Shell’s three-year strategic plan, outlined in 2010, is building the foundations for profitable growth for shareholders in the future. We are improving near-term competitive performance, and delivering a new wave of production growth.
Shell’s CEO Peter Voser commented “we’re making good progress in delivering our strategy. Shell’s decision to maintain investment in new projects in the 2009 downturn is driving growth in the company today.”
In Canada oil sands, we have progressed with ramping-up of the expansion project at our Scotford Upgrader, and ASOP-1 recently reached its full production level of 100,000 b/d. In Qatar, the Qatargas 4 LNG project reached production plateau earlier this year. Ramp up of Train 1 of the Pearl GTL project continues to make good progress, with Train 2 on track for start-up before year- end, as planned.
These three projects, representing some $30 billion of investment, underpin our targets for financial and production growth to 2012. We are on track to deliver our strategic targets for 50-80% growth in cash flow from operations from 2009 to 2012, driven by cost savings, operating performance, and an 11% increase in oil & gas production from one of the most substantial portfolios of new oil & gas projects in our industry today(1).
Building on this growth, the company has launched 14 further Upstream projects so far in 2010-11, which have a expected peak production of some 400,000 boe/d for Shell in the medium term, and underpinning our longer-term growth potential.
In Downstream, as we complete a major phase of asset sales, we are consolidating this reshaped portfolio, focusing on operating performance, and investing in selective growth, for example recently forming the Raìzen biofuels and marketing joint venture in Brazil.
Voser concluded “we’ve continued with our growth momentum by adding to Shell’s medium-term project pipeline, during a period where development costs have been attractive, in the recent downturn. The scale and integration of projects such as Pearl GTL, Raìzen biofuels and Prelude floating LNG are unique in our industry today, and are a solid platform to create long term value for our shareholders”.
