Conventional Oil and Gas
The Conventional Oil and Gas business is a cash engine for Shell. It plays a key role in improving and sustaining oil and gas production. By producing safely and reliably, this business should deliver resilient and attractive returns and free cash flow, to fund the development of new opportunities for Shell.
The portfolio contains a large range of assets that produce both oil and gas from onshore and offshore locations. We produce from more established basins – such as in the North Sea, Nigeria, Malaysia, Oman and Brunei – to more recent positions, such as in Egypt, Iraq, Italy and Kazakhstan.
In our Conventional Oil and Gas operations, we have always worked with a high level of government involvement and regulatory control and we partner with others to conduct operations and share risk. We have a proven capability to sustain deep relationships, spanning many decades, with governments, national oil companies, other IOCs and independents.
In this strategic theme, we have been improving cash margins through operational excellence, a relentless focus on controlling operating costs, and unlocking value and resources through new deals with host governments.
We have been high-grading the portfolio through selective divestments. We also see opportunities for selective growth to offset the production and cash flow reduction from these divestments.
We have a robust pipeline of projects in Conventional Oil and Gas. Our projects under construction in Egypt, Italy, Oman and the UK will add new production in the next two years.
The focus on operational excellence and competitive project delivery allows us to maintain Conventional Oil and Gas as a powerful cash engine, expected to deliver $5 billion to $6 billion organic cash flow by the end of the decade.