,311 4,701 3,897 5,371 4,571 18,540




US GAAP

$ million $ million $ million

2003 2002 2001

World World Worldoutside outside outside

USA USA Total USA USA Total USA USA Total

5,814 2,776 8,590 4,763 1,878 6,641 5,691 2,191 7,8822,149 121 2,270 837 (90) 747 948 251 1,1992,448 373 2,821 2,198 287 2,485 2,078 (159) 1,919

314 (523) (209) 633 (68) 565 488 (361) 127(267) (110) (287)

13,205 10,328 10,840(810) (669) (196)(353) (175) (360)

12,042 9,484 10,28425 187 37

255 – –

12,322 9,671 10,321

US GAAP

$ million $ million $ million

Quarters 2003 Quarters 2002 Quarters 2001 1st 2nd 3rd 4th Year 1st 2nd 3rd 4th Year 1st 2nd 3rd 4th Year

1,979 1,288 1,244 1,303 5,814 1,168 1,221 1,146 1,228 4,763 1,878 1,470 1,341 1,002 5,691735 649 754 638 2,776 364 502 526 486 1,878 902 633 425 231 2,191

1,472 356 90 231 2,149 256 108 211 262 837 297 304 179 168 94825 90 (26) 32 121 (8) 14 (23) (73) (90) 53 79 112 7 251

1,056 254 730 408 2,448 577 450 686 485 2,198 770 839 495 (26) 2,078227 25 (32) 153 373 173 30 88 (4) 287 (1) 219 54 (431) (159)

196 166 75 (123) 314 95 145 189 204 633 276 81 64 67 488(142) (105) (45) (231) (523) (18) 35 (35) (50) (68) (109) 30 (73) (209) (361)

(40) (27) (160) (40) (267) (41) (89) 42 (22) (110) (54) (60) (71) (102) (287)

5,508 2,696 2,630 2,371 13,205 2,566 2,416 2,830 2,516 10,328 4,012 3,595 2,526 707 10,840

(252) (171) (148) (223) (794) (107) (111) (260) (276) (754) (26) (51) (72) (54) (203)(10) (19) (31) (100) (160) (7) 32 (16) 83 92 13 14 (19) 19 27

9 95 53 (13) 144 (41) (48) 81 1 (7) (57) 58 34 (55) (20)(86) (64) (117) (81) (353) (8) (13) (77) (77) (175) (127) (128) (75) (30) (360)

5,169 2,537 2,387 1,949 12,042 2,403 2,276 2,558 2,247 9,484 3,815 3,488 2,394 587 10,28472 38 34 (119) 25 51 52 51 33 187 (39) 22 28 26 37

255 – – – 255 – – – – – – – – – –

5,496 2,575 2,421 1,830 12,322 2,454 2,328 2,609 2,280 9,671 3,776 3,510 2,422 613 10,321



Financial ratios

IFRS US GAAP

2005 2004 2003 2002 2001

Return on average capital employedIncome attributable to shareholders of Royal Dutch Shell plc plus interest expense, less tax and minorityinterest (both calculated at the average rate for the Group), as % of the Group share of average capital employed 25.6 20.1 14.4 13.6 15.6

Return on salesIncome attributable to shareholders of Royal Dutch Shell plc plus minority interests as % of revenue plus salestaxes, excise duties and similar levies 7.0 5.8 4.8 4.5 6.5

Return on equityIncome attributable to shareholders of Royal Dutch Shell plc as % of average net assets (i.e. equity attributable to shareholders of Royal Dutch Shell plc and minority interest) 26.7 22.0 16.3 14.2 15.4

Current ratioCurrent assets: current liabilities 1.2 1.1 0.9 0.8 1.1

Long-term debt ratioLong-term debt as % of capital employed less short-term debt 7.2 8.8 10.0 8.9 2.7

Total debt ratioLong-term debt plus short-term debt as % of capital employed 11.7 13.8 19.4 21.5 8.1

GearingTotal debt plus off-balance sheet commitments less net cash, as % of capital employed plus off-balance sheetcommitments less net cash (net cash represents total cash balances less operational cash requirements) 12.0 15.4 27.5 32.7 6.2

Dollar exchange ratesQuarters 2005 Quarters 2004 2003 2002 2001

Average for period 1st 2nd 3rd 4th Year 1st 2nd 3rd 4th Year Year Year Year

Pound sterling 0.5289 0.5389 0.5605 0.5719 0.5504 0.5443 0.5537 0.5499 0.5367 0.5462 0.61 0.66 0.69Euro 0.7625 0.7944 0.8198 0.8409 0.8050 0.8002 0.8301 0.8178 0.7726 0.8052 0.89 1.06 1.12Swiss franc 1.1809 1.2262 1.2736 1.3010 1.2464 1.2551 1.2758 1.2563 1.1845 1.2429 1.35 1.55 1.69Canadian dollar 1.2262 1.2441 1.2028 1.1737 1.2114 1.3183 1.3594 1.3088 1.2207 1.3018 1.40 1.57 1.55Japanese yen 104 108 111 117 110 107 110 110 106 108 116 125 121

End-period

Pound sterling 0.5320 0.5543 0.5685 0.5790 0.5448 0.5539 0.5567 0.5186 0.56 0.62 0.69Euro 0.7716 0.8283 0.8317 0.8437 0.8170 0.8262 0.8115 0.7334 0.79 0.95 1.13Swiss franc 1.1961 1.2828 1.2934 1.3129 1.2740 1.2619 1.2607 1.1318 1.24 1.38 1.68Canadian dollar 1.2140 1.2313 1.1715 1.1623 1.3019 1.3463 1.2715 1.2026 1.29 1.57 1.59Japanese yen 107 110 113 117 104 109 111 103 107 119 131

FINANCIAL STATEMENTS



Capital investmentIFRS US GAAP

$ million

2005 2004 2003 2002 2001

Capital expenditurea

Exploration & Production Europe 1,820 1,591 1,996 7,342 1,137Other Eastern Hemisphere 6,654 5,420 4,143 2,634 2,860USA 1,225 1,061 1,377 1,766 1,720Other Western Hemisphereb 1,159 627 613 1,322 1,130

10,858 8,699 8,129 13,064 6,847

Gas & Power Europe 101 5 – – –Other Eastern Hemisphere 1,476 1,146 807 229 50USA 4 32 32 9 34Other Western Hemisphere (13) 174 182 233 229

1,568 1,357 1,021 471 313

Oil Products Europe 1,107 1,279 838 2,272 655Other Eastern Hemisphere 717 597 514 480 342USA 449 498 722 4,408 3Other Western Hemisphere 537 387 293 493 462

2,810 2,761 2,367 7,653 1,462

Chemicals Europe 102 185 106 167 97Other Eastern Hemisphere 16 8 7 87 53USA 217 282 331 416 513Other Western Hemisphere 52 54 26 10 22

387 529 470 680 685

Other industry segments 293 220 265 494 291

15,916 13,566 12,252 22,362 9,598

Exploration expense (excluding depreciation and release of currency translation differences)Europe 171 96 189 177 98Other Eastern Hemisphere 194 233 452 363 354USA 261 221 275 249 289Other Western Hemisphere 189 101 143 208 144

815 651 1,059 997 885

Total capital expenditure and exploration expense 16,731 14,217 13,311 23,359 10,483

New equity in equity accounted investmentsEurope 63 36 39 73 162Other Eastern Hemisphere 288 385 81 163 90USA 17 251 393 295 236Other Western Hemisphere 22 9 245 153 216

390 681 758 684 704

New loans to equity accounted investmentsEurope 28 21 27 70 33Other Eastern Hemisphere 299 325 154 390 334USA (22) 20 28 118 –Other Western Hemisphere 10 11 16 27 3

315 377 225 605 370

Other investments – – – – 224

Total capital investment* 17,436 15,275 14,294 24,648 11,781

*comprising Europe 3,620 3,387 3,391 10,384 2,232Other Eastern Hemisphere 9,657 8,129 6,172 4,373 4,319USA 2,204 2,396 3,211 7,461 2,976Other Western Hemisphere 1,955 1,363 1,520 2,430 2,254

17,436 15,275 14,294 24,648 11,781

*comprising Exploration & Production 12,045 9,708 9,337 14,151 8,191Gas & Power 1,602 1,633 1,511 953 963Oil Products 2,844 2,823 2,405 7,968 1,527Chemicals 599 868 599 998 760Other industry segments 346 243 442 578 340

17,436 15,275 14,294 24,648 11,781

a Includes acquisitions in 2002. 2002 also includes $1.3 billion for acquisition of DEA (paid in July 2003).b Includes capital expenditure on the Athabasca Oil Sands Project.



Fixed assetsa (at December 31)IFRS US GAAP

$ million

2005 2004 2003 2002 2001

Exploration & Production Europe 15,984 20,448 20,978 21,003 7,696Other Eastern Hemisphere 26,136 21,274 18,670 15,328 14,370USA 7,580 7,745 8,064 8,524 8,189Other Western Hemisphere 7,249 6,977 6,727 6,057 3,534

56,949 56,444 54,439 50,912 33,789

Gas & Power Europe 368 232 452 513 406Other Eastern Hemisphere 8,237 6,521 5,290 4,027 3,243USA 2,568 3,046 4,622 1,894 1,830Other Western Hemisphere 736 677 951 838 1,241

11,909 10,476 11,315 7,272 6,720

Oil Products Europe 9,752 11,339 11,171 10,263 6,938Other Eastern Hemisphere 6,448 6,516 7,167 6,567 6,300USA 12,402 12,242 13,164 12,946 4,581Other Western Hemisphere 3,801 3,726 3,653 3,401 3,424

32,403 33,823 35,155 33,177 21,243

Chemicals Europe 2,091 4,332 4,253 3,887 3,472Other Eastern Hemisphere 2,472 2,128 2,276 2,461 2,215USA 3,496 3,626 3,613 3,139 2,687Other Western Hemisphere 441 472 423 353 345

8,500 10,558 10,565 9,840 8,719

Other industry segments Europe 125 157 181 378 209Other Eastern Hemisphere 7 41 32 32 22USA 130 211 430 344 223Other Western Hemisphere – 2 5 171 195

262 411 648 925 649

Total operating segments 110,023 111,712 112,122 102,126 71,120Corporate 2,462 2,624 2,475 2,017 1,893

112,485 114,336 114,597 104,143 73,013

a Comprises intangible assets, property, plant and equipment and investments.




Depreciation, depletion and amortisationIFRS US GAAP

$ million

2005 2004 2003 2002 2001

Exploration & Production Europe 3,777 3,425 3,781 2,292 1,330Other Eastern Hemisphere 1,915 1,934 1,570 1,787 1,328USA 1,596 1,595 1,644 1,354 1,072Other Western Hemispherea 989 744 792 257 281

8,277 7,698 7,787 5,690 4,011

Gas & Power Europe 2 2 2 6 6Other Eastern Hemisphere 172 120 68 55 56USA 99 663 57 66 43Other Western Hemisphere 17 118 1 1 1

290 903 128 128 106

Oil Products Europe 1,065 1,588 1,064 961 780Other Eastern Hemisphere 576 628 556 538 505USA 625 686 826 558 5Other Western Hemisphere 356 455 417 349 327

2,622 3,357 2,863 2,406 1,617

Chemicals Europe 220 212 176 140 123Other Eastern Hemisphere 63 63 59 59 58USA 278 391 416 179 200Other Western Hemisphere 39 29 27 23 23

600 695 678 401 404

Other industry segments Europe 54 18 141 33 28Other Eastern Hemisphere – 3 3 4 4USA 27 18 23 34 57Other Western Hemisphere – 9 1 21 50

81 48 168 92 139

Total operating segments 11,870 12,701 11,624 8,717 6,277Corporate 111 144 87 22 18

11,981 12,845 11,711 8,739 6,295

a Includes depreciation, depletion and amortisation on the Athabasca Oil Sands Project.



Capital employed (at December 31)IFRS US GAAP

$ million

2005 2004 2003 2002 2001

Exploration & Production World outside USA 37,272 34,840 33,131 28,615 17,918USA 5,364 5,438 5,761 6,492 6,293

42,636 40,278 38,892 35,107 24,211

Gas & Power World outside USA 9,848 8,302 7,115 5,482 5,135USA 4,350 3,639 5,051 2,168 2,275

14,198 11,941 12,166 7,650 7,410

Oil Products World outside USA 23,962 23,174 24,211 20,782 18,108USA 10,300 10,463 11,084 11,274 3,966

34,262 33,637 35,295 32,056 22,074

Chemicals World outside USA 5,445 7,738 7,484 7,098 6,109USA 3,077 3,187 2,946 2,408 2,470

8,522 10,925 10,430 9,506 8,579

Other industry segments 171 489 864 1,611 1,815

Total operating segments 99,789 97,270 97,647 85,930 64,089Corporate 11,051 8,705 3,688 2,915 8,019

110,840 105,975 101,335 88,845 72,108

TaxationIFRS US GAAP

$ million

2005 2004 2003 2002 2001

Exploration & Production 14,794 9,649 7,280 5,945 6,905Other industry segments 3,205 2,519 609 720 307Charge for equity accounted investments 1,463 990 1,087

Totala 17,999 12,168 9,352 7,655 8,299

%

As percentage of income before taxation 40 38 43 44 44

a The charge for Group companies (excluding equity accounted investments) comprises:current taxation 19,435 13,081 8,200 6,658 7,617deferred taxation (1,436) (913) (311) 7 (405)

17,999 12,168 7,889 6,665 7,212




Employees by segment (average numbers)IFRS US GAAP

thousands

2005 2004 2003a 2002 2001

Exploration & Production 18 16 17 17 14Gas & Power 2 2 2 2 2Oil Products 71 78 82 75 58Chemicals 8 8 9 9 9Other industry segments and Corporate 10 9 9 8 7

109 113 119 111 90

Employees by geographical area (average numbers)IFRS US GAAP

thousands

2005 2004 2003a 2002 2001

EuropeThe Netherlands 10 10 11 11 10UK 7 8 8 9 10Others 22 25 27 26 18

39 43 46 46 38Other Eastern Hemisphere 33 30 28 27 24USA 24 26 30 23 12Other Western Hemisphere 13 14 15 15 16

109 113 119 111 90

Employee emolumentsIFRS US GAAP

$ million

2005 2004 2003a 2002 2001

Remuneration 8,286 8,037 7,477 6,096 4,651Social law taxes 681 691 660 518 395Retirement benefits 768 782 538 (201) (580)Share-based compensation 376 285 – – –

10,111 9,795 8,675 6,413 4,466

a In connection with the adoption of IFRS as of January 1, 2004, an entity in Europe that had previously been accounted for as a Group company on a proportionate basis, has instead been accounted foras equity accounted investment. As a result of this change, information as of December 31, 2003 shown for Group companies is, as of January 1, 2004, shown as part of the Group share of equityaccounted investments.

Employee data 17

EMPLOYEE DATA

50040 Shell 5 Year_17.qxd 25/5/06 1:19 pm Page 17


IFRS

$ million

2005 2004

Revenue (including inter-segment sales) 45,674 37,295

Purchases (including change in inventories) (1,673) (2,669)

Exploration (1,286) (1,809)

Depreciation (8,152) (7,015)

Operating expenses (9,295) (8,467)

Share of profit of equity accounted investments 4,112 2,463

Other income/(expense) (272) (95)

Taxation (14,870) (9,880)

Segment earnings 14,238 9,823

Capital investment 12,046 9,708

Capital employed 42,636 40,278

thousand barrels of oil equivalent/day

Hydrocarbon production 3,518 3,772

$/barrel of oil equivalent

Average production cost 5.54 4.02

average numbers in thousands

Employees 18 16

US GAAP

$ million

2003 2002 2001

Revenue (including inter-segment sales) 32,468 26,320 25,601

Purchases (including change in inventories) (1,535) (1,050) (1,265)

Exploration (1,475) (1,052) (910)

Depreciation (7,316) (5,556) (3,969)

Operating expenses (7,174) (6,686) (5,474)

Share of profit of equity accounted investments 1,857 1,316 1,548

Other income/(expense) 72 73 48

Taxation (8,307) (6,724) (7,697)

Segment earnings from continuing operations 8,590 6,641 7,882

Income from discontinued operations, net of tax 78 85 29

Cumulative effect of a change in accounting principle 255 – –

Segment earnings 8,923 6,726 7,911

Capital investment 9,337 14,151 8,191

Capital employed 38,892 35,107 24,211

thousand barrels of oil equivalent/day

Hydrocarbon production 3,905 3,960 3,746

$/barrel of oil equivalent

Average production cost 3.19 2.83 2.41


Employees 17 17 14

EXPLORATION & PRODUCTION

> Exploration & Production explores forand extracts oil and gas and buildsand operates the infrastructurenecessary to deliver thesehydrocarbons to market.

> Oil and gas production in 2005averaged 3.5 million boe per day.

> We expect production to grow andreach between 3.8 and 4.0 millionboe per day by 2009.

> The Group’s longer-term productionaspiration is some 4.5-5.0 millionboe per day by 2014.

50040 Shell 5 Year_18-33.qxd 26/5/06 11:05 am Page 18

Exploration & Production 19

Location of activitiesa b c (at December 31, 2005)Development

and/or ShellExploration production Operatord

Europe

Austria • •

Denmark • •

Germany • •

Ireland • • •

Italy • •

The Netherlands • • •

Norway • • •

UK • • •

Africa

Algeria • •

Angola •

Cameroon • • •

Gabon • • •

Libya • •

Morocco • •

Nigeria • • •

Asia Pacific

Australia • •

Brunei • • •

China • •

Malaysia • • •

New Zealand • •

Pakistan • • •

Philippines • • •

Developmentand/or Shell

Exploration production Operatord

Middle East, Russia, CIS

UAE (Abu Dhabi) • •

Azerbaijan •

Egypt • • •

Iran • •

Kazakhstan • • •

Oman • • •

Qatar • •

Russia • • •

Saudi Arabia • •

Syria • •

USA

USA • • •

Other Western Hemisphere

Argentina •

Brazil • • •

Canada • • •

Venezuela • •

a Including equity accounted investments.b Where an equity accounted investment has properties outside

its base country, those properties are not shown in this table.c This table shows different geographical categories compared

to the map above reflecting organisational structure.d In several countries where “Shell Operator” is indicated, a

Group company is operator of some but not all explorationand/or production ventures.

Canada

USA

Latin AmericaArgentinaBrazilVenezuela

EuropeAustriaDenmarkGermanyItalyThe NetherlandsNorwayRepublic of IrelandUK

AfricaAlgeriaAngolaCameroonEgyptGabonLibyaMoroccoNigeria

Middle EastIranOmanQatarSaudi ArabiaSyriaUnited Arab Emirates

Commonwealth ofIndependent StatesAzerbaijanKazakhstanRussiaUkraine

Asia PacificAustraliaBruneiChinaMalaysiaNew ZealandPakistanPhilippines

Countries in which Exploration & Production operate

The maps on pages 20 to 30 are to provide an impression only of the spread of our operations as at the end of 2005. They should not be taken as anaccurate representation of activity.



PAC I F IC OCEAN

GULF OF MEX ICO

MACKENZ I EBAY

KUGMAL L I TBAY

Inuvik

Halifax

Limestone

Coalinga

San Ardo

Ventura

Midway Sunset

BetaHuntington Beach

Offshore Santa Maria Basin

Cymric & Mckittrick

Belridge

Peace River

Athabasca Oil Sands

Caroline

Panther River

Waterton

Ram/Clearwater

Burnt Timber

Jumping Pound

Moose Mountain/Whiskey Creek

Habanero

Serrano

E Anstey – (Nakika)

OreganoCrosby

Ariel – (Nakika)

Ram Powell

EuropaAugerGlider

Kepler – (Nakika)

MensaHolstein

Great White

Boomvang

Brutus

Tahiti

Stones (Walker Ridge 508)

Princess

Deimos

Mars

Coulomb (Nakika)

HoustonNew Orleans

Morgan City

Grande Prairie

Ft. St. John

Edmonton Gillette

Rock Springs

Cody

Calgary

ALBERTA

MONTANA

COLORADO

MEX ICO

TEXAS

LOU IS IANA MISS I SS I P P IA LABAMA

F LOR IDA

WYOMINGPinedale

Los Angeles

CAL I FORN IA

Bigh

orn

SAB LE I S LAND

NOVA SCOT IA

A

D

B C

E

F

3002000 100 3002000 100

3002000 100

1501000 50

2501000 50 150 200 500 25 50 75

E

B

A

C F

D

Shell oil projectsShell gas projectsShell oil & gas projectsShell oil pipelineShell gas pipelineIndustry pipeline

0

Wells – 2005 discoveriesTerminalShell interest (land)Shell interest (sea)All scales measured in km

1 USA (CALIFORNIA, WYOMING AND GULF OF MEXICO) AND CANADA (ALBERTA, MACKENZIE BAY AND NOVA SCOTIA)



2 BRAZIL, ARGENTINA AND VENEZUELA

A

B

Merluza Condensate

Cerro Tuyunti

San Pedrito

Macueta

BC-10 A-West

Chimarrao

Salema

Bijupira

UrdanetaWest

Maceio

Brasilia

São Paulo

Rio de Janeiro

CARACASMARACAIBO

PERU

PARAGUAY

COLOMB IA

CH I L E

BRAZ I L

BOL IV IA

ARGENT INA

ARUBA

COLOMB IA

NETHER LANDS ANT I L L ES

VENEZUE LA

B1,0000 250 500 750

2000 50 100 150

A

BShell oil projectsShell gas projectsShell oil & gas projectsShell oil pipelineShell gas pipelineIndustry pipeline

0




3 NORTH SEA AND IRELAND

SEA OF THE HEBR IDES

CE LT IC SEA

BarnacleMiller

Bressay

22/19a-1 (Fiddich)

Sean

Egret

Buckland

Strathspey

Merlin

Teal South

Kestrel

Curlew B – D

Brigantine A-C

Hudson

30/6-3 (Stella)

Ness

Skene

Nevis

Pelican

Gannet

Skua

Kingfisher

13/21a – 6 (West Wick)

30/3a-1 (Blane)

Cook

Lucy

Howe

Leman

Beryl

Penguin Cluster (A-E)

Goldeneye

Nelson

Clair

Hod

JotunTrym

6405_07 Ellida

Idun

DraugenSkarv & Skarv Tilje

Valhall

Ormen Lange

Troll

CoevordenSchoonebeek

Norg

GrijpskerkWarffum

Nes

Goldenstedt-Oythe K & Visbek ZKloster-/Kirchseelte/Ortholz

Wisselshorst

Soehlingen

Boetersen Pool

GroningenG14A&B

Alma

Freja

Harald East & West

Middelie

RoarTyra & South East

Gom

DanKraka

Halfdan & North East

Nor 6406/9-Onyx SW

ValemonKvitebjorn

Statfjord Øst

Statfjord Nord

Tern

Cormorant South

Otter

Eider

Maclure

Guillemot ABittern

22/13a-1 (Bardolino)

Marnock

Madoes

Starling

PuffinMerganser

ScoterShearwater

Pierce23/16b-1(Phyllis)

Mirren

Svend

Valdemar

K17AQ16A

K18-7 (Golf)K14B

Corvette

ClipperSouth

Ensign

Skiff

Barque

Galleon

Soltau/Friedrichseck

Idsingen/Walsrode

Hemmelte/Kneheim/VahrenHengstlage T

Gjoea

DooishCorrib

Fulmar

Osprey

Brent

L12

J03C

K08A&C

L02B

K01A

K15

L13L09D&F

Dagmar

F03-FB

Elly

Statfjord

Sygna

Dunlin

30/2A-E(Victorious)

Auk

Rolf

Carrack

Cutter

Skjold

K07A-E

L05A

RotterdamBotlek

WaterfordCork

Galway

Limerick

Bergen

Esbjerg

Hamburg

The hagueRotterdam

Amsterdam

Aberdeen

Trondheim

BellanaboyBridge

Karstø

Kollsnes

StureMongstad

Nybro

Den Helder

Zeebrugge

Dunkirk

Shandwick

Point of Ayr

Bacton

Hamble

Dimlington

FawleyRefinery

Theddlethorpe

GrangemouthRefinery

Hound Point

Mossmoran

Nigg

Flotta

Barrow-in-Furness

Sullom Voe

Cruden BaySt. Fergus

Teesside

TjeidbergoddenNyhamna

Lowestoft

NORWAY

DENMARK

GERMANY

NETHER LANDS

BE LG IUM

UNI TEDK INGDOM

IRE LAND

5000 100 200 300 400

2501250

B

BA


0


A



4 ITALY, GABON, ANGOLA, NIGERIA AND CAMEROON

Igoumou Marin

Bende-M’Bassou

Gamba-Ivinga

Totou

Ighengue Marin

Avocette

KoulaDamier

Coucal

M’Boukou

Toucan

Rabi

Atora

Cerro Falcone

Monte Alpi

Tempa Rossa

Block 34

OzigoAwoun

Rome

Palermo

Napels

Warri

Mayumba

Pointe Noire

Gamba Terminal (SBM)

Lambarene

Libreville

Port Gentil

B IGHT OF B IAFRA

BA IA DO BENGO

B IGHT OF BEN IN

250

245

219

286

238

BoliaDoro

Etan

28472

N IGER IA

CAMEROON

EQUATOR IA L GU INEA

Lagos

Douala

Malabo

Port Harcourt

Forcados (SBM 2)

Bonny Export

Escravos (SBM 3)

EQUATOR IA L GU INEA

SAO TOME ANDPR INC I PE

GABON

CONGO

AT LANT IC OCEAN

BA IA DO BENGO

ANGOLA

ZA I RE

Calabar

Erha MainForcados-Yokri

Erha North

Odidi

Oben

Utorogu

Ubie

Gbaran

Nun River

Soku

Kalaekule Rio del Rey Lokele

Nembe Creek

Bosi

Abo NorthAbo Main

209318

125

Bonga

OberanBobo

Bonga SW

EA

211

211

212

79

322

4002000

2000 100

5002500

SARD IN IA

S IC I LY

TYRRHEN IAN SEA

ION IAN SEA

ADR IAT ICSEA

I TA LY

SANMAR INO

CORS ICA(FRANCE )

CROAT IABOSN IA– HERZEGOV INA

MONACO

Brass (SBM)

A

CB

C

BA


0




5 ALGERIA AND LIBYA

Araew

Es Sider (SBM)Zueitina (SPM & CBM)

NC212 NC215

RegganeDjebel Hirane

Zerafa

Salemi

NC213

NC214NC211A

NC211C

AlgiersSkikda(Philippeville)

TripoliMellitah

L I BYA

EGYPT

L I BYA

ALGER IA

TUN IS IA

TUN IS IA

MALTA

ALGER IA

MOROCCO

PORTUGAL

G IBRA LTAR

SPA IN

WESTERNSAHARA

I TA LY

5002000 100 300 400

5002000 100 300 400

A

B

A B


0




6 CHINA AND PAKISTAN

Beijing

Yinchuan

Tientsin

Xi’an

Shanghai

Hong Kong

Islamabad

Multan

HyderabadKarachi

Quetta TA IWAN

CH INA

MONGOL IA

MACAU

AFGHANISTAN

IND IA

PAK I S TAN

IRAN

A

B

1,0002500 500 7505001000 200 300 400

AB


0


Changbei

Xijiang 30-2Xijiang 24-1&3

BadhraBhit

Offshore Indus E 2365-1 EL



7 BRUNEI, PHILIPPINES AND MALAYSIA

Miri

Seria

Labuan

Bintulu

Seria NF

Bakau

FairleyFairley

GannetGannet

TukauTukau

Selasih

F29

Bijan

G7

M4

BettyBetty

E1

Barton

Serai

Saderi Bongawan North

Cili Padi

D12

PisaganPisaganB12

South Furious

Nosong

LailaLaila

BaroniaBaronia

M1

E6

Saint Joseph

MalikaiMalikai

Kinabalu

Baram

B11

F14

F23

UbahUbah

F28

Jintan

F13E

GumusutGumusut

F6

E8

Enggang

Malampaya Gas

SC 38

MagpieMagpieMampakMampak

SelangkirSelangkir

Maharaja LelaMaharaja Lela

Iron Duke

Champion West

Bugan

ND 7ND 6

RasauSouth West Ampa

West Lutong

BokorBokor

PM-301

PM-302Bumi South

Bunga Kesumba

Bunga Zetung

Bunga Anggerik

Bunga Kamelia

Bandar Seri Begawan

Kota belud

Bintulu

Tumpat

Kuala terengganu

IpohDungun

Kertih

PH I L I P P INESMALAYS IA

INDONES IA

PH I L I P P INES

BRUNE I

V I E TNAM

THA I LAND

MALAYS IA

250500 100 150 200

5000 125 250 375 2500 50 100 150 200

A

B

C

A

B C


0




8 NEW ZEALAND AND AUSTRALIA (NORTH WEST SHELF)

Gaea

Searipple

North Rankin

Hermes

Lambert

Angel

Cossack

Wanaea

Wilcox

Iago

Goodwyn South

Tidepole

Keast

Echo/Yodel

Dockrell

Dixon

Geryon

Jansz

Maenad

Orthrus

Chrysaor/Dionysus

West Tryal Rocks

Gorgon

BA

Evans Shoal

Brecknock

Scott Reef 1

Brecknock South

Greater Sunrise

AUSTRA L IA

INDONES IA

Broome

Dampier

5001000 200 300 400

1250

PEP38481

PEP38459PEP

38482

PML381012

PML 38839NEW ZEALAND

Pohokura

Maui

Kapuni

New Plymouth

B

A


0




9 IRAN, UNITED ARAB EMIRATES, OMAN AND SAUDI ARABIA

Ruwais

Mina Al Fahal

Qalhat

Umm Al Nar

Muscat

Sur

Abu dhabi

Suhar

YEMEN

SAUD I ARAB IA

QATAR

OMAN

IRANBAHRA IN

UN I TED ARAB EM IRATES

BAHRA IN

OMAN

UNI TED ARAB EM IRATES

QATAR

I RANKUWAI T

SAUD I ARAB IA

B

Soroosh

Nowrooz

QatarGas 3/4

South Pars

Pearl

Daina IslandDas Island

Bu Tini Island

RumaithaAl Dabbiya

Adco South

Block 9 Block 8

Block 7

Block 5Block 6

Nafoorah

Mukhalzna

Qata

Marmul

Amal

Runib

Irad

Warad

Al Burj

Ghaba North

Qarn Alam

Wafra

Rima

Burhaan

Birba

Karim West

Nimr

Zauliyah

Barik

Musallim

Al Noor

Thuleilat

Saih Rawl

Sakhiya

Yibal

Natih

Fahud

Huwaila

Kidan South – Arab

Rumaitha

Al Dabb’iya

Sahil

Shah

Asab

Bab

Bu Hasa

Kidan North – Arab

Simsim

Qaharir

Zalzala

Amin

Lekhwair

Al Huwaisah

Sakhiya-6

Mamour-1ST

Budour NE-A

Ufuq-A

Dafiq-A

4002000 100 300

4002000 100 300

A

BA

Shell oil projects Shell gas projects Shell oil & gas projects Shell oil pipeline Shell gas pipeline Industry pipeline

0

Wells – 2005 discoveries Terminal Shell interest (land) Shell interest (sea) All scales measured in km



10 EGYPT AND SYRIA

MED I TERRANEAN SEA

Suez

Port said

Tanta

AlexandriaMatruh

Cairo

El faiyum

Asyut

L I BYA

I SRAE L

GAZA S TR I P

EGYPT

SYR IA

I RAQ

Yimken

Tanak North

Ghawari

Azraq

Mqaat

Sarhit

Shdeha

Maleh

Galban

Saban

Rasein

Jarnof

Sijan

ShahelEl Isbah

Tayyani EastTanak

Omar

Al Ishara East

Jido

Al Kharrata

Al Ward North

An Nishan

Al Ahmar

Ash Shola

Thayyem

Omar North East

Omar North

Jazieh

Abou Hardan

West SitraSitra

NEAG

NW Damietta

NE Med. Sea Deep Water-W

NE Abu El

Gharadiq S-A

NE Abu El

Gharadiq N

Obaiyed

Badr El Din

BED 17-2

BED 16-3

Ras ShukheirTerminal (SBM 1)

NE Med. SeaDeep Water-E

5002500

100500

C

D

D

C


0




VadelypUpper & West Salym

Kashagan SW

Kashagan

Kalamkas More

Pearls

KairanAktote

Arman

Inam

MertviyKultuk

Piltun-Astokhskoye– Sakhalin II

Lunskiy – Sakhalin II

Piltun

Lunskoye

Prigorodnoye(Oil & LNG) SPM

KAZAKHSTAN

RUSSIA

UZBEKISTAN KYRGYZSTAN

TAJIKISTANTURKMENISTAN

GEORGIA

ARMENIA AZERBAIJAN

TURKEY

IRAN

CHINA

SAKHALIN

Moscow

Urengoy

PechoraUkhta

Arkhanglsk

KhantyMansiysk

Nefteugansk

Almaty

Baku

Okha

B

A

A B

Shell oil projects Shell gas projects Shell oil & gas projects Shell oil pipeline Shell gas pipeline Industry pipeline

0

Wells – 2005 discoveries Terminal Shell interest (land) Shell interest (sea) All scales measured in km

1,0007500 500250

1250

11 COMMONWEALTH OF INDEPENDENT STATES PROJECTS



THIS PAGE INTENTIONALLY LEFT BLANK

50040 Shell 5 Year_18-33.qxd 25/5/06 1:53 pm Page 31

Oil and gas acreagea b c d (at December 31)thousand acres thousand acres

2005 2004Developed Undeveloped Developed Undeveloped

Gross Net Gross Net Gross Net Gross Net

Europe 9,852 3,110 14,507 4,415 8,449 3,200 14,024 4,904Africae 7,175 2,382 27,206 14,806 6,597 2,058 15,584 8,398Asia Pacificf 7,777 3,589 129,149 36,279 7,094 3,283 106,326 29,388Middle East, Russia, CISg 32,064 10,284 64,956 29,995 34,753 11,152 63,469 29,882USA 1,250 563 4,359 3,069 961 531 3,998 2,864Americas, Other 872 551 30,097 20,314 855 529 27,236 20,421

58,990 20,479 270,274 108,878 58,709 20,753 230,637 95,857

Number of productive wellsa b (at December 31)

2005 2004Oil Gas Oil Gas

Gross Net Gross Net Gross Net Gross Net

Europe 1,762 491 1,355 448 1,786 478 1,445 491Africae 1,234 413 36 12 1,215 396 36 12Asia Pacificf 1,080 483 304 121 1,191 551 237 90Middle East, Russia, CISg 4,128 1,279 38 38 3,795 1,198 40 38USA 16,159 8,270 873 636 16,131 8,163 719 520Americas, Other 122 117 351 284 117 112 329 270

24,485 11,053 2,957 1,539 24,235 10,898 2,806 1,421

Number of net productive wells and dry holes drilleda

2005 2004 2003 2002 2001

Productive Dry Productive Dry Productive Dry Productive Dry Productive Dry

ExploratoryEurope 5 3 6 2 6 3 9 4 6 4Africae 9 1 3 1 5 – 6 4 7 1Asia Pacificf 6 3 5 5 5 7 3 3 8 12Middle East, Russia, CISg 5 3 7 2 7 4 5 4 6 4USA 9 3 2 3 10 – 10 4 2 4Americas, Other 3 4 1 2 2 5 2 2 3 3

37 17 24 15 35 19 35 21 32 28

DevelopmentEurope 25 – 27 – 19 1 47 – 38 –Africae 13 – 11 – 20 1 39 – 14 –Asia Pacificf 21 1 22 1 41 2 42 1 56 2Middle East, Russia, CISg 173 4 150 6 149 4 83 12 90 8USA 446 – 504 1 465 – 559 1 549 2Americas, Other 26 – 10 1 8 – 31 – 25 –

704 5 724 9 702 8 801 14 772 12

a Including equity accounted investments.b The term “gross” relates to the total activity in which Group and equity accounted investments have an interest and the term “net” relates to the fractional interests owned by Group companies plus the Group

share of equity accounted investments’ fractional interests.c One thousand acres equals approximately four square kilometres.d Excludes oil sands.e Excludes Egypt.f Excludes Sakhalin.g Middle East and former Soviet Union (Commonwealth of Independent States), which includes Caspian region, Egypt and Sakhalin.

OIL AND GAS – EXPLORATION & PRODUCTION OPERATIONS



thousand acres thousand acres thousand acres

2003 2002 2001Developed Undeveloped Developed Undeveloped Developed Undeveloped

Gross Net Gross Net Gross Net Gross Net Gross Net Gross Net

10,172 3,204 15,977 5,307 10,417 3,259 19,752 6,930 9,570 3,031 12,616 4,5816,956 2,193 18,595 10,253 6,289 1,886 25,394 15,516 6,489 1,984 20,804 11,6583,793 1,638 113,978 33,357 3,963 1,864 118,471 40,446 3,762 1,816 115,294 41,691

34,729 11,062 65,106 30,079 35,448 11,435 18,544 12,771 34,509 11,021 22,921 15,3791,512 694 4,040 2,802 1,557 754 4,670 3,183 1,599 702 3,931 2,609

853 529 28,094 19,835 832 509 33,338 22,840 767 492 35,709 22,001

58,015 19,320 245,790 101,633 58,506 19,707 220,169 101,686 56,696 19,046 211,275 97,919

2003 2002 2001Oil Gas Oil Gas Oil Gas

Gross Net Gross Net Gross Net Gross Net Gross Net Gross Net

1,799 468 1,432 485 2,002 533 1,454 458 1,618 429 1,299 4271,380 414 43 14 1,399 446 42 13 1,614 550 45 151,313 726 247 99 1,317 726 205 95 1,242 588 199 913,673 1,145 203 129 3,456 1,085 179 115 3,210 1,031 131 91

15,891 7,998 697 486 15,686 8,294 945 686 16,717 8,511 956 658116 111 322 265 112 110 314 259 86 86 298 251

24,172 10,862 2,944 1,478 23,972 11,194 3,139 1,626 24,487 11,195 2,928 1,533

OIL AND GAS – EXPLORATION & PRODUCTION OPERATIONS



OIL AND GAS RESERVES


Crude oil and natural gas liquidsGroup companies’ estimated net proved reserves of crude oil and natural gas liquids at the end of the year, their share of the net proved reserves of equityaccounted investments at the end of the year, and the changes in such reserves during the year are set out below.

Proved developed and undeveloped reservesIFRS

million barrels 2005

Eastern Hemisphere Western Hemisphere

Asia Middle EastEurope Africab Pacificc Russia,CISd USA Other Total

Group companiesAt January 1 953 1,145 245 798 458 146 3,745Revisions and reclassifications 82 (206) (27) 37 23 28 (63)Improved recovery 2 1 – 3 – – 6Extensions and discoveries 22 78 – 256 20 – 376Purchases of minerals in place 3 – – 10 1 – 14Sales of minerals in place (10) – (3) – – – (13)Production (195) (136) (42) (111) (86) (29) (599)Transfers to equity accounted investments – – – – – – –

At December 31 857 882 173 993 416 145 3,466

Group share of equity accounted investmentsAt January 1 18 – 276 457 392 – 1,143Revisions and reclassifications (2) – 8 84 65 – 155Improved recovery – – – – – – –Extensions and discoveries – – – – 4 – 4Purchases of minerals in place – – – – – – –Sales of minerals in place – – (2) – – – (2)Production (2) – (41) (51) (36) – (130)Transfers to equity accounted investments – – – – – – –

At December 31 14 – 241 490 425 – 1,170

Minority interests’ share of Group companies

At December 31 – 18 – 121 – 18 157

Proved developed reservesIFRS




Group companiesAt January 1 740 617 134 475 242 115 2,323At December 31

e639 532 93 437 230 86 2,017

Group share of equity accounted investmentsAt January 1 15 – 187 360 349 – 911At December 31

e12 – 163 360 346 – 881

Oil sandsa

IFRS




Group companiesAt January 1 – – – – – 615 615Revisions and reclassifications – – – – – 166 166Extensions and discoveries – – – – – – –Production – – – – – (35) (35)

At December 31 – – – – – 746 746

Minority interests’ share of oil sands

At December 31 – – – – – 164 164

a Petroleum reserves from operations that do not qualify as oil and gas producing activities, such as our Athabasca Oil Sands Project, are not included in oil and gas reserves. The petroleum reserves for theAthabasca Oil Sands Project are presented in this booklet net of royalty volumes.

b Excludes Egypt. c Excludes Sakhalin. d Middle East and former Soviet Union (Commonwealth of Independent States), which includes Caspian region, Egypt and Sakhalin.e After accounting for a transfer of developed reserves from Group to equity accounted investments of 360 million barrels at the end of 2004.

50040 Shell 5 Year_34_45.qxd 30/5/06 11:45 am Page 34

Oil and gas reserves 35

IFRS




1,179 1,379 303 1,202 547 379 4,989(26) (46) 13 80 (2) (197) (178)

6 2 – 4 – – 125 13 10 68 12 2 110– – – – – – –

(2) (57) (35) – – – (94)(209) (146) (46) (172) (99) (38) (710)

– – – (384) – – (384)

953 1,145 245 798 458 146 3,745

21 – 304 86 413 – 824– – (22) (13) 18 – (17)– – 38 – – – 38– – – – – – –– – – – – – –– – (1) – – – (1)

(3) – (43) – (39) – (85)– – – 384 – – 384

18 – 276 457 392 – 1,143

– 23 1 109 – 14 147

IFRS




945 777 184 864 291 191 3,252740 617 134 475 242 115 2,323

17 – 224 1 364 – 60615 – 187 360 349 – 911

IFRS




– – – – – 572 572– – – – – 72 72– – – – – – –– – – – – (29) (29)

– – – – – 615 615

– – – – – 135 135




Crude oil and natural gas liquids continuedProved developed and undeveloped reserves

US GAAP

million barrels 2003e


Asia Middle EastEuropee Africab Pacificc Russia,CISd USA Other Total

Group companiesAt January 1 1,377 1,449 323 1,446 717 470 5,782Revisions and reclassifications 88 (102) 21 (204) (54) (57) (308)Improved recovery 5 (6) 16 10 8 1 34Extensions and discoveries 12 171 – 128 9 2 322Purchases of minerals in place 1 – – 3 – – 4Sales of minerals in place (39) – – – (23) – (62)Production (245) (133) (57) (181) (110) (37) (763)Transfers to equity accounted investments – – – – – – –

At December 31 1,199 1,379 303 1,202 547 379 5,009

Group share of equity accounted investmentsAt January 1 2 – 325 118 413 – 858Revisions and reclassifications – – 1 – 41 – 42Improved recovery – – 13 – – – 13Extensions and discoveries – – 11 86 – – 97Purchases of minerals in place – – – – – – –Sales of minerals in place – – – (117) – – (117)Production – – (46) (1) (41) – (88)Transfers from Group companies – – – – – – –

At December 31 2 – 304 86 413 – 805

Minority interests’ share of proved reserves of Group companiesAt December 31 – 24 1 137 – 54 216

Proved developed reservesUS GAAP




Group companiesAt January 1 1,063 674 194 1,023 371 191 3,516At December 31 962 777 184 864 291 191 3,269

Group share of equity accounted investmentsAt January 1 1 – 206 15 365 – 587At December 31 1 – 224 1 364 – 590

Oil sandsa

US GAAP




Group companiesAt January 1 – – – – – 517 517Revisions and reclassifications – – – – – 10 10Extensions and discoveries – – – – – 60 60Production – – – – – (15) (15)

At December 31 – – – – – 572 572

Minority interests’ share of oil sandsAt December 31 – – – – – 126 126

a Petroleum reserves from operations that do not qualify as oil and gas producing activities, such as our Athabasca Oil Sands Project, are not included in oil and gas reserves and are not considered in thestandardised measure of discounted future cash flows for oil and gas reserves. The petroleum reserves for the Athabasca Oil Sands Project are presented in this booklet net of royalty volumes.

b Excludes Egypt. c Excludes Sakhalin. d Middle East and former Soviet Union (Commonwealth of Independent States), which includes Caspian region, Egypt and Sakhalin.e In connection with the adoption of IFRS as of January 1, 2004, an entity in Europe that had previously been accounted for as a Group company on a proportionate basis, has been instead accounted for as

an equity accounted investment. As a result of this change, some 20 million barrels of proved reserves that as of December 31, 2003 are shown for Group companies are, as of January 1, 2004, shownas part of the Group share of equity accounted investments.



US GAAP

million barrels 2002 million barrels 2001

Eastern Hemisphere Western Hemisphere Eastern Hemisphere Western Hemisphere

Asia Middle East Asia Middle EastEurope Africab Pacificc Russia,CISd USA Other Total Europe Africab Pacificc Russia,CISd USA Other Total

1,013 1,308 426 1,677 672 504 5,600 1,122 1,321 433 1,569 609 509 5,56399 89 (27) (26) 77 (42) 170 34 16 (23) 288 30 43 38813 – 6 47 51 – 117 39 2 11 (4) – – 48

– 173 6 – 33 – 212 17 89 6 – 139 1 252507 – – – 7 41 555 – – 69 – 3 – 72

(1) (19) (19) (62) (3) – (104) – – – – (1) (14) (15)(254) (102) (69) (190) (120) (33) (768) (199) (120) (70) (176) (108) (35) (708)

– – – – – – – – – – – – – –

1,377 1,449 323 1,446 717 470 5,782 1,013 1,308 426 1,677 672 504 5,600

1 – 307 – 356 – 664 1 – 300 100 441 – 8421 – 55 – 65 – 121 – – 40 (92) (35) – (87)– – 4 – – – 4 – – 12 – 1 – 13– – 9 – 33 – 42 – – 4 – – – 4– – – 121 – – 121 – – – – – – –– – – (1) – – (1) – – – – (9) – (9)– – (50) (2) (41) – (93) – – (49) (8) (42) – (99)– – – – – – – – – – – – – –

2 – 325 118 413 – 858 1 – 307 – 356 – 664

– 23 1 126 – 61 211 – 22 1 116 – 66 205

US GAAP




750 662 245 1,089 429 212 3,387 845 703 217 1,148 351 214 3,4781,063 674 194 1,023 371 191 3,516 750 662 245 1,089 429 212 3,387

1 – 208 – 330 – 539 1 – 197 37 364 – 5991 – 206 15 365 – 587 1 – 208 – 330 – 539

US GAAP




– – – – – 594 594 – – – – – 594 594– – – – – (77) (77) – – – – – – –– – – – – – – – – – – – – –– – – – – – – – – – – – – –

– – – – – 517 517 – – – – – 594 594

– – – – – 115 115 – – – – – 132 132


Natural gasGroup companies’ estimated net proved reserves of crude oil and natural gas liquids at the end of the year, their share of the net proved reserves of equityaccounted investments at the end of the year, and the changes in such reserves during the year are set out below. The volumes in the table below have notbeen adjusted to standard heat content, which means that volumes of gas are reported on an “as-sold” basis and are treated as equivalent without regard tothe quality of the gas (e.g. with respect to the inert gas content thereof or the various hydrocarbon components). The price used to calculate future revenuesand cash flows from proved gas reserves is that realised at year-end based on “as-sold” volumes. As such, the realised price reflects the quality of the gas,both in terms of inert components that reduce gas quality and hydrocarbon components with high molecular weights that enrich the quality of the gas.

Proved developed and undeveloped reservesa

IFRS

thousand million standard cubic feet 2005



Group companiesAt January 1 5,964 2,532 6,803 5,383 2,823 1,545 25,050Revisions and reclassifications 289 (221) (706) (54) 116 (47) (623)Improved recovery – – – – – – –Extensions and discoveries 234 – 213 1,842 148 135 2,572Purchases of minerals in place 57 – 61 – 11 6 135Sales of minerals in place (18) – – – – – (18)Production (778) (138) (596) (92) (418) (182) (2,204)

At December 31 5,748 2,173 5,775 7,079 2,680 1,457 24,912

Group share of equity accounted investmentsAt January 1 12,513 – 2,987 – 17 – 15,517Revisions and reclassifications 31 – (23) – 3 – 11Improved recovery 2 – – – – – 2Extensions and discoveries 5 – – – – – 5Purchases of minerals in place – – – – – – –Sales of minerals in place (3) – – – – – (3)Production (574) – (252) – (2) – (828)

At December 31 11,974 – 2,712 – 18 – 14,704

Minority interests’ share of proved reserves of Group companies

At December 31 – – 36 3,059 – 261 3,356

Proved developed reservesa

IFRS




Group companiesAt January 1 3,258 919 2,702 166 1,875 1,080 10,000At December 31 3,662 782 2,336 138 1,608 906 9,432

Group share of equity accounted investmentsAt January 1 9,731 – 1,606 – 15 – 11,352At December 31 10,109 – 1,443 – 15 – 11,567

Crude oil and natural gas liquids and oil equivalent of natural gas at December 31e

IFRS

million barrels of oil equivalent 2005



Proved developed and undeveloped reservesGroup companies 1,848 1,257 1,169 2,213 878 396 7,761Group share of equity accounted investments 2,078 – 709 490 428 – 3,705

Total 3,926 1,257 1,878 2,703 1,306 396 11,466

a These quantities have not been adjusted to standard heat content. b Excludes Egypt. c Excludes Sakhalin. d Middle East and former Soviet Union (Commonwealth of Independent States), which includes Caspian region, Egypt and Sakhalin.e 5,800 million cubic feet of natural gas = one million barrels of oil equivalent.




IFRS




6,697 2,743 7,352 3,628 3,143 1,628 25,191(172) (74) 125 138 (100) (45) (128)

9 – – – – 4 13213 – 171 2,128 257 192 2,961

– – – – 9 – 9(48) – (310) (258) – (37) (653)

(735) (137) (535) (253) (486) (197) (2,343)

5,964 2,532 6,803 5,383 2,823 1,545 25,050

13,219 – 3,122 – 27 – 16,368(97) – 120 – (8) – 15

– – 45 – – – 458 – 1 – – – 9– – – – – – –– – (55) – – – (55)

(617) – (246) – (2) – (865)

12,513 – 2,987 – 17 – 15,517

– – 56 2,231 – 274 2,561

IFRS




3,792 886 3,128 446 1,754 1,297 11,3033,258 919 2,702 166 1,875 1,080 10,000

7,719 – 1,825 – 22 – 9,5669,731 – 1,606 – 15 – 11,352

IFRS




1,981 1,582 1,418 1,726 945 412 8,0642,175 – 791 457 395 – 3,818

4,156 1,582 2,209 2,183 1,340 412 11,882



Natural gas continuedProved developed and undeveloped reservesa

US GAAP

thousand million standard cubic feet 2003e



Group companiesAt January 1 21,284 1,692 7,862 1,118 3,842 1,959 37,757Revisions and reclassifications (435) (688) 8 (22) (70) (181) (1,388)Improved recovery 4 506 17 – 10 30 567Extensions and discoveries 459 1,361 6 2,790 305 34 4,955Purchases of minerals in place 6 – – – – – 6Sales of minerals in place (139) – – – (389) (17) (545)Production (1,303) (128) (541) (258) (555) (197) (2,982)

At December 31 19,876 2,743 7,352 3,628 3,143 1,628 38,370

Group share of equity accounted investmentsAt January 1 44 – 3,243 – 21 – 3,308Revisions and reclassifications – – 106 – 9 – 115Improved recovery 1 – 11 – – – 12Extensions and discoveries 1 – – – – – 1Purchases of minerals in place – – – – – – –Sales of minerals in place – – – – – – –Production (7) – (238) – (3) – (248)

At December 31 39 – 3,122 – 27 – 3,188

Minority interests’ share of proved reserves of Group companiesAt December 31 – – 63 1,285 – 300 1,648

Proved developed reservesa

US GAAP

thousand million standard cubic feet 2003e



Group companiesAt January 1 11,472 735 3,405 574 2,311 1,464 19,961At December 31 11,477 886 3,128 446 1,754 1,297 18,988

Group share of equity accounted investmentsAt January 1 38 – 1,776 – 17 – 1,831At December 31 34 – 1,825 – 22 – 1,881

Crude oil and natural gas liquids and oil equivalent of natural gas at December 31f

US GAAP




Proved developed and undeveloped reservesGroup companies 4,626 1,852 1,570 1,828 1,089 660 11,625Group share of equity accounted investments 9 – 842 86 418 – 1,355

Total 4,635 1,852 2,412 1,914 1,507 660 12,980

a These quantities have not been adjusted to standard heat content. b Excludes Egypt. c Excludes Sakhalin. d Middle East and former Soviet Union (Commonwealth of Independent States), which includes Caspian region, Egypt and Sakhalin.e In connection with the adoption of IFRS as of January 1, 2004, an entity in Europe that had previously been accounted for as a Group company on a proportionate basis, has been instead accounted for as

an equity accounted investment. As a result of this change, some 13.2 trillion standard cubic feet of proved reserves that as of December 31, 2003 are shown for Group companies are, as of January 1,2004, shown as part of the Group share of equity accounted investments.

f 5,800 million cubic feet of natural gas = one million barrels of oil equivalent.




US GAAP

thousand million standard cubic feet 2002 thousand million standard cubic feet 2001



22,022 1,780 9,031 1,777 3,663 2,257 40,530 22,339 1,786 7,999 2,054 3,399 2,313 39,890(110) 1 (680) (282) 162 (123) (1,032) 815 (47) 175 (73) 114 13 997

6 – 150 – 20 – 176 (9) – 266 – – – 25729 – 126 – 410 9 574 214 121 8 95 385 132 955

673 – – – 208 12 893 – – 1,095 – 355 9 1,459(5) – (212) – (10) – (227) – – – – (9) (8) (17)

(1,331) (89) (553) (377) (611) (196) (3,157) (1,337) (80) (512) (299) (581) (202) (3,011)

21,284 1,692 7,862 1,118 3,842 1,959 37,757 22,022 1,780 9,031 1,777 3,663 2,257 40,530

48 – 2,943 – 15 – 3,006 56 – 3,272 – 86 – 3,4141 – 434 – 7 – 442 (5) – 62 – (29) – 28– – 8 – – – 8 – – 17 – – – 173 – 80 – 1 – 84 4 – 2 – – – 6– – – – – – – – – – – – – –– – – – – – – – – (181) – (40) – (221)

(8) – (222) – (2) – (232) (7) – (229) – (2) – (238)

44 – 3,243 – 21 – 3,308 48 – 2,943 – 15 – 3,006

– – 61 59 – 342 462 – – 77 153 – 401 631

US GAAP

thousand million standard cubic feet 2002 thousand million standard cubic feet 2001



11,880 668 3,635 1,097 2,363 1,754 21,397 12,613 713 2,795 1,382 2,347 1,673 21,52311,472 735 3,405 574 2,311 1,464 19,961 11,880 668 3,635 1,097 2,363 1,754 21,397

41 – 1,759 – 11 – 1,811 53 – 1,809 – 66 – 1,92838 – 1,776 – 17 – 1,831 41 – 1,759 – 11 – 1,811

US GAAP

million barrels of oil equivalent 2002 million barrels of oil equivalent 2001



5,047 1,741 1,678 1,639 1,379 808 12,292 4,810 1,615 1,983 1,983 1,304 893 12,58810 – 884 118 417 – 1,429 9 – 814 – 359 – 1,182

5,057 1,741 2,562 1,757 1,796 808 13,721 4,819 1,615 2,797 1,983 1,663 893 13,770



Earnings from oil and gas exploration and production activitiesa

IFRS

$ million

2005


Middle East

Asia Russia, OilEurope Africa Pacific CIS USA Other Total sands Total

Group companiesRevenueb third parties 3,399 (314) 1,367 2,176 2,850 1,458 10,936 614 11,550

intra-Group 9,869 7,503 1,608 6,193 5,050 1,356 31,579 1,357 32,936

13,268 7,189 2,975 8,369 7,900 2,814 42,515 1,971 44,486Production costsc,d 2,245 1,971 674 857 1,040 562 7,349 470 7,819Exploration expense 213 193 56 72 378 246 1,158 – 1,158Depreciation, depletion and amortisation 3,888 844 692 508 1,629 820 8,381 181 8,562Other income/(costs) (413) 84 254 (762) (346) (456) (1,639) (315) (1,954)

Earnings before tax 6,509 4,265 1,807 6,170 4,507 730 23,988 1,005 24,993Taxation 3,767 3,526 473 4,988 1,533 236 14,523 344 14,867

Earnings from continuing operations 2,742 739 1,334 1,182 2,974 494 9,465 661 10,126Earnings from discontinued operations – – – – – – – – –

Earnings after taxation 2,742 739 1,334 1,182 2,974 494 9,465 661 10,126$ per barrel

e

Revenueb 40.68 44.93 20.60 65.72 49.94 46.64 43.54 56.84 44.00Production costsc,d 6.88 12.32 4.67 6.73 6.57 9.32 7.53 13.55 7.73Exploration expense 0.65 1.21 0.39 0.57 2.39 4.08 1.19 – 1.15Depreciation, depletion and amortisation 11.92 5.27 4.79 3.99 10.30 13.59 8.58 5.22 8.47Other income/(costs) (1.27) 0.52 1.76 (5.98) (2.19) (7.56) (1.68) (9.08) (1.93)

Earnings before tax 19.96 26.65 12.51 48.45 28.49 12.09 24.56 28.99 24.72Taxation 11.55 22.04 3.28 39.17 9.69 3.91 14.87 9.92 14.70

Earnings after taxation 8.41 4.61 9.23 9.28 18.80 8.18 9.69 19.07 10.02

Earnings from oil and gas exploration and production activitiesa

US GAAP

$ million

2003


Middle East


Group companiesRevenueb third parties 5,386 129 808 1,640 1,903 1,115 10,981 288 11,269

intra-Group 5,873 3,888 1,179 3,713 4,480 713 19,846 398 20,244

11,259 4,017 1,987 5,353 6,383 1,828 30,827 686 31,513Production costsc,d 1,886 1,087 419 1,408 603 366 5,769 262 6,031Exploration expense 229 235 112 121 275 144 1,116 – 1,116Depreciation, depletion and amortisation 3,723 462 539 585 1,667 681 7,657 120 7,777Other income/(costs) (512) (187) 238 (443) 30 (240) (1,114) (434) (1,548)

Earnings before tax 4,909 2,046 1,155 2,796 3,868 397 15,171 (130) 15,041Taxation 1,686 1,437 217 2,239 1,497 204 7,280 (29) 7,251

Earnings from continuing operations 3,223 609 938 557 2,371 193 7,891 (101) 7,790Earnings from discontinued operations – (16) 68 26 – – 78 – 78

Earnings from operations 3,223 593 1,006 583 2,371 193 7,969 (101) 7,868$ per barrele

Revenueb 23.96 25.92 13.25 23.79 30.99 25.75 24.14 45.73 24.39Production costsc,d 4.01 7.01 2.79 6.26 2.93 5.15 4.52 17.47 4.67Exploration expense 0.49 1.52 0.75 0.54 1.33 2.03 0.87 – 0.86Depreciation, depletion and amortisation 7.92 2.98 3.59 2.60 8.09 9.59 6.00 8.00 6.02Other income/(costs) (1.09) (1.21) 1.59 (1.97) 0.15 (3.38) (0.87) (28.93) (1.20)

Earnings before tax 10.45 13.20 7.71 12.42 18.79 5.60 11.88 (8.67) 11.64Taxation 3.59 9.27 1.46 9.94 7.28 2.88 5.70 (1.94) 5.61

Earnings from operations 6.86 3.93 6.25 2.48 11.51 2.72 6.18 (6.73) 6.03a Excludes certain financing costs and related tax effects.b Certain purchases of traded product are netted into sales. c Production costs exclude additional taxes levied on oil and gas production, which are included under taxation.d No adjustments are made for government share of volumes in production sharing contracts. Including such adjustments the sum of unit production costs and unit depreciation, depletion and amortisation for

2004 would be reduced by approximately $1.02/boe.e Based on related oil and gas quantities produced, including natural gas liquids, with gas converted to crude oil equivalent.

OIL AND GAS



IFRS

$ million

2004


Middle East


3,440 (187) 958 1,849 2,063 1,277 9,400 479 9,8797,117 5,616 1,517 4,616 4,754 1,187 24,807 843 25,650

10,557 5,429 2,475 6,465 6,817 2,464 34,207 1,322 35,5291,799 1,548 541 1,332 767 510 6,497 313 6,810

145 157 134 103 352 211 1,102 – 1,1023,501 699 570 802 1,625 600 7,797 155 7,952(1,201) 196 479 (805) (319) (333) (1,983) (442) (2,425)

3,911 3,221 1,709 3,423 3,754 810 16,828 412 17,2402,686 2,448 351 2,795 1,302 187 9,769 111 9,880

1,225 773 1,358 628 2,452 623 7,059 301 7,360– – – – – – – – –

1,225 773 1,358 628 2,452 623 7,059 301 7,360$ per barrele

31.14 31.94 17.93 29.93 37.25 34.70 30.62 45.15 31.005.31 9.11 3.92 6.17 4.19 7.18 5.82 10.69 5.940.43 0.92 0.97 0.48 1.92 2.97 0.99 – 0.96

10.33 4.11 4.13 3.71 8.88 8.45 6.98 5.29 6.94(3.54) 1.15 3.47 (3.73) (1.74) (4.69) (1.78) (15.10) (2.12)

11.53 18.95 12.38 15.84 20.52 11.41 15.05 14.07 15.047.92 14.40 2.54 12.94 7.11 2.63 8.75 3.79 8.62

3.61 4.55 9.84 2.90 13.41 8.78 6.30 10.28 6.42

US GAAP

$ million $ million

2002 2001


Middle MiddleEast East

Asia Russia, Oil Asia Russia, OilEurope Africa Pacific CIS USA Other Total sands Total Europe Africa Pacific CIS USA Other Total sands Total

5,472 73 763 1,772 1,997 892 10,969 2 10,971 4,971 98 803 1,359 2,771 836 10,838 – 10,8384,572 2,538 1,186 3,087 2,863 433 14,679 – 14,679 3,723 2,759 1,171 3,201 2,306 630 13,790 – 13,790

10,044 2,611 1,949 4,859 4,860 1,325 25,648 2 25,650 8,694 2,857 1,974 4,560 5,077 1,466 24,628 – 24,6281,826 754 420 1,275 589 298 5,162 2 5,164 1,275 820 350 1,115 496 268 4,324 – 4,324

177 204 58 81 249 208 977 – 977 98 95 73 121 289 143 819 – 8192,469 458 572 777 1,461 265 6,002 1 6,003 1,452 398 455 503 1,116 287 4,211 – 4,211

(428) (97) 160 (654) (221) (219) (1,459) – (1,459) (274) (30) (44) (390) (261) (242) (1,241) – (1,241)

5,144 1,098 1,059 2,072 2,340 335 12,048 (1) 12,047 5,595 1,514 1,052 2,431 2,915 526 14,033 – 14,0332,340 789 294 1,638 791 93 5,945 2 5,947 2,454 1,026 403 1,849 1,028 185 6,945 – 6,945

2,804 309 765 434 1,549 242 6,103 (3) 6,100 3,141 488 649 582 1,887 341 7,088 – 7,088– (15) 70 30 – – 85 – 85 – (15) 69 13 – – 67 – 67

2,804 294 835 464 1,549 242 6,188 (3) 6,185 3,141 473 718 595 1,887 341 7,155 – 7,155$ per barrele $ per barrele

20.77 22.24 11.86 19.05 21.57 20.08 19.55 – 19.55 20.22 21.32 12.49 20.09 24.41 20.94 20.07 – 20.073.78 6.42 2.56 5.00 2.61 4.52 3.94 – 3.94 2.97 6.12 2.22 4.91 2.38 3.83 3.52 – 3.520.37 1.74 0.35 0.32 1.10 3.15 0.74 – 0.74 0.23 0.71 0.46 0.53 1.39 2.04 0.67 – 0.675.11 3.90 3.48 3.05 6.48 4.02 4.58 – 4.58 3.38 2.97 2.88 2.22 5.37 4.10 3.43 – 3.43(0.89) (0.83) 0.97 (2.56) (0.98) (3.32) (1.11) – (1.11) (0.64) (0.22) (0.28) (1.72) (1.25) (3.46) (1.01) – (1.01)

10.62 9.35 6.44 8.12 10.40 5.07 9.18 – 9.18 13.00 11.30 6.65 10.71 14.02 7.51 11.44 – 11.444.82 6.72 1.78 6.42 3.53 1.40 4.53 – 4.53 5.70 7.66 2.54 8.15 4.95 2.64 5.66 – 5.66

5.80 2.63 4.66 1.70 6.87 3.67 4.65 – 4.65 7.30 3.64 4.11 2.56 9.07 4.87 5.78 – 5.78



Crude oil and natural gas liquids productiona

IFRS US GAAP

thousand barrels/day

2005 2004 2003 2002b 2001

EuropeUK 250 275 354 402 311The Netherlands 7 8 8 9 10Denmark 143 142 141 140 130Norway 107 129 143 131 89Germany 4 5 5 5 6Italy 30 21 19 – –Others –c –c 1 9 1

541 580 671 696 547

Other Eastern HemisphereAfricaNigeria 324 349 314 215 250Gabon 36 35 35 46 56Cameroon 13 15 16 17 19Others – – – 2 3

373 399 365 280 328

Asia PacificMalaysia 41 47 51 59 60Brunei 95 98 103 101 97Australia 53 60 73 92 99New Zealand 15 15 19 29 30Others 4 3 3 5 –China 20 20 22 24 23Thailand – – 14 15 16

228 243 285 325 325

Middle EastOman 214 246 269 319 327Abu Dhabi 134 133 126 100 94Egypt 14 10 11 11 14Syria 36 35 44 49 48Russia 35 32 30 33 23Others 10 15 17 13 –

443 471 497 525 506

Total Other Eastern Hemisphere 1,044 1,113 1,147 1,130 1,159

USA 333 375 414 442 411

Other Western HemisphereCanada 39 40 44 43 47Brazil 26 43 11 2 2Venezuela 14 22 46 46 44Others 1 –c –c – 1

80 105 101 91 94

Total crude oil production excluding oil sands 1,998 2,173 2,333 2,359 2,211

Oil sands 95 80 46 – –

Total 2,093 2,253 2,379 2,359 2,211million tonnes a year

Metric equivalent 105 113 119 118 111

a Of Group companies, plus Group share of equity accounted investments, and including natural gasliquids (Group share of equity accounted investments is assumed to be equivalent to Group interest).Royalty purchases are excluded. In those countries where production-sharing contracts operate, thefigures shown represent the entitlements of the Group companies concerned under those contracts.

b The acquisition of Enterprise Oil contributed some 180,000 boe per day to 2002 totalhydrocarbon production (nine months of production averaged over the full year). Production camemainly from assets in the UK and Norway.

c Less than 1,000 barrels daily.d Exceptionally, the minority interest is deducted in respect of production volumes given for Petroleum

Development Oman.e Egypt was previously included in Africa.f By country of origin from gas produced by Group and associated companies (Group share).

In those countries where production-sharing contacts operate, the figures shown represent theentitlements of the Group companies concerned under those contracts.

g No natural gas production.

Natural gas production available for salef

IFRS US GAAP

million standard cubic feet/day

2005 2004 2003 2002b 2001

EuropeUK 925 984 1,002 1,148 1,196The Netherlands 1,562 1,667 1,527 1,527 1,555Denmark 410 383 302 313 309Norway 298 260 287 242 176Germany 428 411 437 408 428Italy 25 16 14 7 –Others 11 18 18 22 20

3,659 3,739 3,587 3,667 3,684

Other Eastern HemisphereAfricaNigeria 377 375 352 244 219Gabong – – – – –Cameroong – – – – –Othersg – – – – –

377 375 352 244 219

Asia PacificMalaysia 858 739 706 664 580Brunei 544 554 549 508 491Australia 525 436 403 373 379New Zealand 234 258 288 461 470Others 164 145 151 78 66Chinag – – – – –Thailand – – 39 41 42

2,325 2,132 2,136 2,125 2,028

Middle EastOman – 471 468 786 553Abu Dhabig – – – – –Egypt 238 211 228 232 248Syria 15 9 11 16 18Russiag – – – – –Othersg – – – – –

253 691 707 1,034 819

Total Other EasternHemisphere 2,955 3,198 3,195 3,403 3,066

USA 1,150 1,332 1,527 1,679 1,598

Other Western HemisphereCanada 413 449 466 473 507Brazil 43 48 39 39 33 Venezuelag – – – – –Others 43 42 35 25 14

499 539 540 537 554

Total natural gas production 8,263 8,808 8,849 9,286 8,902

Oil sandsg – – – – –

Total 8,263 8,808 8,849 9,286 8,902




Total productiona

IFRS US GAAP

thousand barrels oil equivalent/day

2005 2004 2003 2002 2001

EuropeUK 410 445 527 600 517The Netherlands 276 295 272 273 278Denmark 214 208 193 194 183Norway 158 174 193 173 120Germany 78 75 80 75 80Italy 34 24 22 9 –Others 2 3 3 4 4

1,172 1,224 1,290 1,328 1,182

Other Eastern HemisphereAfricaNigeria 389 414 375 257 288Gabon 36 35 35 46 56Cameroon 13 15 16 17 19Others – – – 2 3

438 464 426 322 366

Asia PacificMalaysia 189 175 173 174 160Brunei 189 193 198 189 182Australia 144 135 142 157 164New Zealand 55 60 68 108 111Others 32 28 29 18 12China 20 20 22 24 23Thailand – – 21 22 23

629 611 653 692 675

Middle EastOman 214 327 350 454 422Abu Dhabi 134 133 126 100 94Egypt 55 46 51 51 57Syria 39 37 46 52 51Russia 35 32 30 33 23Others 10 15 16 13 –

487 590 619 703 647

Total Other EasternHemisphere 1,554 1,665 1,698 1,717 1,688

USA 531 605 677 731 686

Other Western HemisphereCanada 110 117 124 125 134Brazil 34 51 18 8 7 Venezuela 14 22 46 46 44Others 8 8 6 5 5

166 198 194 184 190

Total production excluding oil sands 3,423 3,692 3,859 3,960 3,746

Oil sands 95 80 46 – –

Total 3,518 3,772 3,905 3,960 3,746million tonnes a year


a 5,800 million cubic feet of natural gas = one million barrels of oil equivalent.

Processingb

Natural gas processing plantsLocation, Group interest in plantsc and capacity (at December 31, 2005)

Group interest 100% capacity million% cubic feet daily d

EuropeNorway Kårstøe 4 3,108

Kollsnes 8 4,414UK Bacton, Norfolk 50 3,016

Mossmorran, Fifef 50 g

St Fergus, Aberdeenshire 50 1,162

Asia PacificAustralia Karratha

e22 2,200

New Zealand Oaonuie 83 465

Middle EastAbu Dhabi Asab 15 306

Bab 15 150Bu Hasa 15 512Ruwaisf 15 g

USAAlabama Yellowhammer 64 200

CanadaAlberta Burnt Timber 64 95

Caroline 56 129Jumping Poundf 78 151Watertonf 78 165Wildcat Hills 27 113

Nova Scotia Goldboro 24 565

b Plants with capacities of at least 100 million cubic feet daily of natural gas, and excluding basicseparation units.

c Percentage rounded to nearest whole percentage point where appropriate.d One million cubic feet is approximately equivalent to 26,700 cubic metres.e Landed gas capacity for LNG, domestic gas and LPG processing.f Plants with fractionation facilities.g Fractionation plants processing NGL feedstocks only.

Group share of equity accounted investments exploration and productionearnings

IFRSi US GAAPh

$ million

2005 2004 2003 2002 2001

Earnings before taxation 7,890 4,695 1,857 1,316 1,551Taxation 3,778 2,232 1,057 775 793

Earnings from operations 4,112 2,463 800 541 758

h Excludes certain financing costs and related tax effects.i In connection with the adoption of IFRS as of January 1, 2004, an entity that had previously been

accounted for as a Group company on a proportionate basis, has been instead accounted for asan equity accounted investment.



IFRS

$ million

2005 2004



Depreciation (290) (903)


Share of profit of equity accounted investments 999 1,142

Other income/(expense) 223 733

Taxation (41) 140





Employees 2 2

US GAAP

$ million

2003 2002 2001



Depreciation (116) (116) (106)

Operating expenses (1,141) (915) (821)

Share of operating profit of associated companies 871 729 919

Other income/(expense) 1,343 124 130

Taxation (454) (195) (368)

Segment earnings from continuing operations 2,270 747 1,199


Segment earnings 2,289 774 1,226

Capital investment 1,511 953 963



Employees 2 2 2

> Gas & Power liquefies and transportsnatural gas, and develops natural gasmarkets and related infrastructure.The business also markets and tradesnatural gas and electricity, andconverts natural gas to liquids toprovide clean fuels.

> We expect our LNG capacity to growan annual average of 14% across2004-2009.

> A number of new opportunities arealso emerging for application of Shellproprietary coal gasification process.

> Gas & Power operates in some 30countries and territories around theworld.

GAS & POWER


Gas & Power 47

Canada

USA

Latin AmericaBoliviaBrazilMexico

EuropeDenmarkGermanyGreeceItalyThe NetherlandsNorwaySpainTurkeyUK

AfricaAlgeriaEgyptGhanaLibyaNigeria

Middle EastOmanQatar

Commonwealth ofIndependent StatesRussia

Asia PacificAustraliaBruneiChinaIndiaJapanKoreaMalaysia

Countries in which Gas & Power operate

Liquefied natural gas (LNG) sales volumesmillion tonnes

2005 2004 2003 2002 2001

Australia 2.6 2.0 1.8 1.7 1.7Nigeria 2.3 2.4 2.1 1.5 1.5Oman 2.1 2.1 2.1 1.9 1.7Malaysia 2.0 1.9 1.5 2.3 2.3Brunei 1.7 1.8 1.8 1.7 1.7

Total 10.7 10.2 9.3 9.1 8.9

Processing (at December 31, 2005)LNG plants

Group 100% capacityinterest

amillion tonnes

Location % per yearb

Australia NWS Karratha 22 11.7Nigeria Bonny 26 13.6Oman Sur 30 6.6Oman (Qalhat) Sur 11 3.7Malaysia (Dua and Tiga) Bintulu 15 14.6Brunei Lumut 25 7.2

GTL plant (at December 31, 2005)Group interest %

a100% capacity bbl/day

b

Malaysia Bintulu 72 14,700

a Percentage rounded to nearest whole percentage point where appropriate.b As reported by the joint ventures (excluding the impact of Train 4 debottlenecking in Australia).



THIS PAGE INTENTIONALLY LEFT BLANK


Oil Products 49

IFRS

$ million

2005 2004



Depreciation (2,622) (3,357)


Share of profit of equity accounted investments 1,713 1,277

Other income/(expense) 69 61

Taxation (3,408) (2,440)





Product volumes 7,057 7,600


Employees 71 78

US GAAP

$ million

2003 2002 2001



Depreciation (2,717) (2,262) (1,617)

Operating expenses (14,167) (12,044) (8,490)

Share of operating profit of associated companies 910 554 234

Other income/(expense) (62) (57) (61)

Taxation (1,202) (1,021) (670)

Segment earnings from continuing operations 2,821 2,485 1,919


Segment earnings 2,860 2,627 1,970

Capital investment 2,405 7,968 1,527



Product volumes 7,445 7,399 6,143


Employees 82 75 58

> Oil Products businesses engage inrefining crude oil into a range ofproducts including fuels, lubricantsand petrochemicals, and marketing ofthe refined products.

> The Oil Products business operates theworld’s largest fuel retail network withsome 45,000 service stations.

> Oil Products operates in more than140 countries and territories aroundthe world.

OIL PRODUCTS



Countries in which Oil Products operate

Cost of crude oil processed or consumed(including upstream margin on crude supplied by Group and equity accounted investments inexploration & production)

IFRS US GAAP

$ per barrel

2005 2004 2003 2002 2001

48.24 37.22 26.75 24.35 23.56

Operable crude oil distillation capacityb

IFRS US GAAP

thousand barrels/calendar dayc,d

2005 2004 2003 2002 2001

Europe 1,822 1,835 1,808 1,809 1,400Other Eastern

Hemisphere 899 1,050 1,072 1,108 1,155USA 955 1,032 1,073 1,075 689Other Western

Hemisphere 350 350 361 395 398

4,026 4,267 4,314 4,387 3,642

Crude oil processede

IFRS US GAAP


2005 2004 2003 2002 2001


Hemisphere 802 942 916 870 933USA 855 950 974 996 624Other Western

Hemisphere 364 364 347 314 361

3,722 3,943 3,949 3,881 3,227

Group share of equity accounted invetments 455 451 515 473 480

Crude oil distillation unit intake as percentage of operable capacityf

IFRS US GAAP

%

2005 2004 2003 2002 2001

Europe 97 94 96 94 95Other Eastern

Hemisphere 92 91 89 84 90USA 88 91 89 91 91Other Western

Hemisphere 91 93 90 86 91

Worldwide 93 92 92 90 92

Refinery processing intakeg

IFRS US GAAP


2005 2004 2003 2002 2001

Crude oil 3,722 3,946 3,949 3,881 3,227Feedstocks 259 216 218 203 173

3,981 4,162 4,167 4,084 3,400


Hemisphere 849 962 956 941 1,018USA 953 1,055 1,079 1,064 663Other Western

Hemisphere 375 375 356 318 361

3,981 4,162 4,167 4,084 3,400million tonnes a year


Refinery processing outturnh

IFRS US GAAP

thousand barrels/calendar dayd

2005 2004 2003 2002 2001

Gasolines 1,492 1,542 1,575 1,537 1,242Kerosines 382 424 418 400 369Gas/Diesel oils 1,256 1,297 1,312 1,287 1,068Fuel oil 391 414 378 355 339Other products 567 557 550 546 417

4,088 4,234 4,233 4,125 3,435

a The basis for reporting from 2002 has been changed to reflect only those activities relating to theOil Products business; previously the volumes of the Mobil refinery in Alabama, a refinery ownedby Chemicals, was included within the US volumes. The 2001 figures have been restated on asimilar basis. Furthermore, from 2002 the US reported volumes include 100% of Shell Oil ProductsUS and 50% of Motiva; the 2001 figures have been restated in accordance with the ownershipinterests prevailing at that time.

b Group average operating capacity for the year and excluding mothballed capacity.c One barrel per day is equivalent to approximately 50 tonnes a year, depending on the specific

gravity of the crude oil.d The calendar day capacity is the actual barrels processed during the year (maximum sustainable

rate x utilisation) divided by the number of days in the year.e Including natural gas liquids; includes processing for others and excludes processing by others.f Including crude oil and feedstocks processed in crude oil distillation units, and based on calendar--

day capacities.g Including crude oil and natural gas liquids plus feedstocks processed in crude oil distillation units

and in secondary conversion units.h Excluding “own use” and products acquired for blending purposes.

REFININGa

Canada

USA

Latin AmericaArgentinaBelizeBoliviaBrazilChileColombiaCosta RicaEcuadorEl SalvadorGuatemalaGuyanaHondurasMexicoNicaraguaPanamaParaguayPeruSurinamUruguayVenezuela

The CaribbeanBahamasBarbadosBermudaBritish AntillesDominican RepublicFrench Antilles &GuianaGrenadaHaitiJamaicaNetherlands AntillesPuerto RicoSt. Kitts & NevisSt. LuciaSt. VincentTrinidad & Tobago

EuropeAustriaBelgiumBulgariaCroatiaCzech RepublicDenmarkEstoniaFinland

FranceGermanyGibraltarGreeceHungaryIcelandRepublic of IrelandItalyLatviaLithuaniaLuxembourgThe NetherlandsNorwayPolandPortugalRomaniaSerbia andMontenegroSlovakiaSloveniaSpainSwedenSwitzerlandTurkeyUkraineUK


Oil Products 51

Location, percentagea of Group financial interest and capacity of refineriesb,c,d

(at December 31, 2005)thousand barrels/calendar day

Group Capacity 100%*Refinery interestlocation % A B C D

EuropeCzech Republic Kralupy 16 62 – 24 –

Litvinov 16 101 14 – 25Denmark Fredericia 100 68 40 – –France Berre-l’Etang 100 80 – 19 –

Petit-Couronne 100 141 11 22 –Reichstett-Vendenheim 83 78 18 14 –

Germany Harburg 100 93 14 16 –Heide 100 83 14 – 16Miro 32 310 65 89 –Schwedt 38 220 47 50 –Rheinlande 100 327 50 – 79

The Netherlands Pernis 90 403 45 49 80Norway Mongstad 21 199 24 55 –Sweden Gothenburg 100 80 31 – –UK Eastham 50 20 – – –

Stanlow 100 270 – 68 –

AfricaAlgeriaBeninBotswanaBurkina FasoCameroonCape Verde IslandsCongoCote d’IvoireDemocratic Republicof CongoDjiboutiEgyptEritreaEthiopiaGabonThe GambiaGhanaGuineaGuinea-BissauKenyaLa RéunionLesothoMadagascarMaliMoroccoMozambiqueNamibiaNigeria

RwandaSenegalSouth AfricaSudanSwazilandTanzaniaTogoTunisiaUgandaZimbabwe

Middle EastIranJordanOmanSaudi ArabiaSyriaUnited Arab EmiratesYemen

Commonwealth ofIndependent StatesAzerbaijanKazakhstanRussiaTurkmenistan

Asia PacificAustraliaBrunei

CambodiaChina (includingHong Kong)Cook IslandsFijiGuamIndiaIndonesiaJapanLaosMalaysiaMauritiusNew CaledoniaNew ZealandPakistanPalauPapua New GuineaPhilippinesSaipanSingaporeSouth KoreaSri LankaTahitiTaiwanThailandTongaVanuatuVietnam

thousand barrels/calendar day


Other Eastern HemisphereAfricaCameroon Cape Limboh 8 41 – – –Côte d’lvoire Abidjan 7 67 – – 14Gabon Port Gentil 12 19 9 – –Kenya Mombasa 17 90 – – –Senegal Dakar 24 24 – – –South Africa Durban 50 169 25 34 –

Middle EastSaudi Arabia Al-Jubail 50 290 91 – 44

Asia PacificAustralia Clyde 100 78 – 35 –

Geelong 100 92 – 36 –Japan Obgimachi

(Showa Kawasaki) 35 110 – – –Mizue (Toa Kawasaki) 18 65 24 38 –Yamaguchi 13 110 – 25 –Yokkaichi 26 193 – 53 –

Malaysia Port Dickson 51 109 – 39 –New Zealand Whangarei 17 98 – – 28Pakistan Karachi 30 44 – – –Philippines Tabangao 67 102 29 – –Singapore Pulau Bukom 100 464 64 34 30

thousand barrels/calendar day


USACalifornia Martinez 100 158 48 71 40

Wilmington 100 100 40 36 32Louisiana Convent 50 235 – 85 45

Norco 50 220 21 105 32Texas Deer Park 50 334 88 70 56

Port Arthur 50 285 50 86 –Washington Puget Sound 100 149 26 58 –

Other Western HemisphereArgentina Buenos Aires 100 100 19 20 –Canada

Alberta Scotford 78 56 – – 58Ontario Sarnia 78 71 5 18 8Quebec Montreal East 78 121 15 27 13

DominicanRepublic Haina 50 31 – – –

El Salvador Acajutla 35 20 – – –

* Key

A=Atmospheric distillationB=Thermal cracking/visbreaking/cokingC=Catalytic crackingD=Hydrocracking

a Percentage rounded to nearest whole percentage point where appropriate.b Regional totals of Group company refineries calculated from above list may differ from

those reported on page 50 due to difference in capacity definitions. Daily signifies per calendar day.

c Excludes the base lube oil manufacturing facility in Taiwan.d Excludes mothballed capacity.e Godorf and Wesseling have been combined to form Rheinland in 2005.



Product volumese


2005 2004 2003 2002 2001

EuropeGasolines 569 576 616 647 531Kerosines 223 220 194 190 164Gas/Diesel oils 920 934 936 950 776Fuel oil 196 179 184 177 174Other products 185 203 207 209 207

2,093 2,112 2,137 2,173 1,852

Other Eastern Hemisphereb,c

Gasolines 318 337 315 332 328Kerosines 174 168 166 142 132Gas/Diesel oils 470 511 489 476 460Fuel oil 151 168 180 188 200Other products 119 136 138 149 138

1,232 1,320 1,288 1,287 1,258

USAGasolines 1,068 1,372 1,343 1,239 737Kerosines 236 258 212 221 138Gas/Diesel oils 368 430 430 401 266Fuel oil 107 209 189 105 65Other products 234 247 218 173 111

2,013 2,516 2,392 2,139 1,317

Other Western HemisphereGasolines 263 293 296 317 315Kerosines 74 73 72 74 80Gas/Diesel oils 251 249 243 246 252Fuel oil 77 85 86 92 100Other products 43 44 52 49 54

708 744 749 778 801

Export salesd

Gasolines 186 182 193 251 202Kerosines 104 114 154 155 154Gas/Diesel oils 287 274 213 222 194Fuel oil 313 208 181 196 168Other products 121 130 138 198 197

1,011 908 879 1,022 915

Total product salesGasolines 2,404 2,760 2,763 2,786 2,113Kerosines 811 833 798 782 668Gas/Diesel oils 2,296 2,398 2,311 2,295 1,948Fuel oil 844 849 820 758 707Other products 702 760 753 778 707

7,057 7,600 7,445 7,399 6,143

Sales by product as percentage of total product sales%

2005 2004 2003 2002 2001

Gasolines 34.1 36.3 37.1 37.7 34.4Kerosines 11.5 10.9 10.7 10.6 10.9Gas/Diesel oils 32.5 31.6 31.1 31.0 31.7Fuel oil 12.0 11.2 11.0 10.2 11.5Other products 9.9 10.0 10.1 10.5 11.5

100.0 100.0 100.0 100.0 100.0

Total oil sales volumese

Oil products by geographical areathousand barrels/day

2005 2004 2003 2002 2001

EuropeGermany 771 772 785 789 454France 268 275 283 299 306UK and Republic of Ireland 323 311 313 317 319The Netherlands 199 191 180 191 204Others 532 563 576 577 569

2,093 2,112 2,137 2,173 1,852

Other Eastern HemisphereAustralia 222 215 190 194 203Others 1,010 1,105 1,098 1,093 1,055

1,232 1,320 1,288 1,287 1,258

USA 2,013 2,516 2,392 2,139 1,317

Other Western HemisphereCanada 300 287 276 263 267Brazil 179 170 168 191 203Others 229 287 305 324 331

708 744 749 778 801

Export salesf 1,011 908 879 1,022 915

Total oil products 7,057 7,600 7,445 7,399 6,143Crude oil 3,695 5,160 4,769 5,025 4,461

Total oil sales 10,752 12,760 12,214 12,424 10,604million tonnes a year


a Sales figures exclude deliveries to other companies under reciprocal purchase and sale arrangements which are in the nature of exchanges. Sales of condensate and natural gas liquids are included.

b In Iran, a Group entity has a 61.57% interest in a joint venture that operates a lubricant oilblending plant and sells lubricants in Iran.

c The Group operates in Sudan through The Shell Company of the Sudan (Shell Sudan), which is anindirect wholly-owned subsidary of Royal Dutch Shell. Shell Sudan’s activities consists of the sale offules and lubricants to retail and commercial customers. Shell Sudan also sold aviation fuels priorto the disposition of this activity in 2005. The Shell Group does not hold any oil or gas reservesin Sudan.

d Export sales as percentage of total oil products sales amount to 14.3% in 2005, 11.9% in 2004,11.8% in 2003, 13.8% in 2002 and 14.9% in 2001.

e By country of destination, except where the ultimate destination is not known at the time of sale,in which case the sales are shown as export sales.

f Export sales as a percentage of total oil sales volumes amount to 9.4% in 2005, 7.1% in 2004,7.2% in 2003, 8.2% in 2002 and 8.6% in 2001.

OIL SALESa


Oil Products 53

RevenueIFRS US GAAP

$ million

2005 2004 2003 2002 2001

by productGasolines 62,189 55,594 44,830 38,861 30,455Kerosines 21,775 16,308 10,826 9,170 8,710Gas/Diesel oils 63,357 48,304 35,344 28,077 25,735Fuel oil 13,218 9,688 8,424 6,591 5,900Other products 17,505 15,279 13,834 11,420 9,845

Total oil products 178,044 145,173 113,258 94,119 80,645

by geographical areaEurope 55,968 44,010 35,618 30,228 25,077Other Eastern Hemisphere 31,705 25,725 19,957 16,801 17,371USA 49,574 46,500 34,533 26,200 17,199Other Western Hemisphere 19,957 15,116 12,751 10,836 12,118Export sales 20,840 13,822 10,399 10,054 8,880

Total oil products 178,044 145,173 113,258 94,119 80,645

Average product revenueIFRS US GAAP

$ per barrel

2005 2004 2003 2002 2001

by productGasolines 70.88 55.03 44.46 38.22 39.50Kerosines 73.52 53.52 37.18 32.12 35.70Gas/Diesel oils 75.61 55.04 41.90 33.52 36.19Fuel oil 42.91 31.17 28.14 23.82 22.85Other products 68.29 54.95 50.30 40.21 38.14

Total oil products 69.12 52.19 41.68 34.85 35.96

by geographical areaEurope 73.21 56.93 45.67 38.11 37.09Other Eastern Hemisphere 70.52 53.30 42.45 35.77 37.83USA 67.48 50.48 39.56 33.55 35.78Other Western Hemisphere 77.28 55.51 46.64 38.18 41.47Export sales 56.48 41.57 32.41 26.95 26.59

Total oil products 69.12 52.19 41.68 34.85 35.96

OIL SALESa

number of ships million deadweight tonnes2005 2004 2003 2002 2001 2005 2004 2003 2002 2001

Owned/demise-hiredVLCCs (very large crude carriers over 160,000 dwt) 4 5 7 7 7 1.2 1.5 2.1 2.1 2.1Large range (45,000 to 160,000 dwt) 13 11 13 16 16 0.8 0.7 0.9 1.3 1.3Medium range (25,000 to 45,000 dwt) 5 5 5 5 6 0.2 0.2 0.2 0.2 0.2General purpose (10,000 to 25,000 dwt)/Specialist) 5 2 3 2 2 0.1 0.1 0.1 0.1 0.1

27 23 28 30 31 2.3 2.5 3.3 3.7 3.7

Time-charteredb c

VLCCs (very large crude carriers over 160,000 dwt) 1 1 1 1 – 0.3 0.3 0.3 0.3 –Large range (45,000 to 160,000 dwt) 18 19 15 18 17 1.6 1.7 1.3 1.5 1.5Medium range (25,000 to 45,000 dwt) 14 8 13 15 7 0.5 0.3 0.5 0.6 0.3General purpose (10,000 to 25,000 dwt)/Specialist) 13 12 10 6 7 0.3 0.2 0.2 0.1 0.1

46 40 39 40 31 2.7 2.5 2.3 2.5 1.9

Total oil tankers 73 63 67 70 62 5.0 5.0 5.6 6.2 5.6

Owned/demise-hired under construction or on order (oil)d 1 3 – – – 0.1 0.3 – – –

Gas carriersa (at December 31)number of ships thousand cubic metres

2005 2004 2003 2002 2001 2005 2004 2003 2002 2001

Owned/demise-hired (LNG)e 6 6 5 4 2 797 797 662 522 253Time-chartered (LNG)e 1 1 – – – 145 145 – – –Owned/demise-hired (LPG) 0 1 1 1 1 0 60 59 59 59Time-chartered (LPG) 2 2 2 3 2 136 136 136 145 113

Total gas carriers 9 10 8 8 5 1,078 1,138 857 726 425

Owned/demise-hired under construction or on order (LNG)d – – 1 2 4 – – 135 277 556

a Oil tankers, ocean going articulated tug barges and gas carriers of 10 kdwt and above which are owned/chartered by Group companies where the Group equity shareholding is at least 50%.b Time-chartered oil tankers include Consecutive Voyage Charters. c Contracts of affreightment are not included.d Owned/demise hired newbuilding contracts not in service but due for delivery post December 31, 2005.e LNG carriers reported in Gas & Power sector.

SHIPPINGOil tankersa (at December 31)



IFRS

$ million

2005 2004



Depreciation (599) (695)


Share of profit of equity accounted investments 423 437

Other income/(expense) (9) (25)

Taxation (335) (300)

Segment earnings from continuing operations 1,298 1,347

Income/(loss) from discontinued operations (307) (199)

Segment earnings 991 1,148

Capital investment 599 868


thousand tonnes

Sales volumes 22,826 24,160


Employees 8 8

US GAAP

$ million

2003 2002 2001



Depreciation (678) (401) (404)

Other cost of sales (2,234) (1,518) (1,866)

Operating expenses (1,065) (815) (973)

Share of operating profit of equity accounted investments (165) 213 (27)

Other income/(expense) (43) (13) (4)

Taxation 111 (73) 192

Segment earnings (209) 565 127

Capital investment 599 998 760


thousand tonnes

Sales volumes 23,108 21,393 18,878


Employees 9 9 9

CHEMICALS

> Chemicals produce and sellpetrochemicals to industrial customersglobally. The products are widelyused in plastics, coating anddetergents, which in turn are used initems such as textiles, medicalsupplies and computers.

> Chemicals operate in some 36countries and territories around theworld.


Chemicals 55

Revenue by geographical areaa

IFRS US GAAP

$ million

2005 2004 2003 2002 2001

Europe 8,981 7,873 5,617 3,994 3,734Other Eastern Hemisphere 4,640 4,530 3,092 2,324 1,642USA 6,564 6,159 4,369 3,548 3,419Other Western Hemisphere 735 616 486 379 283

Total chemical products net proceeds 20,920 19,178 13,564 10,245 9,078Non-chemical products 2,998 2,311 1,622 1,245 1,538

23,918 21,489 15,186 11,490 10,616

Sales volumes by main product categoryb

IFRS US GAAP

thousand tonnes

2005 2004 2003 2002 2001

Base chemicals 13,710 14,184 13,165 10,031 8,760First-line derivatives 8,891 9,499 9,779 9,595 8,849Other 225 477 164 1,767 1,269

22,826 24,160 23,108 21,393 18,878

Sale volumes by regiona

IFRS US GAAP

thousand tonnes

2005 2004 2003 2002 2001

Europe 10,018 10,159 9,902 9,077 8,408Other Eastern Hemisphere 5,252 5,526 5,397 4,672 3,732USA 6,893 7,819 7,108 6,970 6,239Other Western Hemisphere 663 656 701 674 499

22,826 24,160 23,108 21,393 18,878

Ethylene capacityc Group and equity accounted investmentsIFRS US GAAP

2005 2004 2003 2002 2001

Nominal capacity (thousand tonnes/year) 6,414 6,701 6,203 6,023 5,586Capacity utilisation (%) 86 87 90 92 87

Canada

USA

Latin AmericaArgentinaBrazilChileColombiaMexicoVenezuela

The CaribbeanJamaicaPuerto Rico

EuropeDenmarkFranceGermanyGreeceItalyThe NetherlandsPolandSpainSwitzerlandTurkeyUK

AfricaKenyaSouth Africa

Middle EastSaudi ArabiaUnited ArabEmirates

Asia PacificAustraliaChinaJapanMalaysiaNew ZealandPhilippinesSingaporeSouth KoreaTaiwanThailandVietnam

Countries in which Chemicals operate



a Excluding proceeds from equity accounted investments and chemical feedstock trading.b Excluding volumes sold by equity accounted investments, chemical feedstock trading and by-products.c Data includes Group share of capacity entitlement (offtake rights) that may be different from nominal Group equity interest.d Percentage rounded to the nearest percentage point where appropriate. In locations where the Group’s financial interest varies between plants, the range of these interests is indicated.e Based on the sum of the 100% capacities of processes yielding base, first-line derivatives and other and Group ownership as at December 31, 2005.

Manufacturing: location of principal plants and products (at December 31, 2005)Group Combinedinterest capacity

Products* %d categorye

EuropeFrance Berre 1,2 100 MediumGermany Godorf 1 100 Medium

Heide 1 100 MediumWesseling 1 100 Major

The Netherlands Moerdijk 2 100 MajorPernis 1,2 100 Major

UK Carrington 2 100 MediumFEP 1 50 MediumStanlow 1,2,3 100 MajorWilton 2 45–100 Medium

Other Eastern HemisphereAustralia Geelonge 1,2 100 MediumSaudi Arabia Al-Jubail 1,2 50 MajorSingapore Jurong Island

(Ayer Merbau) 1,2,3 30–70 MajorJurong Island (Seraya) 2 50–100 MajorPulau Bukom 1 100 Medium

Group Combinedinterest capacity

Products* %d categorye

USAAlabama Mobile 1 100 MajorLouisiana Geismar 2 100 Major

Norco 1,3 100 MajorTexas Deer Park 1,2,3 100 Major

Port Arthur 1 62 Medium

Other Western HemisphereCanada

Alberta Scotford 2 100 MediumOntario Sarnia 2,3 50–100 Medium

Puerto Rico Yabucoa 1 100 Major* KeyProducts Combined capacity categoriese

1 Base Major: exceeds one million tonnes per annum.2 First-line derivatives Medium: between approximately one hundred thousand and 3 Other (including one million tonnes per annum.

divested businesses Plants with a combined capacity of less than approximately oneand polyolefins) hundred thousand tonnes per annum are not included in this table.

CHEMICALS


57

Other industry segmentsIFRS

$ million

2005 2004

Segment earnings (202) (145)

Capital investment 345 243

Capital employed 171 489

US GAAP

$ million

2003 2002 2001

Segment earnings (267) (110) (287)

Capital investment 442 578 340

Capital employed 864 1,611 1,815

OTHERINDUSTRYSEGMENTS

> Other Industry Segments includeRenewables and Hydrogen.

> Renewables develop business basedon renewable sources of energy,including wind and solar power.

> Hydrogen develop businessopportunities in hydrogen and fuel celltechnology.

> Other industry segments operate insome 13 countries around the world.

USA

Latin AmericaBrazil

EuropeFranceGermanyThe NetherlandsUK

AfricaSouth Africa

Asia PacificIndiaIndonesiaJapanPhilippinesSingaporeSri Lanka

Countries in which other industry segments operate

Research and development expenditureIFRS US GAAP

$ million

2005 2004 2003 2002 2001

Total (including depreciation) 588 553 584 472 387

50040 Shell 5 Year_57.qxd 26/5/06 11:10 am Page 57


Financial year ends December 31, 2005

AnnouncementsFull year results 2005 February 2, 2006First quarter results 2006 May 4, 2006Second quarter results 2006 July 27, 2006Third quarter results 2006 October 26, 2006

Dividends – Ordinary shares Class A and Class B including ADRs2005 Fourth quarter interim*Announced February 2, 2006Ex-dividend date February 8, 2006Record date February 10, 2006Payment date March 15, 2006

2006 First quarter interimAnnounced May 4, 2006Ex-dividend date May 10, 2006Record date May 12, 2006Payment date June 14, 2006

2006 Second quarter interimAnnounced July 27, 2006Ex-dividend date August 2, 2006Record date August 4, 2006Payment date September 13, 2006

2006 Third quarter interimAnnounced October 26, 2006Ex-dividend date November 1, 2006Record date November 3, 2006Payment date December 13, 2006

Annual General Meeting May 16, 2006

*The Directors do not propose to recommend any further distribution in respect of 2005.

Registered OfficeRoyal Dutch Shell plcShell Centre, London SE1 7NAUK

Registered in EnglandNumber 4366849

HeadquartersCarel van Bylandtlaan 302596 HR, The HagueThe Netherlands

Share RegistrarLloyds TSB RegistrarsThe Causeway, Worthing West Sussex BN99 6DAUKFreephone: 0800 169 1679 (UK only)Tel: +44 (0)121 415 7073Fax: +44 (0)870 600 3980website: www.shareview.co.ukfor online information about your holding. (Shareholder reference numberwill be required – shown on your share certificates, tax vouchers or yourShell Nominee Statement.)

American Depositary Receipts (ADRs)The Bank of New YorkShareholder ServicesPO Box 11258Church Street Station, New York NY 10286–1258 USATel: 888 737 2377 (USA only)Tel: +1 212 815 3700 (international)e-mail: [email protected]: www.stockbny.com

Corporate ISA/PEPBNP Paribas Securities ServicesBlock C, Western HouseLynchwood Business ParkPeterborough PE2 6BPUKTel: +44 (0)845 358 1102

Investor RelationsEnquiries from institutional shareholders may be addressed to:

LondonRoyal Dutch Shell plcInvestor RelationsShell Centre, London SE1 7NAUKTel: +44 (0)20 7934 3856Fax: +44 (0)20 7934 3702e-mail: [email protected]

The HagueRoyal Dutch Shell plcInvestor RelationsPO Box 162 2501 AN, The HagueThe NetherlandsTel: +31 (0)70 377 4540Fax: +31 (0)70 377 3115e-mail: [email protected]

New YorkShell Oil CompanyInvestor Relations630 Fifth AvenueSuite 3166New York, NY 10011 USATel: +1 212 218 3113Fax: +1 212 218 3114e-mail: [email protected]

For access to investor relations information, visit the website atwww.shell.com/investor

CONTACT DETAILS

FINANCIAL CALENDAR

50040 Shell 5 Year_58.qxd 25/5/06 1:30 pm Page 58

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