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FIRST WORD - Raoul Restucci

October 2005
Raoul Restucci took up his new role as Executive Vice President for Shell Exploration & Production (E&P) for the Middle East and the CIS in May of this year. He outlines Shell's position in the region...

Shell has a long history of some 100 years in the Middle East and an unwavering commitment to the region. During this time Shell has worked to become a valuable corporate citizen of the countries in which we operate, boosting local economies, transferring technology, supporting the development of local people and learning how to work ever-more constructively with Governments and National Oil Companies [NOCs].

Almost 90 per cent of all staff in Shell companies and joint ventures are from within the region; not only in the upstream but also in Shell's other strong business interests, which include Trading, Refining, Chemicals, Lubricants and Aviation.

During the last five years Shell Upstream alone has invested some US $2 billion dollars in the region, and this figure is set to increase significantly. This last year alone has seen a substantial increase in landmark business agreements. Most notably Shell is looking forward to world-leading LNG and chemicals projects in Qatar [adding to the world-scale Pearl GTL project being established there], a major integrated gas deal in Libya, the 40 year concession renewal in Oman, and building on the signing of an MOU with the Abu Dhabi-based Mubadala Development Company to explore partnership opportunities throughout the Middle East and North Africa.

In the Downstream, we have seen the internationalising of co-operation through the signing of an MOU with KPI [ Kuwait Petroleum International Limited] and the enhancement of our long-standing partnership with Saudi Aramco.

Further advances carried out on gas projects this year have included extensive seismic and other survey work carried out in Saudi Arabia for SRAK [South Rub-Al Khali Company] - a Shell/Saudi Aramco/Total joint venture - a framework agreement for Persian LNG in Iran, and a farm-in agreement with Tharwa Petroleum Company, providing access to concessions in Egypt's Western Desert.

In Syria, we continue to invest in our joint venture, Al Furat Petroleum Company, and in Egypt we are working to establish commerciality for Shell's NEMED [North East Mediterranean] Deepwater concession.

The Middle East is a key growth area for Shell and our operations here will benefit from Shell's clear global E&P strategy. Key elements of this global strategy are to streamline and upgrade our portfolio through divestments and acquisition, to increase investment and to continuously raise the bar in terms of strategic positioning and performance, for Shell and for all our partners.

The Shell Group underwent unification in July to form Royal Dutch Shell plc, and as such we are committed to an 'Enterprise First' culture and organisation. In simple terms, this means operating as a unified company, with one CEO and one culture of leadership, accountability and teamwork. It means ensuring growth potential by exploring, or having access to, material hydrocarbon volumes with price upside. It also means tapping new resources, with more unconventional methods, and developing more integrated gas projects with Exploration & Production and Gas & Power working as one.

We will, of course, also continue to bring to bear our global operating experience, extensive technology and ability to deliver large-scale integrated projects in order to work most effectively with host governments and National Oil Companies.

Shell is taking the long-term view in the Middle East, and we are continuing to learn from our history and from the invaluable experience of working with our partners in the region. Shell is also applying its strong principles for Sustainable Development in all that it does, which focus on strong economic performance, care of the environment, good corporate citizenship, the transfer of technology and the development of the skills of all the people with whom we work.

Throughout Shell businesses I see renewed emphasis on delivering project excellence, which will differentiate us in the market place.

We are always aware of the fact that if Shell is to build on its success it must be considered a trustworthy partner, able to tackle the biggest of projects, and my leadership team and I are committed to ensuring that we listen and respond to our stakeholders' expectations.

© Shell in the Middle East 2005