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Shell Leaked Transformation Plans Part 6

By John Donovan

Published below is a further multi-page segment from Shell’s leaked internal document mentioned in a Reuters/New York Times article published last week: Shell Plans 400 Job Cuts at Dutch Projects and Technology Department. The plans are much greater in scope than suggested by the headline. Their implementation will result in a managerial jobs upheaval and significant job cuts as a consequence of the acquisition of BG Group and the decline in oil prices. Once again, I have left in the page numbers, which appear at the foot of each page and sometimes interrupt paragraphs.

PT Upstream Development (PTU)

PT Upstream Development was created in 2009 as part of the new P&T organization which brought together the projects and technology capabilities of Shell into one focused delivery organisation.

The organisation has evolved quite significantly since then. In 2012 with the Strategic Alignment, PT was given the accountability and resources to execute all wells activities and projects across Shell. As a result, in January 2013, the PT Upstream Development organisation structure was aligned with the Strategic Themes at EC-2, integration of P&T technical functions were improved, Specialist Geoscience capability from selected UPO countries was consolidated into PTU and interfaces between PT and the businesses were simplified.

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As part of the PRIME principles, since January 2013, technical integration for major projects is led by a Front End Development Manager (FEDM), reporting to PTU, from no later than Decision Gate 2 (DG2). PTU is also responsible for development staffing of all non-routine projects in the pre-DG3 space, such as flagship projects with a large infrastructure component, and/or projects requiring specialist expertise such as EOR and IOR and field unitisations. Exceptions apply for smaller brownfield projects. Country Development organisations continue to have a coordinating role within the country throughout the asset life cycle on the ‘what and when’. They also cater for routine activities such as partner management, operations support, opportunity identification, reserves reporting and projects of a routine nature (e.g. infill drilling). Dedicated subsurface resources in the country structures are as such to be kept to a minimum to satisfy direct asset needs.

Changes made in January 2016 as a result of Smaragd reinforced alignment to the strategic themes and to the creation of the global Exploration and global NBD organisations, enhanced standardisation of the PTU organisation design, further consolidation of specialist Geoscience capability from Exploration into PTU and the redistribution of resources to create more specialised EC-3 teams optimising global support and a more balanced staff distribution amongst PTU VP’s.

As a result of the combination with BG in the latter part of 2016 and early 2017, the scale of the portfolio has significantly grown, in particular in the DW and IG and with many more significant exploration and NBD growth opportunities globally to pursue. The PT Upstream Development structure implemented with Smaragd enabled a seamless integration with BG.

Strategic Alignment, Smaragd and BG Integration completed the transformation within PTU. The integration of an end to end Technology organisation and the consolidation of service management activities within the Integrated Gas and Upstream lines of business have the most significant impact on the PTU organisation. The Delivery Model work for the remainder of PTU focuses on improved efficiencies and organisation health and adjustments based on reducing business demand. For Upstream Development, the Wave 1 Delivery Model brings the following changes:

  • A more efficient organisation that will drive the segmented approach of commodity vs. bespoke in front-end project definition
  • An organisation design with simplified interfaces within PTU, between PTU and PT technical divisions and with the lines of business
  • Strengthened centres of excellence for Integrated Reservoir Management (IRM), Enhanced Oil Recovery (EOR) and Seismic Processing by consolidating capability into PTU
  • Movement of Gas Processing, Gas to Liquids (GtL) and Gasification into the new end to end Technology organisation
  • Consolidation of Service Management capability into Upstream and IG Production Excellence

The new organisation design reflects the continued downturn in activities worldwide and therefore a reduced business demand and activity level. In addition, the ‘lower for longer’ outlook continues to put pressure on PTU to further resize the organisation and adapt its footprint to serve best Upstream (UP) and Integrated Gas (IG) businesses.

The mandate for PT Upstream Development (PTU) is to:

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  • Deliver pre-DG3 competitively scoped, top quartile projects to IG and UP, including support to exploration and new business development
  • Leverage differentiating expertise and technology (D4) to deliver exploration success, win new business and enhance front-end project attractiveness
  • Provide integrated end to end expertise support in LNG Technology, Geoscience and Petroleum Engineering
  • Lead the global Development Function

VP’ships

VP Development Exploration & NBD (PTU/B)

  • Global project delivery organisation supporting both Exploration (to DG2) and New Business Development in pre-deal space for both growth and divestments.
  • Coordinate business improvement across PTU. Provide venture planning and implementation expertise globally. Provide advice to NBD for establishing robust and value adding service agreements at both pre- and post-deal stages. Providing Field Development Planning support.
  • Deliver competitive Geomatics & Technical Data Management expertise and deployment services globally, both directly to the strategic themes but also via P&T project teams
  • Provide support to the Development Function through the DMT and various Discipline Leadership roles
  • Key challenges were to further reduce operational cost in line with the overall Delivery Model ambition for P&T, to further embed the application of competitive scoping, the new Project Management Framework and Delivery Model improvements in our pre-DG3 projects to maximize the competitiveness of Growth Opportunities for NBD and Exploration, and to continue the Safety Leadership journey in Geomatics. A more efficient organization through consolidation of a number of positions and teams has been designed to address these challenges.

VP Development Joint Ventures (PTU/N)

  • Provide project delivery support to the Upstream Joint Ventures Line of Business (pre-DG3).
  • Provide Technical Services to selected National Oil Companies.
  • Provide global expertise on Integrated Reservoir Modelling, Waterflood, WRFM and EOR.
  • Provide independent insights on Group HCM delivery and the health of the RDS resource base.
  • Despite the rationalizations that were implemented in the 2016 Target Operating Model, the anticipated demand for PTU/N services for the remainder of 2017 and 2018 has been recalculated and requires further right-sizing of the teams. In addition, the current distribution of PTU/N staff across salary grades is considered unhealthy, with 20% of staff in SG2 and above. Whilst some of this can be explained (e.g. senior expertise required in Kuwait by KOC; global experts in the EOR team), the current salary grade distribution is considered unhealthy, too heavily weighted to senior salary grades and unaffordable.
  • As a result, the proposed organisation has fewer positions, with a more balanced distribution of job groups and a higher average span of control.

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VP Development Upstream Operated (PTU/O)

  • Pre-DG3 Project delivery organisation aligned with the Operated Line of Business under Upstream strategic theme. Project management and front end engineering support is provided for all projects. For the larger and more complex projects subsurface study work is also carried out.
  • For existing assets support is given to maximize economic recovery, identifying remaining pockets of hydrocarbons, whilst actively providing low cost, standardized development solutions to allow for economic development.
  • The subsurface home team coordinates technical assurance for the entire operated business, whilst a small unitisation team caters for technical support to global field equity determination negotiations.
  • PT2020 Programme Office coordinates assists to existing projects in the Operated, and non- Operated business, with supporting staff across wider P&T.
  • Key challenges were to further reduce operational cost in line with the overall Delivery Model ambition for P&T, and to further embed the application of replicated industry solutions and novel ways of working with the supply chain in our pre-DG3 projects. Therefore, a more efficient organization is proposed through the consolidation of a number of positions and teams where there was overlapping responsibilities or similar work scope across PTU.

VP Development Deepwater (PTU/D)

  • Deepwater is a key strategic growth area for Shell. PTU/D is the home for technical integration and expertise for delivery of Global Deepwater opportunities spanning the US, Brazil, Nigeria and Malaysia.
  • Lead and support the delivery of highly competitive and safe global Deepwater projects from discovery to the selection of development concepts and subsequent funding, and for NOV ventures in Brazil throughout the entire development lifecycle.
  • Coordinating the PT2020 Programme Office for Deepwater, a global cost and efficiency improvement initiative, with supporting staff across the wider P&T organisation.
  • Deepwater is an inherently high risk, high exposure, capital intensive line of business with lengthy project cycle times. In order to compete and be an industry leader, Shell has to significantly reduce its cost base, increase the pace of project delivery and improve the cash flow profile for these types of strategic growth investments
  • Therefore, the proposed organisation has fewer positions, with a more balanced distribution of job groups and a higher average span of control.

VP Development IG (PTU/I)

  • PTU/I’s purpose is to support the IG business in achieving its business objectives by providing a differentiated capability in Technology Development, Project Development and Asset support. More specifically for IG this means to i) generate cash from the existing assets, ii) grow gas demand through new markets and iii) selectively grow the portfolio through competitive projects.
  • Pre-DG3 Project delivery organisation aligned with the Integrated Gas strategic theme for Upstream, LNG Export and LNG Market Access projects

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  • Support Midstream and LNG new business development
  • Provide operational services and support Operational Excellence in LNG and Gas plants.
  • Drive the LNG R&D program as well as the creation, ownership and protection of LNG intellectual property.
  • A number of factors are leading to a level of unprecedented change in our business; a lower for longer price scenario, impacting affordability and investment levels, the IG strategy refresh, and PT2020 efforts expanding to the cost of P&T delivering the support to the business.
  • The proposed ways of working should lead to shorter timelines and lower cost for front end/project development that can be delivered by a somewhat smaller resource base at a constant investment base. The proposed organizational change leads a somewhat smaller organization and combination of teams where they fall below critical mass.

VP Geoscience (PTU/E)

  • Geoscience organization, whose advice impacts Upstream business decisions and creates value through safe, high quality, integrated geoscience expertise input
  • Holds a critical role in mitigating process safety exposure through Reservoir Containment, Pore Pressure Prediction and Geohazards support
  • Provides reservoir characterisation and fluid evaluation input to Exploration and the Integrated Reservoir Modelling teams
  • Conducts Seismic processing support for the Upstream, Integrated Gas and UR businesses
  • Ensures safe execution of the global geophysics activity program through hands-on Contractor HSSE Management
  • During Prime and Smaragd the Geoscience team has seen major global consolidation into Upstream Development and in the Delivery Model the changes are more limited and primarily consist of targeted reductions.

VP GTL & Gas Processing (PTU/T)

  • Centre of Excellence for GTL, Gas Processing & Carbon Capture Technology & Project development, Licensing and Operational services.
  • Brings value to Shell by being the best at providing safe, competitive and innovative GTL, Gas Processing and CO2 capture technologies & knowhow, integrated solutions and industry leading operational services.
  • Manages the GTL Technology Development & Deployment and Gas Processing Technology Deployment.
  • Pre-DG3 Project delivery for GTL, Gas Processing and CO2 Capture, across all Strategic Themes.
  • Monetizes technology IP through licensing.
  • As part of the PT Delivery Model work the current PTU/T organisation will move across into the new end-to-end Technology organisation, except for Service Management which shifts to Upstream Production Excellence.

VP Gasification (PTU/G)

  • Provide design, engineering and technical support in gas and residue gasification to Shell’s own GTL and downstream projects
  • Support selective external technology licensing; deliver design and engineering packages and provide technical services in coal and residue gasification to third party clients

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  • Conduct Residue and Gas Gasification technology development programmes for continuous technology improvement
  • Form and manage local technology partnership in China
  • Leverage Shell’s technology leadership and seek collaboration opportunities with other industry players to grow Shell’s presence within and beyond the gasification arena in China
  • Due to the lower overall demand as the market slowdown in both the 3rd party or own projects area, the Gasification teams within the proposed Technology organization reflects a reduced number of positions.
  • As part of the PT Delivery Model work the current PTU/G organisation will move across into the new end-to-end Technology organisation.

Consequences of the proposed change for the Global PTU organisation, including NL

(The specific details of the impacts of the below changes to NL positions can be found in the tables attached)

Development Exploration & NBD (PTU/B):

The current Houston based GM Development Exploration & NBD North America position responsible for GOM Exploration support will transfer to PTU/D and become an EC-4 manager position under the GM Development Deepwater North America. Staff supporting GOM Near Field Exploration, will also transfer to PTU/D.

A new GM’ship based in Houston will be created to support Latin and South America (GM Development Expln & NBD LA & SA). The existing Senior FEDM role will be merged with this new GM role and will remain based in Houston. Staff currently supporting Mexico, Brazil and Trinidad & Tobago/Venezuela will transfer under this new GM’ship.

The former GM’ship (Competitive Scoping) in PTU/O will transfer to PTU/B and will be merged with the GM’ship Improvement & Venture Planning (combined role will be called “GM CS, Improvement & Planning” and will remain in NL).

The GM’ship for Subsurface Disciplines Exploration & NBD will cease to exist, and the Subsurface Discipline Leads and all technical staff will transfer and report into the GM’ship Development Exploration & NBD ROW organization at EC-4 and below.

Development Joint Ventures (PTU/N):

The proposed organisation will consist of 8 GM’ships. Compared to the current organisation the GM Kazakhstan is added. Overall accountabilities for PTU/N do not change

Growth is proposed in the Kazakhstan organisation to be able to provide subsurface support to both Kashagan and Karachaganak.

Development Upstream Operated (PTU/O):

The GM’ship Competitive Scoping will transfer to PTU/B and combined with the GM’ship Improvement & Venture Planning to create a combined role GM CS & Improvement which will remain in NL.

In the UK, the GM Subsurface Disciplines and the GM Development Europe will be merged into one role GM Development Europe & Pet Eng.

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A new GM’ship will be added (GM IRM Conventional Oil & Gas) and will be based in Bangalore.

The combination of GM’ships in the UK will result in a transfer of some accountability to other existing PTU/O GM’ships. The Redetermination team transfers from existing GM Development Europe to GM Geology and the RE Solutions team currently in PTU/O/S will move into the newly formed GM IRM Conventional Oil & Gas.

Overall these changes result in a net reduction of one GM’ship.

Development Deepwater (PTU/D):

Across the VP-ship the number of direct reports increases in order to enhance the span of control.

Under the GM Deepwater North America, the current PTU/B GM Development Exploration & NBD North America plus team of 4 responsible for GOM Exploration support will transfer in. The current Deepwater Program Office Manager will be elevated from EC-4 to EC-3 and be renamed GM Deepwater Project Transformation. These positions are all Houston based.

Due to divestment of the Heavy Oil business, the GM Development Heavy Oil and team in Canada will cease to exist.

The Senior FEDM Vito based in Houston will also cease to exist since the project has passed DG3 and is moving to a new phase. The VP Development Deepwater will be responsible for any residual transitional activities.

The other PTU/D GM’ships remain largely unchanged.

Development Integrated Gas (PTU/I):

Asset support (Service Management) currently in PTU/I/A and PTU/I/O is combined within IG Production Excellence. The Asset support delivery resources as they exist today will remain in PTU/I in a re-shaped and appropriately sized organization given that the (general) service managers will no longer sit in PTU/I and move to IGP. The related 2 GM positions (GM IG Operations West and GM IG Operations East) will cease to exist in PTU/I.

The subsurface team based in Bangalore under the GM Development IG has seen substantial team reductions over the past recent years and continues to suffer from reduced demand. As a result, the subsurface teams in Bangalore will be combined under a single GM Development JV & Subsurface Disciplines in PTU/N. The move overcomes the critical mass issue, provides more opportunities for load levelling within the team and creates development opportunities for subsurface staff in Bangalore.

The GM Market Access will move from US to NL. The other GM’ships remain unchanged.

Geoscience (PTU/E):

The existing GM Geophysics East in NL will cease to exist. The Manager Geosolutions Malaysia and Manager Geophysics Europe will both be elevated from EC-4 to EC-3 to improve the overall spans of control. Both will be renamed as GM positions with the Geophysics Europe role located to Norway being called GM Geophysics East.

The roles of the EC-3 GM’s for Specialist Geoscience, Geophysics West and Quantitative Subsurface Evaluations along with the Global Geophysics Discipline Lead are not materially changing.

GTL & Gas Processing (PTU/T):

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In order to deliver technology solutions and deep technical expertise that meet the short, medium and longer term needs of Shell’s business and support the RDS Technology Strategy, it is necessary to secure a ‘single integrated technology face’ at the EC-2 level for the Business Technology Committees, responsible for technology platform selection tailored to business needs & manage the technology portfolio. In addition, E2E accountability and governance will be structurally embedded via single points of accountability and aligned responsibilities for technology development and deployment support. This leads to a future Technology organisation that incorporates Materials & Construction technology, Gas Processing technology, CO2 abatement technology, Gas-to-Liquids technology and Gas and Residue Gasification technology. All expertise will be integrated into the VP- ship “Integrated Gas & CO2 Abatement Technologies”.

For GTL, the current PTU/T GTL team will merge with the PTI/G GTL team. The GTL CoE will remain based in STCA. The GTL CoE will consist of 3 GM positions; Technology Maturation, Operations Support and Process Integration. Refer to the Technology section for further details on the proposed Technology organisation.

For Gas Processing the current PTU/T Gas Processing team will be integrated into the VP-ship Integrated Gas & CO2 Abatement Technologies. The Gas Processing CoE will consist of 3 GM positions; Gas Processing Technology Maturation (based in Amsterdam), Gas Processing Integrations and Operations Support (based in Bangalore) and CO2 Abatement Technologies (based in Amsterdam). Canada and China based Cansolv, specialized in post-CO2- and SO2 capture technologies, will be incorporated into the 3 GM ships and will cease to exist as a separate organisation. Overall staff numbers will be reduced to reflect changed market conditions and a significant shift to Bangalore is proposed. Refer to the Technology section for further details on the proposed Technology organisation.

The PT ambition is to have one Asset Support organisation, consolidating dedicated, multi-skilled teams focused on a group of assets/per line of business. It is therefore proposed to move Service Management currently within Gas Processing (PTU/T/O) to Production Excellence in Upstream (UPP). The Upstream Service Management positions will cease to exist due to legal entity change.

Gasification (PTU/G):

In line with Gas Processing, Gasification will also shift to the end-to end Technology organisation within the VP-ship Integrated Gas & CO2 Abatement Technologies. There will a GM for the Amsterdam team focussing on Gas and Residue Gasification and a GM for the China team focussing on other Gasification.

Proposed Changes in NL

Development Exploration & NBD (PTU/B):

GM Subsurface Disciplines Exploration & NBD

  • GM Subsurface Disciplines Exploration & NBD will cease to exist.
  • The team is primarily moved and re-organised under the GM Development Exploration & NBD ROW organisation, with two positions moving to PTU/O and one to PTU/N. All position detail is captured under the new GM locations.

GM Development Exploration & NBD ROW

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Position title changes from GM Development Exploration & NBD to GM Development Exploration & NBD ROW, in which ROW refers to ‘Rest of World’.
o Within the OI & V2V team two Reservoir Engineers cease to exist due to reduced demand. o The Front End Development team will be reduced as a result of lower demand;

  • Subsurface Lead, Principal Production Technologist, Senior Reservoir Engineer, Senior Petrophysicist, Production Geologist, Reservoir Engineer, and Production Geologist are ceasing to exist.
  • Production Technologist and Production Geologist and a Petrophysicist are created for graduate intake.

 A new position Subsurface & PT Discipline Manager is created to manage the incoming discipline teams from the GM Subsurface Disciplines Expl & NBD (role ceasing to exist).
o Also,movingacrossandtoreporttothenewSubsurface&PTDisciplineManagerarethe

Discipline Leads for Petrophysics, Production Geoscience and Reservoir Engineering. o As a result of reduced business demand and improved efficiencies in the Discipline

Engineering teams the following positions will cease to exist: PT Discipline Manage, Reservoir Engineering Discipline Advisor, Senior Reservoir Engineer, Production Chemist and two Reservoir Engineers (JG5).

  • Gas Master Planning Team of four positions moves out to GM CS & Improvement due to better synergies with other specialist support provided in the new GM’ship.
  • The Value Assurance Consultant is ceasing due to reduced demand.

GM Improvement & Venture Planning
 The GM Improvement & Venture Planning will merge with the GM Competitive Scoping moving in from PTU/O to form the new GM CS & Improvement.

GM Competitive Scoping & Improvement

 New position GM Competitive Scoping & Improvement is created as a result of combining the GM’ships Competitive Scoping (coming from PTU/O) and Improvement & Venture Planning.

  • Competitive Scoping team moves from PTU/O GM Competitive Scoping to this GM. The CS IIP Lead, CS Manager Upstream Surface and CS Manager Subsurface & Wells are ceasing to exist due to reduced demand.
  • A CS & Business Improvement Consultant is created by combining CS IIP Lead and a Principal Development Planner.
  • Venture Implementation Team and Development Planning Team move from GM Improvement & Venture Planning to this GM. A Principal Venture Implementation Advisor will cease to exist due to reduced business demand.
  • Gas Master Planning Team moves from GM Development Exploration & NBD to this GM. A Principal Master Planner position has been re-evaluated and, therefore, will cease to exist. A new Principal Master Planner at the evaluated level is created.
  • Two Principal Development Planners and two Senior Development Planners are ceasing to exist due to reduced business demand. The other Principle Development Planners and Development Planners move from GM Improvement & Venture Planning to this GM.

GM Geomatics & Data Management

 Reductions as a result of reduced business demand and improved efficiencies are as follows:

 3 Geo-Information Analyst, 1 Subsurface Data Analyst, 1 Exploration Data Analyst and 1 Technical Data Management Technician will cease to exist

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 A TDM Analyst (JG5) is created for graduate intake

GM FEE Exploration & NBD

  • Reductions as a result of reduced business demand and improved efficiencies are as follows: Manager Growth Engineering and the two Senior Concept Engineers reporting into the GM will cease to exist.
  • Principal Concept Engineer and a Process Engineer (graduate intake) are created.

Development Joint Ventures (PTU/N)

GM IOR/EOR (PTU/N/E)

  • The existing IOR/EOR organisation in PTU/N is proposed to be made into the single global Center of Expertise (CoE) for Improved Oil Recovery and Enhanced Oil Recovery (IOR/EOR). The CoE will provide IOR/EOR capability and support to Projects and Assets, and will be the first port of call within P&T for IOR/EOR expertise required by the Lines of Business. The CoE will enable sharing of best practices and ensure that the best expertise is deployed for the benefit of RDS. The CoE will build and maintain a critical mass of expertise in IOR and EOR, and will have a close connection with the Technology organisation on new IOR/EOR technologies required for the future. The CoE will be headed by a GM, who will also be accountable for the maintenance of a global network of IOR/EOR practitioners and Subject Matter Experts across RDS
  • As a response to the expected demand in future years, the CoE is proposed to comprise 27 positions in total, of which 14 are in The Netherlands. The impact for the Netherlands positions are as follows:

o EC-4 Manager Smart Fields will cease to exist as will two EC-5 positions reporting to the Manager Smart Fields – Process Engineer WRFM and Smart Fields Production Operations. The remaining three positions – Sr Reservoir Engineer WRFM Deployment, Sr Production Technologist WRFM Deployment and Technology Deployment Lead WRFM will continue to exist but change reporting lines into the PTU/N EC-4 Mgr WRFM Deployment.

o EC-4 Manager Waterflood will cease to exist.
o EC-4ManagerWaterfloodvacantpositionwillberenamedtoManager

Waterflood and Chemicals EOR and remain JG1.
o Under the Manager Waterflood and Chemicals EOR at EC-5 the following changes will occur:

  • 2 new positions will be created – Principle Production Technologist and Principle Reservoir Engineer.
  • 5 positions will cease to exist: 1 vacant position Senior Reservoir Engineer Waterflood, Reservoir Engineer Waterflood, Senior Production Chemist Waterflood, Senior Production Technologist Waterflood and Consultant Waterflood Operations.

o Under the EC-4 Manager WRFM Deployment the following changes will be made:

  • One new position will be created at EC-5, WRFM Screening & Design as the work moves from Aberdeen to The Netherlands.
  • Three positions as noted above (Sr Reservoir Engineer WRFM Deployment, Sr Production Technologist WRFM Deployment and Technology Deployment Lead WRFM will move from the Manager Smart Fields to report under this manager.

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o Two new positions at EC-4 will be created reporting to the GM IOR/EOR – Senior Process Engineer and Principle Production Chemist.

o EC-6 UI EOR Support position based in NL that currently reports to the Team Lead EOR Kuwait in the US will cease to exist due to insufficient work.

GM Global HCM/IRM

  • The existing Global HCM and IRM team will be split with the objective of combining IRM support for COG under one GM in PTU/O in order to provide efficient business support, enhance staff mobility and provide higher access to the right capability for the right projects. As a result, 4 NL positions will move from PTU/N to PTU/O: IRM Reservoir Engineer, IRM Reservoir Engineer PTE, IRM Petrophysicist, Reservoir Engineer.
  • As a result of this material scope change, the NL based GM position will cease to exist, a new position will be created with the position title: GM Global Hydro Carbon Maturation. Under this GM the following changes will be made:

o EC-4 Global HCM Planning Lead and EC-5 Value & Assurance Lead will both cease to exist due to reduced demand.

 The HCM Strategy & Portfolio Manager will see the following changes in the team:
o Reservoir Engineer currently in PTU/B moves to PTU/N continuing to be based in

NL.
o Global HCM Analyst moves reporting line from Global HCM Planning Lead

(position ceases to exist) to the HCM Strategy & Portfolio Manager.
o Global TQ EUR Manager role reporting to HCM Strategy & Portfolio Manager will cease to exist.
o Three new positions are created: HCM Assurance Lead, HCM Planning Lead and

Global TQ EUR Manager.

  • Under the R1 Program Manager two positions will cease to exist – Resource One Operations Manager and R1 Senior Reservoir Engineer.
  • A new position of Global Business Development Advisor reporting to the GM Global Hydro Carbon Maturation will be created to support the VP Development Joint Ventures in his Chief PE role.Development Operated (PTU/O):GM Upstream Operated Geology & GDH PG
  • This position is renamed GM Redetermination and UP Operated Geology, UK based position.
  • The Global Redetermination Team Lead moves reporting line from the GM Development Europe to GM Redetermination & UP Operated Geology. This position moves along with the positions that report to it with the addition of two Reservoir Engineers who move in from the PTU/B/S Discipline Team and the PTU/N/H HCM Planning Team

GM Upstream Operated Programme Office and Standard Solutions

  •  This position is renamed GM COG Project Transformation.

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GM Front-End Engineering Upstream Operated

  • There are some reductions in the Front End Engineering teams due to reduced demand as projects conclude.

o There are two Front End Development Manager positions ceasing to exist. o Within the Process Engineering team a Principle Concept Engineer and two

Process Engineering positions will cease to exist.
 A Process Engineer position is created for graduate intake.

GM Competitive Scoping

 This GM’ship will transfer to PTU/B and be combined with the GM’ship Improvement & Venture Planning to create a combined role GM CS & Improvement and will remain in NL.

GM Development Europe

 In the UK, the GM’ships Subsurface Disciplines and Development Europe are combined and as a result a new GM Development Europe & Pet Eng is created. Within this former GM’ship the FEDM NL & Norway is ceasing to exist along with the NL based position Senior Reservoir Engineering.

GM Subsurface Disciplines Upstream Operated

  • As mentioned above the GM’ships Subsurface Disciplines and Development Europe are combined.
  • Due to reduced scope the NL based Discipline Leads for Petrophysics and Production Technology within this GM ship has been re-evaluated and will cease to exist, new positions Discipline Leads for Petrophysics and Production Technology with different job grades have been created.
  • With the continued consolidation of global positions in P&T hub locations the Well Integrity TA and Discipline Lead Reservoir Engineering move country from the UK (Aberdeen) to The Netherlands.
  • The Principal RE (RE Solutions) and a Senior Reservoir Engineer (RE Solutions) positions cease to exist as the activities move into the newly created IRM Conventional Oil & Gas GM’ship.

GM Development Europe & Petroleum Eng

  • As mentioned above this is a new GM’ship created by combining the GM’ships Subsurface Disciplines and Development Europe and will be based in UK.
  • The re-graded Discipline Leads for Petrophysics and Production Technology in NL will report to the GM. A Discipline Lead Reservoir Engineering and the head of Petrophysics Solutions position will also be created in NL.
  • The Well Integrity TA which moves to NL and Discipline Lead Reservoir Engineering will report to this GM.

GM IRM Conventional Oil & Gas

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  • This is a new GM’ship responsible for all major integrated reservoir modelling studies for pre-DG3 projects in COG countries (UPN & UPO), as well as some IG projects and modelling support to Assets in several countries. The full team is remodelled and will encompass activities from the Global RE Solutions and some activities from the Front End Development in PTU/B.
  • As a result of the creation of this new specialised team focusing on co-location to enable effective capability building of IRM resources the following new NL based positions are created;

o IRM Lead
o Reservoir Engineer
o Principal Reservoir Engineer
o PrinciplePetrophysicist
o Senior Production Geologist
o Snr Reservoir Eng/Process Eng

o Senior Production Geologist

o SeniorPetrophysicist
o ReservoirEngineer

Development IG (PTU/I):

GM LNG Technology

  • In order to create one dedicated LNG Technology team, 3 positions from PTI/GL will move into PTU/I/E. The Manager LNG Technology and two direct reports, Researcher – New LNG Technology and Process Engineer Gas & LNG, will all report into the GM LNG Technology. Because the Manager LNG Technology will not have direct reports anymore and the scope has been adjusted, the position is downgraded and therefore ceasing, a new Programme Unit Manager is created in Bangalore. The JG4 and JG5 positions will remain in NL.
  • As a result of reduced demand 3 Process Engineers JG5 (of which 2 vacant positions) and 1 Process Engineer JG4 will be ceased to exist.
  • The Assurance & Business Improvement Manager position ceases to exist. The elimination of this position was already consulted as part of the TOM RfA in 2016 and will be removed in accordance with the NL People Principles
  • A new Sr Process Engineer Tools & GHG position is created to provide modelling support for PTU/I and act as linking pin to TaCIT and as Greenhouse Gas (GHG) main contact.

GM LNG Market Access

  • At EC-4 the Principle Process Engineer will cease to exist.
  • A FEDM Market Access Europe is added to the NL team to support Europe.
  • In the EC-5 Market Access team, one Process Engineer is upgraded to ensure the right level of seniority within the team. As a result, one Process Engineer will cease to exist and a new Process Engineer reflecting the correct job grade is created
  • Two Process Engineers will move from the Operations Support team (PTU/I/O) to Market Access.

GM LNG Asset Support Proc Eng

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  • Service managers will be embedded in the business and responsible for integration of asset needs. LNG Service Management will move to IG Production Excellence (IGP). The Service Managers (9 of which 3 based in NL) and the NL-based GM IG Operations West and GM IG Operations East will cease to exist due to legal entity change. The incumbents of the 3 NL based IG Service Managers will move with the position to the IG Production Excellence organization.
  • The commercial activities are combined under the GM Licensing in the PT Technology organisation. The Commercial Team (PTU/I/A), consisting of 5 positions, will therefore move to Licensing in the new Technology organisation.
  • The current Team Leader Asset Support in The Netherlands will be elevated from EC-4 to EC-3 and become GM LNG Asset Support Proc Eng. This is not a material change for the position.
  • Due to lower demand, the NL Asset Support team will cease to exist 2 Process Engineers. In order to remain a healthy span of control within the smaller future organisation, the Team lead LNG Operations Support will also cease to exist. The elimination of the Team Lead position was consulted as part of the TOM RfA in 2016 and will be removed in accordance with the NL People Principles.
  • PTU/I Asset Support (former IG Operations) includes the Cross Postee positions for PT. Cross postings are intended to provide exposure and development opportunities for emerging technical and operational talent (JG 4/5) and works on the premise of a one- for-one direct swap between Shell and the Asset/JV. The assignment length is usually 3 years. Currently there are 16 position; 6 vacant, 5 based in NL and 5 in Bangalore. In line with the broader reduction, the pool of Cross Postees will be maximised at 11 positions moving forward. Location will remain to be predominantly India and NL.

GM FEE & LNG Development

  • At EC-4, the IG Program Office Manager Upstream position moves from India to NL and will report into the GM FEE & LNG Development. Due to reduced IGPO work, the Sr Concept Engineer LNG Programme Office and Senior Process Engineer LNG will cease to exist
  • Manager Onshore LNG Design and LNG Design Integrator will cease to exist due to reduced demand and an expected shift of demand to Bangalore. Therefore, a new FEDM position is created in India.
  • Third party licensing is added to the scope of PTU/I and incorporated in scope of the Manager NBD IG & Licensing. In order to shape this, 2 positions in the NBD team will be cease to exist, a new position is created named Technical Lead Licensing and Process Engineer.
  • Due to decrease in Floating LNG demand, the Onshore Design and the FLNG Development team will be combined. This results in a new position, Manager LNG Design RoW. The Manager Onshore LNG Design and Manager FLNG will cease to exist. The team size will reduce from 19 to 11 Process Engineers.

o Principle Process Engineer Floating LNG, the elimination of this position was consulted as part of the TOM RfA in 2016 and will now be removed in accordance with the NL People Principles

o Senior Process Engineer FLNG
o Senior Process Engineer LNG Design o 2ProcessEngineerLNG
o 2 Process Engineer LNG Design
o ProcessEngineer

73

Geoscience (PTU/E):

GM Geophysics East

 It is proposed to move the Geophysical Processing International Team from PTI/EP to PTU/E/S (13 NL based positions in total). The work scope of the team is focused on the seismic processing which is much more logically aligned with the Geoscience group. Going forward, R&D will therefore focus exclusively on the development of new differentiating imaging tools. This move will provide further alignment and synergies and strengthen Geoscience overall. The NL positions and staff in scope to move from PTI/EP to PTU/E are:

o Manager Seismic Processing
o Team Lead Seismic Processing
o Team Lead Experimental Processing to PTE Signal Processing

o 2 Principal Processing Geophysicist
o Senior Processing Geophysicist
o Processing Geophysicist
o 3Processing Geophysicist
o 3Processing Geophysicist

  • Whilst there is no impact on staff it is important to note that three roles, Team Lead Seismic Processing and two Processing Geophysicist roles will cease to exist due to the reduced business demand. This will be achieved through natural attrition as the assignment of the potentially impacted staff is naturally coming come to an end and current incumbents have landed roles elsewhere in the organisation. As such, the team will shrink to 10 positions in total.
  • Due to the decrease in the team size, the Team Lead Experimental Processing will change to an individual contributor role and the job title changed to PTE Signal Processing. It will also report into the GM Geophysics East directly.
  • Principal Processing Geophysicist ceases to exist. The elimination of this position was consulted as part of the TOM RfA in 2016 and will now be removed in accordance with the NL People Principles

GM Quantitative Subsurface Evaluation Team

 It is proposed to reduce by 3 positions due to the overall decrease in the workload. As a consequence, the Senior Geomechanicist Specialist in the team of Geomechanics, the QI Petrophysicist the and QI Geophysicists position are ceasing to exist.

GM Specialist Geoscience

  • As stated in the 2016 TOM RfA there is intent to re-focus the organization on deep specialist Geoscience capabilities. As such, the positions of Senior Fracture Specialist and Senior Petrophysicist will cease to exist.
  • Due to the decrease in the current workload, it is proposed to eliminate further four roles i.e. 2 Senior Geochemist, Geochemist (JG4 and currently a vacancy), Principle Structural Geologist/ Team Lead. In addition, the Petrophysicist/Fluid Sampling also ceases to exist.

Gas Processing and GTL (PTU/T)

74

GM Gas Processing Ops & NA

  • Service managers will be embedded in the business and responsible for integration of asset needs. Upstream Service Management will move to Upstream Production Excellence (UPP). The Service Managers (9 of which 5 based in NL) will cease to exist due to legal entity change. Upstream Service Managers will not be moved across due to significantly changed positions in Upstream Production Excellence.
  • The proposed UPP organisation, part of the SIEP RfA, includes a VP Asset Support (NL- based) reporting into EVP Production Excellence. The VP Asset Support will have a team of 7 Asset Support Managers of which 4 will be based in The Netherlands.Summary of the NL consequences

EXTRACTS END

TOMORROW: Contracting & Procurement

Links for earlier extracts from the same document:

Part 1: Shell’s 88 page global transformation plans leaked to John Donovan: 31 July 2017

Part 2: Shell’s proposed global organisation changes: Part 2: 2 Aug 2017

Part 3: Shell’s leaked global organisation changes: Part 3: 2 Aug 2107

Part 4: Leaked Shell Transformation Plans: Part 4: 4 Aug 2017

Part 5: Shell Leaked Transformation Plans Part 5: 7 Aug 2017

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