EWCAT (ELECTRONIC WELL CONTROL ASSURANCE TOOL) AND PROCESS SAFETY

eWCAT (ELECTRONIC WELL CONTROL ASSURANCE TOOL) AND PROCESS SAFETY USEPA HF Technica l Workshop, April 2013 Insert a Ma rco O p De Weegh Well Control & Design Integrity Tea m Lea d Copyright of Shell Explora tion & Production Compa ny, 2013 April 2013 1

DEFINITIONS AND CAUTIONARY NOTE The compa nies in which Roya l Dutch Shell plc directly a nd indirectly owns investments a re sepa ra te entities. In this presenta tion “Shell”, “Shell group” a nd “Roya l Dutch Shell” a re sometimes used for convenience where references a re ma de to Roya l Dutch Shell plc a nd its subsidia ries in genera l. Likewise, the words “we”, “us” a nd “our” a re a lso used to refer to subsidia ries in genera l or to those who work for them. These expressions a re a lso used where no useful purpose is served by identifying the pa rticula r compa ny or compa nies. ‘‘Subsidia ries’’, “Shell subsidia ries” a nd “Shell compa nies” a s used in this presenta tion refer to compa nies over which Roya l Dutch Shell plc either directly or indirectly ha s control. Compa nies over which Shell ha s joint control a re genera lly referred to “joint ventures” a nd compa nies over which Shell ha s significa nt influence but neither control nor joint control a re referred to a s “a ssocia tes”. In this presenta tion, joint ventures a nd a ssocia tes ma y a lso be referred to a s “equity-a ccounted investments”. The term “Shell interest” is used for convenience to indica te the direct a nd/ or indirect (for exa mple, through our 23% sha reholding in Woodside Petroleum Ltd.) ownership interest held by Shell in a venture, pa rtnership or compa ny, a fter exclusion of a ll third-pa rty interest. This presenta tion conta ins forwa rd-looking sta tements concerning the fina ncia l condition, results of opera tions a nd businesses of Roya l Dutch Shell. All sta tements other tha n sta tements of historica l fa ct a re, or ma y be deemed to be, forwa rd-looking sta tements. Forwa rd-looking sta tements a re sta tements of future expecta tions tha t a re ba sed on ma na gement’s current expecta tions a nd a ssumptions a nd involve known a nd unknown risks a nd uncerta inties tha t could ca use a ctua l results, performa nce or events to differ ma teria lly from those expressed or implied in these sta tements. Forwa rd-looking sta tements include, a mong other things, sta tements concerning the potentia l exposure of Roya l Dutch Shell to ma rket risks a nd sta tements expressing ma na gement’s expecta tions, beliefs, estima tes, foreca sts, projections a nd a ssumptions. These forwa rd-looking sta tements a re identified by their use of terms a nd phra ses such a s ‘‘a nticipa te’’, ‘‘believe’’, ‘‘could’’, ‘‘estima te’’, ‘‘expect’’, ‘‘goa ls’’, ‘‘intend’’, ‘‘ma y’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘pla n’’, ‘‘proba bly’’, ‘‘project’’, ‘‘risks’’, “schedule”, ‘‘seek’’, ‘‘should’’, ‘‘ta rget’’, ‘‘will’’ a nd simila r terms a nd phra ses. There a re a number of fa ctors tha t could a ffect the future opera tions of Roya l Dutch Shell a nd could ca use those results to differ ma teria lly from those expressed in the forwa rd-looking sta tements included in this presenta tion, including (without limita tion): (a ) price fluctua tions in crude oil a nd na tura l ga s; (b) cha nges in dema nd for Shell’s products; (c) currency fluctua tions; (d) drilling a nd production results; (e) reserves estima tes; (f) loss of ma rket sha re a nd industry competition; (g) environmenta l a nd physica l risks; (h) risks a ssocia ted with the identifica tion of suita ble potentia l a cquisition properties a nd ta rgets, a nd successful negotia tion a nd completion of such tra nsa ctions; (i) the risk of doing business in developing countries a nd countries subject to interna tiona l sa nctions; (j) legisla tive, fisca l a nd regula tory developments including regula tory mea sures a ddressing clima te cha nge; (k) economic a nd fina ncia l ma rket conditions in va rious countries a nd regions; (l) politica l risks, including the risks of expropria tion a nd renegotia tion of the terms of contra cts with governmenta l entities, dela ys or a dva ncements in the a pprova l of projects a nd dela ys in the reimbursement for sha red costs; a nd (m) cha nges in tra ding conditions. All forwa rd-looking sta tements conta ined in this presenta tion a re expressly qua lified in their entirety by the ca utiona ry sta tements conta ined or referred to in this section. Rea ders should not pla ce undue relia nce on forwa rd-looking sta tements. Additiona l risk fa ctors tha t ma y a ffect future results a re conta ined in Roya l Dutch Shell’s 20-F for the yea r ended December 31, 2012 (a va ila ble a t www.shell.com/ investor a nd www.sec.gov ). These risk fa ctors a lso expressly qua lify a ll forwa rd looking sta tements conta ined in this presenta tion a nd should be considered by the rea der. Ea ch forwa rd-looking sta tement spea ks only a s of the da te of this presenta tion, 16 th & 17 th of April, 2013. Neither Roya l Dutch Shell plc nor a ny of its subsidia ries underta ke a ny obliga tion to publicly upda te or revise a ny forwa rd-looking sta tement a s a result of new informa tion, future events or other informa tion. In light of these risks, results could differ ma teria lly from those sta ted, implied or inferred from the forwa rd-looking sta tements conta ined in this presenta tion. We ma y ha ve used certa in terms, such a s resources, in this presenta tion tha t United Sta tes Securities a nd Excha nge Commission (SEC) strictly prohibits us from including in our filings with the SEC. U.S. Investors a re urged to consider closely the disclosure in our Form 20-F, File No 1-32575, a va ila ble on the SEC website www.sec.gov. You ca n a lso obta in these forms from the SEC by ca lling 1-800-SEC-0330. Copyright of Shell Exploration & Production Company, 2013 2

AGENDA HSSE & SP CF, Process & Persona l Sa fety . . 1 min Process Sa fety, Wells Sta nda rds – Dem 1 & 2 . 2 min Well Delivery Process & Bow-tie methodology (well life cycle) 2 min PCM – eWCAT . 2 min P&ID’s .1 min Equipment, Personnel & Ba rrier Verifica tion Pla ns (BVP) . 2 min CO C & CO S 3 min Complia nce in eWCAT 2 min Q uestions . ? Total: 15 min Copyright of Shell Exploration & Production Company, 2013 April 2013 3

HSSE & SP CONTROL FRAMEWORK, PROCESS SAFETY & PERSONAL SAFETY Addressing Wellbore Integrity in Pra ctice Shell Control Fra mework Copyright of Shell Exploration & Production Company, 2013 April 2013 4

PROCESS SAFETY IN WELLS Prevention of potentia l ma jor industria l incidents ca used by unintended relea se of energy or ha za rdous substa nces Well Process Sa fety Process Sa fety Pyra mid Potentia l ha za rds a ssocia ted with well control, wellbore integrity & conta inment Potentia l incidents rela ting to well control & loss of well integrity Loss of prima ry well control Design loa d ca se exceeded Single ba rrier fa ilures Unintended relea se of well effluents O ther releva nt incidents Incidents sha ll be RAM-cla ssified & followed-up a ccordingly Copyright of Shell Exploration & Production Company, 2013 April 2013 5

PROCESS & PERSONAL SAFETY DEM 2 : Process safety basic requirement to prevent re-occurrence of incident. Process Safety Basic Requirements (PSBR) Currently 11 PSBR’s: PSBR 1 Safe siting of occupied portable buildings PSBR 2 ESD valves on platform risers PSBR’s (Process Safety Basic Requirements) , “SHALL” sta tement [PS] PSBR 3 Temporary refuges PSBR 4 Permit To Work PSBR 5 Management Of Change DEM 1 & WS’s: Wells Sta nda rds (WS), DEP’s (Shell Design a nd Engineering Pra ctices), PSBR 6 Avoid liquid release relief to atmosphere PSBR 7 Avoid tank overfill followed by vapour cloud release PSBR 8 Avoid brittle fracture of metallic materials PSBR 9 Alarm management - Exa mple: PCM (Pressure Control Ma nua l) & CTDM (Ca sing Tubing Design Ma nua l), “sha ll”, ma nda tory Copyright of Shell Exploration & Production Company, 2013 PSBR 10 Sour Gas (H2S) PSBR 11 Deepwater Well Design and Construction April 2013 6

WELL DELIVERY PROCESS & BOW-TIE METHODOLOGY (WELL LIFE CYCLE) Well Delivery Process: Bowties: Copyright of Shell Exploration & Production Company, 2013 April 2013 7

eWCAT (PROCESS SAFETY) CTDM (Casing Tubing Design Manual): Process Sa fety requirements: Ba rrier Policy Design Process Ma teria l, pipe body, connection (selection) Design loa d scena rio’s; conditions for ca sing & tubing. Design Check equa tions (Ca sing / tubula r limita tions vs. conditions) Design Fa ctors (a ddressing uncerta inty loa d vs. ca pa city) for: Running-Tension Running – Compression Colla pse Tri-a xia l Burst Supplementa ry & Specific well design requirements Copyright of Shell Exploration & Production Company, 2013 eWCAT is Shell’s electronic Well Control Assura nce Tool April 2013 8

eWCAT (PROCESS SAFETY) PCM (Pressure Control Manual): Process sa fety requirements: Policy, Procedures & Pra ctices for well control (well construction pha se) eWCAT Implementa tion: Uploa d templa te (s) Equipment (“wa lk the line”) Personnel (contra ctor & Shell personnel WC certifica tion) Ba rrier dia gra m(s) / Verifica tion pla n, (prima ry & seconda ry ba rriers) Well Control Model (Min. equipment, tests frequency & scope) Copyright of Shell Exploration & Production Company, 2013 eWCAT is Shell’s electronic Well Control Assura nce Tool April 2013 9

eWCAT APPLIES TO ALL RESERVOIR HYDROCARBON WETTED PRESSURE CONTAINING SYSTEMS PCM (Pressure Control Manual): WCM: Ba rrier Dia gra ms / Verifica tion Pla ns Well Control Model PCM Non-Prima ry Sta ndpipe ma nifold Equipment scope (Drilling) Flow Wetted Kelly hose top drive / kelly Equipment MG S Mud pump C&K ma nifold WCM Min. equipment scope Control Unit (s) Prima ry Flow Wetted Equipment BO P Copyright of Shell Exploration & Production Company, 2013 Note: These examples are for illustrative purposes only, and are April 2013 not intended to cover all equipment, sites or situations. 10

eWCAT / P&IDs Implementation: P&ID Dia gra ms Copyright of Shell Exploration & Production Company, 2013 Note: This example is for illustrative purposes only, and is not intended to cover all equipment, sites or situations April 2013 11

eWCAT / BARRIER VERIFICATION PLANS Implementation: Ba rrier dia gra m / verifica tion pla n(s), (prima ry & seconda ry ba rriers for opera tiona l scopes, Norsok D010-rev.3) Ba rrier verifica tion test(s) Copyright of Shell Exploration & Production Company, 2013 Note: This example is for illustrative purposes only, and is not intended to cover all equipment, sites or situations April 20 13 12

EWCAT / COC & COS Certifica te of Compa tibility Certifica te of Complia nce Certifica te of Conforma nce (CO C) Certifica te of Service (CO S) Copyright of Shell Exploration & Production Company, 2013 April 2013 13

COMPLIANCE IN EWCAT Well Control Equipment Inventory Work Unit Equipment Configura tion Equipment certifica tion complia nce Test reports Well Control Test complia nce Role a ssignments Personnel tra ining certifica tion Personnel certifica tion complia nce Ba rrier verifica tion pla ns (well design / well control) Ba rrier verifica tion tests (cement, ca sing, lea k-off etc) Copyright of Shell Exploration & Production Company, 2013 Ba rrier Verifica tion complia nce Complia nce to Well Control Model

Q &A Copyright of Shell Exploration & Production Company, 2013 April 2013 15

KEY MESSAGES Process Sa fety Well life cycle Well bore integrity, ba rriers & verifica tion eWCAT (electronic Well Control Assura nce Tool) Copyright of Shell Exploration & Production Company, 2013 April 2013 16

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