ROYAL DUTCH SHELL PLC UNEP REPORT AND RESPONSE

Transcription

1 ROYAL DUTCH SHELL PLC UNEP REPORT AND RESPONSE PORT HARCOURT OCTOBER 10, 2012 Copyright of Royal Dutch Shell plc 10 October

2 UNEP REPORT AND RESPONSE AUGUSTINE IGBUKU MANAGER OGONI RESTORATION PROJECT Copyright of Royal Dutch Shell plc 10 October

3 CAUTIONARY NOTE The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate entities. In this presentation Shell, Shell group and Royal Dutch Shell are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words we, us and our are also used to refer to subsidiaries in general or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies. Subsidiaries, Shell subsidiaries and Shell companies as used in this presentation refer to companies in which Royal Dutch Shell either directly or indirectly has control, by having either a majority of the voting rights or the right to exercise a controlling influence. The companies in which Shell has significant influence but not control are referred to as associated companies or associates and companies in which Shell has joint control are referred to as jointly controlled entities. In this presentation, associates and jointly controlled entities are also referred to as equity-accounted investments. The term Shell interest is used for convenience to indicate the direct and/or indirect (for example, through our 23% shareholding in Woodside Petroleum Ltd.) ownership interest held by Shell in a venture, partnership or company, after exclusion of all third-party interest. This presentation contains forward-looking statements concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements 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 current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements expressing management s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements 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 a number of factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this presentation, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell s products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including potential litigation and regulatory measures as a result of climate changes; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions. All forward-looking statements contained in this presentation are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional factors that may affect future results are contained in Royal Dutch Shell s 20-F for the year ended 31 December, 2011 (available at and ). These factors also should be considered by the reader. Each forward-looking statement speaks only as of the date of this presentation, 10 October Neither Royal Dutch Shell nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this presentation. There can be no assurance that dividend payments will match or exceed those set out in this presentation in the future, or that they will be made at all. We use certain terms in this presentation, such as resources, that the United States Securities and Exchange Commission (SEC) guidelines strictly prohibit us from including in filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No , available on the SEC website You can also obtain these forms from the SEC by calling SEC Copyright of Royal Dutch Shell plc 10 October

4 UNEP REPORT SPDC JV suspended oil production in Ogoniland in1993 Government appointed UNEP to carry out environmental assessment in 2007 UNEP environmental assessment 2009 to 2011 Presidential committee set up Aug 2011 to review report Federal Government set up the Hydrocarbon Pollution Restoration Programme (HYPREP) in July 2012 to implement the findings MAIN UNEP RECOMMENDATIONS OGONI COMMUNITY Take a pro-active stand against theft and refining Allow access to clean up spills OPERATORS (SPDC JV) Review procedures for clean-up and remediation Asset integrity management plan for Ogoniland Work with regulators on intervention vs. target values GOVERNMENT Establish restoration authority Establish funding for cleanup Build capacity of government agencies Copyright of Royal Dutch Shell plc 10 October

5 STATUS UPDATE ON SPDC COMMITMENTS Reviewed and updated the Remediation Management System (RMS) in line with industry best practice Reviewed clean up and remediation practices and confirmed that RENA is appropriate for the conditions in the Niger Delta Re-trained contractors and supervisors on clean up and remediation techniques and assigned dedicated supervisors to key project sites Completed a desk top inventory of assets in Ogoniland Industry and regulators discussed aspects of the environmental guidelines and we understand new guidelines will be issued SPDC JV is working with two organizations (Bureau Veritas & IUCN) to strengthen and provide further transparency around its environmental performance in the Delta as a whole Emergency measures: support government with water and public health Copyright of Royal Dutch Shell plc 10 October

6 UPDATE ON UNEP IMPLEMENTATION POTABLE WATER SUPPLY While awaiting the Federal Government s response, SPDC initiated an interim programme to address some of the actions in the report Partnership with River State government and regulatory agencies created an effective platform for implementing some of the emergency measures Temporary supply of potable water some 8million litres/month delivered by trucks Long term water supply strategy: construction of an integrated water supply scheme is nearing completion in Eleme LGA Working with Eleme LGA, warning signs have been installed in delineated contaminated sites and water wells Water trucks delivering potable water to one of the supply outlets Temporary potable water supply outlets installed in the community Construction of over head tank, ground tank & water treatment facility at Eleme Copyright of Royal Dutch Shell plc 10 October

7 UPDATE ON UNEP IMPLEMENTATION PUBLIC HEALTH COMMUNITY HEALTH OUTREACH SPDC JV rolled out a community health outreach to Ogoniland communities in June 2012 Run jointly by a team of medical staff from SPDC JV, Rivers state government and the Local Councils, health in motion will cover six local government areas (LGA) More than 27,000 people benefited from the first phase in three LGAs Health Service Rendered LGA Eleme Gokana Khana Total Total people registered No. of children dewormed Blood Pressure Checked Surgical Operations No Screened for HIV Malaria Parasite Testing Blood sugar testing Eye Screening No of eye glasses dispensed Dental Services Cervical examination Breast examination Copyright of Royal Dutch Shell plc 10 October

8 CURRENT REALITIES RE-POLLUTION OF OGONILAND IS ONGOING Crude oil theft and illegal refining activities remains a major source of pollution in Ogoniland and most of the Niger delta Communities yet to take a public stand against these illegal activities Sites previously cleaned up and remediated are being re-polluted Illegal tapping on oil pipeline by oil thieves Illegal tapping on oil pipeline Illegal refining activities Copyright of Royal Dutch Shell plc 10 October

9 SPDC ROADMAP FOR IMPLEMENTATION CONFIDENCE BUILDING Close out Emergency measures Integrate with HYPREP OPERATIONAL EXCELLENCE Implement & close out actions specific to SPDC Asset verification & decommissioning Review processes and procedures, leverage external verification ENVIRONMENTAL PERFORMANCE Clean up and remediate contaminated sites on SPDC JV right of way SUSTAINABLE FUTURE Construction of new TNP* CONSIDERATIONS Intensive stakeholder engagement Close out interim actions and integrate with HYPREP Implement asset verification and decommissioning plus other SPDC JV actions Align activities with transfer of operatorship and completion of new TNPL*: Divert SPDC JV crude export away from Ogoni wetlands Cut off feed crude to majority of illegal refining locations in Ogoniland * Trans Niger Pipeline replacement program not yet approved by government Copyright of Royal Dutch Shell plc 10 October

10 SPDC JV IN OGONILAND GOING FORWARD Aim to focus on the following key business areas: Clean up and remediation of SPDC JV RoW: close out legacy sites listed in UNEP report and newly impacted sites to date Asset inventory and decommissioning: complete asset inventory and decommission inoperable assets, restore facility sites Transfer of operatorship and construction of the new TNP* Portion of impacted areas at Ejamah-Ebubu war spill site taken 13/11/06 before remediation work Post remediation view of Ejama-Ebubu in June 2012 * TNP replacement program not yet approved by government Copyright of Royal Dutch Shell plc 10 October

11 UNEP REPORT AND RESPONSE QUESTIONS & ANSWERS Copyright of Royal Dutch Shell plc 10 October