1. Copyright of Shell International B.V. RESTRICTED OMAN WATER & ENERGY A. Halpern-Lande Use this area for cover image (height 6.5cm, width 8cm) februari 2015 1

2. 9.5 billion people, 75% living in cities in 50 years time ( 2.5 billion more than today) Over 2 billion vehicles ( 800 million at the moment) Hundreds of millions of people will rise out of poverty; with higher living standards energy use rises Energy demand could be 80% more over the next 50-60 years.... while CO 2 emissions must be a quarter of today’s to avoid serious climate change Twice as efficient, using half the energy to produce each dollar of wealth Up to 4 times more energy from renewable sources by 2060 RISING ENERGY DEMAND, SUPPLY PRESSURE, CLIMATE CHANGE THE ENERGY CHALLENGE The outlook from Fatih is very recognisable to us (Shell) We have explored these issues and shared our insights through the Shell scenarios looking at the energy system in detail to 2060 and the environmental pressures to the end of the century. We share his main conclusions on a fast-changing energy world The scale and timescales of the global energy system sometimes mask shifts in the underlying tectonic plates.

3. CONFIDENTIAL GLOBAL ENERGY TRANSITION – GREATER DIVERSITY Mountains Oceans 100% 80% 60% 40% 20% 100% 80%60%40%20% 100% 80% 60% 40% 20% RE & nuclear oil & gas coal 1850 1900 1950 1920 2050 2100 1970 2010 3December 2014

4. CONFIDENTIAL SHELL SCENARIOS DRIVEN BY THREE TENSIONS

5. CONFIDENTIAL RESULTS: MOUNTAINS AND OCEANS Mountains Return of the state Oceans Churn and Turbulence

6. CONFIDENTIAL RETURN OF THE STATE, LONG VIEW

7. CONFIDENTIAL ROOM TO MANOEVURE

8. CONFIDENTIAL GROWTH, DISRUPTION, CHURN, INNOVATION, REFORM

9. CONFIDENTIAL

10. Copyright of Shell International B.V. RESTRICTED OMAN HAS AN EXCELLENT SOLAR RESOURCE FOR PV The Omani solar resource is amongst the world’s highest. The best sunlight levels are at the higher altitudes, but this is relative – the whole country has a world-class resource. Yield = 1630 kWh/kW per year +- 10% 10 PVs work best when cool so although coastal areas have lower insolation, the overall yield benefits from the cooler temperatures PV power plants consume virtually no water and need no cooling water Source: A. Gastli, Y. Charabi, 2009

11. CONFIDENTIAL OMAN HAS RICH AND POTENTIAL DIVERSIFIED ENERGY BASE Oman is twice blessed Opportunity for optimization across mutliple energy sources Significant opportunity for the country across a range of fronts: Industry, Jobs, and other ways SIGNIFICANT OPPORTUNITY FOR OPTIMIZATION

12. CONFIDENTIAL OMAN – OPTIMIZATION OF THE ENERGY SYSTEM Power G G Gas Export (LNG) Gas Steam Generation Solar Power Generation Oil export Saved gas

13. Copyright of Shell International B.V. RESTRICTED BASED ON DIFFERENTIATED WATER APPROACH Base case: Produced water to be re-injected Make up water from existing aquifers or disposed water Additional options: Make up water from wastewater Storage of brine Managed aquifer recharge (fresh water lenses on storage) Decentralized wastewater treatment using wetlands Agriculture Water in, out to disposal Water from existing aquifer Storage from existing aquifers Disposed of in existing aquifers/ offshore Issues: Gulf environment at risk Aquifers at risk Shallow subsurface could be better used No benefit from existing water use beyond the oil field Traditional approach to produced water mgmt.Differentiated approach On hold, pending data from asset (Checked with Abu Dhabi been asked to wait, next target is majnoon)

14. CONFIDENTIAL FOCUS – DIFFICULT WATER AND VALUE ADDED DISPOSAL  Integrated water re-use concept  Oasys ZLD plant - China Access to technology for difficult water situations.. Where ZLD is called for Where water cannot otherwise be managed except by deep water disposal At lower cost, where Shell has worked to ensure sourcing sustainable model INCREASE LICENSE TO OPERATE AT LOWER COST GENERATE VALUE THROUGH WATER DISPOSAL Optimize two parameters – water disposal and value Use water to generate value Gas related – process water, GTL Lower salt produced water Identify value generating concepts and potential partners Increase license to operate, reduce operating costs, generate ‘free’ social and environmental benefit

15. Copyright of Shell International B.V. RESTRICTED OPTIMIZED ON WATER DISPOSAL AND VALUE VIA INTEGRATED CONCEPTS THAT USE MULTIPLE CROPS, SOME WATER CONSUMING, OTHERS HIGH VALUE ILLUSTRATIVE % of total value generated % water utilized 46% <1% Flowers 16% Crop 1 Forage 11% 5% 54% The integrated concept remains robustly attractive across a range of sensitivities Tornado Chart: Integrated Concept Pareto Chart: Integrated Concept Using 11K m3/d 30% 39% Trees

16. Copyright of Shell International B.V. RESTRICTED APPLICATION OF A DIFFERENTIATED APPROACH TO WATER RE-USAGE HAS POTENTIAL TO CREATE MORE VALUE THAN DEEP WELL DISPOSAL Options for Key Assets Deep Well Disposal Integrated Concept Scenario Description Single Deep Well Disposal + Pipeline Capex $ Mln15 NPV $ Mln(15) VIRNA Scenario Description Integrated Concept 3 Capex $ Mln7.5 NPV $ Mln23.4 Delta NPV to Deep Well Disposal 53 VIR2.5

18. CONFIDENTIAL