Shell expects to announce a dividend of $0.45 per share for the first quarter of 2013, a 4.7% increase over the fourth quarter of 2012 and year-ago levels.
Shell is allocating capital according to specific strategic themes, with unique technology, fiscal and market characteristics, and executing a global portfolio strategy. By looking at strategy through this thematic lens, Shell can allocate capital and technology most effectively in each play.
- For 2013, we expect $33 billion of net capital investment. Organic capital investment in 2013 is expected to be $34 billion, with a further $2 billion for previously-announced acquisitions, and some $3 billion of asset sales.
- Capital allocation, including exploration, will follow a similar pattern to 2012, with investment directed to Shell's distinct strategic themes.
- $12 billion in upstream and downstream engines - the mature, cash-generative businesses in Shell, plus corporate.
- Some $18 billion directed at growth priorities, in integrated gas, deep water and resources plays, allocated evenly between these three.
- Future opportunities, such as Nigeria onshore, Kazakhstan, Iraq, the Arctic and heavy oil will see some $4 billion of total spending in 2013.
- The increased spending from 2012-13 will be driven by higher investment in deep water and upstream engines, reflecting Shell's project flow, and an increase in core exploration spending from $6.4 to $7 billion, allocated to Shell's strategic themes. The 2013 capital investment programme includes an increase of some $1 billion for non-cash capitalized leases, predominantly in deep water growth projects.
- Exploration drilling activity will step up in 2013-14. Shell expects to drill over 40 high-potential wells in 18 conventional basins, and test 10 key resources plays for tight gas and liquids-rich shales.