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Shell’s Robust Upstream Portfolio: Poised for Growth

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Shell’s growing upstream portfolio

Royal Dutch Shell’s (RDS.A) upstream portfolio comprises shale, integrated gas, conventional oil and gas, and deepwater assets. In these categories, Shell has several projects at various phases of development that are expected to bring growth to the company in 2018 and 2019.

As shown in the chart above, Shell’s (RDS.A) projects are expected to contribute more than 700 Mboepd (thousand barrels of oil equivalent per day) of new production net to Shell in 2018 and 2019. Shell also has projects under construction, which are expected to deliver 200 Mboepd of new production to the company by 2020.

Shell has announced several FIDs (final investment decisions) that are expected to produce more than 200 Mboepd of hydrocarbons. This includes promising projects such as Vito in the Gulf of Mexico, which is expected to have peak production of 100 Mboepd. Shell has a 63.0% stake in the Vito project.

Shell has numerous projects in the pre-FID phase that have the potential to deliver more than 500 Mboepd of new production to the company.

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Projects to deliver growth in 2018 and 2019

In 2018 and 2019, Shell (RDS.A) expects multiple projects to begin production. Kaikias Phase One is a mega project that has already started production in 2018. Shell expects new projects in the Permian Basin, Fox Creek, and Brazil’s pre-salt region to add to the hydrocarbon production this year.

Tempa Rossa is expected to begin production in 2018, and the Appomattox project is expected to start production by the end of 2019. Shell has other major projects expected to start production in 2018 and 2019, which include significant projects with peak production levels greater than 150 Mboepd.

Shell’s Q2 2018 production compared to its peers

In the second quarter, Shell (RDS.A) produced 3.4 MMboepd (million barrels of oil equivalent per day) from its worldwide operations. In the second quarter, ExxonMobil (XOM) produced 3.7 MMboepd. Chevron (CVX) and BP (BP) recorded second-quarter production of 2.8 MMboepd and 2.5 MMboepd, respectively.

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