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Welcometo

Houston!

Copyright of Shell International B.V. 06/2011

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ENERGY FOR A CHANGING WORLD

An introduction to Shell

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Source: 2010 Annual Report and Form 20-F

Profile

We are active in more than 90 countriesWorldwide, we have 93,000 full-time employees

Our fuel retail network has around 43,000 service stationsIn a year, we sell 145 billion litres of fuel to our customers

In 2010 we…produced 3.3 million barrels of oil equivalent per day;generated earnings of $20.5 billion;spent $23.7 billion on net capital investment; andspent over $1.0 billion on R&D

Royal Dutch Shell plc is listed on the stock exchanges of Amsterdam, London and New York

Copyright of Royal Dutch Shell plc 4Copyright of Shell International B.V. 06/2011

OUR BUSINESS ENVIRONMENT

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The energy challenge

Source: World Energy Outlook 2009

RISING GLOBAL ENERGY DEMAND100 = world primary energy demand in 2000

2000 20300

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

Coal Oil Gas Nuclear Hydro Biomass Other

CHANGING ENERGY MIXMillion tonnes of oil equivalent

2000 2015 20300

50

100

150

200

high

lowhigh

low

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Shell in the U.S.

Shell has significant oil and gas production in the U.S.

The Gulf of Mexico accounts for 55% of Shell’s U.S. production or about 250,000 barrels per day.

With about 1,600 full-time & contract employees in the Gulf, Shell operates• six major offshore facilities• 13 manned platforms• one spar • and numerous subsea systems in the GOM.

Shell has substantial and growing onshore oil gas portfolio in the U.S.; and is using advances in proven technologies to tap rich resources like “tight” gas locked in shale formations

In the summer of 2012, Shell has plans to explore offshore Alaska where the resource potential is estimated to be world-class.

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Shell in the U.S.

Shell owns and operates three refineries in the U.S. with a combined capacityof approximately 591,000 barrels per day.

Motiva, a Shell joint venture, owns and operates three refineries with a combined capacity of 731,000 barrels per day.

In addition, Shell has four U.S. plants that manufacture 20 billion pounds of chemicals annually for industrial use.

Shell is actively considering a number of projects to use US-produced natural gas, such as the construction of a new chemical manufacturing facility, a Gas-To-Liquids (GTL) facility, and micro-LNG plants to support the use of Liquid Natural Gas (NLG) in the transportation sector.

Shell is also Involved in eight wind projects in North America.

803/2011

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2012 US National Oil Bargaining - Outcomes

Corporate IR

Internal Communication

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Topics for Discussion

Background: US Oil Industry Pattern Bargaining

Context Setting: The Year Leading Up to Negotiations Dramatic Events and Volatility Significant Economic, Political and Company

Changes Key Factors Impacting Oil Industry Bargaining

The USW’s Bargaining Agenda The Settlement Outcomes

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US Oil Industry Pattern Bargaining History

Prior to 1966, Industry companies bargained with the Union locally and independently

In 1966, the common expiration date was established which highlighted the beginning of:—“Pattern Bargaining”

—“Lead Company” concept

Amoco and Gulf were lead companies from 1966-1997

Shell became Lead Company in 1997 bargaining:—Extension from 1998-2002

—Contract from 2002-2006

—Extension from 2006-2009

—Contract from 2009-2012

—Contract from 2012 – 2015

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Years Leading Up To Negotiations – Dramatic And Volatile Events

Turmoil in the Middle East

Occupy Wall Street

Japan Fukushima

Daiichi Nuclear

Disaster

Nation Budget Woes

Unemployment

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2011 – US Political Backdrop

Keystone Pipeline Politics

Congressional Budget Battles

Election Year Primaries

State Union Budget Battles

NLRB-Boeing fight called evidence of 'jobs blocking agenda'

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Key Factors Impacting 2012 Oil Industry Bargaining

Continued USW International Influence

BP Texas City Refinery Explosion

Deteriorating Economic Conditions from 2009 - 2010

Signs of Recovery in 2011

Overcapacity in the Refining business

Labor Movement – Increased Pressure on Public Sector Unions —States attempting to strip Collective Bargaining rights of Unions—Unions fight for survival, lowest membership numbers in US history

2012 Presidential & Congressional Elections—Potential shifts in political power in Congress and possibly the White House —Negative public perception of the industry (rising gasoline prices and industry

profits)—Democratic Pro Labor National Labor Relations Board (NLRB)

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Centerpieces of 2011-12 USW National Oil Bargaining Policy

Process Safety —Strong union effort to convince the public that the industry has not

done enough to address process safety concerns—Aggressively pursue enforceable Health and Safety language

Wages—“Substantial Increases”

Health Care —Strong union effort to resist further cost shifting to the employees

they represent and/or reduction in benefit levels

5:00 p.m. Tuesday, January 31, 2012

National Oil Bargaining Agreement

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2012 National Oil BargainingSummary of Significant Settlement Elements

Element Settlement

Contract Term3 Years (2/1/2012 – 1/31/2015)

Wage Increases 2.5%, 3.0%, 3.0%

Process Safety Letter Agreement

Healthcare80/20 premium sharing arrangement renewed

No Retrogression Renewed