Shell Exploration & Production Company SHELL ALASKA VENTURE BEAUFORT & CHUKCHI SEAS EXPLORATION DRILLING PROGRAM SAFETY AND THE ENVIRONMENT November 2012 Susan Childs Alaska Venture Support Integrator, Manager

2 CHUKCHI AND BEAUFORT SEAS Torpedo Sivulliq Burger Shell Exploration & Production Company

3 REVIEW OF 2012 ACTIVITIES Chukchi Sea Completed 1 tophole at Burger A Will return in 2013 to complete and continue drilling Beaufort Sea Completed 1 tophole at Sivulliq N Will return in 2013 to complete and continue drilling CDU Kulluk Shell Exploration & Production Company

LOGISTICS FLEET TO SUPPORT 2 DRILLING RIGS IN 2012

Safeguards Implemented Our ice management plan and critical operations curtailment plan were successful in keeping our assets, people and the environment safe while dealing with the ice; also our ice and weather forecasting were outstanding and provided the assurance we needed to keep all vessels working and out of harms way. A real time ice and weather forecasting system enables Shell to determine “real time” issues that are on the horizon well before a reaction is needed. We have trained 2,500+ employees to adhere to our Health, Safety, Security and Environmental standards to prevent unsafe behaviors that result in accidents and potential environmental impacts. 9 Communication Centers activated to ensure subsistence users were aware of where Shell’s operations and so Shell would know where subsistence users were at any given time. 11 Subsistence Advisors were employed from St. Lawrence Island east to Kaktovik to help Shell mitigate potential impacts from operations. 5 Community Liaison Officers were on board to help communities understand Shell and operations that were taking place. Real Time Operating Centers to monitoring drilling activities downhole which allows Shell to respond to potential issues rather than react. Protected Species Observers on all Shell assets including aviation to help collect data and monitor to avoid impacts. Advanced Data Acquisition Manager (ADAM) keeps track of all vessels offshore and aviation assets as well as weather data points, i.e. sea ice analyses.

Shell Exploration & Production Company ADVANCED DATA ACQUISITION MANAGER (ADAM) 6