Unrealised gains/(losses) on securities

(3,172)

5,156

703

593

(214)

Debt instruments remeasurements

^[1]

(15)

Cash flow hedging gains/(losses)

730

(552)

(617)

Net investment hedging losses

(2,024)

Deferred cost of hedging

^[1]

(209)

Share of other comprehensive (loss)/income of joint ventures and associates

(10)

170

(28)

Items that are not reclassified to income in later periods:

(2,676)

5,367

(2,180)

Retirement benefits remeasurements

3,588

604

(3,817)

Equity instruments remeasurements

^[1]

(153)

Share of other comprehensive income of joint ventures and associates

193

Other comprehensive income/(loss) for the period

3,628

604

(3,817)

952

5,971

(5,997)

Comprehensive income attributable to non-controlling interest

24,858

19,406

(1,220)

383

578

154

Comprehensive income/(loss) attributable to Royal Dutch Shell plc shareholders

$ 24,475

$ 18,828

$ (1,374)

[1]	See Note 2 Significant accounting policies, judgements and estimates regarding the implementation of IFRS 9 Financial Instruments.

Consolidated Balance Sheet - USD ($)
$ in Millions

Dec. 31, 2018

Dec. 31, 2017

Non-current assets

Intangible assets

$ 23,586

$ 24,180

Property, plant and equipment

223,175

226,380

Joint ventures and associates

25,329

27,927

Investments in securities

3,074

7,222

Deferred tax

12,097

13,791

Retirement benefits

6,051

2,799

Trade and other receivables

^[1]

7,826

8,475

Trade and other receivables

^[1]

574

919

Non-current assets

301,712

311,693

Current assets

Inventories

21,117

25,223

^[1]

42,431

44,565

Cash and cash equivalents

^[1]

7,193

5,304

26,741

20,312

Current assets

97,482

95,404

Total assets

399,194

407,097

Non-current liabilities

Debt

66,690

73,870

Trade and other payables

^[1]

2,735

3,447

Decommissioning and other provisions

^[1]

1,399

981

Deferred tax

14,837

13,007

Retirement benefits

11,653

13,247

21,533

24,966

Non-current liabilities

118,847

129,518

Current liabilities

Debt

10,134

11,795

Trade and other payables

^[1]

48,888

51,410

Decommissioning and other provisions

^[1]

7,184

5,253

Taxes payable

7,497

7,250

Retirement benefits

451

594

3,659

3,465

Current liabilities

77,813

79,767

Total liabilities

196,660

209,285

Equity

Share capital

685

696

Shares held in trust

(1,260)

(917)

Other reserves

16,615

16,932

Retained earnings

182,606

177,645

Equity attributable to Royal Dutch Shell plc shareholders

198,646

194,356

Non-controlling interest

3,888

3,456

Total equity

202,534

197,812

Total liabilities and equity

$ 399,194

$ 407,097

[1]

With effect from 2018, current and non-current derivative assets and liabilities are no longer presented as part of Trade and other receivables and Trade and other payables, but separately disclosed on the Consolidated Balance Sheet to provide more insight. Comparatives were revised to align with the current year presentation.

Consolidated Statement of Changes in Equity - USD ($)
$ in Millions

Total

Share Capital [Member]

Shares Held in Trust [Member]

Other Reserves [Member]

Retained Earnings [Member]

Total [Member]

Non-controlling Interest [Member]

Beginning balance at Dec. 31, 2015

$ 164,121

$ 546

$ (584)

$ (17,186)

$ 180,100

$ 162,876

$ 1,245

(1,220)

(5,949)

4,575

(1,374)

154

(15,139)

(14,959)

(180)

Other changes in non-controlling interest

5,282

(17)

5,282

Shares issued

34,050

120

33,930

34,050

Share-based compensation

344

(317)

520

141

344

1,073

427

646

Ending balance at Dec. 31, 2016

188,511

683

(901)

11,298

175,566

186,646

1,865

19,406

5,851

12,977

18,828

578

(16,034)

(15,628)

(406)

Other changes in non-controlling interest

4,751

(13)

4,751

Share-based compensation

(294)

(16)

(204)

(74)

(294)

1,472

1,419

Ending balance at Dec. 31, 2017

197,812

696

(917)

16,932

177,645

194,356

3,456

Impact of IFRS 9

(50)

(138)

(50)

At January 1, 2018 (as revised)

197,762

696

(917)

16,794

177,733

194,306

3,456

24,858

1,123

23,352

24,475

383

^[1]

(971)

971

(16,261)

(15,675)

(586)

Other changes in non-controlling interest

^[2]

(4,519)

(11)

(4,519)

Share-based compensation

^[3],[4]

(343)

(342)

693

686

635

Ending balance at Dec. 31, 2018

$ 202,534

$ 685

$ (1,260)

$ 16,615

$ 182,606

$ 198,646

$ 3,888

[1]	The transfer mainly relates to the sale of Shell’s shareholding in Malaysia LNG Tiga Sendirian Berhad ($617 million) and the sale of shares in Canadian Natural Resources Limited ($481 million) (see Note 22).
[2]	The repurchase of shares recognised through retained earnings includes the aggregate maximum consideration Shell is contractually bound to under the current tranche of the buyback programme, plus associated stamp duty.
[3]	Includes a reclassification of $503 million between Other reserves and Retained earnings, which relates to the unwinding of expired share options.
[4]	The amendments to IFRS 2 Share-based payment became effective January 1, 2018. Following adoption of the amendments, components of share-based payments (related to tax) that were previously classified as cash-settled are now classified as equity-settled. This resulted in an increase of $172 million in the share plan reserve within other reserves and a net increase of $125 million in retained earnings (see Note 22).

Consolidated Statement of Changes in Equity (Parenthetical)
$ in Millions

12 Months Ended

Dec. 31, 2018

USD ($)

Reclassification between other reserves and retained earnings related to unwinding of expired share options

$ 503

Malaysia LNG Tiga Sdn Bhd [Member]

Canadian Natural Resources Limited [Member]

617

481

Other Reserves [Member]

Impact of adoption of IFRS 2

(971)

^[1]

172

Retained Earnings [Member]

Impact of adoption of IFRS 2

971

^[1]

$ 125

[1]	The transfer mainly relates to the sale of Shell’s shareholding in Malaysia LNG Tiga Sendirian Berhad ($617 million) and the sale of shares in Canadian Natural Resources Limited ($481 million) (see Note 22).

Consolidated Statement of Cash Flows - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

Statement Of Cash Flows [Abstract]

Income for the period

$ 23,906

$ 13,435

$ 4,777

Adjustment for:

Current tax

10,475

6,591

2,731

Interest expense (net)

2,878

3,365

2,752

Depreciation, depletion and amortisation

22,135

26,223

24,993

Exploration well write-offs [A]

^[1]

449

897

834

Net gains on sale and revaluation of non-current assets and businesses

(3,265)

(1,640)

(2,141)

Share of profit of joint ventures and associates

(4,106)

(4,225)

(3,545)

Dividends received from joint ventures and associates

4,903

4,998

3,820

Decrease/(increase) in inventories

2,823

(2,079)

(5,658)

Decrease/(increase) in current receivables [A]

^[1]

1,955

(2,577)

(4,127)

(Decrease)/increase in current payables [A]

^[1]

(1,336)

2,406

1,359

Derivative financial instruments [A]

^[1]

799

(1,039)

1,461

Deferred tax, retirement benefits, decommissioning and other provisions [A]

^[1]

219

(4,300)

(1,588)

Other [A]

^[1]

921

(98)

(619)

Tax paid

(9,671)

(6,307)

(4,434)

Cash flow from operating activities

53,085

35,650

20,615

Capital expenditure

(23,011)

(20,845)

(22,116)

Acquisition of BG Group plc, net of cash and cash equivalents acquired

(11,421)

Investments in joint ventures and associates

(880)

(595)

(1,330)

Proceeds from sale of property, plant and equipment and businesses

4,366

8,808

2,072

Proceeds from sale of joint ventures and associates

1,594

2,177

1,565

Interest received

823

724

470

Other

3,449

^[2]

1,702

^[3]

(203)

Cash flow from investing activities

(13,659)

(8,029)

(30,963)

Net decrease in debt with maturity period within three months

(396)

(869)

(360)

Other debt:

New borrowings

3,977

760

18,144

Repayments

(11,912)

(11,720)

(6,710)

Interest paid

(3,574)

(3,550)

(2,938)

Change in non-controlling interest

678

293

1,110

Cash dividends paid to:

Royal Dutch Shell plc shareholders

(15,675)

(10,877)

(9,677)

Non-controlling interest

(584)

(406)

(180)

Shares held in trust: net purchases and dividends received

(3,947)

(1,115)

(717)

(160)

Cash flow from financing activities

(32,548)

(27,086)

(771)

Currency translation differences relating to cash and cash equivalents

(449)

647

(1,503)

Increase/(decrease) in cash and cash equivalents

6,429

1,182

(12,622)

Cash and cash equivalents at beginning of year

20,312

19,130

31,752

Cash and cash equivalents at end of year

$ 26,741

$ 20,312

$ 19,130

[1]	With effect from 2018 Exploration well write-offs, previously presented under Other and changes in current and non-current Derivative financial instruments previously presented under Decrease/increases in current receivables and payables and Other are shown separately. Prior years comparatives within Cash flow from operating activities have been revised to conform with the current year presentation. Overall, the revisions do not have an impact on the previously published cash flow from operating activities.
[2]	Includes $3,307 million from the sale of shares in Canadian Natural Resources Limited, which were received in connection with the oil sands divestment.
[3]	Includes $2,635 million from the sale of Shell’s interest in Woodside Petroleum Limited.

Basis of Preparation

12 Months Ended

Dec. 31, 2018

Disclosure Of Basis Of Preparation Of Financial Statements [Abstract]

Basis of Preparation

1 BASIS OF PREPARATION

The Consolidated Financial Statements of Royal Dutch Shell plc (the Company) and its subsidiaries (collectively referred to as Shell) have been prepared in accordance with the provisions of the Companies Act 2006 (the Act) and Article 4 of the IAS Regulation, and therefore in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union. As applied to Shell, there are no material differences from IFRS as issued by the International Accounting Standards Board (IASB); therefore, the Consolidated Financial Statements have been prepared in accordance with IFRS as issued by the IASB.

As described in the accounting policies in Note 2, the Consolidated Financial Statements have been prepared under the historical cost convention except for certain items measured at fair value. Those accounting policies have been applied consistently in all periods, except for those accounting standards that were adopted from January 1, 2018 (see Note 2 below).

The Consolidated Financial Statements were approved and authorised for issue by the Board of Directors on March 13, 2019.

Significant Accounting Policies, Judgements and Estimates

12 Months Ended

Dec. 31, 2018

Significant Accounting Policies, Judgements and Estimates

2 Significant ACCOUNTING POLICIES, JUDGEMENTS AND ESTIMATES

This Note describes Shell’s significant accounting policies, which are those relevant to an understanding of the Consolidated Financial Statements and includes the measurement bases used in their preparation. It allows an understanding as to how transactions, other events and conditions are reported. It also describes: (a) judgements, apart from those involving estimations, that management makes in applying the policies that have the most significant effect on the amounts recognised in the Consolidated Financial Statements; and (b) estimations, including assumptions about the future, that management makes in applying the policies. The sources of estimation uncertainty that have a significant risk of a material adjustment to the carrying amounts of assets and liabilities within the next financial year are specifically identified as a significant estimate.

The accounting policies applied are consistent with those of the previous financial years except for the adoption as from January 1, 2018 of IFRS 9 Financial Instruments (IFRS 9), IFRS 15 Revenue from Contracts with Customers (IFRS 15) and IFRS 2 Share-based payment (IFRS 2) amendments: Classification and measurement of share-based payment transactions.

IFRS 9 sets out the requirements for recognising and measuring financial assets, financial liabilities and certain contracts to buy or sell non-financial items. Furthermore, on a prospective basis the standard facilitates use of hedge accounting and results in different income recognition upon the sale of certain investments in securities. The adoption of IFRS 9 resulted in a decrease of $83 million in equity at January 1, 2018, mainly representing the recognition of additional provisions for impairment of receivables under the expected credit loss model. In addition, changing the measurement basis from amortised cost to fair value for certain financial assets resulted in an increase of $33 million in equity at January 1, 2018. Furthermore, a reclassification within equity between other reserves and retained earnings, primarily representing deferred cost of hedging, was recognised.

IFRS 15 provides a single model of accounting for revenue arising from contracts with customers based on the identification and satisfaction of performance obligations, and revenue from contracts with customers that is distinguished from other resources. For the adoption of IFRS 15 the modified retrospective transition approach was applied. Although the accounting for certain contracts, such as those with provisional pricing or take-or pay arrangements, and underlifts and overlifts, did change, no transition adjustment is presented as the adoption did not have a significant effect on Shell’s accounting or disclosures.

The amendments to IFRS 2 became effective January 1, 2018. Following adoption of the amendments, components of share-based payments (related to tax) that were previously classified as cash-settled are now classified as equity-settled. This resulted in an increase of $172 million in the share plan reserve within other reserves and a net increase of $125 million in retained earnings.

NATURE OF THE CONSOLIDATED FINANCIAL STATEMENTS

The Consolidated Financial Statements are presented in US dollars (dollars) and comprise the financial statements of the Company and its subsidiaries, being those entities over which the Company has control, either directly or indirectly, through exposure or rights to their variable returns and the ability to affect those returns through its power over the entities. Information about subsidiaries at December 31, 2018, can be found in Exhibit 8.

Subsidiaries are consolidated from the date on which control is obtained until the date that such control ceases, using consistent accounting policies. All inter-company balances and transactions, including unrealised profits arising from such transactions, are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Non-controlling interest represents the proportion of income, other comprehensive income and net assets in subsidiaries that is not attributable to the Company’s shareholders.

CURRENCY TRANSLATION

Foreign currency transactions are translated using the exchange rate at the dates of the transactions or valuation where items are re-measured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at quarter-end exchange rates of monetary assets and liabilities denominated in foreign currencies (including those in respect of inter-company balances, unless related to loans of a long-term investment nature) are recognised in income, except when recognised in other comprehensive income in respect of cash flow or net investment hedges, and presented within interest and other income or within purchases where not related to financing. Share capital issued in currencies other than the dollar is translated at the exchange rate at the date of issue.

On consolidation, assets and liabilities of non-dollar entities are translated to dollars at year-end rates of exchange, while their statements of income, other comprehensive income and cash flows are translated at quarterly average rates. The resulting translation differences are recognised as currency translation differences within other comprehensive income. Upon sale of all or part of an interest in, or upon liquidation of, an entity, the appropriate portion of cumulative currency translation differences related to that entity are generally recognised in income.

REVENUE RECOGNITION (from January 1, 2018)

Revenue from sales of oil, natural gas, chemicals and other products is recognised at the transaction price which Shell expects to be entitled to, after deducting sales taxes, excise duties and similar levies. For contracts that contain separate performance obligations the transaction price is allocated to those separate performance obligations by reference to their relative standalone selling prices.

Revenue is recognised when control of the products has been transferred to the customer. For sales by Integrated Gas and Upstream operations, this generally occurs when the product is physically transferred into a vessel, pipe or other delivery mechanism; for sales by refining operations, it is either when the product is placed onboard a vessel or offloaded from the vessel, depending on the contractually agreed terms; and for sales of oil products and chemicals, it is either at the point of delivery or the point of receipt, depending on contractual conditions.

Revenue resulting from hydrocarbon production from properties in which Shell has an interest with partners in joint arrangements is recognised on the basis of Shell’s volumes lifted and sold. Revenue resulting from the production of oil and natural gas under production-sharing contracts (PSCs) is recognised for those amounts relating to Shell’s cost recoveries and Shell’s share of the remaining production. Gains and losses on derivative contracts and the revenue and costs associated with other contracts that are classified as held for trading purposes are reported on a net basis in the Consolidated Statement of Income. Purchases and sales of hydrocarbons under exchange contracts that are necessary to obtain or reposition feedstocks for refinery operations are presented net in the Consolidated Statement of Income.

Revenue resulting from arrangements that are not considered contracts with customers is presented as revenue from other sources.

REVENUE RECOGNITION (prior to January 1, 2018)

Revenue from sales of oil, natural gas, chemicals and other products is recognised at the fair value of consideration received or receivable, after deducting sales taxes, excise duties and similar levies, when the significant risks and rewards of ownership have been transferred, which is when title passes to the customer. For sales by Integrated Gas and Upstream operations, this generally occurs when product is physically transferred into a vessel, pipe or other delivery mechanism; for sales by refining operations, it is either when product is placed onboard a vessel or offloaded from the vessel, depending on the contractually agreed terms; and for sales of oil products and chemicals, it is either at the point of delivery or the point of receipt, depending on contractual conditions.

Revenue resulting from hydrocarbon production from properties in which Shell has an interest with partners in joint arrangements is recognised on the basis of Shell’s working interest (entitlement method). Revenue resulting from the production of oil and natural gas under production-sharing contracts (PSCs) is recognised for those amounts relating to Shell’s cost recoveries and Shell’s share of the remaining production. Gains and losses on derivative contracts and the revenue and costs associated with other contracts that are classified as held for trading purposes are reported on a net basis in the Consolidated Statement of Income. Purchases and sales of hydrocarbons under exchange contracts that are necessary to obtain or reposition feedstocks for refinery operations are presented net in the Consolidated Statement of Income.

RESEARCH AND DEVELOPMENT

Development costs that are expected to generate probable future economic benefits are capitalised as intangible assets. All other research and development expenditure is recognised in income as incurred.

EXPLORATION COSTS

Hydrocarbon exploration costs are accounted for under the successful efforts method: exploration costs are recognised in income when incurred, except that exploratory drilling costs, including in respect of operating leases, are included in property, plant and equipment pending determination of proved reserves. Exploration costs capitalised in respect of exploration wells that are more than 12 months old are written off unless: (a) proved reserves are booked; or (b) (i) they have found commercially producible quantities of reserves and (ii) they are subject to further exploration or appraisal activity in that either drilling of additional exploratory wells is under way or firmly planned for the near future or other activities are being undertaken to sufficiently progress the assessing of reserves and the economic and operating viability of the project.

PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS

Recognition

Property, plant and equipment comprise assets owned by Shell, assets held by Shell under finance leases and assets operated by Shell as contractor in PSCs. They include rights and concessions in respect of properties with proved reserves (proved properties) and with no proved reserves (unproved properties). Property, plant and equipment, including expenditure on major inspections, and intangible assets are initially recognised in the Consolidated Balance Sheet at cost where it is probable that they will generate future economic benefits. This includes capitalisation of decommissioning and restoration costs associated with provisions for asset retirement (see “Provisions”), certain development costs (see “Research and development”) and the effects of associated cash flow hedges (see “Financial instruments (from January 1, 2018)”) as applicable. The accounting for exploration costs is described separately (see “Exploration costs”). Intangible assets include goodwill, liquefied natural gas (LNG) off-take and sales contracts obtained through acquisition, software costs and trademarks. Interest is capitalised, as an increase in property, plant and equipment, on major capital projects during construction.

Property, plant and equipment and intangible assets are subsequently carried at cost less accumulated depreciation, depletion and amortisation (including any impairment). Gains and losses on sale are determined by comparing the proceeds with the carrying amounts of assets sold and are recognised in income, within interest and other income.

An asset is classified as held for sale if its carrying amount will be recovered principally through sale rather than through continuing use, which is when the sale is highly probable, and it is available for immediate sale. Assets classified as held for sale are measured at the lower of the carrying amount upon classification and the fair value less costs to sell.

Depreciation, depletion and amortisation

Property, plant and equipment related to hydrocarbon production activities are in principle depreciated on a unit-of-production basis over the proved developed reserves of the field concerned, other than assets whose useful lives differ from the lifetime of the field which are depreciated applying the straight-line method. However, for certain Upstream assets, the use for this purpose of proved developed reserves, which are determined using the SEC-mandated yearly average oil and gas prices, would result in depreciation charges for these assets which do not reflect the pattern in which their future economic benefits are expected to be consumed as, for example, it may result in assets with long-term expected lives being depreciated in full within one year. Therefore, in these instances, other approaches are applied to determine the reserves base for the purpose of calculating depreciation, such as using management’s expectations of future oil and gas prices rather than yearly average prices, to provide a phasing of periodic depreciation charges that more appropriately reflects the expected utilisation of the assets concerned.

Rights and concessions in respect of proved properties are depleted on the unit-of-production basis over the total proved reserves of the relevant area. Where individually insignificant, unproved properties may be grouped and depreciated based on factors such as the average concession term and past experience of recognising proved reserves.

Property, plant and equipment held under finance leases and capitalised LNG off-take and sales contracts are depreciated or amortised over the term of the respective contract. Other property, plant and equipment and intangible assets are depreciated or amortised on a straight-line basis over their estimated useful lives, except for goodwill, which is not amortised. They include refineries and chemical plants (for which the useful life is generally 20 years), retail service stations (15 years), upgraders (30 years) and major inspection costs, which are depreciated over the estimated period before the next planned major inspection (three to five years).

On classification of an asset as held for sale, depreciation ceases.

Estimates of the useful lives and residual values of property, plant and equipment and intangible assets are reviewed annually and adjusted if appropriate.

Impairment

The carrying amount of goodwill is tested for impairment annually; in addition, assets other than unproved properties (see “Exploration costs”) are tested for impairment whenever events or changes in circumstances indicate that the carrying amounts for those assets may not be recoverable. On classification as held for sale, the carrying amounts of property, plant and equipment and intangible assets are also reviewed. If assets are determined to be impaired, the carrying amounts of those assets are written down to their recoverable amount, which is the higher of fair value less costs to sell (see “Fair value measurements”) and value in use.

Value in use is determined as the amount of estimated risk-adjusted discounted future cash flows. For this purpose, assets are grouped into cash-generating units based on separately identifiable and largely independent cash inflows. Estimates of future cash flows used in the evaluation of impairment of assets are made using management’s forecasts of commodity prices, market supply and demand, product margins and, in the case of exploration and production assets, expected production volumes. The latter takes into account assessments of field and reservoir performance and includes expectations about both proved reserves and volumes that are expected to constitute proved reserves in the future (unproved volumes), which are risk-weighted utilising geological, production, recovery and economic projections. Cash flow estimates are risk-adjusted to reflect local conditions as appropriate and discounted at a rate based on Shell’s marginal cost of debt.

Impairments, except those related to goodwill, are reversed as applicable to the extent that the events or circumstances that triggered the original impairment have changed.

Impairment losses and reversals are reported within depreciation, depletion and amortisation.

Judgements and estimates

Proved oil and gas reserves

Unit-of-production depreciation, depletion and amortisation charges are principally measured based on management’s estimates of proved developed oil and gas reserves. Also, exploration drilling costs are capitalised pending the results of further exploration or appraisal activity, which may take several years to complete and before any related proved reserves can be booked.

Proved reserves are estimated by reference to available geological and engineering data and only include volumes for which access to market is assured with reasonable certainty. Yearly average oil and gas prices are applied in the determination of proved reserves. Estimates of proved reserves are inherently imprecise, require the application of judgement and are subject to regular revision, either upward or downward, based on new information such as from the drilling of additional wells, observation of long-term reservoir performance under producing conditions and changes in economic factors, including product prices, contract terms, legislation or development plans.

Changes to estimates of proved developed reserves affect prospectively the amounts of depreciation, depletion and amortisation charged and, consequently, the carrying amounts of exploration and production assets. It is expected, however, that in the normal course of business the diversity of the asset portfolio will limit the effect of such revisions. The outcome of, or assessment of plans for, exploration or appraisal activity may result in the related capitalised exploration drilling costs being recognised in income in that period.

Judgement is involved in determining when to use an alternative reserves base in order to appropriately reflect the expected utilisation of the assets concerned (see "Depreciation, depletion and amortisation").

Information about the carrying amounts of exploration and production assets and the amounts charged to income, including depreciation, depletion and amortisation and the quantitative impact of the use of an alternative reserve base, is presented in Note 8.

Impairment

For the purposes of determining whether impairment of assets has occurred, and the extent of any impairment loss or its reversal, the key assumptions management uses in estimating risk-adjusted future cash flows for value-in-use measures are future oil and gas prices, expected production volumes and refining margins appropriate to the local circumstances and environment. These assumptions and the judgements of management that are based on them are subject to change as new information becomes available. Changes in economic conditions can also affect the rate used to discount future cash flow estimates.

The determination of cash-generating units requires judgement. Changes in this determination could impact the calculation of value in use and therefore the conclusion on the recoverability of assets’ carrying amounts when performing an impairment test.

Judgement, which is subject to change as new information becomes available, can be required in determining when an asset is classified as held for sale. A change in that judgement could result in impairment charges affecting income, depending on whether classification requires a write down of the asset to its fair value less costs to sell.

Significant estimate

Future price assumptions, presented in Note 8, tend to be stable because management does not consider short-term increases or decreases in prices as being indicative of long-term levels, but they are nonetheless subject to change. Expected production volumes, which comprise proved reserves and unproved volumes, are used for impairment testing because management believes this to be the most appropriate indicator of expected future cash flows. As discussed in “Proved oil and gas reserves” above, reserves estimates are inherently imprecise. Furthermore, projections about unproved volumes are based on information that is necessarily less robust than that available for mature reservoirs. Due to the nature and geographical spread of the business activity in which those assets are used, it is typically not practicable to estimate the likelihood or extent of impairments under different sets of assumptions for Shell overall.

Changes in assumptions could affect the carrying amounts of assets, and any impairment losses and reversals will affect income.

Information about the carrying amounts of assets and impairments is presented in Notes 7 and 8.

LEASES

Agreements under which payments are made to owners in return for the right to use an asset for a period are accounted for as leases. Leases that transfer substantially all the risks and rewards of ownership are recognised at the commencement of the lease term as finance leases within property, plant and equipment and debt at the fair value of the leased asset or, if lower, at the present value of the minimum lease payments. Finance lease payments are apportioned between interest expense and repayments of debt. All other leases are classified as operating leases and the cost is recognised in income on a straight-line basis, except where capitalised as exploration drilling costs (see "Exploration costs").

JOINT ARRANGEMENTS AND ASSOCIATES

Arrangements under which Shell has contractually agreed to share control (see “Nature of the Consolidated Financial Statements” for the definition of control) with another party or parties are joint ventures where the parties have rights to the net assets of the arrangement, or joint operations where the parties have rights to the assets and obligations for the liabilities relating to the arrangement. Investments in entities over which Shell has the right to exercise significant influence but neither control nor joint control are classified as associates. Information about incorporated joint arrangements and associates at December 31, 2018, can be found in Exhibit 8.

Investments in joint ventures and associates are accounted for using the equity method, under which the investment is initially recognised at cost and subsequently adjusted for the Shell share of post-acquisition income less dividends received and the Shell share of other comprehensive income and other movements in equity, together with any loans of a long-term investment nature. Where necessary, adjustments are made to the financial statements of joint ventures and associates to bring the accounting policies used into line with those of Shell. In an exchange of assets and liabilities for an interest in a joint venture, the non-Shell share of any excess of the fair value of the assets and liabilities transferred over the pre-exchange carrying amounts is recognised in income. Unrealised gains on other transactions between Shell and its joint ventures and associates are eliminated to the extent of Shell’s interest in them; unrealised losses are treated similarly but may also result in an assessment of whether the asset transferred is impaired.

Shell recognises its assets and liabilities relating to its interests in joint operations, including its share of assets held jointly and liabilities incurred jointly with other partners.

INVENTORIES

Inventories are stated at cost or net realisable value, whichever is lower. Cost comprises direct purchase costs (including transportation), and associated costs incurred in bringing inventories to their present condition and location, and is determined using the first-in, first-out (FIFO) method for oil, gas and chemicals and by the weighted average cost method for materials.

TAXATION

The charge for current tax is calculated based on the income reported by the Company and its subsidiaries, as adjusted for items that are non-taxable or disallowed and using rates that have been enacted or substantively enacted by the balance sheet date.

Deferred tax is determined, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the Consolidated Balance Sheet and on unused tax losses and credits carried forward.

Deferred tax assets and liabilities are calculated using the enacted or substantively enacted rates that are expected to apply when an asset is realised or a liability is settled. They are not recognised where they arise on the initial recognition of goodwill or of an asset or liability in a transaction (other than in a business combination) that, at the time of the transaction, affects neither accounting nor taxable profit, or in respect of taxable temporary differences associated with subsidiaries, joint ventures and associates where the reversal of the respective temporary difference can be controlled by Shell and it is probable that it will not reverse in the foreseeable future.

Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available against which the deductible temporary differences, unused tax losses and credits carried forward can be utilised.

Income taxes are recognised in income except when they relate to items recognised in other comprehensive income, in which case the tax is recognised in other comprehensive income. Income tax assets and liabilities are presented separately in the Consolidated Balance Sheet except where there is a right of offset within fiscal jurisdictions and an intention to settle such balances on a net basis.

Judgements and estimates

Tax liabilities are recognised when it is considered probable that there will be a future outflow of funds to a taxing authority. In such cases, provision is made for the amount that is expected to be settled, where this can be reasonably estimated. A change in estimate of the likelihood of a future outflow and/or in the expected amount to be settled would be recognised in income in the period in which the change occurs. This requires the application of judgement as to the ultimate outcome, which can change over time depending on facts and circumstances. Judgements mainly relate to transfer pricing, including inter-company financing, interpretation of PSCs, expenditure deductible for tax purposes and taxation arising on disposal.

Deferred tax assets are recognised only to the extent it is considered probable that those assets will be recoverable. This involves an assessment of when those assets are likely to reverse, and a judgement as to whether or not there will be sufficient taxable profits available to offset the assets when they do reverse. This requires assumptions regarding future profitability and is therefore inherently uncertain. To the extent assumptions regarding future profitability change, there can be an increase or decrease in the amounts recognised in respect of deferred tax assets as well as in the amounts recognised in income in the period in which the change occurs.

Taxation information, including charges and deferred tax assets and liabilities, is presented in Note 16. Income taxes include taxes at higher rates levied on income from certain Integrated Gas and Upstream activities.

RETIREMENT BENEFITS

Benefits in the form of retirement pensions and healthcare and life insurance are provided to certain employees and retirees under defined benefit and defined contribution plans.

Obligations under defined benefit plans are calculated annually by independent actuaries using the projected unit credit method, which takes into account employees’ years of service and, for pensions, average or final pensionable remuneration, and are discounted to their present value using interest rates of high-quality corporate bonds denominated in the currency in which the benefits will be paid and of a duration consistent with the plan obligations. Where plans are funded, payments are made to independently managed trusts; assets held by those trusts are measured at fair value. Defined benefit plan surpluses are recognised as assets to the extent that they are considered recoverable, which is generally by way of a refund or lower future employer contributions.

The amounts recognised in income in respect of defined benefit plans mainly comprise service cost and net interest. Service cost comprises principally the increase in the present value of the obligation for benefits resulting from employee service during the period (current service cost) and also amounts relating to past service and settlements or amendments of plans. Plan amendments are changes to benefits and are generally recognised when all legal and regulatory approvals have been received and the effects have been communicated to members. Net interest is calculated using the net defined benefit liability or asset matched against the discount rate yield curve at the beginning of each year for each plan. Remeasurements of the net defined benefit liability or asset resulting from actuarial gains and losses and the return on plan assets excluding the amount recognised in income are recognised in other comprehensive income.

For defined contribution plans, pension expense represents the amount of employer contributions payable for the period.

Significant judgements and estimates

Defined benefit obligations and plan assets, and the resulting liabilities and assets that are recognised, are subject to significant volatility as actuarial assumptions regarding future outcomes and market values change. Substantial judgement is required in determining the actuarial assumptions, which vary for the different plans to reflect local conditions but are determined under a common process in consultation with independent actuaries. The assumptions applied in respect of each plan are reviewed annually and adjusted where necessary to reflect changes in experience and actuarial recommendations.

Information about the amounts reported in respect of defined benefit pension plans, assumptions applicable to the principal plans and their sensitivity to changes are presented in Note 17.

PROVISIONS

Provisions are recognised at the balance sheet date at management’s best estimate of the expenditure required to settle the present obligation. Non-current amounts are discounted at a rate intended to reflect the time value of money. The carrying amounts of provisions are regularly reviewed and adjusted for new facts or changes in law or technology.

Provisions for decommissioning and restoration costs, which arise principally in connection with hydrocarbon production facilities and pipelines, are measured on the basis of current requirements, technology and price levels; the present value is calculated using amounts discounted over the useful economic life of the assets. The liability is recognised (together with a corresponding amount as part of the related property, plant and equipment) once an obligation crystallises in the period when a reasonable estimate can be made. The effects of changes resulting from revisions to the timing or the amount of the original estimate of the provision are reflected on a prospective basis, generally by adjustment to the carrying amount of the related property, plant and equipment. However, where there is no related asset, or the change reduces the carrying amount to nil, the effect, or the amount in excess of the reduction in the related asset to nil, is recognised in income.

Redundancy provisions are recognised when a detailed formal plan identifies the business or part of the business concerned, the location and number of employees affected, a detailed estimate of the associated costs and an appropriate timeline, and the employees affected have been notified of the plan's main features.

Other provisions are recognised in income in the period in which an obligation arises and the amount can be reasonably estimated. Provisions are measured based on current legal requirements and existing technology where applicable. Recognition of any joint and several liability is based on management’s best estimate of the final pro rata share of the liability. Provisions are determined independently of expected insurance recoveries. Recoveries are recognised when virtually certain of realisation.

Significant estimates

Estimates of provisions for future decommissioning and restoration costs are recognised and based on current legal and constructive requirements, technology and price levels. Because actual outflows can differ from estimates due to changes in laws, regulations, public expectations, technology, prices and conditions, and can take place many years in the future, the carrying amounts of provisions are regularly reviewed and adjusted to take account of such changes. The discount rate applied is reviewed annually.

Information about decommissioning and restoration provisions is presented in Note 18.

FINANCIAL INSTRUMENTS (from January 1, 2018)

Financial assets and liabilities are presented separately in the Consolidated Balance Sheet except where there is a legally enforceable right of offset and Shell has the intention to settle on a net basis or realise the asset and settle the liability simultaneously.

Financial Assets

Financial assets are classified at initial recognition and subsequently measured at amortised cost, fair value through other comprehensive income or fair value through profit or loss. The classification of financial assets is determined by the contractual cash flows and where applicable the business model for managing the financial assets.

A financial asset is measured at amortised cost, if the objective of the business model is to hold the financial asset in order to collect contractual cash flows and the contractual terms give rise to cash flows that are solely payments of principal and interest. It is initially recognised at fair value plus or minus transaction costs that are directly attributable to the acquisition or issue of the financial asset. Subsequently the financial asset is measured using the effective interest method less any impairment. Gains and losses are recognised in profit or loss when the asset is derecognised, modified or impaired.

All equity instruments and other debt instruments are recognised at fair value. For equity instruments, on initial recognition, an irrevocable election (on an instrument-by-instrument basis) can be made to designate these as at fair value through other comprehensive income instead of fair value through profit and loss. Dividends received on equity instruments are recognised as other income in profit or loss when the right of payment has been established, except when the company benefits from such proceeds as a recovery of part of the cost of the financial asset, in which case, such gains are recorded in other comprehensive income.

Investments in securities

Investments in securities (“securities”) comprise equity and debt securities. Equity securities are carried at fair value. Generally, unrealised holding gains and losses are recognised in other comprehensive income. On sale, net gains and loses previously accumulated in other comprehensive income are transferred to retained earnings. Debt securities are generally carried at fair value with unrealised holding gains and losses recognised in other comprehensive income. On sale, net gains and losses previously accumulated in other comprehensive income are recognised in income.

Impairment of financial assets

The expected credit loss model is applied for recognition and measurement of impairments in financial assets measured at amortised cost or at fair value through other comprehensive income. The expected credit loss model also is applied for financial guarantee contracts to which IFRS 9 applies and are not accounted for at fair value through profit or loss. The loss allowance for the financial asset is measured at an amount equal to the 12-month expected credit losses. If the credit risk on the financial asset has increased significantly since initial recognition, the loss allowance for the financial asset is measured at an amount equal to the lifetime expected credit losses. Changes in loss allowances are recognised in profit and loss. For trade receivables, a simplified impairment approach is applied recognising expected lifetime losses from initial recognition.

Significant estimate

Receivables from governments may be large and subject to disputes. Recoverability is subject to uncertainty as to the settlement of amounts including tax, royalty, cost recovery and associated interest. Information about government receivables is presented in Note 11.

Financial Liabilities

Financial liabilities are measured at amortised cost, unless they are required to be measured at fair value through profit or loss, such as instruments held for trading, or Shell has opted to measure them at fair value through profit or loss. Debt and trade payables are recognised initially at fair value based on amounts exchanged, net of transaction costs, and subsequently at amortised cost except for fixed rate debt subject to fair value hedging which is remeasured for the hedged risk (see below). Interest expense on debt is accounted for using the effective interest method, and other than interest capitalised, is recognised in income. For financial liabilities that are measured under the fair value option, the change in the fair value related to own credit risk is recognised in other comprehensive income. The remaining fair value change is recognised to fair value through profit and loss.

Derivative contracts and hedges

Derivative contracts are used in the management of interest rate risk, foreign exchange risk, commodity price risk, and foreign currency cash balances. Derivatives that are not closely related to the host contract in terms of economic characteristics and risks of which the host contract is not a financial asset, are separated from their host contract and recognised at fair value with the associated gains and losses recognised in income.

Certain derivative contracts qualify and are designated either as a “fair value” hedge of the change in fair value of a recognised asset or liability or an unrecognised firm commitment or as a “cash flow” hedge for the change in cash flows to be received or paid relating to a recognised asset or liability or a highly probable forecast transaction.

A change in the fair value of a fair value hedge is recognised in income, together with the consequential adjustment to the carrying amount of the hedged item. The effective portion of a change in fair value of a derivative contract designated as a cash flow hedge is recognised in other comprehensive income until the hedged transaction occurs; any ineffective portion is recognised in income. Where the hedged item is a non-financial asset or liability, the amount in accumulated other comprehensive income is transferred to the initial carrying amount of the asset or liability (reclassified to the balance sheet); for other hedged items, the amount in accumulated other comprehensive income is reclassified to income when the hedged transaction affects income.

The effective portion of a change due to retranslation at quarter-end exchange rates in the carrying amount of debt and the principal amount of derivative contracts used to hedge net investments in foreign operations is recognised in other comprehensive income until the related investment is sold or liquidated; any ineffective portion is recognised in income.

All relationships between hedging instruments and hedged items are documented, as well as risk management objectives and strategies for undertaking hedge transactions. The effectiveness of hedges is also continually assessed and hedge accounting is discontinued when there is a change in the risk management strategy.

Unless designated as hedging instruments, contracts to sell or purchase non-financial items that can be settled net as if the contracts were financial instruments and that do not meet expected own use requirements (typically, forward sale and purchase contracts for commodities in trading operations), and contracts that are or contain written options, are recognised at fair value; associated gains and losses are recognised in income.

FINANCIAL INSTRUMENTS (prior to January 1, 2018)

Financial assets

Investments in securities

Investments in securities (also referred to as “securities”) comprise equity and debt securities classified on initial recognition as available-for-sale and are carried at fair value, except where their fair value cannot be measured reliably, in which case they are carried at cost, less any impairment. Unrealised holding gains and losses other than impairments are recognised in other comprehensive income, except for translation differences arising on foreign currency debt securities, which are recognised in income. On maturity or sale, net gains and losses previously deferred in accumulated other comprehensive income are recognised in income.

Interest income on debt securities is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and in hand, including offsetting bank overdrafts, short-term bank deposits, money market funds, reverse repos and similar instruments that have a maturity of three months or less at the date of purchase.

Trade receivables

Trade receivables are recognised initially at fair value based on amounts exchanged and subsequently at amortised cost less any impairment.

Significant estimate

Financial liabilities

Debt and trade payables are recognised initially at fair value based on amounts exchanged, net of transaction costs, and subsequently at amortised cost except for fixed rate debt subject to fair value hedging which is remeasured for the hedged risk (see below). Interest expense on debt is accounted for using the effective interest method and, other than interest capitalised, is recognised in income.

Derivative contracts and hedges

Derivative contracts are used in the management of interest rate risk, foreign exchange risk and commodity price risk, and in the management of foreign currency cash balances. These contracts are recognised at fair value.

Certain derivative contracts qualify and are designated either as a “fair value” hedge of the change in fair value of a recognised asset or liability or an unrecognised firm commitment or as a “cash flow” hedge of the change in cash flows to be received or paid relating to a recognised asset or liability or a highly probable forecast transaction.

A change in the fair value of a hedging instrument designated as a fair value hedge is recognised in income, together with the consequential adjustment to the carrying amount of the hedged item. The effective portion of a change in fair value of a derivative contract designated as a cash flow hedge is recognised in other comprehensive income until the hedged transaction occurs; any ineffective portion is recognised in income. Where the hedged item is a non-financial asset or liability, the amount in accumulated other comprehensive income is transferred to the initial carrying amount of the asset or liability (reclassified to the balance sheet); for other hedged items, the amount in accumulated other comprehensive income is reclassified to income when the hedged transaction affects income.

Gains and losses on derivative contracts not qualifying and designated as hedges, including forward sale and purchase contracts for commodities in trading operations that may be settled by the physical delivery or receipt of the commodity, are recognised in income.

Derivatives embedded within contracts that are not already required to be recognised at fair value, and that are not closely related to the host contract in terms of economic characteristics and risks, are separated from their host contract and recognised at fair value; associated gains and losses are recognised in income.

FAIR VALUE MEASUREMENTS

Fair value measurements are estimates of the amounts for which assets or liabilities could be transferred at the measurement date, based on the assumption that such transfers take place between participants in principal markets and, where applicable, taking highest and best use into account.

Judgements and estimates

Where available, fair value measurements are derived from prices quoted in active markets for identical assets or liabilities. In the absence of such information, other observable inputs are used to estimate fair value. Inputs derived from external sources are corroborated or otherwise verified, as appropriate. In the absence of publicly available information, fair value is determined using estimation techniques that take into account market perspectives relevant to the asset or liability, in as far as they can reasonably be ascertained, based on predominantly unobservable inputs. For derivative contracts where publicly available information is not available, fair value estimations are generally determined using models and other valuation methods, the key inputs for which include future prices, volatility, price correlation, counterparty credit risk and market liquidity, as appropriate; for other assets and liabilities, fair value estimations are generally based on the net present value of expected future cash flows.

SHARE-BASED COMPENSATION PLANS

The fair value of share-based compensation expense arising from the Performance Share Plan (PSP) and the Long-term Incentive Plan (LTIP) – Shell’s main equity-settled plans – is estimated using a Monte Carlo option pricing model and is recognised in income from the date of grant over the vesting period with a corresponding increase directly in equity. The model projects and averages the results for a range of potential outcomes for the vesting conditions, the principal assumptions for which are the share price volatility and dividend yields for Shell and four of its main competitors over the last three years and the last 10 years. Prior to the adoption of the IFRS 2 amendments, changes in the fair value of share-based compensation for cash-settled plans were recognised in income with a corresponding change in liabilities.

SHARES HELD IN TRUST

Shares in the Company, which are held by employee share ownership trusts and trust-like entities, are not included in assets but are reflected at cost as a deduction from equity as shares held in trust.

ACQUISITIONS AND SALES OF INTERESTS IN A BUSINESS

Assets acquired and liabilities assumed when control is obtained over a business, and when an interest or an additional interest is acquired in a joint operation which is a business, are recognised at their fair value at the date of the acquisition; the amount of the purchase consideration above this value is recognised as goodwill. When control is obtained, any non-controlling interest is recognised as the proportionate share of the identifiable net assets. The acquisition of a non-controlling interest in a subsidiary and the sale of an interest while retaining control are accounted for as transactions within equity. The difference between the purchase consideration or sale proceeds after tax and the relevant proportion of the non-controlling interest, measured by reference to the carrying amount of the interest’s net assets at the date of acquisition or sale, is recognised in retained earnings as a movement in equity attributable to Royal Dutch Shell plc shareholders.

CONSOLIDATED STATEMENT OF INCOME PRESENTATION

Purchases reflect all costs related to the acquisition of inventories and the effects of the changes therein, and include associated costs incurred in conversion into finished or intermediate products. Production and manufacturing expenses are the costs of operating, maintaining and managing production and manufacturing assets. Selling, distribution and administrative expenses include direct and indirect costs of marketing and selling products.

Changes to IFRS Not Yet Adopted

12 Months Ended

Dec. 31, 2018

Changes to IFRS Not Yet Adopted

3 CHANGES TO IFRS NOT YET ADOPTED

IFRS 16 Leases was issued in 2016 to replace IAS 17 Leases and is required to be adopted by 2019. Under the new standard all lease contracts, with limited exceptions, are recognised in financial statements by way of right-of-use assets and corresponding lease liabilities. Shell will apply the modified retrospective approach, which means that the cumulative effect of initially applying the standard is recognised at the date of initial application and there is no restatement of comparative information. Compared with the existing accounting for operating leases, application of the standard will have a significant impact on the classification of expenditures and consequently the classification of cash flow from operating activities, cash flow from investing activities and cash flow from financing activities. It will also impact the timing of expenses recognised in the statement of income. No impact is expected in relation to lease contracts previously classified as finance leases. The adoption of the new standard at January 1, 2019, is expected to have a negligible impact on equity following the recognition of lease liabilities of approximately $16.0 billion and additional right of use assets of approximately $15.6 billion and reclassifications mainly related to pre-paid leases and onerous contract provisions previously recognised.

IFRS 17 Insurance contracts was issued in 2017 and will become effective for annual reporting periods beginning on or after January 1, 2021. The IFRS 17 model combines a current balance sheet measurement of insurance contracts with recognition of profit over the period that services are provided. The general model in the standard requires insurance contract liabilities to be measured using probability-weighted current estimates of future cash flows, an adjustment for risk, and a contractual service margin representing the profit expected from fulfilling the contracts. Effects of changes in the estimates of future cash flows and the risk adjustment relating to future services are recognised over the period services are provided rather than immediately in profit or loss. Shell is in the process evaluating the initial impact of this pronouncement.

Segment Information

12 Months Ended

Dec. 31, 2018

Disclosure Of Operating Segments [Abstract]

Segment Information

4 SEGMENT INFORMATION

General Information

Shell is an international energy company engaged in the principal aspects of the oil and gas industry and reports its business through the segments: Integrated Gas, Upstream, Downstream, and Corporate.

The Integrated Gas segment covers liquefied natural gas activities and the conversion of natural gas into gas-to-liquids fuels and other products, as well as the New Energies portfolio. It includes natural gas exploration and extraction and the operation of the upstream and midstream infrastructure necessary to deliver gas to market. It markets and trades natural gas, LNG, electricity and carbon-emission rights and also markets and sells LNG as a fuel for heavy-duty vehicles and marine vessels.

Upstream combines the following two operating segments: 1) Upstream, which is engaged in the exploration for and extraction of crude oil, natural gas and natural gas liquids, and the marketing and transportation of oil and gas, and 2) Oil Sands, which is engaged in the extraction of bitumen from mined oil sands and conversion into synthetic crude oil. These operating segments have similar economic characteristics because their earnings are significantly dependent on crude oil and natural gas prices and production volumes.

The Downstream segment is engaged in oil products and chemicals manufacturing, marketing and trading activities, that turns crude oil and other feedstocks into a range of products which are moved and marketed around the world for domestic, industrial and transport use.

The Corporate segment covers the non-operating activities supporting Shell, comprising Shell’s holdings and treasury organisation, its self-insurance activities and its headquarters and central functions.

Basis of Segmental Reporting

Sales between segments are based on prices generally equivalent to commercially available prices. Third-party revenue and non-current assets information by geographical area are based on the country of operation of the group subsidiaries that report this information. Separate disclosure is provided for the UK as this is Shell’s country of domicile.

Segment earnings are presented on a current cost of supplies basis (CCS earnings), which is the earnings measure used by the Chief Executive Officer for the purposes of making decisions about allocating resources and assessing performance. On this basis, the purchase price of volumes sold during the period is based on the current cost of supplies during the same period after making allowance for the tax effect. CCS earnings therefore exclude the effect of changes in the oil price on inventory carrying amounts.

Information by segment on a current cost of supplies basis is as follows:


2018	$ million
	Integrated Gas		Upstream		Downstream		Corporate			Total
CCS earnings		11,444		6,798		7,601		(1,479	)		24,364
Revenue:
Third party		43,764		9,892		334,680		43			388,379	[A]
Inter-segment		4,853		37,841		5,358		—
Share of profit/(loss) of joint ventures and associates (CCS basis)		2,273		285		1,785		(222	)		4,121
Interest and other income, of which:		2,230		600		345		896			4,071
Interest income		—		—		—		772			772
Net gains on sale and revaluation of non-current assets and businesses		2,231		712		302		20			3,265
Depreciation, depletion and amortisation charge, of which:		4,850		13,006		4,064		215			22,135
Impairment losses		200		1,065		424		7			1,696	[B]
Impairment reversals		—		1,265		—		—			1,265	[C]
Interest expense		221		609		71		2,844			3,745
Taxation charge/(credit) (CCS basis)		2,795		8,791		1,515		(1,270	)		11,831

[A] Includes $3,348 million of revenue from sources other than from contracts with customers, which mainly comprises the impact of fair value accounting of commodity derivatives.

[B] Impairment losses comprise Property, plant and equipment ($1,515 million) and Intangible assets ($181 million).

[C] See Note 8.


2017	$ million
	Integrated Gas		Upstream		Downstream		Corporate			Total
CCS earnings		5,078		1,551		8,258		(2,416	)		12,471
Revenue:
Third party		32,674		7,723		264,731		51			305,179
Inter-segment		3,978		32,469		4,248		—
Share of profit/(loss) of joint ventures and associates (CCS basis)		1,714		623		1,956		(129	)		4,164
Interest and other income, of which:		687		1,188		154		437			2,466
Interest income		—		—		—		677			677
Net gains on sale and revaluation of non-current assets and businesses		301		1,189		136		14			1,640
Depreciation, depletion and amortisation charge, of which:		4,965		17,303		3,877		78			26,223
Impairment losses		302		4,118		385		—			4,805	[A]
Impairment reversals		10		605		—		—			615	[B]
Interest expense		248		744		109		2,941			4,042
Taxation charge/(credit) (CCS basis)		790		2,409		1,783		(636	)		4,346

[A] Impairment losses comprise Property, plant and equipment ($4,572 million) and Intangible assets ($233 million).

[B] See Note 8.


2016	$ million
	Integrated Gas		Upstream			Downstream		Corporate			Total
CCS earnings		2,529		(3,674	)		6,588		(1,751	)		3,692
Revenue:
Third party		25,282		6,412			201,823		74			233,591
Inter-segment		3,908		26,524			1,727		—
Share of profit/(loss) of joint ventures and associates (CCS basis)		1,116		222			2,244		(182	)		3,400
Interest and other income, of which:		765		839			851		442			2,897
Interest income		—		—			—		451			451
Net gains on sale and revaluation of non-current assets and businesses		507		867			765		2			2,141
Depreciation, depletion and amortisation charge, of which:		4,509		16,779			3,681		24			24,993
Impairment losses		72		1,274			588		6			1,940	[A]
Impairment reversals		—		—			38		—			38	[B]
Interest expense		247		852			91		2,013			3,203
Taxation charge/(credit) (CCS basis)		1,254		(938	)		1,008		(839	)		485

[A] Impairment losses comprise Property, plant and equipment ($1,931 million) and Intangible assets ($9 million).

[B] See Note 8.


Reconciliation of CCS earnings to income for the period	$ million
	2018			2017			2016
CCS earnings		24,364			12,471			3,692
Current cost of supplies adjustment:
Purchases		(559	)		1,252			1,284
Taxation		116			(349	)		(344	)
Share of profit of joint ventures and associates		(15	)		61			145
		(458	)		964			1,085
Income for the period		23,906			13,435			4,777

Information by geographical area is as follows:


2018	$ million
	Europe		Asia, Oceania, Africa		USA	Other Americas	Total
Third-party revenue, by origin	118,960	[A]	153,716	[B]	89,876	25,827	388,379
Intangible assets, property, plant and equipment, joint ventures and associates at December 31	38,617	[C]	117,127		59,625	56,721	272,090

[A] Includes $54,659 million that originated from the UK.

[B] Includes $89,811 million that originated from Singapore.

[C] Includes $21,863 million located in the UK.


2017	$ million
	Europe		Asia, Oceania, Africa		USA		Other Americas	Total
Third-party revenue, by origin	100,609	[A]	114,683	[B]	66,854		23,033	305,179
Intangible assets, property, plant and equipment, joint ventures and associates at December 31	41,416	[C] [D]	122,345		55,898	[D]	58,828	278,487

[A] Includes $49,370 million that originated from the UK.

[B] Includes $62,046 million that originated from Singapore.

[C] Includes $22,734 million located in the UK.

[D] The USA geographical allocation has increased by $1,604 million with a corresponding decrease in Europe.


2016	$ million
	Europe		Asia, Oceania, Africa		USA		Other Americas	Total
Third-party revenue, by origin	81,573	[A]	87,635	[B]	44,615		19,768	233,591
Intangible assets, property, plant and equipment, joint ventures and associates at December 31	42,265	[C] [D]	121,618		62,066	[D]	67,371	293,320

[A] Includes $38,490 million that originated from the UK.

[B] Includes $42,533 million that originated from Singapore.

[C] Includes $24,015 million located in the UK.

[D] The USA geographical allocation has increased by $1,636 million with a corresponding decrease in Europe.

Interest and Other Income

12 Months Ended

Dec. 31, 2018

Interest and Other Income

5 INTEREST AND OTHER INCOME


	$ million
	2018			2017			2016
Interest income		772			677			451
Dividend income (from investments in equity securities)		104			375			264
Net gains on sale and revaluation of non-current assets and businesses		3,265			1,640			2,141
Net foreign exchange (losses)/gains on financing activities		(174	)		(453	)		343
Other		104			227			(302	)
Total		4,071			2,466			2,897

In 2018, net gains on sale of non-current assets and businesses arose mainly in respect of gains on the sale of Integrated Gas assets in Thailand, Malaysia, Oman and New Zealand, as well as Upstream assets in Iraq and Malaysia and a Downstream divestment in Argentina partially offset by a charge related to the disposal of our Upstream assets in Ireland.

In 2017, net gains on sale of non-current assets and businesses arose mainly in respect of gains on the sale of Upstream assets in the UK and the USA as well as Downstream assets in Australia and Saudi Arabia, partly offset by a loss on the Motiva transaction. Net foreign exchange losses on financing activities in 2017 includes a charge of $545 million from the release of cumulative currency translation differences following the restructuring of funding for our North America businesses.

In 2016, net gains on sale of non-current assets and businesses arose mainly in respect of Upstream assets in North America and Downstream assets in Denmark and Japan. In addition, in respect of a decrease in Shell’s interest in Woodside Petroleum Limited, a revaluation gain of $293 million was recognised and a gain of $358 million on the related release of cumulative currency translation differences was recognised in net foreign exchange gains on financing activities. Other mainly relates to the write down of an investment in securities.

Other net foreign exchange losses of $210 million in 2018 (2017: $47 million; 2016: $49 million) were included in purchases.

Interest Expense

12 Months Ended

Dec. 31, 2018

Interest Expense

6 INTEREST EXPENSE


	$ million
	2018			2017			2016
Interest incurred and similar charges		3,550			3,448			2,732
Less: interest capitalised		(876	)		(622	)		(725	)
Other net losses on fair value hedges of debt		169			114			4
Accretion expense		902			1,102			1,192
Total		3,745			4,042			3,203

The rate applied in determining the amount of interest capitalised in 2018 was 4% (2017: 3%; 2016: 3%).

Intangible Assets

12 Months Ended

Dec. 31, 2018

Intangible Assets

7 INTANGIBLE ASSETS


2018	$ million
	Goodwill			LNG off-take and sales contracts			Other			Total
Cost
At January 1		14,154			10,429			6,106			30,689
Additions		331			—			659			990
Sales, retirements and other movements		(75	)		(64	)		(253	)		(392	)
Currency translation differences		(72	)		—			(120	)		(192	)
At December 31		14,338			10,365			6,392			31,095
Depreciation, depletion and amortisation, including impairments
At January 1		492			2,432			3,585			6,509
Charge for the year		173			925			370			1,468
Sales, retirements and other movements		(21	)		(64	)		(275	)		(360	)
Currency translation differences		(22	)		—			(86	)		(108	)
At December 31		622			3,293			3,594			7,509
Carrying amount at December 31		13,716			7,072			2,798			23,586


2017	$ million
	Goodwill			LNG off-take and sales contracts		Other			Total
Cost
At January 1		13,592			10,429		5,085			29,106
Additions		784			—		786			1,570
Sales, retirements and other movements		(261	)		—		37			(224	)
Currency translation differences		39			—		198			237
At December 31		14,154			10,429		6,106			30,689
Depreciation, depletion and amortisation, including impairments
At January 1		605			1,475		3,059			5,139
Charge for the year		—			957		612			1,569
Sales, retirements and other movements		(136	)		—		(241	)		(377	)
Currency translation differences		23			—		155			178
At December 31		492			2,432		3,585			6,509
Carrying amount at December 31		13,662			7,997		2,521			24,180

Goodwill at December 31, 2018, principally related to the acquisition of BG Group plc (BG) in 2016, allocated to Integrated Gas ($4,897 million) and Upstream ($6,013 million) at the operating segment level, and to Pennzoil-Quaker State Company ($1,609 million), a lubricants business in the Downstream segment based largely in North America. Information on annual impairment testing is included in Note 8.

Property, Plant and Equipment

12 Months Ended

Dec. 31, 2018

Property, Plant and Equipment

8 PROPERTY, PLANT AND EQUIPMENT


2018														$ million
	Exploration and production
	Exploration and evaluation				Production			Manufacturing, supply and distribution			Other			Total
Cost
At January 1		22,510				292,256			86,948			22,355			424,069
Additions		3,514				12,596			6,438			1,594			24,142
Sales, retirements and other movements		(4,443	)			(19,643	)		(667	)		(814	)		(25,567	)
Currency translation differences		(400	)			(4,828	)		(1,484	)		(1,095	)		(7,807	)
At December 31		21,181				280,381			91,235			22,040			414,837
Depreciation, depletion and amortisation, including impairments
At January 1		5,060				137,525			44,483			10,621			197,689
Charge for the year		(979	)	[A]		16,551			4,000			1,095			20,667
Sales, retirements and other movements		(608	)			(19,631	)		(1,353	)		(756	)		(22,348	)
Currency translation differences		(186	)			(2,753	)		(912	)		(495	)		(4,346	)
At December 31		3,287				131,692			46,218			10,465			191,662
Carrying amount at December 31		17,894				148,689			45,017			11,575			223,175

[A] Includes an impairment reversal for assets in North America.


2017															$ million
	Exploration and production
	Exploration and evaluation				Production				Manufacturing, supply and distribution			Other			Total
Cost
At January 1		25,376				302,532				77,286			20,063			425,257
Additions		2,319				15,347				8,148			1,352			27,166
Sales, retirements and other movements		(5,651	)	[A]		(33,133	)	[A]		(1,427	)		(655	)		(40,866	)
Currency translation differences		466				7,510				2,941			1,595			12,512
At December 31		22,510				292,256				86,948			22,355			424,069
Depreciation, depletion and amortisation, including impairments
At January 1		6,363				133,600				39,673			9,523			189,159
Charge for the year		778				19,155				3,705			1,016			24,654
Sales, retirements and other movements		(2,300	)			(19,615	)			(763	)		(701	)		(23,379	)
Currency translation differences		219				4,385				1,868			783			7,255
At December 31		5,060				137,525				44,483			10,621			197,689
Carrying amount at December 31		17,450				154,731				42,465			11,734			226,380

[A] $1,065 million has been reclassified from Exploration and evaluation to Production.

Sales, retirements and other movements in 2018 include sales of interests in Thailand, Ireland, Argentina and Norway. In Thailand, Shell sold its 22.22% interest in the Bangkot field and adjoining acreage offshore Thailand. In Ireland, Shell sold its 45% interest in the Corrib gas venture. The Buenos Aires Refinery was sold as part of the Argentina Downstream business together with other businesses, as well as the supply and distribution activities. In Norway, Shell sold its 44.56% operated interest in the Draugen field and 12% non-operated interest in the Gjøa field.

The carrying amount at December 31, 2018, included $33,451 million (2017: $42,121 million) of assets under construction. This amount excludes exploration and evaluation assets. The carrying amount at December 31, 2018, also included $705 million of assets classified as held for sale (2017: $986 million).

The carrying amount of exploration and production assets at December 31, 2018, included rights and concessions in respect of proved and unproved properties of $15,860 million (2017: $14,839 million). Exploration and evaluation assets principally comprise rights and concessions in respect of unproved properties and capitalised exploration drilling costs.

The carrying amount of assets at December 31, 2018, for which an alternative reserves base was applied in the calculation of the depreciation charge (see Note 2), was $5,838 million (2017: $18,115 million). If no alternative reserves base had been used, the pre-tax depreciation charge for the year ended December 31, 2018, would have been $1,003 million higher (2017: $5,558 million, 2016: $9,181 million).

Contractual commitments for the purchase of property, plant and equipment at December 31, 2018, amounted to $4,783 million (2017: $4,504 million). In addition, Shell has other commitments for future expenditure that, when incurred, are also expected to be recognised as additions to property, plant and equipment, such as the majority of operating lease payments in respect of drilling and ancillary equipment (see Note 14).


Carrying amount of property, plant and equipment held under finance leases [A]	$ million
	Dec 31, 2018		Dec 31, 2017
Exploration and production		6,299		8,399
Manufacturing, supply and distribution		3,149		3,151
Other		200		272
Total		9,648		11,822

[A] See Note 14.


Impairments	$ million
	2018		2017		2016
Impairment losses [A]
Exploration and production		1,066		4,187		1,324
Manufacturing, supply and distribution		441		376		567
Other		8		9		40
Total		1,515		4,572		1,931
Impairment reversals [A]
Exploration and production		1,265		615		—
Manufacturing, supply and distribution		—		—		36
Other		—		—		2
Total		1,265		615		38

[A] See Note 4.

Impairment losses in 2018 were mainly in Upstream, and principally related to the disposal of Shell’s interests in Norway and Ireland and related to assets in the Gulf of Mexico. Impairment reversals were mainly related to assets in North America. Impairment losses in 2017 were mainly in Upstream, and principally related to the disposal of interests in Canada and interests in Ireland classified as held for sale. Impairment losses in 2016 were mainly triggered by asset performance, disposals and project cancellations. They related primarily in Upstream to shale and deep-water properties in North and South America and in Downstream to disposals and assets held for sale in the refining portfolio.

For impairment testing purposes, the respective carrying amounts of property, plant and equipment and intangible assets were compared with their value in use. Cash flow projections used in the determination of value in use were made using management’s forecasts of commodity prices, market supply and demand, product margins and expected production volumes (see Note 2). These cash flows were adjusted for the risks specific to the assets, and therefore these risks were not included in the determination of the discount rate applied. The nominal pre-tax rate applied in 2018 was 6% (2017: 6%; 2016: 6%).

Oil and gas price assumptions applied for impairment testing are reviewed and, where necessary, adjusted on a periodic basis. Reviews include comparison with available market data and forecasts that reflect developments in demand such as global economic growth, technology efficiency, policy measures and, in supply, consideration of investment and resource potential, cost of development of new supply, and behaviour of major resource holders. The near-term commodity price assumptions applied in impairment testing in 2018 were as follows:



Commodity price assumptions [A]
	2019		2020		2021
Brent crude oil ($/b)		65		65		70
Henry Hub natural gas ($/MMBtu)		3.25		3.50		3.50

[A] Money of the day.

For periods after 2021, the real terms long-term price assumptions applied were $70 per barrel (/b) (2017: $70/b after 2020) for Brent crude oil and $3.50 per million British thermal units (/MMBtu) (2017: $3.50/MMBtu after 2020) for Henry Hub natural gas.


Capitalised exploration drilling costs	$ million
	2018			2017				2016
At January 1		6,981			7,910				7,835
Additions pending determination of proved reserves		2,588			1,708				1,762
Amounts charged to expense		(449	)		(897	)			(834	)
Reclassifications to productive wells on determination of proved reserves		(2,461	)		(1,894	)	[A]		(1,187	)
Other movements		(30	)		154				334
At December 31		6,629			6,981		[A]		7,910

[A] $912 million of capitalised exploration drilling costs has been reclassified from Exploration and evaluation to Production.


	Projects				Wells
	Number		$ million		Number		$ million
Between 1 and 5 years		44		3,645		180		2,670
Between 6 and 10 years		12		1,059		143		1,766
Between 11 and 15 years		4		238		16		441
Between 16 and 20 years		—		—		3		65
Total		60		4,942		342		4,942

Exploration drilling costs capitalised for periods greater than one year at December 31, 2018, analysed according to the most recent year of activity, are presented in the table above. They comprise $1,342 million relating to 17 projects where drilling activities were under way or firmly planned for the future and $3,600 million relating to 43 projects awaiting development concepts.

Joint Ventures and Associates

12 Months Ended

Dec. 31, 2018

Joint Ventures and Associates

9 joint ventures and associates


Shell share of comprehensive income of joint ventures and associates													$ million
	2018						2017						2016
	Joint ventures		Associates		Total		Joint ventures		Associates		Total		Joint ventures		Associates			Total
Income for the period		1,307		2,799		4,106		2,102		2,123		4,225		2,332		1,213			3,545
Other comprehensive income/(loss) for the period		172		11		183		164		6		170		78		(106	)		(28	)
Comprehensive income for the period		1,479		2,810		4,289		2,266		2,129		4,395		2,410		1,107			3,517

Carrying amount of interests in joint ventures and associates

$ million

Dec 31, 2018

Dec 31, 2017

Joint

ventures

Associates

Total

Joint

ventures

Associates

Total

Net assets

14,263

11,066

25,329

15,052

12,875

27,927


Transactions with joint ventures and associates	$ million
	2018		2017		2016
Sales and charges to joint ventures and associates		8,270		13,121		24,214
Purchases and charges from joint ventures and associates		11,212		10,680		13,859

These transactions principally comprise sales and purchases of goods and services in the ordinary course of business. Related balances outstanding at December 31, 2018, and 2017, are presented in Notes 11 and 15.


Other arrangements in respect of joint ventures and associates	$ million
	Dec 31, 2018		Dec 31, 2017
Commitments to make purchases from joint ventures and associates [A]		1,254		1,371
Commitments to provide debt or equity funding to joint ventures and associates		638		1,216

[A] Commitments to make purchases from joint ventures and associates mainly relate to contracts associated with raw materials and transportation capacity.

Investments in Securities

12 Months Ended

Dec. 31, 2018

Investments in Securities

10 INVESTMENTS IN SECURITIES


Investment in securities			$ million
	Dec 31, 2018		Dec 31, 2017
Equity securities:		1,823		5,976
Equity securities at fair value through other comprehensive income		1,823
Debt securities:		1,251		1,246
Debt securities at amortised cost		8
Debt securities at fair value through other comprehensive income		953
Debt securities at fair value through profit and loss		290
Total		3,074		7,222
At fair value
Measured by reference to prices in active markets for identical assets		1,873		5,776
Measured using predominantly unobservable inputs		1,193		1,268
Total		3,066		7,044
At cost		8		178
Total		3,074		7,222

Equity securities at December 31, 2018, principally comprised interests below 5%, in various investments. Shell’s 8% share in Canadian Natural Resources Limited and 15% interest in Malaysia LNG Tiga Sendirian Berhad were disposed of in 2018. Their carrying amounts at December 31, 2017, were $3,506 million and $722 million respectively. Debt securities principally comprised a portfolio required to be held by Shell’s internal insurance entities as security for their activities.


Investments in securities measured using predominantly unobservable inputs [A]	$ million
	2018				2017
At January 1		1,268				1,233
Gains/(losses) recognised in other comprehensive income		212				(108	)
Other movements		(287	)	[B]		143
At December 31		1,193				1,268

[A] Based on expected dividend flows, adjusted for country and other risks as appropriate and discounted to their present value.

[B] Other movements mainly relates to the disposal of the interest in Malaysia LNG Tiga Sendirian Berhad, partly offset by investments made in securities during 2018.

Trade and Other Receivables

12 Months Ended

Dec. 31, 2018

Trade and Other Receivables

11 TRADE AND OTHER RECEIVABLES


	$ million
	Dec 31, 2018				Dec 31, 2017
	Current		Non-current		Current		Non-current
Trade receivables		27,541		—		30,721		—
Other receivables		8,543		4,823		9,036		5,525
Amounts due from joint ventures and associates		992		1,183		868		1,327
Prepayments and deferred charges		5,355		1,820		3,940		1,623
Total		42,431		7,826		44,565		8,475

The fair value of financial assets included above approximates the carrying amount and was determined from predominantly unobservable inputs.

Other receivables at December 31, 2018, include receivables from certain governments in their capacity as joint arrangement partners, of $1,449 million (2017: $2,265 million), after provisions for impairments, that are overdue in part or in full. Recoverability and timing thereof is subject to uncertainty, however, the ultimate risk of default on the carrying amount is considered to be low. Other receivables also include income tax (see Note 16) and other tax receivables.

Provisions for impairments deducted from trade and other receivables amounted to $790 million at December 31, 2018 (2017: $881 million).


Allowance for expected credit losses - trade receivables	$ million
	Not overdue			Overdue 1-30 days			Overdue 31-180 days			Overdue more than 180 days			Total
Expected loss rate	0.0014% - 0.0799%			0.0393% - 1.548%			0.1752% - 14.8524%			0.7592% - 28.037%
Gross carrying amount		25,835			892			541			539			27,807
Loss allowance provision		(2	)		(2	)		(7	)		(12	)		(23	)
Net carrying amount at December 31, 2018		25,833			890			534			527			27,784
Net carrying amount at December 31, 2017		28,719			1,154			480			368			30,721

The Company uses a provision matrix to calculate expected credit losses (ECLs) for trade receivables. The provision matrix is initially based on the Company’s historical observed default rates. The Company will calibrate the matrix to adjust the historical credit loss experience with forward-looking information.

A loss allowance provision of $243 million was established, in addition to all other impairments to trade receivables as at December 31, 2018, that are outside of the provision matrix calculations.

Inventories

12 Months Ended

Dec. 31, 2018

Inventories

12 INVENTORIES


	$ million
	Dec 31, 2018		Dec 31, 2017
Oil, gas and chemicals		19,516		22,962
Materials		1,601		2,261
Total		21,117		25,223

Inventories at December 31, 2018, include write-downs to net realisable value of $1,473 million (2017: $253 million).

Cash and Cash Equivalents

12 Months Ended

Dec. 31, 2018

Cash and Cash Equivalents

13 CASH AND CASH EQUIVALENTS


	$ million
	Dec 31, 2018		Dec 31, 2017
Cash		4,034		4,672
Short-term bank deposits		3,655		3,996
Money market funds, reverse repos and other cash equivalents		19,052		11,644
Total		26,741		20,312

Included in cash and cash equivalents at December 31, 2018, were amounts totalling $257 million (2017: $120 million) subject to currency controls or other legal restrictions. Information about credit risk is presented in Note 19.

Debt and Lease Arrangements

12 Months Ended

Dec. 31, 2018

Debt and Lease Arrangements

14 DEBT AND LEASE ARRANGEMENTS

DEBT


Debt	$ million
	Dec 31, 2018						Dec 31, 2017
	Debt (excluding finance lease liabilities)		Finance lease liabilities		Total		Debt (excluding finance lease liabilities)		Finance lease liabilities		Total
Short-term debt		693		—		693		1,211		—		1,211
Long-term debt due within 1 year		8,419		1,022		9,441		9,500		1,084		10,584
Current debt		9,112		1,022		10,134		10,711		1,084		11,795
Non-current debt		53,686		13,004		66,690		59,430		14,440		73,870
Total		62,798		14,026		76,824		70,141		15,524		85,665


Net debt	$ million
	Current debt			Non-current debt			Derivative financial instruments [A]			Cash and cash equivalents (see Note 13)			Net debt [A]
At January 1, 2018		(11,795	)		(73,870	)		(591	)		20,312			(65,944	)
Cash flow		10,392			(2,418	)		446			6,878			15,298
Finance lease additions		(51	)		(652	)								(703	)
Other movements		(8,939	)		9,270			(261	)		—			70
Currency translation differences and foreign exchange gains/(losses)		259			980			(939	)		(449	)		(149	)
At December 31, 2018		(10,134	)		(66,690	)		(1,345	)		26,741			(51,428	)
At January 1, 2017		(9,484	)		(82,992	)		(4,045	)		19,130			(77,391	)
Cash flow		11,457			(113	)		485			535			12,364
Finance lease additions		(56	)		(1,772	)								(1,828	)
Other movements		(13,232	)		13,749			(272	)		—			245
Currency translation differences and foreign exchange gains/(losses)		(480	)		(2,742	)		3,241			647			666
At December 31, 2017		(11,795	)		(73,870	)		(591	)		20,312			(65,944	)

[A] With effect from 2018, the net debt calculation includes the fair value of derivative financial instruments used to hedge foreign exchange and interest rate risks relating to debt and associated collateral balances. Derivative financial instruments at December 31, 2018, includes $72 million representing collateral on debt-related derivatives. Prior year comparatives have been revised to reflect the change in the net debt calculation.

Management’s financial strategy is to manage Shell’s assets and liabilities with the aim that, across the business cycle, “cash in” at least equals “cash out” while maintaining a strong balance sheet.

Gearing, defined as net debt (total debt less cash and cash equivalents) as a percentage of total capital (net debt plus total equity), is a key measure of Shell’s capital structure. Across the business cycle, management aims to manage gearing within a range of 0-30%. At December 31, 2018, gearing was 20.3% (2017: 25.0%, as revised).


Gearing	$ million, except where indicated
	Dec 31, 2018			Dec 31, 2017
Net debt		51,428			65,944		[A]
Total equity		202,534			197,812
Total capital		253,962			263,756		[A]
Gearing		20.3	%		25.0	%	[A]

[A] As revised, following the revision of the net debt calculation from 2018.

Management’s priorities for applying Shell’s cash are the servicing and reduction of debt commitments, payment of dividends, followed by a balance of capital investment and share buybacks. Management’s policy is to grow the dollar dividend through time, in line with its view of Shell’s underlying earnings and cash flow.

Shell has access to international debt capital markets via two commercial paper (CP) programmes, a Euro medium-term note (EMTN) programme and a US universal shelf (US shelf) registration. Issuances under the CP programmes are supported by a committed credit facility and cash.

Borrowing facilities and amounts undrawn

$ million

Facility

Amount undrawn

Dec 31, 2018

Dec 31, 2017

Dec 31, 2018

Dec 31, 2017

CP programmes

20,000

19,659

EMTN programme

unlimited

N/A

US shelf registration

unlimited

N/A

Committed credit facility

8,840

8,500

8,840

8,500

Under the CP programmes, Shell can issue debt of up to $10 billion with maturities not exceeding 270 days and $10 billion with maturities not exceeding 397 days. The EMTN programme is updated each year, most recently in August 2018. No debt was issued under this programme in 2018 (2017: $nil issued). The US shelf registration provides Shell with the flexibility to issue debt securities, ordinary shares, preferred shares and warrants. The registration is updated every three years and was last updated in December 2017. During 2018, debt totalling $3 billion (2017: nil) was issued under the registration. The committed credit facility is available at pre-agreed margins and expires in 2020. The terms and availability are not conditional on Shell’s financial ratios or its financial credit ratings.

In addition, other subsidiaries have access to undrawn short-term bank facilities totalling $3,035 million at December 31, 2018 (2017: $3,409 million).

Interest rate swaps have been entered into against certain fixed rate debt affecting the effective interest rate on these balances (see Note 19).

The following tables compare contractual cash flows for debt excluding finance lease liabilities at December 31, with the carrying amount in the Consolidated Balance Sheet. Contractual amounts reflect the effects of changes in foreign exchange rates; differences from carrying amounts reflect the effects of discounting, premiums and, where hedge accounting is applied, fair value adjustments. Interest is estimated assuming interest rates applicable to variable rate debt remain constant and there is no change in aggregate principal amounts of debt other than repayment at scheduled maturity, as reflected in the table.


2018	$ million
	Contractual payments
			Between		Between		Between		Between						Difference
	Less than		1 and 2		2 and 3		3 and 4		4 and 5		5 years				from carrying		Carrying
	1 year		years		years		years		years		and later		Total		amount		amount
Bonds		8,163		5,900		4,993		4,458		4,312		33,162		60,988		181		61,169
Bank and other borrowings		945		39		209		50		27		359		1,629		—		1,629
Total (excluding interest)		9,108		5,939		5,202		4,508		4,339		33,521		62,617		181		62,798
Interest		1,780		1,555		1,426		1,319		1,244		14,406		21,730


2017	$ million
	Contractual payments
			Between		Between		Between		Between						Difference
	Less than		1 and 2		2 and 3		3 and 4		4 and 5		5 years				from carrying		Carrying
	1 year		years		years		years		years		and later		Total		amount		amount
Commercial paper		341		—		—		—		—		—		341		5		346
Bonds		8,989		8,306		5,900		5,047		4,620		35,037		67,899		131		68,030
Bank and other borrowings		1,321		43		127		56		180		36		1,763		2		1,765
Total (excluding interest)		10,651		8,349		6,027		5,103		4,800		35,073		70,003		138		70,141
Interest		1,957		1,688		1,457		1,328		1,221		15,293		22,944

The fair value of debt excluding finance lease liabilities at December 31, 2018, was $64,708 million (2017: $74,650 million), mainly determined from the prices quoted for those securities.

LEASE ARRANGEMENTS

Finance lease liabilities mainly relate to contracts in Upstream and Integrated Gas for floating production, storage and offloading units, subsea equipment and power generation. Finance lease liabilities are secured on the leased assets. Operating lease contracts are, in Upstream and Integrated Gas, principally for drilling and ancillary equipment, service vessels, LNG vessels and land and buildings; in Downstream, principally for tankers, storage capacity and retail sites; and in Corporate, principally for land and buildings.

The future minimum lease payments for finance and operating leases and the present value of future minimum finance lease payments at December 31, by payment date are as follows:


2018	$ million
	Finance leases						Operating leases
	Future minimum lease payments		Interest		Present value of future minimum lease payments		Future minimum lease payments [A]
Less than 1 year		2,061		1,039		1,022		4,784
Between 1 and 5 years		7,508		3,391		4,117		11,575
5 years and later		13,370		4,483		8,887		7,860
Total		22,939		8,913		14,026		24,219

[A] Includes $5,348 million in respect of drilling and ancillary equipment.


2017	$ million
	Finance leases						Operating leases
	Future minimum lease payments		Interest		Present value of future minimum lease payments		Future minimum lease payments [A] [B]
Less than 1 year		2,274		1,190		1,084		4,909
Between 1 and 5 years		8,246		3,887		4,359		12,415
5 years and later		15,043		4,962		10,081		7,961
Total		25,563		10,039		15,524		25,285

[A] Includes $6,473 million in respect of drilling and ancillary equipment.

[B] Revised following a reassessment of contracts

Future minimum lease payments at December 31, 2018 are stated before deduction of amounts expected to be received under non-cancellable sub-leases of $273 million (2017: $336 million) in respect of finance leases and $507 million (2017: $300 million) in respect of operating leases.

Operating lease expense in 2018 was $4,354 million (2017: $4,822 million; 2016: $5,063 million).

Trade and Other Payables

12 Months Ended

Dec. 31, 2018

Trade and Other Payables

15 TRADE AND OTHER PAYABLES


	$ million
	Dec 31, 2018				Dec 31, 2017
	Current		Non-current		Current		Non-current
Trade payables		30,351		—		33,196		—
Other payables		5,597		2,413		5,767		3,090
Amounts due to joint ventures and associates		2,851		33		2,021		29
Accruals and deferred income		10,089		289		10,426		328
Total		48,888		2,735		51,410		3,447

The fair value of financial liabilities included above approximates the carrying amount and was determined from predominantly unobservable inputs.

Other payables include amounts due to joint arrangement partners and in respect of other project-related items.

Information about offsetting, collateral and liquidity risk is presented in Note 19.

Taxation

12 Months Ended

Dec. 31, 2018

Taxation

16 TAXATION


Taxation charge	$ million
	2018			2017				2016
Current tax:
Charge in respect of current period		10,415			7,204				3,936
Adjustments in respect of prior periods		60			(613	)			(1,205	)
Total		10,475			6,591				2,731
Deferred tax:
Relating to the origination and reversal of temporary differences, tax losses and credits		1,438			(4,102	)			(2,688	)
Relating to changes in tax rates and legislation		(157	)		2,004		[A]		(200	)
Adjustments in respect of prior periods		(41	)		202				986
Total		1,240			(1,896	)			(1,902	)
Total taxation charge		11,715			4,695				829

[A] Mainly in respect of the US Tax Cuts and Jobs Act (the Act).

Adjustments in respect of prior periods relate to events in the current period and reflect the effects of changes in rules, facts or other factors compared with those used in establishing the current tax position or deferred tax balance in prior periods.


Reconciliation of applicable tax charge/(credit) at statutory tax rates to taxation charge							$ million
	2018			2017			2016
Income before taxation		35,621			18,130			5,606
Less: share of profit of joint ventures and associates		(4,106	)		(4,225	)		(3,545	)
Income before taxation and share of profit of joint ventures and associates		31,515			13,905			2,061
Applicable tax charge/(credit) at statutory tax rates		11,444			4,532			(344	)
Adjustments in respect of prior periods		19			(411	)		(219	)
Tax effects of:
Income not subject to tax at statutory rates		(1,783	)		(1,852	)		(1,740	)
Expenses not deductible for tax purposes		1,379			2,423			2,066
(Recognition)/derecognition of deferred tax assets		(381	)		(957	)		1,575
Deductible items not expensed		(371	)		(584	)		(516	)
Taxable income not recognised		312			251			509
Changes in tax rates and legislation		(157	)		2,004			(200	)
Other		1,253			(711	)		(302	)
Taxation charge		11,715			4,695			829

The weighted average of statutory tax rates was 36% in 2018 (2017: 33%; 2016: (17)%). Compared to 2017, the increase in the rate reflects a higher proportion of earnings in the Upstream segment, subject to relatively higher tax rates than earnings in Downstream and Integrated Gas. The negative rate in 2016 (tax credit on pre-tax income) was mainly due to losses incurred in jurisdictions with a higher weighted average statutory tax rate than jurisdictions in which profits were made.

Other tax-reconciling items include $819 million relating to the impact of movements in the Brazilian real, Australian dollar and Argentinian peso on deferred tax positions (2017: ($585) million, 2016: ($607) million).


Taxes payable	$ million
	Dec 31, 2018		Dec 31, 2017
Income taxes		3,990		4,062
Sales taxes, excise duties and similar levies		3,507		3,188
Total		7,497		7,250

Included in other receivables at December 31, 2018 (see Note 11), was income tax receivable of $1,042 million (2017: $933 million).


2018 - Deferred tax	$ million
Deferred tax asset	Decommissioning and other provisions			Property, plant and equipment			Tax losses and credits carried forward			Retirement benefits			Other			Total
At January 1, 2018		6,182			3,379			13,684			3,868			4,144			31,257
(Charge)/credit to income		166			345			(553	)		14			119			91
Currency translation differences		(177	)		(32	)		(462	)		(93	)		(42	)		(806	)
Other		(269	)		26			(502	)		(479	)		12			(1,212	)
At December 31, 2018		5,902			3,718			12,167			3,310			4,233			29,330
Deferred tax liability
At January 1, 2018		—			(26,904	)		—			(742	)		(2,827	)		(30,473	)
(Charge)/credit to income		—			(1,751	)		—			180			240			(1,331	)
Currency translation differences		—			409			—			24			36			469
Other		—			475			—			(1,136	)		(74	)		(735	)
At December 31, 2018		—			(27,771	)		—			(1,674	)		(2,625	)		(32,070	)
Net deferred tax liability at December 31, 2018																	(2,740	)
Deferred tax asset/liability as presented in the balance sheet at December 31, 2018
Deferred tax asset																	12,097
Deferred tax liability																	(14,837	)


2017 - Deferred tax	$ million
Deferred tax asset	Decommissioning and other provisions			Property, plant and equipment			Tax losses and credits carried forward			Retirement benefits			Other [A]			Total
At January 1, 2017		7,733			3,510			16,600			5,053			4,374			37,270
(Charge)/credit to income		(1,853	)		189			(2,732	)		(493	)		(265	)		(5,154	)
Currency translation differences		269			49			554			216			78			1,166
Other		33			(369	)		(738	)		(908	)		(43	)		(2,025	)
At December 31, 2017		6,182			3,379			13,684			3,868			4,144			31,257
Deferred tax liability
At January 1, 2017		—			(33,963	)		—			(582	)		(3,574	)		(38,119	)
(Charge)/credit to income		—			6,437			—			(129	)		742			7,050
Currency translation differences		—			(711	)		—			(63	)		(70	)		(844	)
Other		—			1,333			—			32			75			1,440
At December 31, 2017		—			(26,904	)		—			(742	)		(2,827	)		(30,473	)
Net deferred tax asset at December 31, 2017																	784
Deferred tax asset/liability as presented in the balance sheet at December 31, 2017
Deferred tax asset																	13,791
Deferred tax liability																	(13,007	)

[A] Reclassified from the Other category to Tax losses carried forward to align with current year presentation.

The presentation in the balance sheet takes into consideration the offsetting of deferred tax assets and deferred tax liabilities within the same tax jurisdiction, where this is permitted. The overall deferred tax position in a particular tax jurisdiction determines if a deferred tax balance related to that jurisdiction is presented within deferred tax assets or deferred tax liabilities.

Other movements in deferred tax assets and liabilities principally relate to acquisitions, sales of non-current assets and businesses, and amounts recognised in other comprehensive income, which in 2017 included amounts in respect of the Act.

The amount of deferred tax assets dependent on future taxable profits not arising from the reversal of existing deferred tax liabilities, and which relate to tax jurisdictions, where Shell has suffered a loss in the current or preceding year, was $9,979 million at December 31, 2018 (2017: $12,452 million). It is considered probable based on business forecasts that such profits will be available.

Unrecognised taxable temporary differences associated with undistributed retained earnings of investments in subsidiaries, joint ventures and associates amounted to $3,951 million (2017: $3,746 million).

Unrecognised deductible temporary differences, unused tax losses and credits carried forward amounted to $34,910 million at December 31, 2018 (2017: $34,773 million) including amounts of $27,604 million (2017: $28,016 million) that are subject to time limits for utilisation of five years or later, or are not time limited.

Retirement Benefits

12 Months Ended

Dec. 31, 2018

Retirement Benefits

17 RETIREMENT BENEFITS

Retirement benefits are provided through a number of funded and unfunded defined benefit plans and defined contribution plans, the most significant of which are in the Netherlands, UK and USA. Benefits comprise principally pensions; retirement healthcare and life insurance are also provided in certain countries.


Retirement benefit expense	$ million
	2018			2017			2016
Defined benefit plans:
Current service cost, net of plan participants’ contributions		1,494			1,500			1,527
Interest expense on obligations		2,282			2,309			2,643
Interest income on plan assets		(2,087	)		(2,019	)		(2,358	)
Other		(221	)		(404	)		(116	)
Total		1,468			1,386			1,696
Defined contribution plans		410			429			485
Total retirement benefit expense		1,878			1,815			2,181

Retirement benefit expense is presented principally within production and manufacturing expenses and selling, distribution and administrative expenses in the Consolidated Statement of Income. Interest income on plan assets is calculated using the same rate as that applied to the related defined benefit obligations for each plan to determine interest expense.


Remeasurements	$ million
	2018			2017			2016
Actuarial gains/(losses) on obligations:
Due to changes in financial assumptions [A]		8,186			(4,495	)		(11,391	)
Due to experience adjustments [B]		(268	)		37			642
Due to changes in demographic assumptions [C]		(459	)		933			809
Total		7,459			(3,525	)		(9,940	)
Return on plan assets (shortage)/in excess of interest income		(2,312	)		4,942			5,106
Other movements		66			50			18
Total remeasurements		5,213			1,467			(4,816	)

[A] Primarily relates to changes in the discount rate assumptions.

[B] Experience adjustments arise from differences between the actuarial assumptions made in respect of the year and actual outcomes.

[C] Primarily relates to updates in mortality assumptions.


Defined benefit plans		$ million
		Dec 31, 2018			Dec 31, 2017
Obligations	.		(91,856	)		(104,285	)
Plan assets			85,803			93,243
Net liability			(6,053	)		(11,042	)
Retirement benefits in the Consolidated Balance Sheet:
Non-current assets			6,051			2,799
Non-current liabilities			(11,653	)		(13,247	)
Current liabilities			(451	)		(594	)
Total			(6,053	)		(11,042	)


Defined benefit plan obligations	$ million, except where indicated
	2018			2017
At January 1		104,285			94,405
Current service cost		1,491			1,550
Interest expense		2,282			2,309
Actuarial (gains)/losses		(7,459	)		3,525
Benefit payments		(4,435	)		(4,579	)
Other movements		(360	)		(949	)
Currency translation differences		(3,948	)		8,024
At December 31		91,856			104,285
Comprising:
Funded pension plans		83,276			94,903
Weighted average duration	17 years			19 years
Unfunded pension plans		4,359			4,824
Weighted average duration	13 years			12 years
Other unfunded plans		4,221			4,558
Weighted average duration	12 years			13 years


Defined benefit plan assets	$ million, except where indicated
	2018			2017
At January 1		93,243			81,276
Return on plan assets (shortage)/in excess of interest income		(2,312	)		4,942
Interest income		2,087			2,019
Employer contributions		763			1,804
Plan participants’ contributions		47			50
Benefit payments		(4,123	)		(4,294	)
Other movements		(102	)		(245	)
Currency translation differences		(3,800	)		7,691
At December 31		85,803			93,243
Comprising:
Quoted in active markets:
Equities		24	%		32	%
Debt securities		53	%		45	%
Real estate		1	%		1	%
Investment funds		0	%		1	%
Other		1	%		1	%
Other:
Equities		8	%		7	%
Debt securities		3	%		3	%
Real estate		6	%		6	%
Investment funds		3	%		3	%
Other		0	%		1	%
Cash		1	%		0	%

Long-term investment strategies of plans are generally determined by the relevant pension plan trustees using a structured asset liability modelling approach to define the asset mix that best meets the objectives of optimising returns within agreed risk levels while maintaining adequate funding levels. The value of the plan assets was impacted by the reduced return on investments globally.

Employer contributions to defined benefit pension plans are based on actuarial valuations in accordance with local regulations and are estimated to be $0.9 billion in 2019.

Additional contributions to the Netherlands defined benefit pension plan would be required if the 12-month rolling average local funding percentage falls below 105% for six months or more. At the most recent (2018) funding valuation the local funding percentage was above this level. There are no set minimum statutory funding requirements for the UK plans. Under an agreement with the trustee of the main UK defined benefit plan, Shell will provide additional contributions if the funding position falls below a certain level, although this is currently not anticipated. For the US plans, under the Pension Protection Act there are minimum required contribution levels; forecast contributions are expected to exceed these.

The principal assumptions applied in determining the present value of defined benefit obligations and their bases were as follows:

▪	rates of increase in pensionable remuneration, pensions in payment and healthcare costs: historical experience and management’s long-term expectation;

▪	discount rates: prevailing long-term AA corporate bond yields, chosen to match the currency and duration of the relevant obligation; and

▪	mortality rates: published standard mortality tables for the individual countries concerned adjusted for Shell experience where statistically significant.

The weighted averages for those assumptions and related sensitivity information at December 31 are presented below. Sensitivity information indicates by how much the defined benefit obligations would increase or decrease if a given assumption were to increase or decrease with no change in other assumptions.

$ million, except where indicated

Effect of using alternative assumptions

Assumptions used

Increase/(decrease) in defined benefit obligations

2018

2017

Range of assumptions

2018

2017

Rate of increase in pensionable remuneration

4.1

4.7

-1% to +1%

(1,576) to 1,819

(2,150) to 2,782

Rate of increase in pensions in payment

1.8

1.9

-1% to +1%

(8,304) to 10,104

(10,120) to 12,662

Rate of increase in healthcare costs

6.3

6.6

-1% to +1%

(410) to 496

(451) to 551

Discount rate for pension plans

2.9

2.5

-1% to +1%

15,606 to (12,078)

19,042 to (14,567)

Discount rate for healthcare plans

4.2

3.5

-1% to +1%

536 to (436)

599 to (483)

Expected age at death for persons aged 60:

Men

87 years

-1 year to +1 year

(1,538) to 1,583

(1,906) to 2,022

Women

89 years

-1 year to +1 year

(1,436) to 1,476

(1,720) to 1,828

Decommissioning and Other Provisions

12 Months Ended

Dec. 31, 2018

Decommissioning and Other Provisions

18 DECOMMISSIONING AND OTHER PROVISIONS


	$ million
	Decommissioning and restoration				Legal			Environmental			Redundancy			Other			Total
At January 1, 2018
Current		817				423			287			758			1,180			3,465
Non-current		19,767				1,095			1,218			560			2,326			24,966
		20,584				1,518			1,505			1,318			3,506			28,431
Additions		418				196			191			535			1,070			2,410
Amounts charged against provisions		(497	)			(200	)		(212	)		(504	)		(887	)		(2,300	)
Accretion expense		755				17			17			15			48			852
Disposals		(1,781	)	[A]		(14	)		(11	)		(3	)		(49	)		(1,858	)
Remeasurements and other movements		(1,065	)			(47	)		(130	)		(367	)		(122	)		(1,731	)
Currency translation differences		(481	)			(10	)		(22	)		(35	)		(64	)		(612	)
		(2,651	)			(58	)		(167	)		(359	)		(4	)		(3,239	)
At December 31, 2018
Current		876				213			264			491			1,815			3,659
Non-current		17,057				1,247			1,074			468			1,687			21,533
		17,933				1,460			1,338			959			3,502			25,192
At January 1, 2017
Current		797				500			296			831			1,360			3,784
Non-current		24,368				1,066			1,186			564			2,434			29,618
		25,165				1,566			1,482			1,395			3,794			33,402
Additions		1,168				390			496			756			988			3,798
Amounts charged against provisions		(491	)			(327	)		(173	)		(618	)		(1,207	)		(2,816	)
Accretion expense		897				61			20			13			47			1,038
Disposals		(2,807	)			(2	)		(4	)		(18	)		(71	)		(2,902	)
Remeasurements and other movements		(4,245	)			(190	)		(352	)		(301	)		(178	)		(5,266	)
Currency translation differences		897				20			36			91			133			1,177
		(4,581	)			(48	)		23			(77	)		(288	)		(4,971	)
At December 31, 2017
Current		817				423			287			758			1,180			3,465
Non-current		19,767				1,095			1,218			560			2,326			24,966
		20,584				1,518			1,505			1,318			3,506			28,431

[A] Mainly related to disposal of interests in New Zealand and Thailand.

The amount and timing of settlement in respect of these provisions are uncertain and dependent on various factors that are not always within management’s control. The discount rate applied at December 31, 2018 was 4% (2017: 4%).

Reviews of estimated future decommissioning and restoration costs and the discount rate applied are carried out annually. In 2018, there was a decrease of $982 million (2017: $3,980 million) in the provision resulting from changes in cost estimates, reported within remeasurements and other movements.

Of the decommissioning and restoration provision at December 31, 2018, an estimated $3,490 million is expected to be utilised between one to five years, $2,173 million within six to 10 years, and the remainder in later periods.

Other provisions include amounts recognised in respect of employee benefits and onerous contracts.

Financial Instruments

12 Months Ended

Dec. 31, 2018

Financial Instruments

19 FINANCIAL INSTRUMENTS

Financial instruments in the Consolidated Balance Sheet includes investments in securities (see Note 10), cash and cash equivalents (see Note 13), debt (see Note 14) and derivative contracts.

RISKS

In the normal course of business, financial instruments of various kinds are used for the purposes of managing exposure to interest rate, foreign exchange and commodity price movements.

Treasury standards are applicable to all subsidiaries and each subsidiary is required to adopt a treasury policy consistent with these standards. These policies cover: financing structure; interest rate and foreign exchange risk management; insurance; counterparty risk management; and use of derivative contracts. Wherever possible, treasury operations are carried out through specialist regional organisations without removing from each subsidiary the responsibility to formulate and implement appropriate treasury policies.

Apart from forward foreign exchange contracts to meet known commitments, the use of derivative contracts by most subsidiaries is not permitted by their treasury policy.

Other than in exceptional cases, the use of external derivative contracts is confined to specialist trading and central treasury organisations that have appropriate skills, experience, supervision, control and reporting systems.

Shell’s operations expose it to market, credit and liquidity risk, as described below.

Market risk

Market risk is the possibility that changes in interest rates, foreign exchange rates or the prices of crude oil, natural gas, LNG, refined products, chemical feedstocks, power and carbon-emission rights will adversely affect the value of assets, liabilities or expected future cash flows.

Interest rate risk

Most debt is raised from central borrowing programmes. Shell’s policy continues to be to have debt principally denominated in dollars and to maintain a largely floating interest rate exposure profile; however, Shell has issued a significant amount of fixed rate debt in recent years, taking advantage of historically low interest rates available in US debt markets. As a result, a substantial portion of the debt portfolio at December 31, 2018, is at fixed rates and this reduces Shell’s exposure to the dollar LIBOR interest rate.

The financing of most subsidiaries is structured on a floating-rate basis and, except in special cases, further interest rate risk management is discouraged.

On the basis of the floating rate net debt position at December 31, 2018, (both issued and hedged), and assuming other factors (principally foreign exchange rates and commodity prices) remained constant and that no further interest rate management action was taken, an increase in interest rates of 1% would have decreased 2018 income before taxation by $37 million (2017: $174 million, based on the floating rate position at December 31, 2017).

The carrying amounts and maturities of debt and borrowing facilities are presented in Note 14. Interest expense is presented in Note 6.

Foreign exchange risk

Many of the markets in which Shell operates are priced, directly or indirectly, in dollars. As a result, the functional currency of most Integrated Gas and Upstream entities and those with significant cross-border business is the dollar. For Downstream entities, the functional currency is typically the local currency. Consequently, Shell is exposed to varying levels of foreign exchange risk when an entity enters into transactions that are not denominated in its functional currency, when foreign currency monetary assets and liabilities are translated at the balance sheet date and as a result of holding net investments in operations that are not dollar-functional. Each entity is required to adopt treasury policies that are designed to measure and manage its foreign exchange exposures by reference to its functional currency.

Foreign exchange gains and losses arise in the normal course of business from the recognition of receivables and payables and other monetary items in currencies other than an entity’s functional currency. Foreign exchange risk may also arise in connection with capital expenditure. For major projects, an assessment is made at the final investment decision stage whether to hedge any resulting exposure.

Assuming other factors (principally interest rates and commodity prices) remained constant and that no further foreign exchange risk management action were taken, a 10% appreciation against the dollar at December 31 of the main currencies to which Shell is exposed would have the following effects:


	$ million
	Increase/(decrease) in income before taxation						Increase in net assets
	2018			2017			2018		2017
10% appreciation against the dollar of:
Canadian dollar		(40	)		(43	)		1,245		1,111
Euro		65			130			1,190		1,086
Australian dollar		(109	)		(24	)		835		786
Sterling		(46	)		(77	)		779		632

The above sensitivity information was calculated by reference to carrying amounts of assets and liabilities at December 31 only. The effect on income before taxation arises in connection with monetary balances denominated in currencies other than an entity’s functional currency; the effect on net assets arises principally from the translation of assets and liabilities of entities that are not dollar-functional.

Foreign exchange gains and losses included in income are presented in Note 5.

Commodity price risk

Certain subsidiaries have a mandate to trade crude oil, natural gas, LNG, refined products, chemical feedstocks, power and carbon-emission rights, and to use commodity derivative contracts (forwards, futures, swaps and options) as a means of managing price and timing risks arising from this trading activity. In effecting these transactions, the entities concerned operate within procedures and policies designed to ensure that risks, including those relating to the default of counterparties, are managed within authorised limits.

Risk management systems are used for recording and valuing instruments. Commodity price risk exposure is monitored, and the acceptable level of exposure determined, by market risk committees. There is regular reviewing of mandated trading limits by senior management, daily monitoring of market risk exposure using value-at-risk (VAR) techniques, daily monitoring of trading positions against limits, and marking-to-fair value of trading exposures with a department independent of traders reviewing the market values applied. Although trading losses can and do occur, the nature of the trading portfolio and its management are considered adequate mitigants against the risk of significant losses.

VAR techniques based on variance/covariance or Monte Carlo simulation models are used to make a statistical assessment of the market risk arising from possible future changes in market values over a 24-hour period and within a 95% confidence level. The calculation of potential changes in fair value takes into account positions, the history of price movements and the correlation of these price movements. Models are regularly reviewed against actual fair value movements to ensure integrity is maintained. The VAR year-end positions in respect of commodities traded in active markets, which are presented in the table below, are calculated on a diversified basis in order to reflect the effect of offsetting risk within combined portfolios.


Value-at-risk (pre-tax)	$ million
	Dec 31, 2018		Dec 31, 2017
Global oil		28		25
North America gas and power		11		11
Europe gas and power		3		3
Carbon-emission rights		2		1

Credit risk

Policies are in place to ensure that sales of products are made to customers with appropriate creditworthiness. These policies include detailed credit analysis and monitoring of trading partners against counterparty credit limits. Credit information is regularly shared between business and finance functions, with dedicated teams in place to quickly identify and respond to cases of credit deterioration. Mitigation measures are defined and implemented for high-risk business partners and customers, and include shortened payment terms, collateral or other security posting and vigorous collections. In addition, policies limit the amount of credit exposure to any individual financial institution. There are no material concentrations of credit risk, with individual customers or geographically, and there has been no significant level of counterparty default in recent years.

Surplus cash is invested in a range of short-dated, secure and liquid instruments including short-term bank deposits, money market funds, reverse repos and similar instruments. The portfolio of these investments is diversified to avoid concentrating risk in any one instrument, country or counterparty. Management monitors the investments regularly and adjusts the investment portfolio in light of new market information where necessary to ensure credit risk is effectively diversified.

In commodity trading, counterparty credit risk is managed within a framework of credit limits with utilisation being regularly reviewed. Credit risk exposure is monitored and the acceptable level is determined by a credit committee. Credit checks are performed by a department independent of traders, and are undertaken before contractual commitment. Where appropriate, netting arrangements, credit insurance, prepayments and collateral are used to manage specific risks.

Shell routinely enters into offsetting, master netting and similar arrangements with trading and other counterparties to manage credit risk. Where there is a legally enforceable right of offset under such arrangements and Shell has the intention to settle on a net basis or realise the asset and settle the liability simultaneously, the net asset or liability is recognised in the Consolidated Balance Sheet, otherwise assets and liabilities are presented gross. These amounts, as presented net and gross within trade and other receivables, trade and other payables and derivative financial instruments in the Consolidated Balance Sheet at December 31, were as follows:


2018	$ million
	Amounts offset						Amounts not offset
	Gross amounts before offset		Amounts offset		Net amounts as presented		Cash collateral received/pledged		Other offsetting instruments		Net amounts
Assets:
Within trade receivables		12,697		8,340		4,358		62		221		4,075
Within derivative financial instruments		12,323		6,353		5,970		437		2,653		2,880
Liabilities:
Within trade payables		12,931		8,264		4,667		97		221		4,349
Within derivative financial instruments		12,227		5,044		7,183		1,115		2,653		3,415


2017	$ million
	Amounts offset						Amounts not offset
	Gross amounts before offset		Amounts offset		Net amounts as presented		Cash collateral received/pledged		Other offsetting instruments		Net amounts
Assets:
Within trade receivables		10,642		6,486		4,156		42		51		4,063
Within derivative financial instruments		6,987		2,387		4,600		186		2,326		2,088
Liabilities:
Within trade payables		10,442		6,486		3,956		41		51		3,864
Within derivative financial instruments		7,315		2,392		4,923		300		2,326		2,297

Amounts not offset principally relate to contracts where the intention to settle on a net basis was not clearly established at December 31.

The carrying amount of financial assets pledged as collateral for liabilities or contingent liabilities at December 31, 2018, presented within trade and other receivables, was $3,094 million (2017: $1,890 million). The carrying amount of collateral held at December 31, 2018, presented within trade and other payables, was $535 million (2017: $282 million). Collateral mainly relates to initial margins held with commodity exchanges and over-the-counter counterparty variation margins.

Liquidity risk

Liquidity risk is the risk that suitable sources of funding for Shell’s business activities may not be available. Management believes that it has access to sufficient debt funding sources (capital markets), and to undrawn committed borrowing facilities to meet foreseeable requirements. Information about borrowing facilities is presented in Note 14.

DERIVATIVE CONTRACTS AND HEDGES

Derivative contracts are used principally as hedging instruments, however, because hedge accounting is not always applied, movements in the carrying amounts of derivative contracts that are recognised in income are not always matched in the same period by the recognition of the income effects of the related hedged items.

Carrying amounts, maturities and hedges

The carrying amounts of derivative contracts at December 31, designated and not designated as hedging instruments for hedge accounting purposes, were as follows:


2018	$ million
	Assets						Liabilities
	Designated		Not designated		Total		Designated		Not designated		Total		Net
Interest rate swaps		86		3		89		174		14		188		(99	)
Forward foreign exchange contracts		—		331		331		33		264		297		34
Currency swaps and options		186		26		212		1,202		203		1,405		(1,193	)
Commodity derivatives		—		6,864		6,864		—		6,637		6,637		227
Other contracts		—		271		271		—		56		56		215
Total		272		7,495		7,767		1,409		7,174		8,583		(816	)


2017	$ million
	Assets						Liabilities
	Designated		Not designated		Total		Designated		Not designated		Total		Net
Interest rate swaps		—		16		16		165		34		199		(183	)
Forward foreign exchange contracts		22		403		425		—		591		591		(166	)
Currency swaps and options		483		208		691		815		76		891		(200	)
Commodity derivatives		—		4,929		4,929		—		4,428		4,428		501
Other contracts		—		162		162		—		125		125		37
Total		505		5,718		6,223		980		5,254		6,234		(11	)

Net losses before tax on derivative contracts, excluding realised commodity contracts and those accounted for as hedges, were $1,818 million in 2018 (2017: $1,321 million losses; 2016: $414 million gains).

Certain contracts, mainly to hedge price risk relating to forecast commodity transactions which mature in 2019-2021, were designated in cash flow hedging relationships. The net carrying amount of commodity derivative contracts designated as cash flow hedging instruments at December 31, 2018, was an asset of $120 million (2017: $620 million liability) (see Note 22), and was presented after the offset of related margin balances maintained with exchanges.

Certain interest rate and currency swaps were designated in fair value hedges, principally in respect of debt for which the net carrying amount of the related derivative contracts, net of accrued interest, at December 31, 2018, was a liability of $1,242 million (2017: $826 million).

In the course of trading operations, certain contracts are entered into for delivery of commodities that are accounted for as derivatives. The resulting price exposures are managed by entering into related derivative contracts. These contracts are managed on a fair value basis and the maximum exposure to liquidity risk is the undiscounted fair value of derivative liabilities.

For a minority of commodity derivative contracts, carrying amounts cannot be derived from quoted market prices or other observable inputs, in which case fair value is estimated using valuation techniques such as Black-Scholes, option spread models and extrapolation using quoted spreads with assumptions developed internally based on observable market activity.

Other contracts include certain contracts that are held to sell or purchase commodities and others containing embedded derivatives, which are required to be recognised at fair value because of pricing or delivery conditions, even though they were entered into to meet operational requirements. These contracts are expected to mature in 2019-2025, with certain contracts having early termination rights (for either party). Valuations are derived from quoted market prices.

The contractual maturities of derivative liabilities at December 31 compare with their carrying amounts in the Consolidated Balance Sheet as follows:


2018	$ million
	Contractual maturities
	Less than 1 year		Between 1 and 2 years			Between 2 and 3 years		Between 3 and 4 years			Between 4 and 5 years			5 years and later			Total		Difference from carrying amount [A]			Carrying amount
Interest rate swap		101		68			20		1			1			1			192		(4	)		188
Forward foreign exchange contracts		177		(24	)		33		(1	)		(5	)		(15	)		165		132			297
Currency swaps and options		605		265			474		405			198			1,715			3,662		(2,257	)		1,405
Commodity derivatives		4,733		978			422		213			138			382			6,866		(229	)		6,637
Other contracts		58		—			—		—			—			—			58		(2	)		56
Total		5,674		1,287			949		618			332			2,083			10,943		(2,360	)		8,583

[A] Mainly related to the effect of discounting.


2017	$ million
	Contractual maturities
	Less than 1 year		Between 1 and 2 years		Between 2 and 3 years		Between 3 and 4 years		Between 4 and 5 years		5 years and later			Total		Difference from carrying amount [A]			Carrying amount
Interest rate swap		59		67		56		18		1		3			204		(5	)		199
Forward foreign exchange contracts		315		37		14		3		2		(39	)		332		259			591
Currency swaps and options		541		343		140		304		194		879			2,401		(1,510	)		891
Commodity derivatives		3,002		754		305		122		74		263			4,520		(92	)		4,428
Other contracts		87		48		—		—		—		—			135		(10	)		125
Total		4,004		1,249		515		447		271		1,106			7,592		(1,358	)		6,234

[A] Mainly related to the effect of discounting.

Fair value measurements

The net carrying amounts of derivative contracts held at December 31, categorised according to the predominant source and nature of inputs used in determining the fair value of each contract, were as follows:


2018	$ million
	Prices in active markets for identical assets/liabilities			Other observable inputs			Unobservable inputs			Total
Interest rate swaps		—			(99	)		—			(99	)
Forward foreign exchange contracts		—			34			—			34
Currency swaps and options		—			(1,193	)		—			(1,193	)
Commodity derivatives		(52	)		431			(152	)		227
Other contracts		—			90			125			215
Total		(52	)		(737	)		(27	)		(816	)


2017	$ million
	Prices in active markets for identical assets/liabilities		Other observable inputs			Unobservable inputs		Total
Interest rate swaps		—		(183	)		—		(183	)
Forward foreign exchange contracts		—		(166	)		—		(166	)
Currency swaps and options		—		(200	)		—		(200	)
Commodity derivatives		36		302			163		501
Other contracts		—		(97	)		134		37
Total		36		(344	)		297		(11	)


Net carrying amounts of derivative contracts measured using predominantly unobservable inputs				$ million
	2018			2017 [A]
At January 1		297			468
Net (losses)/gains recognised in revenue		(258	)		372
Purchases		461			252
Sales		(540	)		(562	)
Recategorisations (net)		18			(248	)
Currency translation differences		(5	)		15
At December 31		(27	)		297

[A] Following a review of fair-valued commodity swaps, options, futures and forwards unobservable inputs in 2018, the movement of net carrying amounts of derivative contracts measured using predominantly unobservable inputs was revised. This revision did not result in a change in the opening and closing balances. The revised values for 2017 were provided for comparability purposes.

Included in net losses recognised in revenue in 2018 were unrealised net losses totalling $36 million relating to assets and liabilities held at December 31, 2018 (2017: $39 million gains).

Share capital

12 Months Ended

Dec. 31, 2018

Share capital

20 SHARE CAPITAL


Issued and fully paid ordinary shares of €0.07 each [A]
	Number of shares					Nominal value ($ million)
	A			B		A			B		Total
At January 1, 2018		4,597,136,050			3,745,486,731		387			309		696
Repurchase of shares		(125,246,754	)		—		(11	)		—		(11	)
At December 31, 2018		4,471,889,296			3,745,486,731		376			309		685
At January 1, 2017		4,428,903,813			3,745,486,731		374			309		683
Scrip dividends		168,232,237			—		13			—		13
At December 31, 2017		4,597,136,050			3,745,486,731		387			309		696

[A] Share capital at December 31, 2018, and 2017, also included 50,000 issued and fully paid sterling deferred shares of £1 each.

At the Company’s Annual General Meeting (AGM) on May 22, 2018, the Board was authorised to allot ordinary shares in the Company, and to grant rights to subscribe for or to convert any security into ordinary shares in the Company, up to an aggregate nominal amount of €194 million (representing 2,771 million ordinary shares of €0.07 each), and to list such shares or rights on any stock exchange. This authority expires at the earlier of the close of business on August 22, 2019, and the end of the AGM to be held in 2019, unless previously renewed, revoked or varied by the Company in a general meeting.

At the May 22, 2018 AGM, shareholders granted the Company the authority to repurchase up to 10% of its issued ordinary shares (excluding any treasury shares), renewing the authority granted by shareholders at previous AGMs. The authority will expire at the earlier of the close of business on August 22, 2019, and the end of the Company’s AGM to be held in 2019. Ordinary shares purchased by the Company pursuant to this authority will either be cancelled or held in treasury. Treasury shares are shares in the Company that are owned by the Company itself. The minimum price, exclusive of expenses, which may be paid for an ordinary share is €0.07. The maximum price, exclusive of expenses, which may be paid for an ordinary share is the higher of: (i) an amount equal to 5% above the average market value for an ordinary share for the five business days immediately preceding the date of the purchase; and (ii) the higher of the price of the last independent trade and the highest current independent bid on the trading markets where the purchase is carried out.

Share-based Compensation Plans and Shares Held in Trust

12 Months Ended

Dec. 31, 2018

Share-based Compensation Plans and Shares Held in Trust

21 SHARE-BASED COMPENSATION PLANS AND SHARES HELD IN TRUST


Share-based compensation expense	$ million
	2018			2017		2016
Equity-settled		531		422			488
Cash-settled		—	[A]	380			205
Total		531			802		693

[A] As from 2018 components of share-based payments (related to tax) that were previously classified as cash-settled are classified as equity-settled (see Note 2). On an incidental basis awards may be cash settled, where an equity settlement is not possible under local regulations.

The principal share-based employee compensation plans are the PSP and LTIP. Awards of shares and American Depository Shares (ADSs) of the Company under the PSP and LTIP are granted upon certain conditions to eligible employees. The actual amount of shares that may vest ranges from 0% to 200% of the awards, depending on the outcomes of prescribed performance conditions over a three-year period beginning on January 1 of the award year. Shares and ADSs vest for nil consideration.


Share awards under the PSP and LTIP
	Number of A shares (million)			Number of B shares (million)			Number of A ADSs (million)			Weighted average remaining contractual life (years)
At January 1, 2018		33			12			9			0.9
Granted		10			4			3
Vested		(12	)		(4	)		(4	)
Forfeited		(1	)		—			—
At December 31, 2018		30			12			8			1.0
At January 1, 2017		36			12			10			1.0
Granted		10			4			3
Vested		(12	)		(4	)		(4	)
Forfeited		(1	)		—			—
At December 31, 2017		33			12			9			0.9

Other plans offer employees opportunities to acquire shares and ADSs of the Company or receive cash benefits measured by reference to the Company’s share price.

Shell employee share ownership trusts and trust-like entities purchase the Company’s shares in the open market to meet delivery commitments under employee share plans. At December 31, 2018, they held 19.6 million A shares (2017: 15.2 million), 7.1 million B shares (2017: 2.9 million) and 5.9 million A ADSs (2017: 5.9 million).

Other Reserves

12 Months Ended

Dec. 31, 2018

Other Reserves

22 OTHER RESERVES


Other reserves attributable to Royal Dutch Shell plc shareholders												$ million
	Merger reserve			Share premium reserve		Capital redemption reserve		Share plan reserve				Accumulated other comprehensive income			Total
At January 1, 2018 (as previously reported)		37,298			154		84		1,440				(22,044	)		16,932
Impact of IFRS 9 implementation		—			—		—		—				(138	)		(138	)
At January 1, 2018 (as revised)		37,298			154		84		1,440				(22,182	)		16,794
Other comprehensive income attributable to Royal Dutch Shell plc shareholders		—			—		—		—				1,123			1,123
Transfer from other comprehensive income		—			—		—		—				(971	)		(971	)
Repurchase of shares		—			—		11		—				—			11
Share-based compensation		—			—		—		(342	)	[A] [B]		—			(342	)
At December 31, 2018		37,298			154		95		1,098				(22,030	)		16,615
At January 1, 2017		37,311			154		84		1,644				(27,895	)		11,298
Other comprehensive loss attributable to Royal Dutch Shell plc shareholders		—			—		—		—				5,851			5,851
Scrip dividends		(13	)		—		—		—				—			(13	)
Share-based compensation		—			—		—		(204	)			—			(204	)
At December 31, 2017		37,298			154		84		1,440				(22,044	)		16,932
At January 1, 2016		3,398			154		84		1,658				(22,480	)		(17,186	)
Other comprehensive loss attributable to Royal Dutch Shell plc shareholders		—			—		—		—				(5,949	)		(5,949	)
Scrip dividends		(17	)		—		—		—				—			(17	)
Shares issued		33,930			—		—		—				—			33,930
Share-based compensation		—			—		—		(14	)			534			520
At December 31, 2016		37,311			154		84		1,644				(27,895	)		11,298

[A] Includes a reclassification of $503 million between the Share plan reserve and Retained earnings, which relates to the unwinding of expired share options.

[B] The amendments to IFRS 2 Share-based payment became effective January 1, 2018. Following adoption of the amendments, components of share-based payments (related to tax) that were previously classified as cash-settled are now classified as equity-settled. This resulted in an increase of $172 million in the share plan reserve and a net increase of $125 million in retained earnings.

The merger reserve and share premium reserve were established as a consequence of the Company becoming the single parent company of Royal Dutch Petroleum Company and The “Shell” Transport and Trading Company, p.l.c., now The Shell Transport and Trading Company Limited, in 2005. The increase in the merger reserve in 2016 in respect of the shares issued represents the difference between the fair value and the nominal value of the shares issued for the acquisition of BG. The capital redemption reserve was established in connection with repurchases of shares of the Company. The share plan reserve is in respect of equity-settled share-based compensation plans (see Note 21). The movement represents the net of the charge for the year and the release as a result of vested awards and is after deduction of tax of $71 million in 2018 (2017: $11 million; 2016: $nil).

Accumulated other comprehensive income comprises the following:


Accumulated other comprehensive income attributable to Royal Dutch Shell plc shareholders																								$ million
	Currency translation differences				Unrealised gains/(losses) on securities			Debt instruments remeasurements			Cash flow hedging gains/(losses)				Deferred cost of hedging			Retirement benefits remeasurements			Equity instrument remeasurements			Total
At January 1, 2018 (as previously reported)		(8,735	)			1,969			—			(633	)			—			(14,645	)		—			(22,044	)
Impact of IFRS 9 implementation		—				(1,969	)		(6	)		6				(144	)		—			1,975			(138	)
At January 1, 2018 (as revised)		(8,735	)			—			(6	)		(627	)			(144	)		(14,645	)		1,975			(22,182	)
Recognised in other comprehensive income		(3,794	)			—			(15	)		50				(362	)		5,213			(147	)		945
Reclassified to income		651				—			—			722				95			—			—			1,468
Reclassified to the balance sheet		—				—			—			(30	)			—			—			—			(30	)
Reclassified to retained earnings		—				—			—			—				—			137			(1,108	)		(971	)
Tax on amounts recognised/reclassified		(29	)			—			—			(12	)			58			(1,625	)		(6	)		(1,614	)
Total, net of tax		(3,172	)			—			(15	)		730				(209	)		3,725			(1,261	)		(202	)
Share of joint ventures and associates		(25	)			—			—			14				—			1			193			183
Other comprehensive income/(loss) for the period		(3,197	)			—			(15	)		744				(209	)		3,726			(1,068	)		(19	)
Less: non-controlling interest		185				—			—			—				—			(13	)		(1	)		171
Attributable to Royal Dutch Shell plc shareholders		(3,012	)			—			(15	)		744				(209	)		3,713			(1,069	)		152
At December 31, 2018		(11,747	)			—			(21	)		117		[B]		(353	)		(10,932	)		906			(22,030	)
At January 1, 2017		(13,831	)			1,321						(144	)						(15,241	)					(27,895	)
Recognised in other comprehensive income		4,513				796						(467	)						1,467						6,309
Reclassified to income		610				(211	)					(87	)						—						312
Reclassified to the balance sheet		—				—						(18	)						—						(18	)
Tax on amounts recognised/reclassified		33				8						20							(863	)					(802	)
Total, net of tax		5,156				593						(552	)						604						5,801
Share of joint ventures and associates		53				55						63							(1	)					170
Other comprehensive loss for the period		5,209				648						(489	)						603						5,971
Less: non-controlling interest		(113	)			—						—							(7	)					(120	)
Attributable to Royal Dutch Shell plc shareholders		5,096				648						(489	)						596						5,851
At December 31, 2017		(8,735	)			1,969						(633	)	[B]					(14,645	)					(22,044	)
At January 1, 2016		(12,940	)			1,409						473							(11,422	)					(22,480	)
Recognised in other comprehensive income		(1,023	)	[A]		(204	)					(727	)						(4,816	)					(6,770	)
Reclassified to income		(277	)			1						(939	)						—						(1,215	)
Reclassified to the balance sheet		—				—						1,044		[C]					—						1,044
Tax on amounts recognised/reclassified		(21	)			(11	)					5							999						972
Total, net of tax		(1,321	)			(214	)					(617	)						(3,817	)					(5,969	)
Share of joint ventures and associates		(154	)			126						—							—						(28	)
Other comprehensive income/(loss) for the period		(1,475	)			(88	)					(617	)						(3,817	)					(5,997	)
Less: non-controlling interest		50				—						—							(2	)					48
Attributable to Royal Dutch Shell plc shareholders		(1,425	)			(88	)					(617	)						(3,819	)					(5,949	)
Reclassification in respect of shares held in trust		534				—						—							—						534
At December 31, 2016		(13,831	)			1,321						(144	)						(15,241	)					(27,895	)

[A] Includes losses of $2,024 million arising on net investment hedges.

[B] See Note 19.

[C] Mainly relating to the acquisition of BG.

Dividends

12 Months Ended

Dec. 31, 2018

23 DIVIDENDS


Interim dividends	$ million
	2018		2017		2016
A shares:
Cash: $1.88 per share (2017: $1.88; 2016: $1.88)		8,605		4,919		4,545
Scrip: none (2017: $1.88; 2016: $1.88 per share)		—		3,558		3,491
Total – A shares		8,605		8,477		8,036
B shares:
Cash: $1.88 per share (2017: $1.88; 2016: $1.88)		7,070		5,958		5,132
Scrip: none (2017: $1.88; 2016: $1.88 per share)		—		1,193		1,791
Total – B shares		7,070		7,151		6,923
Total		15,675		15,628		14,959

In addition, on January 31, 2019, the Directors announced a further interim dividend in respect of 2018 of $0.47 per A share and $0.47 per B share. The total dividend is estimated to be $3,848 million and is payable on March 25, 2019, to shareholders on the register at February 15, 2018. The Scrip Dividend Programme has been cancelled with effect from the fourth quarter 2017 interim dividend.

Dividends on A shares are by default paid in euros, although holders may elect to receive dividends in sterling. Dividends on B shares are by default paid in sterling, although holders may elect to receive dividends in euros. Dividends on ADSs are paid in dollars.

Earnings Per Share

12 Months Ended

Dec. 31, 2018

Earnings Per Share

24 EARNINGS PER SHARE


	2018		2017		2016
Income attributable to Royal Dutch Shell plc shareholders ($ million)		23,352		12,977		4,575
Weighted average number of A and B shares used as the basis for determining:
Basic earnings per share (million)		8,282.8		8,223.4		7,833.7
Diluted earnings per share (million)		8,348.7		8,299.0		7,891.7

Basic earnings per share are calculated by dividing the income attributable to Royal Dutch Shell plc shareholders for the year by the weighted average number of A and B shares outstanding during the year. The weighted average number of shares outstanding excludes shares held in trust.

Diluted earnings per share are based on the same income figures. The weighted average number of shares outstanding during the year is increased by dilutive shares related to share-based compensation plans.

Earnings per share are identical for A and B shares.

Legal Proceedings and Other Contingencies

12 Months Ended

Dec. 31, 2018

Legal Proceedings and Other Contingencies

25 LEGAL PROCEEDINGS AND OTHER CONTINGENCIES

GENERAL

In the ordinary course of business, Shell subsidiaries are subject to a number of contingencies arising from litigation and claims brought by governmental, including tax authorities, and private parties. The operations and earnings of Shell subsidiaries continue, from time to time, to be affected to varying degrees by political, legislative, fiscal and regulatory developments, including those relating to the protection of the environment and indigenous groups in the countries in which they operate. The industries in which Shell subsidiaries are engaged are also subject to physical risks of various types.

The amounts claimed in relation to such events and, if such claims against Shell were successful, the costs of implementing the remedies sought in the various cases could be substantial. Based on information available to date and taking into account that in some cases it is not practicable to estimate the possible magnitude or timing of any resultant payments, management believes that the foregoing are not expected to have a material adverse impact on Shell’s Consolidated Financial Statements. However, there remains a high degree of uncertainty around these contingencies, as well as their potential effect on future operations, earnings, cash flows and Shell’s financial condition.

In certain divestment transactions, liabilities related to dismantling and restoration are de-recognised upon transfer of these obligations to the buyer. For certain of these obligations Shell has issued guarantees to third parties and continues to be liable in case that the primary obligator is not able to meet its obligation. These potential obligations arising from issuance of these guarantees are assessed to be remote.

PESTICIDE LITIGATION

Shell Oil Company (SOC), along with another agricultural chemical pesticide manufacturer and several distributors, has been sued by public and quasi-public water purveyors alleging responsibility for groundwater contamination caused by applications of chemical pesticides. There are approximately 45 such cases currently pending. These suits assert various theories of strict liability and negligence, and seek to recover actual damages, including drinking well treatment and remediation costs. Most assert claims for punitive damages. While the Company continues to vigorously defend these lawsuits, a new environmental regulatory standard became effective in the State of California, where a majority of the suits are pending. The new standard requires public water systems state wide to perform quarterly or monthly sampling of their drinking water sources for a chemical contained in certain pesticides, beginning in January 2018. Water systems deemed out of compliance with the new five parts per trillion regulatory standard must take corrective action to resolve the exceedance or take the potable water source out of service. In response to this new regulatory standard, the Company is monitoring the sampling results to determine the number of wells potentially impacted. Based on the claims asserted and SOC’s track record, with regard to amounts paid to resolve varying claims, management does not expect the outcome of these lawsuits pending at December 31, 2018, to have a material adverse impact on Shell. However, there remains a high degree of uncertainty regarding the potential outcome of some of these pending lawsuits, as well as their potential effect on future operations, earnings, cash flows and Shell’s financial condition.

CLIMATE CHANGE LITIGATION
In the USA, 12 lawsuits have been filed by several municipalities and one state against oil and gas companies, including Royal Dutch Shell plc. The plaintiffs seek damages for claimed harm to their public and private infrastructure from rising sea levels allegedly due to climate change caused by the defendants’ fossil fuel products. A similar suit has been filed by a crab fishing industry group claiming harm to their fisheries as a result of alleged ocean-related impacts of climate change. Management believes the outcome of these matters should be resolved in a manner favourable to Shell, however, there remains a high degree of uncertainty regarding the ultimate outcome of these lawsuits, as well as their potential effect on future operations, earnings, cash flows and Shell’s financial condition.

BRAZIL TAX
Pursuant to Law 7.183/2015 issued by the State of Rio de Janeiro (RJ State) and effective March 2016, a value-added levy has been imposed on oil extraction in the RJ State. The company understands that the obligations arising from this law are not legally sustainable and Shell obtained two separate favorable injunctions suspending the enforcement of the law in March and October 2016, respectively. Both injunctions remain in effect and the matter is currently pending before the Tribunal de Justiça do Rio de Janeiro, the local RJ State Court of Appeal. In addition, and as this is an industry-wide issue, the Brazilian Association of Oil and Gas Exploration and Production Companies, of which Shell is a member of, filed a suit in February 2016 before the Supremo Tribunal Federal, the Brazilian Supreme Court, challenging the constitutionality of the law. This matter is currently pending with the Supreme Court. Should Shell be required to pay such a levy, it could result in a total liability of approximately $3 billion as at end 2018.

NIGERIAN LITIGATION

Shell subsidiaries and associates operating in Nigeria are parties to various environmental and contractual disputes brought in the courts of Nigeria, England and the Netherlands. These disputes are at different stages in litigation, including at the appellate stage, where judgements have been rendered against Shell entities. If taken at face value, the aggregate amount of these judgements could be seen as material. Management, however, believes that the outcomes of these matters will ultimately be resolved in a manner favourable to Shell. However, there remains a high degree of uncertainty regarding these cases, as well as their potential effect on future operations, earnings, cash flows and Shell’s financial condition.

The authorities in various countries are investigating Shell Nigeria Exploration and Production Company Ltd.’s (SNEPCO’s) investment in Nigerian oil block OPL 245 and the 2011 settlement of litigation pertaining to that block with regard to potential anti-bribery, anti-corruption and anti-money laundering laws.

On January 27, 2017, the Nigeria Federal High Court issued an Interim Order of Attachment for Oil Prospecting Licence 245 (OPL 245), pending the conclusion of the investigation. SNEPCO applied for and was granted a discharge of this order on constitutional and procedural grounds. Also in Nigeria, in March 2017 criminal charges alleging official corruption and conspiracy to commit official corruption were filed against SNEPCO, one current Shell employee and third parties including ENI SpA and one of its subsidiaries. Those proceedings are ongoing. In March 2017, parties alleging to be shareholders of Malabu Oil and Gas Company Ltd. (Malabu) filed two actions to challenge the 2011 settlement and the award of OPL 245 to SNEPCO and an ENI SpA subsidiary by the Federal Government of Nigeria. Those proceedings are also ongoing. On May 8, 2018, Human Environmental Development Agenda (HEDA) sought permission from the Federal High Court of Nigeria to apply for an order to direct the Attorney General of the Federation to revoke OPL 245 on grounds that the entire Malabu transaction in relation to the OPL is unconstitutional, illegal and void as it was obtained through fraudulent and corrupt practice. On October 4, 2018, SNEPCO was joined as a defendant in the HEDA action. Those proceedings are ongoing. In March 2016, the Nigeria House of Representatives (HoR) announced it was going to conduct a third investigation into OPL 245. SNEPCO sought and was granted an interlocutory injunction preventing the HoR from investigating SNEPCO, as such an investigation was beyond the legal powers of the HoR and the matter was under judicial consideration. On July 2, 2018, the court issued a decision in favour of SNEPCO granting all the reliefs sought including a declaration that the HoR does not have powers to investigate the OPL 245 award and a perpetual injunction to restrain the HoR from continuing with the investigations or compelling SNEPCO’s participation in the investigations. On December 12, 2018, the Federal Republic of Nigeria issued a claim form in the UK against RDS and six subsidiaries, ENI SpA and two of its subsidiaries, Malabu as well as two other entities for the amount of $1,092 million plus damages for having participated in a fraudulent and corrupt scheme leading to the acquisition by Shell and ENI corporate defendants in 2011 of OPL 245. The Shell entities have yet to be served with the proceedings. On February 14, 2017, Royal Dutch Shell plc received a notice of request for indictment from the Milan public prosecutor with respect to this matter. On December 20, 2017, Royal Dutch Shell plc along with four former Shell employees including one former executive were remanded to trial in Milan. On May 14, 2018, a trial commenced in the Court of Milan and is ongoing. On September 18, 2018, RDS was joined to the proceedings as the civilly responsible party (responsabile civile) for the damages caused by the alleged illegal acts of the four former Shell employees. Three other Shell entities (Shell UK Ltd, SPDC and SEPA) also joined the proceedings but were denied status as responsabile civile for their respective former employees at this phase of the proceedings. Based on Shell’s review of the Prosecutor of Milan's file and all the information and facts currently available to Shell, management does not believe that there is a basis to convict Shell in Milan. Furthermore, management is not aware of any evidence to convict any former or current Shell employee in Milan. . Investigations by authorities in other jurisdictions are ongoing.

On September 20, 2018, a guilty judgement was filed by the Milan Judge of the Preliminary Hearing in a separate OPL 245 fast track trial of two individuals, neither of whom worked on behalf of Shell. That decision is under appeal.

In February 2019, we were informed by the Dutch Public Prosecutor’s Office (DPP) that they are nearing the conclusion of their investigation and are preparing to prosecute Royal Dutch Shell plc for criminal charges directly or indirectly related to the 2011 settlement of disputes over OPL 245 in Nigeria. Investigations by authorities in other jurisdictions are ongoing.

There remains a high degree of uncertainty around the OPL 245 matters and contingencies discussed above, as well as their potential effect on future operations, earnings, cash flows and Shell’s financial condition. Accordingly, at this time, it is not practicable to estimate the magnitude and timing of any possible obligations or payments. Any violation of the US Foreign Corrupt Practices Act or other relevant anti-bribery, anti-corruption or anti-money laundering legislation could have a material adverse effect on Royal Dutch Shell plc’s earnings, cash flows and financial condition.

Employees

12 Months Ended

Dec. 31, 2018

Employees

26 EMPLOYEES


Employee costs	$ million
	2018		2017		2016
Remuneration		10,167		10,855		11,985
Social security contributions		810		844		867
Retirement benefits (see Note 17)		1,878		1,815		2,181
Share-based compensation (see Note 21)		531		802		693
Total [A]		13,386		14,316		15,726

[A] Excludes employees seconded to joint ventures and associates.


Average employee numbers	Thousand
	2018		2017 [C]		2016 [C]
Integrated Gas		8		8		9
Upstream		14		16		18
Downstream		37		40		46
Corporate [A]		20		19		18
Total [B]		79		83		91

[A] Includes all employees working in business service centres irrespective of the segment they support.

[B] Excludes employees seconded to joint ventures and associates (2018: 3,000 employees, 2017: 3,000 employees, 2016: 4,000 employees).

[C] As revised.

Directors and Senior Management

12 Months Ended

Dec. 31, 2018

Directors and Senior Management

27 DIRECTORS AND SENIOR MANAGEMENT

.
Remuneration of Directors of the Company	$ million
	2018		2017		2016
Emoluments		12		11		10
Value of released awards under long-term incentive plans		20		5		8
Employer contributions to pension plans		1		1		1

Emoluments comprise salaries and fees, annual bonuses (for the period for which performance is assessed) and other benefits. The value of released awards under long-term incentive plans for the period is in respect of the performance period ending in that year. In 2018, retirement benefits were accrued in respect of qualifying services under defined benefit plans by two Directors.

Further information on the remuneration of the Directors can be found in the Directors’ Remuneration Report on pages 119-147.


Directors and Senior Management expense	$ million
	2018		2017		2016
Short-term benefits		26	23			21
Retirement benefits		3	3			3
Share-based compensation		14	17			15
Termination and related amounts		—	3			4
Total		43		46		43

Directors and Senior Management comprise members of the Executive Committee and the Non-executive Directors of the Company.

Short-term benefits comprise salaries and fees, annual bonuses delivered in cash and shares (for the period for which performance is assessed), other benefits and employer social security contributions. Prior to 2017, these included the 50% of annual bonuses delivered in cash, and share-based compensation included the appropriate proportion of the deferred element (under the Deferred Bonus Plan). Following shareholder approval at the 2017 AGM, the Deferred Bonus Plan has been removed and 50% of the bonus is delivered in shares subject to a three-year holding period.

Auditor's Remuneration

12 Months Ended

Dec. 31, 2018

Disclosure Of Operating Segments [Abstract]

Auditor's Remuneration

28 AUDITOR’s REMUNERATION


	$ million
	2018		2017		2016
Fees in respect of the audit of the Consolidated and Parent Company Financial Statements, including audit of consolidation returns		31		27		32
Other audit fees, principally in respect of audits of accounts of subsidiaries		16		21		17
Total audit fees		47		48		49
Audit-related fees		5		4		2
Fees in respect of other non-audit services		1		1		1
Total		53		53		52

In addition, the auditor provided audit services to retirement benefit plans for employees of subsidiaries. Remuneration paid by those benefit plans amounted to $1 million in 2018 (2017: $1 million, 2016: $1 million).

Classification of auditor’s remuneration under US Securities and Exchange Commission rules

For US reporting purposes, the total auditor’s remuneration of $53 million (2017: $53 million, 2016: $52 million) is categorised as follows: audit $50 million (2017: $50 million, 2016: $51 million), audit-related $2 million (2017:$2 million, 2016 $1 million), and all other fees $1 million (2017: $1 million, 2016: nil).

Significant Accounting Policies, Judgements and Estimates (Policies)	12 Months Ended
	Dec. 31, 2018
Text Block1 [Abstract]
Nature of the Consolidated Financial Statements	This Note describes Shell’s significant accounting policies, which are those relevant to an understanding of the Consolidated Financial Statements and includes the measurement bases used in their preparation. It allows an understanding as to how transactions, other events and conditions are reported. It also describes: (a) judgements, apart from those involving estimations, that management makes in applying the policies that have the most significant effect on the amounts recognised in the Consolidated Financial Statements; and (b) estimations, including assumptions about the future, that management makes in applying the policies. The sources of estimation uncertainty that have a significant risk of a material adjustment to the carrying amounts of assets and liabilities within the next financial year are specifically identified as a significant estimate. The accounting policies applied are consistent with those of the previous financial years except for the adoption as from January 1, 2018 of IFRS 9 Financial Instruments (IFRS 9), IFRS 15 Revenue from Contracts with Customers (IFRS 15) and IFRS 2 Share-based payment (IFRS 2) amendments: Classification and measurement of share-based payment transactions. IFRS 9 sets out the requirements for recognising and measuring financial assets, financial liabilities and certain contracts to buy or sell non-financial items. Furthermore, on a prospective basis the standard facilitates use of hedge accounting and results in different income recognition upon the sale of certain investments in securities. The adoption of IFRS 9 resulted in a decrease of $83 million in equity at January 1, 2018, mainly representing the recognition of additional provisions for impairment of receivables under the expected credit loss model. In addition, changing the measurement basis from amortised cost to fair value for certain financial assets resulted in an increase of $33 million in equity at January 1, 2018. Furthermore, a reclassification within equity between other reserves and retained earnings, primarily representing deferred cost of hedging, was recognised. IFRS 15 provides a single model of accounting for revenue arising from contracts with customers based on the identification and satisfaction of performance obligations, and revenue from contracts with customers that is distinguished from other resources. For the adoption of IFRS 15 the modified retrospective transition approach was applied. Although the accounting for certain contracts, such as those with provisional pricing or take-or pay arrangements, and underlifts and overlifts, did change, no transition adjustment is presented as the adoption did not have a significant effect on Shell’s accounting or disclosures. The amendments to IFRS 2 became effective January 1, 2018. Following adoption of the amendments, components of share-based payments (related to tax) that were previously classified as cash-settled are now classified as equity-settled. This resulted in an increase of $172 million in the share plan reserve within other reserves and a net increase of $125 million in retained earnings. NATURE OF THE CONSOLIDATED FINANCIAL STATEMENTS The Consolidated Financial Statements are presented in US dollars (dollars) and comprise the financial statements of the Company and its subsidiaries, being those entities over which the Company has control, either directly or indirectly, through exposure or rights to their variable returns and the ability to affect those returns through its power over the entities. Information about subsidiaries at December 31, 2018, can be found in Exhibit 8. Subsidiaries are consolidated from the date on which control is obtained until the date that such control ceases, using consistent accounting policies. All inter-company balances and transactions, including unrealised profits arising from such transactions, are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Non-controlling interest represents the proportion of income, other comprehensive income and net assets in subsidiaries that is not attributable to the Company’s shareholders.
Currency Translation	CURRENCY TRANSLATION Foreign currency transactions are translated using the exchange rate at the dates of the transactions or valuation where items are re-measured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at quarter-end exchange rates of monetary assets and liabilities denominated in foreign currencies (including those in respect of inter-company balances, unless related to loans of a long-term investment nature) are recognised in income, except when recognised in other comprehensive income in respect of cash flow or net investment hedges, and presented within interest and other income or within purchases where not related to financing. Share capital issued in currencies other than the dollar is translated at the exchange rate at the date of issue. On consolidation, assets and liabilities of non-dollar entities are translated to dollars at year-end rates of exchange, while their statements of income, other comprehensive income and cash flows are translated at quarterly average rates. The resulting translation differences are recognised as currency translation differences within other comprehensive income. Upon sale of all or part of an interest in, or upon liquidation of, an entity, the appropriate portion of cumulative currency translation differences related to that entity are generally recognised in income.
Revenue Recognition	REVENUE RECOGNITION (from January 1, 2018) Revenue from sales of oil, natural gas, chemicals and other products is recognised at the transaction price which Shell expects to be entitled to, after deducting sales taxes, excise duties and similar levies. For contracts that contain separate performance obligations the transaction price is allocated to those separate performance obligations by reference to their relative standalone selling prices. Revenue is recognised when control of the products has been transferred to the customer. For sales by Integrated Gas and Upstream operations, this generally occurs when the product is physically transferred into a vessel, pipe or other delivery mechanism; for sales by refining operations, it is either when the product is placed onboard a vessel or offloaded from the vessel, depending on the contractually agreed terms; and for sales of oil products and chemicals, it is either at the point of delivery or the point of receipt, depending on contractual conditions. Revenue resulting from hydrocarbon production from properties in which Shell has an interest with partners in joint arrangements is recognised on the basis of Shell’s volumes lifted and sold. Revenue resulting from the production of oil and natural gas under production-sharing contracts (PSCs) is recognised for those amounts relating to Shell’s cost recoveries and Shell’s share of the remaining production. Gains and losses on derivative contracts and the revenue and costs associated with other contracts that are classified as held for trading purposes are reported on a net basis in the Consolidated Statement of Income. Purchases and sales of hydrocarbons under exchange contracts that are necessary to obtain or reposition feedstocks for refinery operations are presented net in the Consolidated Statement of Income. Revenue resulting from arrangements that are not considered contracts with customers is presented as revenue from other sources. REVENUE RECOGNITION (prior to January 1, 2018) Revenue from sales of oil, natural gas, chemicals and other products is recognised at the fair value of consideration received or receivable, after deducting sales taxes, excise duties and similar levies, when the significant risks and rewards of ownership have been transferred, which is when title passes to the customer. For sales by Integrated Gas and Upstream operations, this generally occurs when product is physically transferred into a vessel, pipe or other delivery mechanism; for sales by refining operations, it is either when product is placed onboard a vessel or offloaded from the vessel, depending on the contractually agreed terms; and for sales of oil products and chemicals, it is either at the point of delivery or the point of receipt, depending on contractual conditions. Revenue resulting from hydrocarbon production from properties in which Shell has an interest with partners in joint arrangements is recognised on the basis of Shell’s working interest (entitlement method). Revenue resulting from the production of oil and natural gas under production-sharing contracts (PSCs) is recognised for those amounts relating to Shell’s cost recoveries and Shell’s share of the remaining production. Gains and losses on derivative contracts and the revenue and costs associated with other contracts that are classified as held for trading purposes are reported on a net basis in the Consolidated Statement of Income. Purchases and sales of hydrocarbons under exchange contracts that are necessary to obtain or reposition feedstocks for refinery operations are presented net in the Consolidated Statement of Income.
Research and Development	RESEARCH AND DEVELOPMENT Development costs that are expected to generate probable future economic benefits are capitalised as intangible assets. All other research and development expenditure is recognised in income as incurred.
Exploration Costs	EXPLORATION COSTS Hydrocarbon exploration costs are accounted for under the successful efforts method: exploration costs are recognised in income when incurred, except that exploratory drilling costs, including in respect of operating leases, are included in property, plant and equipment pending determination of proved reserves. Exploration costs capitalised in respect of exploration wells that are more than 12 months old are written off unless: (a) proved reserves are booked; or (b) (i) they have found commercially producible quantities of reserves and (ii) they are subject to further exploration or appraisal activity in that either drilling of additional exploratory wells is under way or firmly planned for the near future or other activities are being undertaken to sufficiently progress the assessing of reserves and the economic and operating viability of the project.
Property, Plant and Equipment and Intangible Assets	PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS Recognition Property, plant and equipment comprise assets owned by Shell, assets held by Shell under finance leases and assets operated by Shell as contractor in PSCs. They include rights and concessions in respect of properties with proved reserves (proved properties) and with no proved reserves (unproved properties). Property, plant and equipment, including expenditure on major inspections, and intangible assets are initially recognised in the Consolidated Balance Sheet at cost where it is probable that they will generate future economic benefits. This includes capitalisation of decommissioning and restoration costs associated with provisions for asset retirement (see “Provisions”), certain development costs (see “Research and development”) and the effects of associated cash flow hedges (see “Financial instruments (from January 1, 2018)”) as applicable. The accounting for exploration costs is described separately (see “Exploration costs”). Intangible assets include goodwill, liquefied natural gas (LNG) off-take and sales contracts obtained through acquisition, software costs and trademarks. Interest is capitalised, as an increase in property, plant and equipment, on major capital projects during construction. Property, plant and equipment and intangible assets are subsequently carried at cost less accumulated depreciation, depletion and amortisation (including any impairment). Gains and losses on sale are determined by comparing the proceeds with the carrying amounts of assets sold and are recognised in income, within interest and other income. An asset is classified as held for sale if its carrying amount will be recovered principally through sale rather than through continuing use, which is when the sale is highly probable, and it is available for immediate sale. Assets classified as held for sale are measured at the lower of the carrying amount upon classification and the fair value less costs to sell. Depreciation, depletion and amortisation Property, plant and equipment related to hydrocarbon production activities are in principle depreciated on a unit-of-production basis over the proved developed reserves of the field concerned, other than assets whose useful lives differ from the lifetime of the field which are depreciated applying the straight-line method. However, for certain Upstream assets, the use for this purpose of proved developed reserves, which are determined using the SEC-mandated yearly average oil and gas prices, would result in depreciation charges for these assets which do not reflect the pattern in which their future economic benefits are expected to be consumed as, for example, it may result in assets with long-term expected lives being depreciated in full within one year. Therefore, in these instances, other approaches are applied to determine the reserves base for the purpose of calculating depreciation, such as using management’s expectations of future oil and gas prices rather than yearly average prices, to provide a phasing of periodic depreciation charges that more appropriately reflects the expected utilisation of the assets concerned. Rights and concessions in respect of proved properties are depleted on the unit-of-production basis over the total proved reserves of the relevant area. Where individually insignificant, unproved properties may be grouped and depreciated based on factors such as the average concession term and past experience of recognising proved reserves. Property, plant and equipment held under finance leases and capitalised LNG off-take and sales contracts are depreciated or amortised over the term of the respective contract. Other property, plant and equipment and intangible assets are depreciated or amortised on a straight-line basis over their estimated useful lives, except for goodwill, which is not amortised. They include refineries and chemical plants (for which the useful life is generally 20 years), retail service stations (15 years), upgraders (30 years) and major inspection costs, which are depreciated over the estimated period before the next planned major inspection (three to five years). On classification of an asset as held for sale, depreciation ceases. Estimates of the useful lives and residual values of property, plant and equipment and intangible assets are reviewed annually and adjusted if appropriate. Impairment The carrying amount of goodwill is tested for impairment annually; in addition, assets other than unproved properties (see “Exploration costs”) are tested for impairment whenever events or changes in circumstances indicate that the carrying amounts for those assets may not be recoverable. On classification as held for sale, the carrying amounts of property, plant and equipment and intangible assets are also reviewed. If assets are determined to be impaired, the carrying amounts of those assets are written down to their recoverable amount, which is the higher of fair value less costs to sell (see “Fair value measurements”) and value in use. Value in use is determined as the amount of estimated risk-adjusted discounted future cash flows. For this purpose, assets are grouped into cash-generating units based on separately identifiable and largely independent cash inflows. Estimates of future cash flows used in the evaluation of impairment of assets are made using management’s forecasts of commodity prices, market supply and demand, product margins and, in the case of exploration and production assets, expected production volumes. The latter takes into account assessments of field and reservoir performance and includes expectations about both proved reserves and volumes that are expected to constitute proved reserves in the future (unproved volumes), which are risk-weighted utilising geological, production, recovery and economic projections. Cash flow estimates are risk-adjusted to reflect local conditions as appropriate and discounted at a rate based on Shell’s marginal cost of debt. Impairments, except those related to goodwill, are reversed as applicable to the extent that the events or circumstances that triggered the original impairment have changed. Impairment losses and reversals are reported within depreciation, depletion and amortisation. Judgements and estimates Proved oil and gas reserves Unit-of-production depreciation, depletion and amortisation charges are principally measured based on management’s estimates of proved developed oil and gas reserves. Also, exploration drilling costs are capitalised pending the results of further exploration or appraisal activity, which may take several years to complete and before any related proved reserves can be booked. Proved reserves are estimated by reference to available geological and engineering data and only include volumes for which access to market is assured with reasonable certainty. Yearly average oil and gas prices are applied in the determination of proved reserves. Estimates of proved reserves are inherently imprecise, require the application of judgement and are subject to regular revision, either upward or downward, based on new information such as from the drilling of additional wells, observation of long-term reservoir performance under producing conditions and changes in economic factors, including product prices, contract terms, legislation or development plans. Changes to estimates of proved developed reserves affect prospectively the amounts of depreciation, depletion and amortisation charged and, consequently, the carrying amounts of exploration and production assets. It is expected, however, that in the normal course of business the diversity of the asset portfolio will limit the effect of such revisions. The outcome of, or assessment of plans for, exploration or appraisal activity may result in the related capitalised exploration drilling costs being recognised in income in that period. Judgement is involved in determining when to use an alternative reserves base in order to appropriately reflect the expected utilisation of the assets concerned (see "Depreciation, depletion and amortisation"). Information about the carrying amounts of exploration and production assets and the amounts charged to income, including depreciation, depletion and amortisation and the quantitative impact of the use of an alternative reserve base, is presented in Note 8. Impairment For the purposes of determining whether impairment of assets has occurred, and the extent of any impairment loss or its reversal, the key assumptions management uses in estimating risk-adjusted future cash flows for value-in-use measures are future oil and gas prices, expected production volumes and refining margins appropriate to the local circumstances and environment. These assumptions and the judgements of management that are based on them are subject to change as new information becomes available. Changes in economic conditions can also affect the rate used to discount future cash flow estimates. The determination of cash-generating units requires judgement. Changes in this determination could impact the calculation of value in use and therefore the conclusion on the recoverability of assets’ carrying amounts when performing an impairment test. Judgement, which is subject to change as new information becomes available, can be required in determining when an asset is classified as held for sale. A change in that judgement could result in impairment charges affecting income, depending on whether classification requires a write down of the asset to its fair value less costs to sell. Significant estimate Future price assumptions, presented in Note 8, tend to be stable because management does not consider short-term increases or decreases in prices as being indicative of long-term levels, but they are nonetheless subject to change. Expected production volumes, which comprise proved reserves and unproved volumes, are used for impairment testing because management believes this to be the most appropriate indicator of expected future cash flows. As discussed in “Proved oil and gas reserves” above, reserves estimates are inherently imprecise. Furthermore, projections about unproved volumes are based on information that is necessarily less robust than that available for mature reservoirs. Due to the nature and geographical spread of the business activity in which those assets are used, it is typically not practicable to estimate the likelihood or extent of impairments under different sets of assumptions for Shell overall. Changes in assumptions could affect the carrying amounts of assets, and any impairment losses and reversals will affect income. Information about the carrying amounts of assets and impairments is presented in Notes 7 and 8.
Leases	LEASES Agreements under which payments are made to owners in return for the right to use an asset for a period are accounted for as leases. Leases that transfer substantially all the risks and rewards of ownership are recognised at the commencement of the lease term as finance leases within property, plant and equipment and debt at the fair value of the leased asset or, if lower, at the present value of the minimum lease payments. Finance lease payments are apportioned between interest expense and repayments of debt. All other leases are classified as operating leases and the cost is recognised in income on a straight-line basis, except where capitalised as exploration drilling costs (see "Exploration costs").
Joint Arrangements and Associates	JOINT ARRANGEMENTS AND ASSOCIATES Arrangements under which Shell has contractually agreed to share control (see “Nature of the Consolidated Financial Statements” for the definition of control) with another party or parties are joint ventures where the parties have rights to the net assets of the arrangement, or joint operations where the parties have rights to the assets and obligations for the liabilities relating to the arrangement. Investments in entities over which Shell has the right to exercise significant influence but neither control nor joint control are classified as associates. Information about incorporated joint arrangements and associates at December 31, 2018, can be found in Exhibit 8. Investments in joint ventures and associates are accounted for using the equity method, under which the investment is initially recognised at cost and subsequently adjusted for the Shell share of post-acquisition income less dividends received and the Shell share of other comprehensive income and other movements in equity, together with any loans of a long-term investment nature. Where necessary, adjustments are made to the financial statements of joint ventures and associates to bring the accounting policies used into line with those of Shell. In an exchange of assets and liabilities for an interest in a joint venture, the non-Shell share of any excess of the fair value of the assets and liabilities transferred over the pre-exchange carrying amounts is recognised in income. Unrealised gains on other transactions between Shell and its joint ventures and associates are eliminated to the extent of Shell’s interest in them; unrealised losses are treated similarly but may also result in an assessment of whether the asset transferred is impaired. Shell recognises its assets and liabilities relating to its interests in joint operations, including its share of assets held jointly and liabilities incurred jointly with other partners.
Inventories	INVENTORIES Inventories are stated at cost or net realisable value, whichever is lower. Cost comprises direct purchase costs (including transportation), and associated costs incurred in bringing inventories to their present condition and location, and is determined using the first-in, first-out (FIFO) method for oil, gas and chemicals and by the weighted average cost method for materials.
Taxation	TAXATION The charge for current tax is calculated based on the income reported by the Company and its subsidiaries, as adjusted for items that are non-taxable or disallowed and using rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax is determined, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the Consolidated Balance Sheet and on unused tax losses and credits carried forward. Deferred tax assets and liabilities are calculated using the enacted or substantively enacted rates that are expected to apply when an asset is realised or a liability is settled. They are not recognised where they arise on the initial recognition of goodwill or of an asset or liability in a transaction (other than in a business combination) that, at the time of the transaction, affects neither accounting nor taxable profit, or in respect of taxable temporary differences associated with subsidiaries, joint ventures and associates where the reversal of the respective temporary difference can be controlled by Shell and it is probable that it will not reverse in the foreseeable future. Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available against which the deductible temporary differences, unused tax losses and credits carried forward can be utilised. Income taxes are recognised in income except when they relate to items recognised in other comprehensive income, in which case the tax is recognised in other comprehensive income. Income tax assets and liabilities are presented separately in the Consolidated Balance Sheet except where there is a right of offset within fiscal jurisdictions and an intention to settle such balances on a net basis. Judgements and estimates Tax liabilities are recognised when it is considered probable that there will be a future outflow of funds to a taxing authority. In such cases, provision is made for the amount that is expected to be settled, where this can be reasonably estimated. A change in estimate of the likelihood of a future outflow and/or in the expected amount to be settled would be recognised in income in the period in which the change occurs. This requires the application of judgement as to the ultimate outcome, which can change over time depending on facts and circumstances. Judgements mainly relate to transfer pricing, including inter-company financing, interpretation of PSCs, expenditure deductible for tax purposes and taxation arising on disposal. Deferred tax assets are recognised only to the extent it is considered probable that those assets will be recoverable. This involves an assessment of when those assets are likely to reverse, and a judgement as to whether or not there will be sufficient taxable profits available to offset the assets when they do reverse. This requires assumptions regarding future profitability and is therefore inherently uncertain. To the extent assumptions regarding future profitability change, there can be an increase or decrease in the amounts recognised in respect of deferred tax assets as well as in the amounts recognised in income in the period in which the change occurs. Taxation information, including charges and deferred tax assets and liabilities, is presented in Note 16. Income taxes include taxes at higher rates levied on income from certain Integrated Gas and Upstream activities.
Retirement Benefits	RETIREMENT BENEFITS Benefits in the form of retirement pensions and healthcare and life insurance are provided to certain employees and retirees under defined benefit and defined contribution plans. Obligations under defined benefit plans are calculated annually by independent actuaries using the projected unit credit method, which takes into account employees’ years of service and, for pensions, average or final pensionable remuneration, and are discounted to their present value using interest rates of high-quality corporate bonds denominated in the currency in which the benefits will be paid and of a duration consistent with the plan obligations. Where plans are funded, payments are made to independently managed trusts; assets held by those trusts are measured at fair value. Defined benefit plan surpluses are recognised as assets to the extent that they are considered recoverable, which is generally by way of a refund or lower future employer contributions. The amounts recognised in income in respect of defined benefit plans mainly comprise service cost and net interest. Service cost comprises principally the increase in the present value of the obligation for benefits resulting from employee service during the period (current service cost) and also amounts relating to past service and settlements or amendments of plans. Plan amendments are changes to benefits and are generally recognised when all legal and regulatory approvals have been received and the effects have been communicated to members. Net interest is calculated using the net defined benefit liability or asset matched against the discount rate yield curve at the beginning of each year for each plan. Remeasurements of the net defined benefit liability or asset resulting from actuarial gains and losses and the return on plan assets excluding the amount recognised in income are recognised in other comprehensive income. For defined contribution plans, pension expense represents the amount of employer contributions payable for the period. Significant judgements and estimates Defined benefit obligations and plan assets, and the resulting liabilities and assets that are recognised, are subject to significant volatility as actuarial assumptions regarding future outcomes and market values change. Substantial judgement is required in determining the actuarial assumptions, which vary for the different plans to reflect local conditions but are determined under a common process in consultation with independent actuaries. The assumptions applied in respect of each plan are reviewed annually and adjusted where necessary to reflect changes in experience and actuarial recommendations. Information about the amounts reported in respect of defined benefit pension plans, assumptions applicable to the principal plans and their sensitivity to changes are presented in Note 17.
Provisions	PROVISIONS Provisions are recognised at the balance sheet date at management’s best estimate of the expenditure required to settle the present obligation. Non-current amounts are discounted at a rate intended to reflect the time value of money. The carrying amounts of provisions are regularly reviewed and adjusted for new facts or changes in law or technology. Provisions for decommissioning and restoration costs, which arise principally in connection with hydrocarbon production facilities and pipelines, are measured on the basis of current requirements, technology and price levels; the present value is calculated using amounts discounted over the useful economic life of the assets. The liability is recognised (together with a corresponding amount as part of the related property, plant and equipment) once an obligation crystallises in the period when a reasonable estimate can be made. The effects of changes resulting from revisions to the timing or the amount of the original estimate of the provision are reflected on a prospective basis, generally by adjustment to the carrying amount of the related property, plant and equipment. However, where there is no related asset, or the change reduces the carrying amount to nil, the effect, or the amount in excess of the reduction in the related asset to nil, is recognised in income. Redundancy provisions are recognised when a detailed formal plan identifies the business or part of the business concerned, the location and number of employees affected, a detailed estimate of the associated costs and an appropriate timeline, and the employees affected have been notified of the plan's main features. Other provisions are recognised in income in the period in which an obligation arises and the amount can be reasonably estimated. Provisions are measured based on current legal requirements and existing technology where applicable. Recognition of any joint and several liability is based on management’s best estimate of the final pro rata share of the liability. Provisions are determined independently of expected insurance recoveries. Recoveries are recognised when virtually certain of realisation. Significant estimates Estimates of provisions for future decommissioning and restoration costs are recognised and based on current legal and constructive requirements, technology and price levels. Because actual outflows can differ from estimates due to changes in laws, regulations, public expectations, technology, prices and conditions, and can take place many years in the future, the carrying amounts of provisions are regularly reviewed and adjusted to take account of such changes. The discount rate applied is reviewed annually. Information about decommissioning and restoration provisions is presented in Note 18.
Financial Instruments	FINANCIAL INSTRUMENTS (from January 1, 2018) Financial assets and liabilities are presented separately in the Consolidated Balance Sheet except where there is a legally enforceable right of offset and Shell has the intention to settle on a net basis or realise the asset and settle the liability simultaneously. Financial Assets Financial assets are classified at initial recognition and subsequently measured at amortised cost, fair value through other comprehensive income or fair value through profit or loss. The classification of financial assets is determined by the contractual cash flows and where applicable the business model for managing the financial assets. A financial asset is measured at amortised cost, if the objective of the business model is to hold the financial asset in order to collect contractual cash flows and the contractual terms give rise to cash flows that are solely payments of principal and interest. It is initially recognised at fair value plus or minus transaction costs that are directly attributable to the acquisition or issue of the financial asset. Subsequently the financial asset is measured using the effective interest method less any impairment. Gains and losses are recognised in profit or loss when the asset is derecognised, modified or impaired. All equity instruments and other debt instruments are recognised at fair value. For equity instruments, on initial recognition, an irrevocable election (on an instrument-by-instrument basis) can be made to designate these as at fair value through other comprehensive income instead of fair value through profit and loss. Dividends received on equity instruments are recognised as other income in profit or loss when the right of payment has been established, except when the company benefits from such proceeds as a recovery of part of the cost of the financial asset, in which case, such gains are recorded in other comprehensive income. Investments in securities Investments in securities (“securities”) comprise equity and debt securities. Equity securities are carried at fair value. Generally, unrealised holding gains and losses are recognised in other comprehensive income. On sale, net gains and loses previously accumulated in other comprehensive income are transferred to retained earnings. Debt securities are generally carried at fair value with unrealised holding gains and losses recognised in other comprehensive income. On sale, net gains and losses previously accumulated in other comprehensive income are recognised in income. Impairment of financial assets The expected credit loss model is applied for recognition and measurement of impairments in financial assets measured at amortised cost or at fair value through other comprehensive income. The expected credit loss model also is applied for financial guarantee contracts to which IFRS 9 applies and are not accounted for at fair value through profit or loss. The loss allowance for the financial asset is measured at an amount equal to the 12-month expected credit losses. If the credit risk on the financial asset has increased significantly since initial recognition, the loss allowance for the financial asset is measured at an amount equal to the lifetime expected credit losses. Changes in loss allowances are recognised in profit and loss. For trade receivables, a simplified impairment approach is applied recognising expected lifetime losses from initial recognition. Significant estimate Receivables from governments may be large and subject to disputes. Recoverability is subject to uncertainty as to the settlement of amounts including tax, royalty, cost recovery and associated interest. Information about government receivables is presented in Note 11. Financial Liabilities Financial liabilities are measured at amortised cost, unless they are required to be measured at fair value through profit or loss, such as instruments held for trading, or Shell has opted to measure them at fair value through profit or loss. Debt and trade payables are recognised initially at fair value based on amounts exchanged, net of transaction costs, and subsequently at amortised cost except for fixed rate debt subject to fair value hedging which is remeasured for the hedged risk (see below). Interest expense on debt is accounted for using the effective interest method, and other than interest capitalised, is recognised in income. For financial liabilities that are measured under the fair value option, the change in the fair value related to own credit risk is recognised in other comprehensive income. The remaining fair value change is recognised to fair value through profit and loss. Derivative contracts and hedges Derivative contracts are used in the management of interest rate risk, foreign exchange risk, commodity price risk, and foreign currency cash balances. Derivatives that are not closely related to the host contract in terms of economic characteristics and risks of which the host contract is not a financial asset, are separated from their host contract and recognised at fair value with the associated gains and losses recognised in income. Certain derivative contracts qualify and are designated either as a “fair value” hedge of the change in fair value of a recognised asset or liability or an unrecognised firm commitment or as a “cash flow” hedge for the change in cash flows to be received or paid relating to a recognised asset or liability or a highly probable forecast transaction. A change in the fair value of a fair value hedge is recognised in income, together with the consequential adjustment to the carrying amount of the hedged item. The effective portion of a change in fair value of a derivative contract designated as a cash flow hedge is recognised in other comprehensive income until the hedged transaction occurs; any ineffective portion is recognised in income. Where the hedged item is a non-financial asset or liability, the amount in accumulated other comprehensive income is transferred to the initial carrying amount of the asset or liability (reclassified to the balance sheet); for other hedged items, the amount in accumulated other comprehensive income is reclassified to income when the hedged transaction affects income. The effective portion of a change due to retranslation at quarter-end exchange rates in the carrying amount of debt and the principal amount of derivative contracts used to hedge net investments in foreign operations is recognised in other comprehensive income until the related investment is sold or liquidated; any ineffective portion is recognised in income. All relationships between hedging instruments and hedged items are documented, as well as risk management objectives and strategies for undertaking hedge transactions. The effectiveness of hedges is also continually assessed and hedge accounting is discontinued when there is a change in the risk management strategy. Unless designated as hedging instruments, contracts to sell or purchase non-financial items that can be settled net as if the contracts were financial instruments and that do not meet expected own use requirements (typically, forward sale and purchase contracts for commodities in trading operations), and contracts that are or contain written options, are recognised at fair value; associated gains and losses are recognised in income. FINANCIAL INSTRUMENTS (prior to January 1, 2018) Financial assets and liabilities are presented separately in the Consolidated Balance Sheet except where there is a legally enforceable right of offset and Shell has the intention to settle on a net basis or realise the asset and settle the liability simultaneously. Financial assets Investments in securities Investments in securities (also referred to as “securities”) comprise equity and debt securities classified on initial recognition as available-for-sale and are carried at fair value, except where their fair value cannot be measured reliably, in which case they are carried at cost, less any impairment. Unrealised holding gains and losses other than impairments are recognised in other comprehensive income, except for translation differences arising on foreign currency debt securities, which are recognised in income. On maturity or sale, net gains and losses previously deferred in accumulated other comprehensive income are recognised in income. Interest income on debt securities is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable. Cash and cash equivalents Cash and cash equivalents comprise cash at bank and in hand, including offsetting bank overdrafts, short-term bank deposits, money market funds, reverse repos and similar instruments that have a maturity of three months or less at the date of purchase. Trade receivables Trade receivables are recognised initially at fair value based on amounts exchanged and subsequently at amortised cost less any impairment. Significant estimate Receivables from governments may be large and subject to disputes. Recoverability is subject to uncertainty as to the settlement of amounts including tax, royalty, cost recovery and associated interest. Information about government receivables is presented in Note 11. Financial liabilities Debt and trade payables are recognised initially at fair value based on amounts exchanged, net of transaction costs, and subsequently at amortised cost except for fixed rate debt subject to fair value hedging which is remeasured for the hedged risk (see below). Interest expense on debt is accounted for using the effective interest method and, other than interest capitalised, is recognised in income. Derivative contracts and hedges Derivative contracts are used in the management of interest rate risk, foreign exchange risk and commodity price risk, and in the management of foreign currency cash balances. These contracts are recognised at fair value. Certain derivative contracts qualify and are designated either as a “fair value” hedge of the change in fair value of a recognised asset or liability or an unrecognised firm commitment or as a “cash flow” hedge of the change in cash flows to be received or paid relating to a recognised asset or liability or a highly probable forecast transaction. A change in the fair value of a hedging instrument designated as a fair value hedge is recognised in income, together with the consequential adjustment to the carrying amount of the hedged item. The effective portion of a change in fair value of a derivative contract designated as a cash flow hedge is recognised in other comprehensive income until the hedged transaction occurs; any ineffective portion is recognised in income. Where the hedged item is a non-financial asset or liability, the amount in accumulated other comprehensive income is transferred to the initial carrying amount of the asset or liability (reclassified to the balance sheet); for other hedged items, the amount in accumulated other comprehensive income is reclassified to income when the hedged transaction affects income. The effective portion of a change due to retranslation at quarter-end exchange rates in the carrying amount of debt and the principal amount of derivative contracts used to hedge net investments in foreign operations is recognised in other comprehensive income until the related investment is sold or liquidated; any ineffective portion is recognised in income. All relationships between hedging instruments and hedged items are documented, as well as risk management objectives and strategies for undertaking hedge transactions. The effectiveness of hedges is also continually assessed and hedge accounting is discontinued when a hedge ceases to be highly effective. Gains and losses on derivative contracts not qualifying and designated as hedges, including forward sale and purchase contracts for commodities in trading operations that may be settled by the physical delivery or receipt of the commodity, are recognised in income. Unless designated as hedging instruments, contracts to sell or purchase non-financial items that can be settled net as if the contracts were financial instruments and that do not meet expected own use requirements (typically, forward sale and purchase contracts for commodities in trading operations), and contracts that are or contain written options, are recognised at fair value; associated gains and losses are recognised in income. Derivatives embedded within contracts that are not already required to be recognised at fair value, and that are not closely related to the host contract in terms of economic characteristics and risks, are separated from their host contract and recognised at fair value; associated gains and losses are recognised in income.
Fair Value Measurements	FAIR VALUE MEASUREMENTS Fair value measurements are estimates of the amounts for which assets or liabilities could be transferred at the measurement date, based on the assumption that such transfers take place between participants in principal markets and, where applicable, taking highest and best use into account. Judgements and estimates Where available, fair value measurements are derived from prices quoted in active markets for identical assets or liabilities. In the absence of such information, other observable inputs are used to estimate fair value. Inputs derived from external sources are corroborated or otherwise verified, as appropriate. In the absence of publicly available information, fair value is determined using estimation techniques that take into account market perspectives relevant to the asset or liability, in as far as they can reasonably be ascertained, based on predominantly unobservable inputs. For derivative contracts where publicly available information is not available, fair value estimations are generally determined using models and other valuation methods, the key inputs for which include future prices, volatility, price correlation, counterparty credit risk and market liquidity, as appropriate; for other assets and liabilities, fair value estimations are generally based on the net present value of expected future cash flows.
Share-based Compensation Plans	SHARE-BASED COMPENSATION PLANS The fair value of share-based compensation expense arising from the Performance Share Plan (PSP) and the Long-term Incentive Plan (LTIP) – Shell’s main equity-settled plans – is estimated using a Monte Carlo option pricing model and is recognised in income from the date of grant over the vesting period with a corresponding increase directly in equity. The model projects and averages the results for a range of potential outcomes for the vesting conditions, the principal assumptions for which are the share price volatility and dividend yields for Shell and four of its main competitors over the last three years and the last 10 years. Prior to the adoption of the IFRS 2 amendments, changes in the fair value of share-based compensation for cash-settled plans were recognised in income with a corresponding change in liabilities.
Shares Held in Trust	SHARES HELD IN TRUST Shares in the Company, which are held by employee share ownership trusts and trust-like entities, are not included in assets but are reflected at cost as a deduction from equity as shares held in trust.
Acquisitions and Sales of Interests in a Business	ACQUISITIONS AND SALES OF INTERESTS IN A BUSINESS Assets acquired and liabilities assumed when control is obtained over a business, and when an interest or an additional interest is acquired in a joint operation which is a business, are recognised at their fair value at the date of the acquisition; the amount of the purchase consideration above this value is recognised as goodwill. When control is obtained, any non-controlling interest is recognised as the proportionate share of the identifiable net assets. The acquisition of a non-controlling interest in a subsidiary and the sale of an interest while retaining control are accounted for as transactions within equity. The difference between the purchase consideration or sale proceeds after tax and the relevant proportion of the non-controlling interest, measured by reference to the carrying amount of the interest’s net assets at the date of acquisition or sale, is recognised in retained earnings as a movement in equity attributable to Royal Dutch Shell plc shareholders.
Consolidated Statement of Income Presentation	CONSOLIDATED STATEMENT OF INCOME PRESENTATION Purchases reflect all costs related to the acquisition of inventories and the effects of the changes therein, and include associated costs incurred in conversion into finished or intermediate products. Production and manufacturing expenses are the costs of operating, maintaining and managing production and manufacturing assets. Selling, distribution and administrative expenses include direct and indirect costs of marketing and selling products.

Segment Information (Tables)

12 Months Ended

Dec. 31, 2018

Summary of Information by Segment on Current Cost of Supplies

Information by segment on a current cost of supplies basis is as follows:


2018	$ million
	Integrated Gas		Upstream		Downstream		Corporate			Total
CCS earnings		11,444		6,798		7,601		(1,479	)		24,364
Revenue:
Third party		43,764		9,892		334,680		43			388,379	[A]
Inter-segment		4,853		37,841		5,358		—
Share of profit/(loss) of joint ventures and associates (CCS basis)		2,273		285		1,785		(222	)		4,121
Interest and other income, of which:		2,230		600		345		896			4,071
Interest income		—		—		—		772			772
Net gains on sale and revaluation of non-current assets and businesses		2,231		712		302		20			3,265
Depreciation, depletion and amortisation charge, of which:		4,850		13,006		4,064		215			22,135
Impairment losses		200		1,065		424		7			1,696	[B]
Impairment reversals		—		1,265		—		—			1,265	[C]
Interest expense		221		609		71		2,844			3,745
Taxation charge/(credit) (CCS basis)		2,795		8,791		1,515		(1,270	)		11,831

[A] Includes $3,348 million of revenue from sources other than from contracts with customers, which mainly comprises the impact of fair value accounting of commodity derivatives.

[B] Impairment losses comprise Property, plant and equipment ($1,515 million) and Intangible assets ($181 million).

[C] See Note 8.


2017	$ million
	Integrated Gas		Upstream		Downstream		Corporate			Total
CCS earnings		5,078		1,551		8,258		(2,416	)		12,471
Revenue:
Third party		32,674		7,723		264,731		51			305,179
Inter-segment		3,978		32,469		4,248		—
Share of profit/(loss) of joint ventures and associates (CCS basis)		1,714		623		1,956		(129	)		4,164
Interest and other income, of which:		687		1,188		154		437			2,466
Interest income		—		—		—		677			677
Net gains on sale and revaluation of non-current assets and businesses		301		1,189		136		14			1,640
Depreciation, depletion and amortisation charge, of which:		4,965		17,303		3,877		78			26,223
Impairment losses		302		4,118		385		—			4,805	[A]
Impairment reversals		10		605		—		—			615	[B]
Interest expense		248		744		109		2,941			4,042
Taxation charge/(credit) (CCS basis)		790		2,409		1,783		(636	)		4,346

[A] Impairment losses comprise Property, plant and equipment ($4,572 million) and Intangible assets ($233 million).

[B] See Note 8.


2016	$ million
	Integrated Gas		Upstream			Downstream		Corporate			Total
CCS earnings		2,529		(3,674	)		6,588		(1,751	)		3,692
Revenue:
Third party		25,282		6,412			201,823		74			233,591
Inter-segment		3,908		26,524			1,727		—
Share of profit/(loss) of joint ventures and associates (CCS basis)		1,116		222			2,244		(182	)		3,400
Interest and other income, of which:		765		839			851		442			2,897
Interest income		—		—			—		451			451
Net gains on sale and revaluation of non-current assets and businesses		507		867			765		2			2,141
Depreciation, depletion and amortisation charge, of which:		4,509		16,779			3,681		24			24,993
Impairment losses		72		1,274			588		6			1,940	[A]
Impairment reversals		—		—			38		—			38	[B]
Interest expense		247		852			91		2,013			3,203
Taxation charge/(credit) (CCS basis)		1,254		(938	)		1,008		(839	)		485

[A] Impairment losses comprise Property, plant and equipment ($1,931 million) and Intangible assets ($9 million).

[B] See Note 8.

Summary of Reconciliation of CCS Earnings to Income


Reconciliation of CCS earnings to income for the period	$ million
	2018			2017			2016
CCS earnings		24,364			12,471			3,692
Current cost of supplies adjustment:
Purchases		(559	)		1,252			1,284
Taxation		116			(349	)		(344	)
Share of profit of joint ventures and associates		(15	)		61			145
		(458	)		964			1,085
Income for the period		23,906			13,435			4,777

Summary of Information by Geographical Area

Information by geographical area is as follows:


2018	$ million
	Europe		Asia, Oceania, Africa		USA	Other Americas	Total
Third-party revenue, by origin	118,960	[A]	153,716	[B]	89,876	25,827	388,379
Intangible assets, property, plant and equipment, joint ventures and associates at December 31	38,617	[C]	117,127		59,625	56,721	272,090

[A] Includes $54,659 million that originated from the UK.

[B] Includes $89,811 million that originated from Singapore.

[C] Includes $21,863 million located in the UK.


2017	$ million
	Europe		Asia, Oceania, Africa		USA		Other Americas	Total
Third-party revenue, by origin	100,609	[A]	114,683	[B]	66,854		23,033	305,179
Intangible assets, property, plant and equipment, joint ventures and associates at December 31	41,416	[C] [D]	122,345		55,898	[D]	58,828	278,487

[A] Includes $49,370 million that originated from the UK.

[B] Includes $62,046 million that originated from Singapore.

[C] Includes $22,734 million located in the UK.

[D] The USA geographical allocation has increased by $1,604 million with a corresponding decrease in Europe.


2016	$ million
	Europe		Asia, Oceania, Africa		USA		Other Americas	Total
Third-party revenue, by origin	81,573	[A]	87,635	[B]	44,615		19,768	233,591
Intangible assets, property, plant and equipment, joint ventures and associates at December 31	42,265	[C] [D]	121,618		62,066	[D]	67,371	293,320

[A] Includes $38,490 million that originated from the UK.

[B] Includes $42,533 million that originated from Singapore.

[C] Includes $24,015 million located in the UK.

[D] The USA geographical allocation has increased by $1,636 million with a corresponding decrease in Europe.

Interest and Other Income (Tables)

12 Months Ended

Dec. 31, 2018

Summary of Interest and Other Income


	$ million
	2018			2017			2016
Interest income		772			677			451
Dividend income (from investments in equity securities)		104			375			264
Net gains on sale and revaluation of non-current assets and businesses		3,265			1,640			2,141
Net foreign exchange (losses)/gains on financing activities		(174	)		(453	)		343
Other		104			227			(302	)
Total		4,071			2,466			2,897

Interest Expense (Tables)

12 Months Ended

Dec. 31, 2018

Summary of Interest Expense


	$ million
	2018			2017			2016
Interest incurred and similar charges		3,550			3,448			2,732
Less: interest capitalised		(876	)		(622	)		(725	)
Other net losses on fair value hedges of debt		169			114			4
Accretion expense		902			1,102			1,192
Total		3,745			4,042			3,203

Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2018

Summary of Intangible Assets and Goodwill


2018	$ million
	Goodwill			LNG off-take and sales contracts			Other			Total
Cost
At January 1		14,154			10,429			6,106			30,689
Additions		331			—			659			990
Sales, retirements and other movements		(75	)		(64	)		(253	)		(392	)
Currency translation differences		(72	)		—			(120	)		(192	)
At December 31		14,338			10,365			6,392			31,095
Depreciation, depletion and amortisation, including impairments
At January 1		492			2,432			3,585			6,509
Charge for the year		173			925			370			1,468
Sales, retirements and other movements		(21	)		(64	)		(275	)		(360	)
Currency translation differences		(22	)		—			(86	)		(108	)
At December 31		622			3,293			3,594			7,509
Carrying amount at December 31		13,716			7,072			2,798			23,586


2017	$ million
	Goodwill			LNG off-take and sales contracts		Other			Total
Cost
At January 1		13,592			10,429		5,085			29,106
Additions		784			—		786			1,570
Sales, retirements and other movements		(261	)		—		37			(224	)
Currency translation differences		39			—		198			237
At December 31		14,154			10,429		6,106			30,689
Depreciation, depletion and amortisation, including impairments
At January 1		605			1,475		3,059			5,139
Charge for the year		—			957		612			1,569
Sales, retirements and other movements		(136	)		—		(241	)		(377	)
Currency translation differences		23			—		155			178
At December 31		492			2,432		3,585			6,509
Carrying amount at December 31		13,662			7,997		2,521			24,180

Property, Plant and Equipment (Tables)

12 Months Ended

Dec. 31, 2018

Summary of Property Plant and Equipment


2018														$ million
	Exploration and production
	Exploration and evaluation				Production			Manufacturing, supply and distribution			Other			Total
Cost
At January 1		22,510				292,256			86,948			22,355			424,069
Additions		3,514				12,596			6,438			1,594			24,142
Sales, retirements and other movements		(4,443	)			(19,643	)		(667	)		(814	)		(25,567	)
Currency translation differences		(400	)			(4,828	)		(1,484	)		(1,095	)		(7,807	)
At December 31		21,181				280,381			91,235			22,040			414,837
Depreciation, depletion and amortisation, including impairments
At January 1		5,060				137,525			44,483			10,621			197,689
Charge for the year		(979	)	[A]		16,551			4,000			1,095			20,667
Sales, retirements and other movements		(608	)			(19,631	)		(1,353	)		(756	)		(22,348	)
Currency translation differences		(186	)			(2,753	)		(912	)		(495	)		(4,346	)
At December 31		3,287				131,692			46,218			10,465			191,662
Carrying amount at December 31		17,894				148,689			45,017			11,575			223,175

[A] Includes an impairment reversal for assets in North America.


2017															$ million
	Exploration and production
	Exploration and evaluation				Production				Manufacturing, supply and distribution			Other			Total
Cost
At January 1		25,376				302,532				77,286			20,063			425,257
Additions		2,319				15,347				8,148			1,352			27,166
Sales, retirements and other movements		(5,651	)	[A]		(33,133	)	[A]		(1,427	)		(655	)		(40,866	)
Currency translation differences		466				7,510				2,941			1,595			12,512
At December 31		22,510				292,256				86,948			22,355			424,069
Depreciation, depletion and amortisation, including impairments
At January 1		6,363				133,600				39,673			9,523			189,159
Charge for the year		778				19,155				3,705			1,016			24,654
Sales, retirements and other movements		(2,300	)			(19,615	)			(763	)		(701	)		(23,379	)
Currency translation differences		219				4,385				1,868			783			7,255
At December 31		5,060				137,525				44,483			10,621			197,689
Carrying amount at December 31		17,450				154,731				42,465			11,734			226,380

[A] $1,065 million has been reclassified from Exploration and evaluation to Production.

Summary of Carrying Amount of Property, Plant and Equipment Held Under Finance Leases


Carrying amount of property, plant and equipment held under finance leases [A]	$ million
	Dec 31, 2018		Dec 31, 2017
Exploration and production		6,299		8,399
Manufacturing, supply and distribution		3,149		3,151
Other		200		272
Total		9,648		11,822

[A] See Note 14.

Summary of Impairments


Impairments	$ million
	2018		2017		2016
Impairment losses [A]
Exploration and production		1,066		4,187		1,324
Manufacturing, supply and distribution		441		376		567
Other		8		9		40
Total		1,515		4,572		1,931
Impairment reversals [A]
Exploration and production		1,265		615		—
Manufacturing, supply and distribution		—		—		36
Other		—		—		2
Total		1,265		615		38

[A] See Note 4.

Commodity Price Assumptions Applied in Impairment Testing

The near-term commodity price assumptions applied in impairment testing in 2018 were as follows:



Commodity price assumptions [A]
	2019		2020		2021
Brent crude oil ($/b)		65		65		70
Henry Hub natural gas ($/MMBtu)		3.25		3.50		3.50

[A] Money of the day.

Summary of Capitalised Exploration Drilling Costs


Capitalised exploration drilling costs	$ million
	2018			2017				2016
At January 1		6,981			7,910				7,835
Additions pending determination of proved reserves		2,588			1,708				1,762
Amounts charged to expense		(449	)		(897	)			(834	)
Reclassifications to productive wells on determination of proved reserves		(2,461	)		(1,894	)	[A]		(1,187	)
Other movements		(30	)		154				334
At December 31		6,629			6,981		[A]		7,910

[A] $912 million of capitalised exploration drilling costs has been reclassified from Exploration and evaluation to Production.


	Projects				Wells
	Number		$ million		Number		$ million
Between 1 and 5 years		44		3,645		180		2,670
Between 6 and 10 years		12		1,059		143		1,766
Between 11 and 15 years		4		238		16		441
Between 16 and 20 years		—		—		3		65
Total		60		4,942		342		4,942

Joint Ventures and Associates (Tables)

12 Months Ended

Dec. 31, 2018

Summary of Shell Share of Comprehensive Income of Joint Ventures and Associates


Shell share of comprehensive income of joint ventures and associates													$ million
	2018						2017						2016
	Joint ventures		Associates		Total		Joint ventures		Associates		Total		Joint ventures		Associates			Total
Income for the period		1,307		2,799		4,106		2,102		2,123		4,225		2,332		1,213			3,545
Other comprehensive income/(loss) for the period		172		11		183		164		6		170		78		(106	)		(28	)
Comprehensive income for the period		1,479		2,810		4,289		2,266		2,129		4,395		2,410		1,107			3,517

Summary of Carrying Amount of Interests in Joint Ventures and Associates

Carrying amount of interests in joint ventures and associates

$ million

Dec 31, 2018

Dec 31, 2017

Joint

ventures

Associates

Total

Joint

ventures

Associates

Total

Net assets

14,263

11,066

25,329

15,052

12,875

27,927

Related Parties


Transactions with joint ventures and associates	$ million
	2018		2017		2016
Sales and charges to joint ventures and associates		8,270		13,121		24,214
Purchases and charges from joint ventures and associates		11,212		10,680		13,859

Summary of Other Arrangements in Respect of Joint Ventures and Associates


Other arrangements in respect of joint ventures and associates	$ million
	Dec 31, 2018		Dec 31, 2017
Commitments to make purchases from joint ventures and associates [A]		1,254		1,371
Commitments to provide debt or equity funding to joint ventures and associates		638		1,216

[A] Commitments to make purchases from joint ventures and associates mainly relate to contracts associated with raw materials and transportation capacity.

Investments in Securities (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Investments in Securities


Investment in securities			$ million
	Dec 31, 2018		Dec 31, 2017
Equity securities:		1,823		5,976
Equity securities at fair value through other comprehensive income		1,823
Debt securities:		1,251		1,246
Debt securities at amortised cost		8
Debt securities at fair value through other comprehensive income		953
Debt securities at fair value through profit and loss		290
Total		3,074		7,222
At fair value
Measured by reference to prices in active markets for identical assets		1,873		5,776
Measured using predominantly unobservable inputs		1,193		1,268
Total		3,066		7,044
At cost		8		178
Total		3,074		7,222

Schedule of Investments in Securities Using Predominantly Unobservable Inputs


Investments in securities measured using predominantly unobservable inputs [A]	$ million
	2018				2017
At January 1		1,268				1,233
Gains/(losses) recognised in other comprehensive income		212				(108	)
Other movements		(287	)	[B]		143
At December 31		1,193				1,268

[A] Based on expected dividend flows, adjusted for country and other risks as appropriate and discounted to their present value.

[B] Other movements mainly relates to the disposal of the interest in Malaysia LNG Tiga Sendirian Berhad, partly offset by investments made in securities during 2018.

Trade and Other Receivables (Tables)

12 Months Ended

Dec. 31, 2018

Summary of Trade and Other Receivables


	$ million
	Dec 31, 2018				Dec 31, 2017
	Current		Non-current		Current		Non-current
Trade receivables		27,541		—		30,721		—
Other receivables		8,543		4,823		9,036		5,525
Amounts due from joint ventures and associates		992		1,183		868		1,327
Prepayments and deferred charges		5,355		1,820		3,940		1,623
Total		42,431		7,826		44,565		8,475

Summary of Allowance for Expected Credit Losses Trade Receivables


Allowance for expected credit losses - trade receivables	$ million
	Not overdue			Overdue 1-30 days			Overdue 31-180 days			Overdue more than 180 days			Total
Expected loss rate	0.0014% - 0.0799%			0.0393% - 1.548%			0.1752% - 14.8524%			0.7592% - 28.037%
Gross carrying amount		25,835			892			541			539			27,807
Loss allowance provision		(2	)		(2	)		(7	)		(12	)		(23	)
Net carrying amount at December 31, 2018		25,833			890			534			527			27,784
Net carrying amount at December 31, 2017		28,719			1,154			480			368			30,721

Inventories (Tables)

12 Months Ended

Dec. 31, 2018

Summary of Detailed Information of Inventories


	$ million
	Dec 31, 2018		Dec 31, 2017
Oil, gas and chemicals		19,516		22,962
Materials		1,601		2,261
Total		21,117		25,223

Cash and Cash Equivalents (Tables)

12 Months Ended

Dec. 31, 2018

Summary of Cash and Cash Equivalents and Short Term Bank Deposits


	$ million
	Dec 31, 2018		Dec 31, 2017
Cash		4,034		4,672
Short-term bank deposits		3,655		3,996
Money market funds, reverse repos and other cash equivalents		19,052		11,644
Total		26,741		20,312

Debt and Lease Arrangements (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Borrowing Facilities and Amounts Undrawn

Schedule of Debt

DEBT


Debt	$ million
	Dec 31, 2018						Dec 31, 2017
	Debt (excluding finance lease liabilities)		Finance lease liabilities		Total		Debt (excluding finance lease liabilities)		Finance lease liabilities		Total
Short-term debt		693		—		693		1,211		—		1,211
Long-term debt due within 1 year		8,419		1,022		9,441		9,500		1,084		10,584
Current debt		9,112		1,022		10,134		10,711		1,084		11,795
Non-current debt		53,686		13,004		66,690		59,430		14,440		73,870
Total		62,798		14,026		76,824		70,141		15,524		85,665

Schedule of Net Debt


Net debt	$ million
	Current debt			Non-current debt			Derivative financial instruments [A]			Cash and cash equivalents (see Note 13)			Net debt [A]
At January 1, 2018		(11,795	)		(73,870	)		(591	)		20,312			(65,944	)
Cash flow		10,392			(2,418	)		446			6,878			15,298
Finance lease additions		(51	)		(652	)								(703	)
Other movements		(8,939	)		9,270			(261	)		—			70
Currency translation differences and foreign exchange gains/(losses)		259			980			(939	)		(449	)		(149	)
At December 31, 2018		(10,134	)		(66,690	)		(1,345	)		26,741			(51,428	)
At January 1, 2017		(9,484	)		(82,992	)		(4,045	)		19,130			(77,391	)
Cash flow		11,457			(113	)		485			535			12,364
Finance lease additions		(56	)		(1,772	)								(1,828	)
Other movements		(13,232	)		13,749			(272	)		—			245
Currency translation differences and foreign exchange gains/(losses)		(480	)		(2,742	)		3,241			647			666
At December 31, 2017		(11,795	)		(73,870	)		(591	)		20,312			(65,944	)

Schedule of Gearing


Gearing	$ million, except where indicated
	Dec 31, 2018			Dec 31, 2017
Net debt		51,428			65,944		[A]
Total equity		202,534			197,812
Total capital		253,962			263,756		[A]
Gearing		20.3	%		25.0	%	[A]

[A] As revised, following the revision of the net debt calculation from 2018.

Borrowing facilities and amounts undrawn

$ million

Facility

Amount undrawn

Dec 31, 2018

Dec 31, 2017

Dec 31, 2018

Dec 31, 2017

CP programmes

20,000

19,659

EMTN programme

unlimited

N/A

US shelf registration

unlimited

N/A

Committed credit facility

8,840

8,500

8,840

8,500

Schedule of Difference in Contractual Cash Flows for Debt Excluding Finance Lease Liabilities


2018	$ million
	Contractual payments
			Between		Between		Between		Between						Difference
	Less than		1 and 2		2 and 3		3 and 4		4 and 5		5 years				from carrying		Carrying
	1 year		years		years		years		years		and later		Total		amount		amount
Bonds		8,163		5,900		4,993		4,458		4,312		33,162		60,988		181		61,169
Bank and other borrowings		945		39		209		50		27		359		1,629		—		1,629
Total (excluding interest)		9,108		5,939		5,202		4,508		4,339		33,521		62,617		181		62,798
Interest		1,780		1,555		1,426		1,319		1,244		14,406		21,730


2017	$ million
	Contractual payments
			Between		Between		Between		Between						Difference
	Less than		1 and 2		2 and 3		3 and 4		4 and 5		5 years				from carrying		Carrying
	1 year		years		years		years		years		and later		Total		amount		amount
Commercial paper		341		—		—		—		—		—		341		5		346
Bonds		8,989		8,306		5,900		5,047		4,620		35,037		67,899		131		68,030
Bank and other borrowings		1,321		43		127		56		180		36		1,763		2		1,765
Total (excluding interest)		10,651		8,349		6,027		5,103		4,800		35,073		70,003		138		70,141
Interest		1,957		1,688		1,457		1,328		1,221		15,293		22,944

Schedule of Future Minimum Lease Payments for Finance and Operating Leases

The future minimum lease payments for finance and operating leases and the present value of future minimum finance lease payments at December 31, by payment date are as follows:


2018	$ million
	Finance leases						Operating leases
	Future minimum lease payments		Interest		Present value of future minimum lease payments		Future minimum lease payments [A]
Less than 1 year		2,061		1,039		1,022		4,784
Between 1 and 5 years		7,508		3,391		4,117		11,575
5 years and later		13,370		4,483		8,887		7,860
Total		22,939		8,913		14,026		24,219

[A] Includes $5,348 million in respect of drilling and ancillary equipment.


2017	$ million
	Finance leases						Operating leases
	Future minimum lease payments		Interest		Present value of future minimum lease payments		Future minimum lease payments [A] [B]
Less than 1 year		2,274		1,190		1,084		4,909
Between 1 and 5 years		8,246		3,887		4,359		12,415
5 years and later		15,043		4,962		10,081		7,961
Total		25,563		10,039		15,524		25,285

[A] Includes $6,473 million in respect of drilling and ancillary equipment.

[B] Revised following a reassessment of contracts

Trade and Other Payables (Tables)

12 Months Ended

Dec. 31, 2018

Summary of Detailed Information about Trade and other Payables


	$ million
	Dec 31, 2018				Dec 31, 2017
	Current		Non-current		Current		Non-current
Trade payables		30,351		—		33,196		—
Other payables		5,597		2,413		5,767		3,090
Amounts due to joint ventures and associates		2,851		33		2,021		29
Accruals and deferred income		10,089		289		10,426		328
Total		48,888		2,735		51,410		3,447

Taxation (Tables)

12 Months Ended

Dec. 31, 2018

Summary of Taxation Charges


Taxation charge	$ million
	2018			2017				2016
Current tax:
Charge in respect of current period		10,415			7,204				3,936
Adjustments in respect of prior periods		60			(613	)			(1,205	)
Total		10,475			6,591				2,731
Deferred tax:
Relating to the origination and reversal of temporary differences, tax losses and credits		1,438			(4,102	)			(2,688	)
Relating to changes in tax rates and legislation		(157	)		2,004		[A]		(200	)
Adjustments in respect of prior periods		(41	)		202				986
Total		1,240			(1,896	)			(1,902	)
Total taxation charge		11,715			4,695				829

[A] Mainly in respect of the US Tax Cuts and Jobs Act (the Act).

Summary of Reconciliation of Applicable Tax Credit Charge at Statutory Tax Rates to Taxation Charge


Reconciliation of applicable tax charge/(credit) at statutory tax rates to taxation charge							$ million
	2018			2017			2016
Income before taxation		35,621			18,130			5,606
Less: share of profit of joint ventures and associates		(4,106	)		(4,225	)		(3,545	)
Income before taxation and share of profit of joint ventures and associates		31,515			13,905			2,061
Applicable tax charge/(credit) at statutory tax rates		11,444			4,532			(344	)
Adjustments in respect of prior periods		19			(411	)		(219	)
Tax effects of:
Income not subject to tax at statutory rates		(1,783	)		(1,852	)		(1,740	)
Expenses not deductible for tax purposes		1,379			2,423			2,066
(Recognition)/derecognition of deferred tax assets		(381	)		(957	)		1,575
Deductible items not expensed		(371	)		(584	)		(516	)
Taxable income not recognised		312			251			509
Changes in tax rates and legislation		(157	)		2,004			(200	)
Other		1,253			(711	)		(302	)
Taxation charge		11,715			4,695			829

Summary of Tax Receivables and Payables


Taxes payable	$ million
	Dec 31, 2018		Dec 31, 2017
Income taxes		3,990		4,062
Sales taxes, excise duties and similar levies		3,507		3,188
Total		7,497		7,250

Summary of Deferred Tax Assets and Liabilities


2018 - Deferred tax	$ million
Deferred tax asset	Decommissioning and other provisions			Property, plant and equipment			Tax losses and credits carried forward			Retirement benefits			Other			Total
At January 1, 2018		6,182			3,379			13,684			3,868			4,144			31,257
(Charge)/credit to income		166			345			(553	)		14			119			91
Currency translation differences		(177	)		(32	)		(462	)		(93	)		(42	)		(806	)
Other		(269	)		26			(502	)		(479	)		12			(1,212	)
At December 31, 2018		5,902			3,718			12,167			3,310			4,233			29,330
Deferred tax liability
At January 1, 2018		—			(26,904	)		—			(742	)		(2,827	)		(30,473	)
(Charge)/credit to income		—			(1,751	)		—			180			240			(1,331	)
Currency translation differences		—			409			—			24			36			469
Other		—			475			—			(1,136	)		(74	)		(735	)
At December 31, 2018		—			(27,771	)		—			(1,674	)		(2,625	)		(32,070	)
Net deferred tax liability at December 31, 2018																	(2,740	)
Deferred tax asset/liability as presented in the balance sheet at December 31, 2018
Deferred tax asset																	12,097
Deferred tax liability																	(14,837	)


2017 - Deferred tax	$ million
Deferred tax asset	Decommissioning and other provisions			Property, plant and equipment			Tax losses and credits carried forward			Retirement benefits			Other [A]			Total
At January 1, 2017		7,733			3,510			16,600			5,053			4,374			37,270
(Charge)/credit to income		(1,853	)		189			(2,732	)		(493	)		(265	)		(5,154	)
Currency translation differences		269			49			554			216			78			1,166
Other		33			(369	)		(738	)		(908	)		(43	)		(2,025	)
At December 31, 2017		6,182			3,379			13,684			3,868			4,144			31,257
Deferred tax liability
At January 1, 2017		—			(33,963	)		—			(582	)		(3,574	)		(38,119	)
(Charge)/credit to income		—			6,437			—			(129	)		742			7,050
Currency translation differences		—			(711	)		—			(63	)		(70	)		(844	)
Other		—			1,333			—			32			75			1,440
At December 31, 2017		—			(26,904	)		—			(742	)		(2,827	)		(30,473	)
Net deferred tax asset at December 31, 2017																	784
Deferred tax asset/liability as presented in the balance sheet at December 31, 2017
Deferred tax asset																	13,791
Deferred tax liability																	(13,007	)

[A] Reclassified from the Other category to Tax losses carried forward to align with current year presentation.

Retirement Benefits (Tables)

12 Months Ended

Dec. 31, 2018

Summary of Employee Benefits Expense


Retirement benefit expense	$ million
	2018			2017			2016
Defined benefit plans:
Current service cost, net of plan participants’ contributions		1,494			1,500			1,527
Interest expense on obligations		2,282			2,309			2,643
Interest income on plan assets		(2,087	)		(2,019	)		(2,358	)
Other		(221	)		(404	)		(116	)
Total		1,468			1,386			1,696
Defined contribution plans		410			429			485
Total retirement benefit expense		1,878			1,815			2,181

Summary of Remeasurement of Net Defined Benefit Liability Asset


Remeasurements	$ million
	2018			2017			2016
Actuarial gains/(losses) on obligations:
Due to changes in financial assumptions [A]		8,186			(4,495	)		(11,391	)
Due to experience adjustments [B]		(268	)		37			642
Due to changes in demographic assumptions [C]		(459	)		933			809
Total		7,459			(3,525	)		(9,940	)
Return on plan assets (shortage)/in excess of interest income		(2,312	)		4,942			5,106
Other movements		66			50			18
Total remeasurements		5,213			1,467			(4,816	)

[A] Primarily relates to changes in the discount rate assumptions.

[B] Experience adjustments arise from differences between the actuarial assumptions made in respect of the year and actual outcomes.

[C] Primarily relates to updates in mortality assumptions.

Summary of Defined Benefit Plans


Defined benefit plans		$ million
		Dec 31, 2018			Dec 31, 2017
Obligations	.		(91,856	)		(104,285	)
Plan assets			85,803			93,243
Net liability			(6,053	)		(11,042	)
Retirement benefits in the Consolidated Balance Sheet:
Non-current assets			6,051			2,799
Non-current liabilities			(11,653	)		(13,247	)
Current liabilities			(451	)		(594	)
Total			(6,053	)		(11,042	)

Summary of Net Defined Benefit Liability Assets


Defined benefit plan obligations	$ million, except where indicated
	2018			2017
At January 1		104,285			94,405
Current service cost		1,491			1,550
Interest expense		2,282			2,309
Actuarial (gains)/losses		(7,459	)		3,525
Benefit payments		(4,435	)		(4,579	)
Other movements		(360	)		(949	)
Currency translation differences		(3,948	)		8,024
At December 31		91,856			104,285
Comprising:
Funded pension plans		83,276			94,903
Weighted average duration	17 years			19 years
Unfunded pension plans		4,359			4,824
Weighted average duration	13 years			12 years
Other unfunded plans		4,221			4,558
Weighted average duration	12 years			13 years


Defined benefit plan assets	$ million, except where indicated
	2018			2017
At January 1		93,243			81,276
Return on plan assets (shortage)/in excess of interest income		(2,312	)		4,942
Interest income		2,087			2,019
Employer contributions		763			1,804
Plan participants’ contributions		47			50
Benefit payments		(4,123	)		(4,294	)
Other movements		(102	)		(245	)
Currency translation differences		(3,800	)		7,691
At December 31		85,803			93,243
Comprising:
Quoted in active markets:
Equities		24	%		32	%
Debt securities		53	%		45	%
Real estate		1	%		1	%
Investment funds		0	%		1	%
Other		1	%		1	%
Other:
Equities		8	%		7	%
Debt securities		3	%		3	%
Real estate		6	%		6	%
Investment funds		3	%		3	%
Other		0	%		1	%
Cash		1	%		0	%

Summary of Sensitivity Analysis for Actuarial Assumptions

$ million, except where indicated

Effect of using alternative assumptions

Assumptions used

Increase/(decrease) in defined benefit obligations

2018

2017

Range of assumptions

2018

2017

Rate of increase in pensionable remuneration

4.1

4.7

-1% to +1%

(1,576) to 1,819

(2,150) to 2,782

Rate of increase in pensions in payment

1.8

1.9

-1% to +1%

(8,304) to 10,104

(10,120) to 12,662

Rate of increase in healthcare costs

6.3

6.6

-1% to +1%

(410) to 496

(451) to 551

Discount rate for pension plans

2.9

2.5

-1% to +1%

15,606 to (12,078)

19,042 to (14,567)

Discount rate for healthcare plans

4.2

3.5

-1% to +1%

536 to (436)

599 to (483)

Expected age at death for persons aged 60:

Men

87 years

-1 year to +1 year

(1,538) to 1,583

(1,906) to 2,022

Women

89 years

-1 year to +1 year

(1,436) to 1,476

(1,720) to 1,828

Decommissioning and Other Provisions (Tables)

12 Months Ended

Dec. 31, 2018

Summary of Decommisionning and Other Provisions


	$ million
	Decommissioning and restoration				Legal			Environmental			Redundancy			Other			Total
At January 1, 2018
Current		817				423			287			758			1,180			3,465
Non-current		19,767				1,095			1,218			560			2,326			24,966
		20,584				1,518			1,505			1,318			3,506			28,431
Additions		418				196			191			535			1,070			2,410
Amounts charged against provisions		(497	)			(200	)		(212	)		(504	)		(887	)		(2,300	)
Accretion expense		755				17			17			15			48			852
Disposals		(1,781	)	[A]		(14	)		(11	)		(3	)		(49	)		(1,858	)
Remeasurements and other movements		(1,065	)			(47	)		(130	)		(367	)		(122	)		(1,731	)
Currency translation differences		(481	)			(10	)		(22	)		(35	)		(64	)		(612	)
		(2,651	)			(58	)		(167	)		(359	)		(4	)		(3,239	)
At December 31, 2018
Current		876				213			264			491			1,815			3,659
Non-current		17,057				1,247			1,074			468			1,687			21,533
		17,933				1,460			1,338			959			3,502			25,192
At January 1, 2017
Current		797				500			296			831			1,360			3,784
Non-current		24,368				1,066			1,186			564			2,434			29,618
		25,165				1,566			1,482			1,395			3,794			33,402
Additions		1,168				390			496			756			988			3,798
Amounts charged against provisions		(491	)			(327	)		(173	)		(618	)		(1,207	)		(2,816	)
Accretion expense		897				61			20			13			47			1,038
Disposals		(2,807	)			(2	)		(4	)		(18	)		(71	)		(2,902	)
Remeasurements and other movements		(4,245	)			(190	)		(352	)		(301	)		(178	)		(5,266	)
Currency translation differences		897				20			36			91			133			1,177
		(4,581	)			(48	)		23			(77	)		(288	)		(4,971	)
At December 31, 2017
Current		817				423			287			758			1,180			3,465
Non-current		19,767				1,095			1,218			560			2,326			24,966
		20,584				1,518			1,505			1,318			3,506			28,431

[A] Mainly related to disposal of interests in New Zealand and Thailand.

Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2018

Summary of 10% Appreciation Against the Dollar of Main Currencies


	$ million
	Increase/(decrease) in income before taxation						Increase in net assets
	2018			2017			2018		2017
10% appreciation against the dollar of:
Canadian dollar		(40	)		(43	)		1,245		1,111
Euro		65			130			1,190		1,086
Australian dollar		(109	)		(24	)		835		786
Sterling		(46	)		(77	)		779		632

Schedule of Value at Risk Pre-tax


Value-at-risk (pre-tax)	$ million
	Dec 31, 2018		Dec 31, 2017
Global oil		28		25
North America gas and power		11		11
Europe gas and power		3		3
Carbon-emission rights		2		1

Schedule of Trade and Other Receivables, Other Payables and Derivative Financial Instruments

These amounts, as presented net and gross within trade and other receivables, trade and other payables and derivative financial instruments in the Consolidated Balance Sheet at December 31, were as follows:


2018	$ million
	Amounts offset						Amounts not offset
	Gross amounts before offset		Amounts offset		Net amounts as presented		Cash collateral received/pledged		Other offsetting instruments		Net amounts
Assets:
Within trade receivables		12,697		8,340		4,358		62		221		4,075
Within derivative financial instruments		12,323		6,353		5,970		437		2,653		2,880
Liabilities:
Within trade payables		12,931		8,264		4,667		97		221		4,349
Within derivative financial instruments		12,227		5,044		7,183		1,115		2,653		3,415


2017	$ million
	Amounts offset						Amounts not offset
	Gross amounts before offset		Amounts offset		Net amounts as presented		Cash collateral received/pledged		Other offsetting instruments		Net amounts
Assets:
Within trade receivables		10,642		6,486		4,156		42		51		4,063
Within derivative financial instruments		6,987		2,387		4,600		186		2,326		2,088
Liabilities:
Within trade payables		10,442		6,486		3,956		41		51		3,864
Within derivative financial instruments		7,315		2,392		4,923		300		2,326		2,297

Schedule of Carrying Amounts of Derivative Contracts Designated and Not Designated as Hedging Instruments for Hedge Accounting

The carrying amounts of derivative contracts at December 31, designated and not designated as hedging instruments for hedge accounting purposes, were as follows:


2018	$ million
	Assets						Liabilities
	Designated		Not designated		Total		Designated		Not designated		Total		Net
Interest rate swaps		86		3		89		174		14		188		(99	)
Forward foreign exchange contracts		—		331		331		33		264		297		34
Currency swaps and options		186		26		212		1,202		203		1,405		(1,193	)
Commodity derivatives		—		6,864		6,864		—		6,637		6,637		227
Other contracts		—		271		271		—		56		56		215
Total		272		7,495		7,767		1,409		7,174		8,583		(816	)


2017	$ million
	Assets						Liabilities
	Designated		Not designated		Total		Designated		Not designated		Total		Net
Interest rate swaps		—		16		16		165		34		199		(183	)
Forward foreign exchange contracts		22		403		425		—		591		591		(166	)
Currency swaps and options		483		208		691		815		76		891		(200	)
Commodity derivatives		—		4,929		4,929		—		4,428		4,428		501
Other contracts		—		162		162		—		125		125		37
Total		505		5,718		6,223		980		5,254		6,234		(11	)

Contractual Maturities of Derivative Liabilities

The contractual maturities of derivative liabilities at December 31 compare with their carrying amounts in the Consolidated Balance Sheet as follows:


2018	$ million
	Contractual maturities
	Less than 1 year		Between 1 and 2 years			Between 2 and 3 years		Between 3 and 4 years			Between 4 and 5 years			5 years and later			Total		Difference from carrying amount [A]			Carrying amount
Interest rate swap		101		68			20		1			1			1			192		(4	)		188
Forward foreign exchange contracts		177		(24	)		33		(1	)		(5	)		(15	)		165		132			297
Currency swaps and options		605		265			474		405			198			1,715			3,662		(2,257	)		1,405
Commodity derivatives		4,733		978			422		213			138			382			6,866		(229	)		6,637
Other contracts		58		—			—		—			—			—			58		(2	)		56
Total		5,674		1,287			949		618			332			2,083			10,943		(2,360	)		8,583

[A] Mainly related to the effect of discounting.


2017	$ million
	Contractual maturities
	Less than 1 year		Between 1 and 2 years		Between 2 and 3 years		Between 3 and 4 years		Between 4 and 5 years		5 years and later			Total		Difference from carrying amount [A]			Carrying amount
Interest rate swap		59		67		56		18		1		3			204		(5	)		199
Forward foreign exchange contracts		315		37		14		3		2		(39	)		332		259			591
Currency swaps and options		541		343		140		304		194		879			2,401		(1,510	)		891
Commodity derivatives		3,002		754		305		122		74		263			4,520		(92	)		4,428
Other contracts		87		48		—		—		—		—			135		(10	)		125
Total		4,004		1,249		515		447		271		1,106			7,592		(1,358	)		6,234

[A] Mainly related to the effect of discounting.

Summary of Net Carrying Amounts of Derivative Contracts Held


2018	$ million
	Prices in active markets for identical assets/liabilities			Other observable inputs			Unobservable inputs			Total
Interest rate swaps		—			(99	)		—			(99	)
Forward foreign exchange contracts		—			34			—			34
Currency swaps and options		—			(1,193	)		—			(1,193	)
Commodity derivatives		(52	)		431			(152	)		227
Other contracts		—			90			125			215
Total		(52	)		(737	)		(27	)		(816	)


2017	$ million
	Prices in active markets for identical assets/liabilities		Other observable inputs			Unobservable inputs		Total
Interest rate swaps		—		(183	)		—		(183	)
Forward foreign exchange contracts		—		(166	)		—		(166	)
Currency swaps and options		—		(200	)		—		(200	)
Commodity derivatives		36		302			163		501
Other contracts		—		(97	)		134		37
Total		36		(344	)		297		(11	)

Summary of Net Carrying Amounts of Derivative Contracts Measured Using Predominantly Unobservable Inputs


Net carrying amounts of derivative contracts measured using predominantly unobservable inputs				$ million
	2018			2017 [A]
At January 1		297			468
Net (losses)/gains recognised in revenue		(258	)		372
Purchases		461			252
Sales		(540	)		(562	)
Recategorisations (net)		18			(248	)
Currency translation differences		(5	)		15
At December 31		(27	)		297

Share capital (Tables)

12 Months Ended

Dec. 31, 2018

Summary of Issued and Fully Paid Ordinary Shares


Issued and fully paid ordinary shares of €0.07 each [A]
	Number of shares					Nominal value ($ million)
	A			B		A			B		Total
At January 1, 2018		4,597,136,050			3,745,486,731		387			309		696
Repurchase of shares		(125,246,754	)		—		(11	)		—		(11	)
At December 31, 2018		4,471,889,296			3,745,486,731		376			309		685
At January 1, 2017		4,428,903,813			3,745,486,731		374			309		683
Scrip dividends		168,232,237			—		13			—		13
At December 31, 2017		4,597,136,050			3,745,486,731		387			309		696

[A] Share capital at December 31, 2018, and 2017, also included 50,000 issued and fully paid sterling deferred shares of £1 each.

Share-based Compensation Plans and Shares Held in Trust (Tables)

12 Months Ended

Dec. 31, 2018

Summary of Share-based Compensation Expense


Share-based compensation expense	$ million
	2018			2017		2016
Equity-settled		531		422			488
Cash-settled		—	[A]	380			205
Total		531			802		693

Schedule of Share Awards Under Share Based Payment


Share awards under the PSP and LTIP
	Number of A shares (million)			Number of B shares (million)			Number of A ADSs (million)			Weighted average remaining contractual life (years)
At January 1, 2018		33			12			9			0.9
Granted		10			4			3
Vested		(12	)		(4	)		(4	)
Forfeited		(1	)		—			—
At December 31, 2018		30			12			8			1.0
At January 1, 2017		36			12			10			1.0
Granted		10			4			3
Vested		(12	)		(4	)		(4	)
Forfeited		(1	)		—			—
At December 31, 2017		33			12			9			0.9

Other Reserves (Tables)

12 Months Ended

Dec. 31, 2018

Summary of Other Reserves Attributable to Royal Dutch Shell Plc Shareholders


Other reserves attributable to Royal Dutch Shell plc shareholders												$ million
	Merger reserve			Share premium reserve		Capital redemption reserve		Share plan reserve				Accumulated other comprehensive income			Total
At January 1, 2018 (as previously reported)		37,298			154		84		1,440				(22,044	)		16,932
Impact of IFRS 9 implementation		—			—		—		—				(138	)		(138	)
At January 1, 2018 (as revised)		37,298			154		84		1,440				(22,182	)		16,794
Other comprehensive income attributable to Royal Dutch Shell plc shareholders		—			—		—		—				1,123			1,123
Transfer from other comprehensive income		—			—		—		—				(971	)		(971	)
Repurchase of shares		—			—		11		—				—			11
Share-based compensation		—			—		—		(342	)	[A] [B]		—			(342	)
At December 31, 2018		37,298			154		95		1,098				(22,030	)		16,615
At January 1, 2017		37,311			154		84		1,644				(27,895	)		11,298
Other comprehensive loss attributable to Royal Dutch Shell plc shareholders		—			—		—		—				5,851			5,851
Scrip dividends		(13	)		—		—		—				—			(13	)
Share-based compensation		—			—		—		(204	)			—			(204	)
At December 31, 2017		37,298			154		84		1,440				(22,044	)		16,932
At January 1, 2016		3,398			154		84		1,658				(22,480	)		(17,186	)
Other comprehensive loss attributable to Royal Dutch Shell plc shareholders		—			—		—		—				(5,949	)		(5,949	)
Scrip dividends		(17	)		—		—		—				—			(17	)
Shares issued		33,930			—		—		—				—			33,930
Share-based compensation		—			—		—		(14	)			534			520
At December 31, 2016		37,311			154		84		1,644				(27,895	)		11,298

[A] Includes a reclassification of $503 million between the Share plan reserve and Retained earnings, which relates to the unwinding of expired share options.

Summary of Accumulated Other Comprehensive Income Attributable to Royal Dutch Shell Plc Shareholders

Accumulated other comprehensive income comprises the following:


Accumulated other comprehensive income attributable to Royal Dutch Shell plc shareholders																								$ million
	Currency translation differences				Unrealised gains/(losses) on securities			Debt instruments remeasurements			Cash flow hedging gains/(losses)				Deferred cost of hedging			Retirement benefits remeasurements			Equity instrument remeasurements			Total
At January 1, 2018 (as previously reported)		(8,735	)			1,969			—			(633	)			—			(14,645	)		—			(22,044	)
Impact of IFRS 9 implementation		—				(1,969	)		(6	)		6				(144	)		—			1,975			(138	)
At January 1, 2018 (as revised)		(8,735	)			—			(6	)		(627	)			(144	)		(14,645	)		1,975			(22,182	)
Recognised in other comprehensive income		(3,794	)			—			(15	)		50				(362	)		5,213			(147	)		945
Reclassified to income		651				—			—			722				95			—			—			1,468
Reclassified to the balance sheet		—				—			—			(30	)			—			—			—			(30	)
Reclassified to retained earnings		—				—			—			—				—			137			(1,108	)		(971	)
Tax on amounts recognised/reclassified		(29	)			—			—			(12	)			58			(1,625	)		(6	)		(1,614	)
Total, net of tax		(3,172	)			—			(15	)		730				(209	)		3,725			(1,261	)		(202	)
Share of joint ventures and associates		(25	)			—			—			14				—			1			193			183
Other comprehensive income/(loss) for the period		(3,197	)			—			(15	)		744				(209	)		3,726			(1,068	)		(19	)
Less: non-controlling interest		185				—			—			—				—			(13	)		(1	)		171
Attributable to Royal Dutch Shell plc shareholders		(3,012	)			—			(15	)		744				(209	)		3,713			(1,069	)		152
At December 31, 2018		(11,747	)			—			(21	)		117		[B]		(353	)		(10,932	)		906			(22,030	)
At January 1, 2017		(13,831	)			1,321						(144	)						(15,241	)					(27,895	)
Recognised in other comprehensive income		4,513				796						(467	)						1,467						6,309
Reclassified to income		610				(211	)					(87	)						—						312
Reclassified to the balance sheet		—				—						(18	)						—						(18	)
Tax on amounts recognised/reclassified		33				8						20							(863	)					(802	)
Total, net of tax		5,156				593						(552	)						604						5,801
Share of joint ventures and associates		53				55						63							(1	)					170
Other comprehensive loss for the period		5,209				648						(489	)						603						5,971
Less: non-controlling interest		(113	)			—						—							(7	)					(120	)
Attributable to Royal Dutch Shell plc shareholders		5,096				648						(489	)						596						5,851
At December 31, 2017		(8,735	)			1,969						(633	)	[B]					(14,645	)					(22,044	)
At January 1, 2016		(12,940	)			1,409						473							(11,422	)					(22,480	)
Recognised in other comprehensive income		(1,023	)	[A]		(204	)					(727	)						(4,816	)					(6,770	)
Reclassified to income		(277	)			1						(939	)						—						(1,215	)
Reclassified to the balance sheet		—				—						1,044		[C]					—						1,044
Tax on amounts recognised/reclassified		(21	)			(11	)					5							999						972
Total, net of tax		(1,321	)			(214	)					(617	)						(3,817	)					(5,969	)
Share of joint ventures and associates		(154	)			126						—							—						(28	)
Other comprehensive income/(loss) for the period		(1,475	)			(88	)					(617	)						(3,817	)					(5,997	)
Less: non-controlling interest		50				—						—							(2	)					48
Attributable to Royal Dutch Shell plc shareholders		(1,425	)			(88	)					(617	)						(3,819	)					(5,949	)
Reclassification in respect of shares held in trust		534				—						—							—						534
At December 31, 2016		(13,831	)			1,321						(144	)						(15,241	)					(27,895	)

[A] Includes losses of $2,024 million arising on net investment hedges.

[B] See Note 19.

[C] Mainly relating to the acquisition of BG.

Dividends (Tables)

12 Months Ended

Dec. 31, 2018

Disclosure Of Dividends Paid And Proposed Explanatory


Interim dividends	$ million
	2018		2017		2016
A shares:
Cash: $1.88 per share (2017: $1.88; 2016: $1.88)		8,605		4,919		4,545
Scrip: none (2017: $1.88; 2016: $1.88 per share)		—		3,558		3,491
Total – A shares		8,605		8,477		8,036
B shares:
Cash: $1.88 per share (2017: $1.88; 2016: $1.88)		7,070		5,958		5,132
Scrip: none (2017: $1.88; 2016: $1.88 per share)		—		1,193		1,791
Total – B shares		7,070		7,151		6,923
Total		15,675		15,628		14,959

Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Earnings Per Share


	2018		2017		2016
Income attributable to Royal Dutch Shell plc shareholders ($ million)		23,352		12,977		4,575
Weighted average number of A and B shares used as the basis for determining:
Basic earnings per share (million)		8,282.8		8,223.4		7,833.7
Diluted earnings per share (million)		8,348.7		8,299.0		7,891.7

Employees (Tables)

12 Months Ended

Dec. 31, 2018

Summary of Employee Costs


Employee costs	$ million
	2018		2017		2016
Remuneration		10,167		10,855		11,985
Social security contributions		810		844		867
Retirement benefits (see Note 17)		1,878		1,815		2,181
Share-based compensation (see Note 21)		531		802		693
Total [A]		13,386		14,316		15,726

[A] Excludes employees seconded to joint ventures and associates.

Summary of Average Employee Numbers


Average employee numbers	Thousand
	2018		2017 [C]		2016 [C]
Integrated Gas		8		8		9
Upstream		14		16		18
Downstream		37		40		46
Corporate [A]		20		19		18
Total [B]		79		83		91

[A] Includes all employees working in business service centres irrespective of the segment they support.

[B] Excludes employees seconded to joint ventures and associates (2018: 3,000 employees, 2017: 3,000 employees, 2016: 4,000 employees).

[C] As revised.

Directors and Senior Management (Tables)

12 Months Ended

Dec. 31, 2018

Summary of Remuneration of Directors of the Company

.
Remuneration of Directors of the Company	$ million
	2018		2017		2016
Emoluments		12		11		10
Value of released awards under long-term incentive plans		20		5		8
Employer contributions to pension plans		1		1		1

Summary of Directors and Senior Management Expenses


Directors and Senior Management expense	$ million
	2018		2017		2016
Short-term benefits		26	23			21
Retirement benefits		3	3			3
Share-based compensation		14	17			15
Termination and related amounts		—	3			4
Total		43		46		43

Auditor's Remuneration (Tables)

12 Months Ended

Dec. 31, 2018

Summary of Auditor's Remuneration


	$ million
	2018		2017		2016
Fees in respect of the audit of the Consolidated and Parent Company Financial Statements, including audit of consolidation returns		31		27		32
Other audit fees, principally in respect of audits of accounts of subsidiaries		16		21		17
Total audit fees		47		48		49
Audit-related fees		5		4		2
Fees in respect of other non-audit services		1		1		1
Total		53		53		52

Significant Accounting Policies, Judgements and Estimates - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Jan. 01, 2018	Dec. 31, 2017
Disclosure of detailed information about property, plant and equipment [Line Items]
Increase (Decrease) in Equity			$ 50
Chemical Plants [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Useful lives of tangible assets	20 years
Retail Service Stations [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Useful lives of tangible assets	15 years
Upgraders [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Useful lives of tangible assets	30 years
Upgraders [Member] \| Bottom of Range [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Major inspection costs useful economic life	three years
Upgraders [Member] \| Top of Range [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Major inspection costs useful economic life	five years
Other Reserves [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Increase (Decrease) in Equity			138
Impact of adoption of IFRS 2	$ 172
Retained Earnings [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Increase (Decrease) in Equity			$ (88)
Impact of adoption of IFRS 2	$ 125
Recognition of additional provisions for impairment of receivables under the expected loss model [member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Increase (Decrease) in Equity		$ (83)
Changing the measurement basis from amortised cost to fair value [member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Impact of IFRS 9		$ 33

Changes In IFRS Not Yet Adopted - Additional Information (Detail) - Initially Applied IFRS 9 [Member] $ in Billions	Dec. 31, 2018 USD ($)
Description Of Expected Impact Of Initial Application Of New Standards Or Interpretations [Line Items]
Lease liabilities	$ 16.0
Right of use assets	$ 15.6

Segment Information - Information by Segment on Current Cost of Supplies (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Disclosure Of Operating Segments [Line Items]
Revenue	$ 388,379	$ 305,179	$ 233,591
Interest and other income	4,071	2,466	2,897
Interest income	772	677	451
Net gains on sale and revaluation of non-current assets and businesses	3,265	1,640	2,141
Interest expense	3,745	4,042	3,203
Integrated Gas [Member]
Disclosure Of Operating Segments [Line Items]
Share of profit/(loss) of joint ventures and associates (CCS basis)	2,273	1,714	1,116
Interest and other income	2,230	687	765
Net gains on sale and revaluation of non-current assets and businesses	2,231	301	507
Taxation charge/(credit) (CCS basis)	2,795	790	1,254
Integrated Gas [Member] \| Operating Segments [Member]
Disclosure Of Operating Segments [Line Items]
Revenue	43,764	32,674	25,282
Depreciation, depletion and amortisation charge, of which:	4,850	4,965	4,509
Impairment losses	200	302	72
Impairment reversals		10
Interest expense	221	248	247
Integrated Gas [Member] \| Intersegment Eliminations [Member]
Disclosure Of Operating Segments [Line Items]
Revenue	4,853	3,978	3,908
Upstream [Member]
Disclosure Of Operating Segments [Line Items]
Share of profit/(loss) of joint ventures and associates (CCS basis)	285	623	222
Interest and other income	600	1,188	839
Net gains on sale and revaluation of non-current assets and businesses	712	1,189	867
Taxation charge/(credit) (CCS basis)	8,791	2,409	(938)
Upstream [Member] \| Operating Segments [Member]
Disclosure Of Operating Segments [Line Items]
Revenue	9,892	7,723	6,412
Depreciation, depletion and amortisation charge, of which:	13,006	17,303	16,779
Impairment losses	1,065	4,118	1,274
Impairment reversals	1,265	605
Interest expense	609	744	852
Upstream [Member] \| Intersegment Eliminations [Member]
Disclosure Of Operating Segments [Line Items]
Revenue	37,841	32,469	26,524
Downstream [Member]
Disclosure Of Operating Segments [Line Items]
Share of profit/(loss) of joint ventures and associates (CCS basis)	1,785	1,956	2,244
Interest and other income	345	154	851
Net gains on sale and revaluation of non-current assets and businesses	302	136	765
Taxation charge/(credit) (CCS basis)	1,515	1,783	1,008
Downstream [Member] \| Operating Segments [Member]
Disclosure Of Operating Segments [Line Items]
Revenue	334,680	264,731	201,823
Depreciation, depletion and amortisation charge, of which:	4,064	3,877	3,681
Impairment losses	424	385	588
Impairment reversals			38
Interest expense	71	109	91
Downstream [Member] \| Intersegment Eliminations [Member]
Disclosure Of Operating Segments [Line Items]
Revenue	5,358	4,248	1,727
Corporate [Member]
Disclosure Of Operating Segments [Line Items]
Share of profit/(loss) of joint ventures and associates (CCS basis)	(222)	(129)	(182)
Interest and other income	896	437	442
Interest income	772	677	451
Net gains on sale and revaluation of non-current assets and businesses	20	14	2
Taxation charge/(credit) (CCS basis)	(1,270)	(636)	(839)
Corporate [Member] \| Operating Segments [Member]
Disclosure Of Operating Segments [Line Items]
Revenue	43	51	74
Depreciation, depletion and amortisation charge, of which:	215	78	24
Impairment losses	7		6
Interest expense	2,844	2,941	2,013
Reportable Segments [Member]
Disclosure Of Operating Segments [Line Items]
Share of profit/(loss) of joint ventures and associates (CCS basis)	4,121	4,164	3,400
Interest and other income	4,071	2,466	2,897
Interest income	772	677	451
Net gains on sale and revaluation of non-current assets and businesses	3,265	1,640	2,141
Taxation charge/(credit) (CCS basis)	11,831	4,346	485
Reportable Segments [Member] \| Operating Segments [Member]
Disclosure Of Operating Segments [Line Items]
Revenue	388,379	305,179	233,591
Depreciation, depletion and amortisation charge, of which:	22,135	26,223	24,993
Impairment losses	1,696	4,805	1,940
Impairment reversals	1,265	615	38
Interest expense	3,745	4,042	3,203
CCS Earnings [Member]
Disclosure Of Operating Segments [Line Items]
CCS earnings	24,364	12,471	3,692
Taxation charge/(credit) (CCS basis)	(116)	349	344
CCS Earnings [Member] \| Integrated Gas [Member]
Disclosure Of Operating Segments [Line Items]
CCS earnings	11,444	5,078	2,529
CCS Earnings [Member] \| Upstream [Member]
Disclosure Of Operating Segments [Line Items]
CCS earnings	6,798	1,551	(3,674)
CCS Earnings [Member] \| Downstream [Member]
Disclosure Of Operating Segments [Line Items]
CCS earnings	7,601	8,258	6,588
CCS Earnings [Member] \| Corporate [Member]
Disclosure Of Operating Segments [Line Items]
CCS earnings	(1,479)	(2,416)	(1,751)
CCS Earnings [Member] \| Reportable Segments [Member]
Disclosure Of Operating Segments [Line Items]
CCS earnings	$ 24,364	$ 12,471	$ 3,692

Segment Information - Information by Segment on Current Cost of Supplies (Parenthetical) (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Disclosure Of Operating Segments [Abstract]
Other revenue	$ 3,348
Impairment losses comprise Property, plant and equipment	1,515	$ 4,572	$ 1,931
Impairment losses comprise on intangible assets	$ 181	$ 233	$ 9

Segment Information - Summary of Reconciliation of CCS Earnings to Income (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Current cost of supplies adjustment:
Share of profit of joint ventures and associates	$ 4,106	$ 4,225	$ 3,545
Income for the period	23,906	13,435	4,777
CCS Earnings [Member]
Disclosure Of Reconciliation Of Ccs Earnings To Income [Line Items]
CCS earnings	24,364	12,471	3,692
Current cost of supplies adjustment:
Purchases	(559)	1,252	1,284
Taxation	116	(349)	(344)
Share of profit of joint ventures and associates	(15)	61	145
Current cost of supplies adjustment	(458)	964	1,085
Income for the period	$ 23,906	$ 13,435	$ 4,777

The total of income less expenses from continuing and discontinued operations, excluding the components of other comprehensive income. [Refer: Other comprehensive income]

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Name IAS
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
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Reference 5: http://www.xbrl.org/2003/role/exampleRef
-Note Effective on first application of IFRS 9
-Name IFRS
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
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Reference 7: http://www.xbrl.org/2003/role/exampleRef
-Name IFRS
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-Name IAS
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Reference 9: http://www.xbrl.org/2003/role/exampleRef
-Note Effective 2021-01-01
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-Name IAS
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+ Details

Segment Information - Summary of Information by Geographical Area (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Disclosure Of Geographical Areas [Line Items]
Revenue	$ 388,379	$ 305,179	$ 233,591
Intangible assets, property, plant and equipment, joint ventures and associates	272,090	278,487	293,320
Europe [Member]
Disclosure Of Geographical Areas [Line Items]
Revenue	118,960	100,609	81,573
Intangible assets, property, plant and equipment, joint ventures and associates	38,617	41,416	42,265
Asia Oceania And Africa [Member]
Disclosure Of Geographical Areas [Line Items]
Revenue	153,716	114,683	87,635
Intangible assets, property, plant and equipment, joint ventures and associates	117,127	122,345	121,618
United States [Member]
Disclosure Of Geographical Areas [Line Items]
Revenue	89,876	66,854	44,615
Intangible assets, property, plant and equipment, joint ventures and associates	59,625	55,898	62,066
Other Americas [Member]
Disclosure Of Geographical Areas [Line Items]
Revenue	25,827	23,033	19,768
Intangible assets, property, plant and equipment, joint ventures and associates	$ 56,721	$ 58,828	$ 67,371

The income arising in the course of an entity's ordinary activities. Income is increases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in an increase in equity, other than those relating to contributions from equity participants.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 8
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
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-Name IFRS
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-Name IFRS
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-Name IFRS
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+ Details

Segment Information - Summary of Information by Geographical Area (Parenthetical) (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Disclosure Of Geographical Areas [Line Items]
Revenue	$ 388,379	$ 305,179	$ 233,591
Intangible assets, property, plant and equipment, joint ventures and associates	272,090	278,487	293,320
United Kingdom [Member]
Disclosure Of Geographical Areas [Line Items]
Revenue	54,659	49,370	38,490
Intangible assets, property, plant and equipment, joint ventures and associates	21,863	22,734	24,015
Singapore
Disclosure Of Geographical Areas [Line Items]
Revenue	89,811	62,046	42,533
United States [Member]
Disclosure Of Geographical Areas [Line Items]
Revenue	89,876	66,854	44,615
Intangible assets, property, plant and equipment, joint ventures and associates	59,625	55,898	62,066
Third-party revenue increase (decrease)		1,604	1,636
Third-party revenue increase (decrease)		(1,604)	(1,636)
Europe [Member]
Disclosure Of Geographical Areas [Line Items]
Revenue	118,960	100,609	81,573
Intangible assets, property, plant and equipment, joint ventures and associates	$ 38,617	41,416	42,265
Third-party revenue increase (decrease)		(1,604)	(1,636)
Third-party revenue increase (decrease)		$ 1,604	$ 1,636

Disclosure of detailed information about property, plant and equipment [Line Items]

+ References

+ Details

Interest and Other Income - Summary of Interest and Other Income (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Disclosure Of Interest And Other Income [Abstract]
Interest income	$ 772	$ 677	$ 451
Dividend income (from investments in equity securities)	104	375	264
Net gains on sale and revaluation of non-current assets and businesses	3,265	1,640	2,141
Net foreign exchange (losses)/gains on financing activities	(174)	(453)	343
Other	104	227	(302)
Total	$ 4,071	$ 2,466	$ 2,897

Interest and Other Income - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Disclosure Of Interest And Other Income [Abstract]
Revaluation gain recognised in net foreign exchange gains on financing activities		$ 545	$ 293
Cumulative currency translation difference recognised on financing activities			358
Other net foreign exchange losses	$ 210	$ 47	$ 49

Interest Expense - Summary of Interest Expense (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Disclosure Of Interest Expense [Abstract]
Interest incurred and similar charges	$ 3,550	$ 3,448	$ 2,732
Less: interest capitalised	(876)	(622)	(725)
Other net losses on fair value hedges of debt	169	114	4
Accretion expense	902	1,102	1,192
Total	$ 3,745	$ 4,042	$ 3,203

Intangible Assets - Summary of Intangible Assets and Goodwill (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Disclosure Of Reconciliation Of Changes In Intangible Assets And Goodwill [Line Items]
Beginning balance	$ 24,180
Ending balance	23,586	$ 24,180
Gross carrying amount [member]
Disclosure Of Reconciliation Of Changes In Intangible Assets And Goodwill [Line Items]
Beginning balance	30,689	29,106
Additions	990	1,570
Sales, retirements and other movements	(392)	(224)
Currency translation differences	(192)	237
Ending balance	31,095	30,689
Depreciation, Depletion and Amortization, Including Impairments [Member]
Disclosure Of Reconciliation Of Changes In Intangible Assets And Goodwill [Line Items]
Currency translation differences	(108)	178
Beginning balance	6,509	5,139
Charge for the year	1,468	1,569
Sales, retirements and other movements	(360)	(377)
Ending balance	7,509	6,509
Goodwill [Member]
Disclosure Of Reconciliation Of Changes In Intangible Assets And Goodwill [Line Items]
Beginning balance	13,662
Ending balance	13,716	13,662
Goodwill [Member] \| Gross carrying amount [member]
Disclosure Of Reconciliation Of Changes In Intangible Assets And Goodwill [Line Items]
Beginning balance	14,154	13,592
Additions	331	784
Sales, retirements and other movements	(75)	(261)
Currency translation differences	(72)	39
Ending balance	14,338	14,154
Goodwill [Member] \| Depreciation, Depletion and Amortization, Including Impairments [Member]
Disclosure Of Reconciliation Of Changes In Intangible Assets And Goodwill [Line Items]
Currency translation differences	(22)	23
Beginning balance	492	605
Charge for the year	173
Sales, retirements and other movements	(21)	(136)
Ending balance	622	492
LNG Off Take and Sales Contracts [Member]
Disclosure Of Reconciliation Of Changes In Intangible Assets And Goodwill [Line Items]
Beginning balance	7,997
Ending balance	7,072	7,997
LNG Off Take and Sales Contracts [Member] \| Gross carrying amount [member]
Disclosure Of Reconciliation Of Changes In Intangible Assets And Goodwill [Line Items]
Beginning balance	10,429	10,429
Sales, retirements and other movements	(64)
Ending balance	10,365	10,429
LNG Off Take and Sales Contracts [Member] \| Depreciation, Depletion and Amortization, Including Impairments [Member]
Disclosure Of Reconciliation Of Changes In Intangible Assets And Goodwill [Line Items]
Beginning balance	2,432	1,475
Charge for the year	925	957
Sales, retirements and other movements	(64)
Ending balance	3,293	2,432
Other Intangible Assets [Member]
Disclosure Of Reconciliation Of Changes In Intangible Assets And Goodwill [Line Items]
Beginning balance	2,521
Ending balance	2,798	2,521
Other Intangible Assets [Member] \| Gross carrying amount [member]
Disclosure Of Reconciliation Of Changes In Intangible Assets And Goodwill [Line Items]
Beginning balance	6,106	5,085
Additions	659	786
Sales, retirements and other movements	(253)	37
Currency translation differences	(120)	198
Ending balance	6,392	6,106
Other Intangible Assets [Member] \| Depreciation, Depletion and Amortization, Including Impairments [Member]
Disclosure Of Reconciliation Of Changes In Intangible Assets And Goodwill [Line Items]
Currency translation differences	(86)	155
Beginning balance	3,585	3,059
Charge for the year	370	612
Sales, retirements and other movements	(275)	(241)
Ending balance	$ 3,594	$ 3,585

Intangible Assets - Additional Information (Detail) - B G Group Plc $ in Millions	Dec. 31, 2018 USD ($)
Integrated Gas [Member]
Disclosure Of Intangible Assets [Line Items]
Goodwill	$ 4,897
Upstream [Member]
Disclosure Of Intangible Assets [Line Items]
Goodwill	6,013
Downstream [Member]
Disclosure Of Intangible Assets [Line Items]
Goodwill	$ 1,609

Property, Plant and Equipment - Summary of Property Plant and Equipment (Detail) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2018

Dec. 31, 2017

$ 226,380

Gross carrying amount [member]

223,175

$ 226,380

Disclosure of detailed information about property, plant and equipment [Line Items]

424,069

425,257

24,142

27,166

(25,567)

(40,866)

(7,807)

12,512

Accumulated Depreciation, Amortisation and Impairment [Member]

414,837

424,069

Disclosure of detailed information about property, plant and equipment [Line Items]

197,689

189,159

20,667

24,654

(22,348)

(23,379)

(4,346)

7,255

Exploration and Evaluation [Member]

191,662

197,689

Disclosure of detailed information about property, plant and equipment [Line Items]

17,450

Exploration and Evaluation [Member] | Gross carrying amount [member]

17,894

17,450

Disclosure of detailed information about property, plant and equipment [Line Items]

22,510

25,376

3,514

2,319

(4,443)

(5,651)

^[1]

(400)

466

Exploration and Evaluation [Member] | Accumulated Depreciation, Amortisation and Impairment [Member]

21,181

22,510

Disclosure of detailed information about property, plant and equipment [Line Items]

5,060

6,363

(979)

778

(608)

(2,300)

(186)

219

Disclosure of detailed information about property, plant and equipment [Line Items]

3,287

5,060

Production [Member]

154,731

Production [Member] | Gross carrying amount [member]

148,689

154,731

Disclosure of detailed information about property, plant and equipment [Line Items]

292,256

302,532

12,596

15,347

(19,643)

(33,133)

^[1]

(4,828)

7,510

Production [Member] | Accumulated Depreciation, Amortisation and Impairment [Member]

280,381

292,256

Disclosure of detailed information about property, plant and equipment [Line Items]

137,525

133,600

16,551

19,155

(19,631)

(19,615)

(2,753)

4,385

Manufacturing Supply and Distribution [Member]

131,692

137,525

Disclosure of detailed information about property, plant and equipment [Line Items]

42,465

Manufacturing Supply and Distribution [Member] | Gross carrying amount [member]

45,017

42,465

Disclosure of detailed information about property, plant and equipment [Line Items]

86,948

77,286

6,438

8,148

(667)

(1,427)

(1,484)

2,941

Manufacturing Supply and Distribution [Member] | Accumulated Depreciation, Amortisation and Impairment [Member]

91,235

86,948

Disclosure of detailed information about property, plant and equipment [Line Items]

44,483

39,673

4,000

3,705

(1,353)

(763)

(912)

1,868

Disclosure of detailed information about property, plant and equipment [Line Items]

46,218

44,483

Other Assets [Member]

11,734

Other Assets [Member] | Gross carrying amount [member]

11,575

11,734

Disclosure of detailed information about property, plant and equipment [Line Items]

22,355

20,063

1,594

1,352

(814)

(655)

(1,095)

1,595

Other Assets [Member] | Accumulated Depreciation, Amortisation and Impairment [Member]

22,040

22,355

Disclosure of detailed information about property, plant and equipment [Line Items]

10,621

9,523

1,095

1,016

(756)

(701)

(495)

783

Disclosure Of Capitalized Expenditures On Mining Interests To Expenditures On Mining Interests [Abstract]

$ 10,465

$ 10,621

[1]	$1,065 million has been reclassified from Exploration and evaluation to Production

Property, Plant and Equipment - Additional Information (Detail) $ in Millions	12 Months Ended
	Dec. 31, 2018 USD ($) $ / bbl $ / MMBTU Project	Dec. 31, 2017 USD ($) $ / bbl $ / MMBTU	Dec. 31, 2016 USD ($)
Disclosure of detailed information about property, plant and equipment [Line Items]
Carrying amount of assets under construction	$ 33,451	$ 42,121
Carrying amount of assets classified as held for sale	705	986
Carrying amount of exploration and production assets	15,860	14,839
Pre-tax depreciation charge increment if no alternative reserve base was applied	1,003	5,558	$ 9,181
Contractual commitments for purchase of property, plant and equipment	$ 4,783	$ 4,504
Nominal pre-tax discount rate	6.00%	6.00%	6.00%
Exploration drilling costs capitalised	$ 1,342
Number of projects where drilling activities were underway \| Project	17
Projects awaiting development concepts	$ 3,600
Number of projects awaiting further development concepts \| Project	43
Brent $ per barrel [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Commodity price after 2020 \| $ / bbl	70
Commodity price after 2020 \| $ / bbl		70
Henry Hub $/MMBtu [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Commodity price after 2020 \| $ / MMBTU	3.50
Commodity price after 2020 \| $ / MMBTU		3.50
Exploration and Production [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Carrying amount of asset for which an alternative reserves base was applied in the calculation of depreciation charge	$ 5,838	$ 18,115
Bangkot Field and Adjoining Acreage Offshore Thailand [Member] \| Thailand [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Percentage of interest sold	22.22%
Corrib Gas Venture [Member] \| Ireland [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Percentage of interest sold	45.00%
Draugen Field [Member] \| Norway [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Percentage of interest sold	44.56%
Gjøa Field [Member] \| Norway [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Percentage of non operated interest	12.00%

Property, Plant and Equipment - Summary of Carrying Amount of Property, Plant and Equipment Held Under Finance Leases (Detail) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Disclosure of detailed information about property, plant and equipment [Line Items]
Total property, plant and equipment held under finance leases	$ 9,648	$ 11,822
Exploration and Production [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Total property, plant and equipment held under finance leases	6,299	8,399
Manufacturing Supply and Distribution [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Total property, plant and equipment held under finance leases	3,149	3,151
Other [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Total property, plant and equipment held under finance leases	$ 200	$ 272

Property, Plant and Equipment - Summary of Impairments (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Impairment losses
Total Impairment losses	$ 1,515	$ 4,572	$ 1,931
Impairment reversals
Total Impairment reversals	1,265	615	38
Exploration and Production [Member]
Impairment losses
Total Impairment losses	1,066	4,187	1,324
Impairment reversals
Total Impairment reversals	1,265	615
Manufacturing Supply and Distribution [Member]
Impairment losses
Total Impairment losses	441	376	567
Impairment reversals
Total Impairment reversals			36
Other [Member]
Impairment losses
Total Impairment losses	$ 8	$ 9	40
Impairment reversals
Total Impairment reversals			$ 2

Property, Plant and Equipment - Commodity Price Assumptions Applied in Impairment Testing (Detail)	12 Months Ended
	Dec. 31, 2018 $ / bbl $ / MMBTU
Brent $ per barrel [Member]
Explanation Of Inputs Assumptions And Estimation Techniques Used To Apply Impairment Requirements Explanatory [Line Items]
Commodity price 2018 \| $ / bbl	65
Commodity Price Year Three \| $ / bbl	65
Commodity Price Year Four \| $ / bbl	70
Henry Hub $/MMBtu [Member]
Explanation Of Inputs Assumptions And Estimation Techniques Used To Apply Impairment Requirements Explanatory [Line Items]
Commodity price 2018 \| $ / MMBTU	3.25
Commodity Price Year Three \| $ / MMBTU	3.50
Commodity Price Year Four \| $ / MMBTU	3.50

Property, Plant and Equipment - Summary of Capitalised Exploration Drilling Costs (Detail) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

Additions pending determination of proved reserves

$ 6,981

^[1]

$ 7,910

$ 7,835

2,588

1,708

1,762

Amounts charged to expense

(449)

(897)

(834)

Reclassifications to productive wells on determination of proved reserves

(2,461)

(1,894)

^[1]

(1,187)

Other movements

(30)

154

334

Disclosure Of Trade And Other Receivables [Abstract]

$ 6,629

$ 6,981

^[1]

$ 7,910

[1]	[A] $912 million of capitalised exploration drilling costs has been reclassified from Exploration and evaluation to Production

Property, Plant and Equipment - Summary of Exploration Drilling Costs Capitalised for Periods Greater Than One Year (Detail) $ in Millions	Dec. 31, 2018 USD ($) Project Well
Disclosure Of Detailed Information About Exploration And Evaluation Assets [Line Items]
Projects, Number \| Project	60
Projects, Value	$ 4,942
Wells, Number \| Well	342
Wells, Value	$ 4,942
Between 1 and 5 Years [Member]
Disclosure Of Detailed Information About Exploration And Evaluation Assets [Line Items]
Projects, Number \| Project	44
Projects, Value	$ 3,645
Wells, Number \| Well	180
Wells, Value	$ 2,670
Between 6 and 10 Years [Member]
Disclosure Of Detailed Information About Exploration And Evaluation Assets [Line Items]
Projects, Number \| Project	12
Projects, Value	$ 1,059
Wells, Number \| Well	143
Wells, Value	$ 1,766
Between 11 and 15 Years [Member]
Disclosure Of Detailed Information About Exploration And Evaluation Assets [Line Items]
Projects, Number \| Project	4
Projects, Value	$ 238
Wells, Number \| Well	16
Wells, Value	$ 441
Between 16 and 20 years [Member]
Disclosure Of Detailed Information About Exploration And Evaluation Assets [Line Items]
Wells, Number \| Well	3
Wells, Value	$ 65

Joint Ventures and Associates - Summary of Shell Share of Comprehensive Income of Joint Ventures and Associates (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Disclosure Of Joint Ventures And Associates [Line Items]
Income for the period	$ 4,106	$ 4,225	$ 3,545
Other comprehensive income/(loss) for the period	183	170	(28)
Comprehensive income for the period	4,289	4,395	3,517
Associates [Member]
Disclosure Of Joint Ventures And Associates [Line Items]
Income for the period	2,799	2,123	1,213
Other comprehensive income/(loss) for the period	11	6	(106)
Comprehensive income for the period	2,810	2,129	1,107
Joint Ventures [Member]
Disclosure Of Joint Ventures And Associates [Line Items]
Income for the period	1,307	2,102	2,332
Other comprehensive income/(loss) for the period	172	164	78
Comprehensive income for the period	$ 1,479	$ 2,266	$ 2,410

Joint Ventures and Associates - Summary of Carrying Amount of Interests in Joint Ventures and Associates (Detail) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Disclosure Of Carrying Amountof Interests In Joint Ventures And Associate [Abstract]
Investments in joint ventures	$ 14,263	$ 15,052
Investments in associates	11,066	12,875
Investments in joint ventures and associates	$ 25,329	$ 27,927

Joint Ventures and Associates - Summary of Other Arrangements in Respect of Joint Ventures and Associates (Detail) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Disclosure Of Other Arrangements In Respect Of Joint Ventures And Associates [Abstract]
Commitments to make purchases from joint ventures and associates	$ 1,254	$ 1,371
Commitments to provide debt or equity funding to joint ventures and associates	$ 638	$ 1,216

Investments in Securities - Schedule of Investments in Securities (Detail) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Disclosure Of Investments In Securities [Line Items]
Investments in securities	$ 3,074	$ 7,222
Equity Securities [Member]
Disclosure Of Investments In Securities [Line Items]
Investments in securities	1,823	5,976
Securities at fair value through other comprehensive income	1,823
Debt Securities [Member]
Disclosure Of Investments In Securities [Line Items]
Investments in securities	1,251	1,246
Securities at fair value through other comprehensive income	953
Debt securities at amortised cost	8
Securities at fair value through other comprehensive income	290
Fair Value Measured by Reference to Prices in Active Markets for Identical Assets [Member]
Disclosure Of Investments In Securities [Line Items]
Investments in securities	1,873	5,776
At Fair Value Measured Using Predominantly Unobservable Inputs [Member]
Disclosure Of Investments In Securities [Line Items]
Investments in securities	1,193	1,268
At Fair Value [Member]
Disclosure Of Investments In Securities [Line Items]
Investments in securities	3,066	7,044
At Cost [Member]
Disclosure Of Investments In Securities [Line Items]
Investments in securities	$ 8	$ 178

Investments in Securities - Additional Information (Detail) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Disclosure Of Fair Value Of Investments In Equity Instruments Designated As Measured At Fair Value Through Other Comprehensive Income [Line Items]
Investments in securities	$ 3,074	$ 7,222
Equity Securities [Member]
Disclosure Of Fair Value Of Investments In Equity Instruments Designated As Measured At Fair Value Through Other Comprehensive Income [Line Items]
Interest in equity securities	5.00%
Investments in securities	$ 1,823	5,976
Canadian Natural Resources Limited \| Equity Securities [Member]
Disclosure Of Fair Value Of Investments In Equity Instruments Designated As Measured At Fair Value Through Other Comprehensive Income [Line Items]
Interest in equity securities	8.00%
Investments in securities		3,506
Malaysia LNG Tiga Sdn Bhd [Member] \| Equity Securities [Member]
Disclosure Of Fair Value Of Investments In Equity Instruments Designated As Measured At Fair Value Through Other Comprehensive Income [Line Items]
Interest in equity securities	15.00%
Investments in securities		$ 722

Investments in Securities - Schedule of Investments in Securities Using Predominantly Unobservable Inputs (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Disclosure Of Investments In Securities [Line Items]
Investments in securities, at beginning of period	$ 7,222
Gains/(losses) recognised in other comprehensive income	212	$ (108)
Investments in securities, at end of period	3,074	7,222
At Fair Value Measured Using Predominantly Unobservable Inputs [Member]
Disclosure Of Investments In Securities [Line Items]
Investments in securities, at beginning of period	1,268
Investments in securities, at end of period	1,193	1,268
At Fair Value Measured Using Predominantly Unobservable Inputs [Member] \| Level 3 of Fair Value Hierarchy [Member]
Disclosure Of Investments In Securities [Line Items]
Investments in securities, at beginning of period	1,268	1,233
Other movements	(287)	143
Investments in securities, at end of period	$ 1,193	$ 1,268

Trade and Other Receivables - Summary of Trade and Other Receivables (Detail) - USD ($)
$ in Millions

Dec. 31, 2018

Dec. 31, 2017

Trade receivables

$ 27,541

$ 30,721

Other receivables

8,543

9,036

Amounts due from joint ventures and associates

992

868

Prepayments and deferred charges

5,355

3,940

Amounts due from joint ventures and associates

^[1]

42,431

44,565

Other receivables

4,823

5,525

1,183

1,327

Prepayments and deferred charges

1,820

1,623

^[1]

$ 7,826

$ 8,475

[1]

Trade and Other Receivables - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Disclosure Of Trade And Other Receivables [Abstract]
Other receivables after provision for impairments	$ 1,449	$ 2,265
Provisions for impairments deducted from trade and other receivables	790	$ 881
Loss allowance provision	$ 243

Trade and Other Receivables - Summary of Allowance for Expected Credit Losses Trade Receivables (Detail) - Trade Receivables [Member] - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Expected Credit Losses Collectively Assessed [Member]
Disclosure Of Overdue Trade Receivables [Line Items]
Gross carrying amount	$ 27,807
Loss allowance provision	(23)
Net carrying amount	27,784	$ 30,721
Not overdue [Member] \| Expected Credit Losses Collectively Assessed [Member]
Disclosure Of Overdue Trade Receivables [Line Items]
Gross carrying amount	25,835
Loss allowance provision	(2)
Net carrying amount	$ 25,833	28,719
Not overdue [Member] \| Bottom of Range [Member]
Disclosure Of Overdue Trade Receivables [Line Items]
Expected loss rate	0.0014%
Not overdue [Member] \| Top of Range [Member]
Disclosure Of Overdue Trade Receivables [Line Items]
Expected loss rate	0.0799%
Overdue 1-30 Days [Member] \| Expected Credit Losses Collectively Assessed [Member]
Disclosure Of Overdue Trade Receivables [Line Items]
Gross carrying amount	$ 892
Loss allowance provision	(2)
Net carrying amount	$ 890	1,154
Overdue 1-30 Days [Member] \| Bottom of Range [Member]
Disclosure Of Overdue Trade Receivables [Line Items]
Expected loss rate	0.0393%
Overdue 1-30 Days [Member] \| Top of Range [Member]
Disclosure Of Overdue Trade Receivables [Line Items]
Expected loss rate	1.548%
Overdue 31-180 Days [Member] \| Expected Credit Losses Collectively Assessed [Member]
Disclosure Of Overdue Trade Receivables [Line Items]
Gross carrying amount	$ 541
Loss allowance provision	(7)
Net carrying amount	$ 534	480
Overdue 31-180 Days [Member] \| Bottom of Range [Member]
Disclosure Of Overdue Trade Receivables [Line Items]
Expected loss rate	0.1752%
Overdue 31-180 Days [Member] \| Top of Range [Member]
Disclosure Of Overdue Trade Receivables [Line Items]
Expected loss rate	14.8524%
Overdue More Than 180 Days [Member] \| Expected Credit Losses Collectively Assessed [Member]
Disclosure Of Overdue Trade Receivables [Line Items]
Gross carrying amount	$ 539
Loss allowance provision	(12)
Net carrying amount	$ 527	$ 368
Overdue More Than 180 Days [Member] \| Bottom of Range [Member]
Disclosure Of Overdue Trade Receivables [Line Items]
Expected loss rate	0.7592%
Overdue More Than 180 Days [Member] \| Top of Range [Member]
Disclosure Of Overdue Trade Receivables [Line Items]
Expected loss rate	28.037%

Inventories - Summary of Detailed Information of Inventories (Detail) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Classes Of Inventories [Abstract]
Oil, gas and chemicals	$ 19,516	$ 22,962
Materials	1,601	2,261
Total	$ 21,117	$ 25,223

Cash and Cash Equivalents - Summary of Cash and Cash Equivalents and Short Term Bank Deposits (Detail) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Cash And Cash Equivalents [Abstract]
Cash	$ 4,034	$ 4,672
Short-term bank deposits	3,655	3,996
Money market funds, reverse repos and other cash equivalents	19,052	11,644
Total	$ 26,741	$ 20,312	$ 19,130	$ 31,752

Debt and Lease Arrangements - Schedule of Debt (Detail) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Disclosure Of Debt [Line Items]
Debt (excluding finance lease liabilities)	$ 62,798	$ 70,141
Finance lease liabilities	14,026	15,524
Debt short term	10,134	11,795
Debt long term	66,690	73,870
Total	76,824	85,665
Short-Term Debt [Member]
Disclosure Of Debt [Line Items]
Debt (excluding finance lease liabilities)	693	1,211
Debt short term	693	1,211
Long-Term Debt Due Within 1 Year [Member]
Disclosure Of Debt [Line Items]
Debt (excluding finance lease liabilities)	8,419	9,500
Finance lease liabilities	1,022	1,084
Total	9,441	10,584
Current Debt [Member]
Disclosure Of Debt [Line Items]
Debt (excluding finance lease liabilities)	9,112	10,711
Finance lease liabilities	1,022	1,084
Debt short term	10,134	11,795
Non-Current Debt [Member]
Disclosure Of Debt [Line Items]
Debt (excluding finance lease liabilities)	53,686	59,430
Finance lease liabilities	13,004	14,440
Debt long term	$ 66,690	$ 73,870

Debt and Lease Arrangements - Schedule of Net Debt (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Current Debt [Member]
Disclosure Of Net Debt [Line Items]
Beginning balance	$ (11,795)	$ (9,484)
Cash flow	10,392	11,457
Finance lease additions	(51)	(56)
Other movements	(8,939)	(13,232)
Currency translation differences and foreign exchange gains/(losses)	259	(480)
Ending balance	(10,134)	(11,795)
Non-Current Debt [Member]
Disclosure Of Net Debt [Line Items]
Beginning balance	(73,870)	(82,992)
Cash flow	(2,418)	(113)
Finance lease additions	(652)	(1,772)
Other movements	9,270	13,749
Currency translation differences and foreign exchange gains/(losses)	980	(2,742)
Ending balance	(66,690)	(73,870)
Derivative financial instruments [Member]
Disclosure Of Net Debt [Line Items]
Beginning balance	(591)	(4,045)
Cash flow	446	485
Other movements	(261)	(272)
Currency translation differences and foreign exchange gains/(losses)	(939)	3,241
Ending balance	(1,345)	(591)
Cash And Cash Equivalent
Disclosure Of Net Debt [Line Items]
Beginning balance	20,312	19,130
Cash flow	6,878	535
Currency translation differences and foreign exchange gains/(losses)	(449)	647
Ending balance	26,741	20,312
Debt1
Disclosure Of Net Debt [Line Items]
Beginning balance	(65,944)	(77,391)
Cash flow	15,298	12,364
Finance lease additions	(703)	(1,828)
Other movements	70	245
Currency translation differences and foreign exchange gains/(losses)	(149)	666
Ending balance	$ (51,428)	$ (65,944)

Debt and Lease Arrangements - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Disclosure Of Detailed Information About Borrowings [Line Items]
Gearing ratio	20.30%	25.00%
Net debt	$ 51,428,000,000	$ 65,944,000,000
Fair value of debt excluding finance lease liabilities	64,708,000,000	74,650,000,000
Amounts expected to be received under non-cancellable sub leases	273,000,000	336,000,000
Operating lease	507,000,000	300,000,000
Operating lease expense	4,354,000,000	4,822,000,000	$ 5,063,000,000
Royal Dutch Shell Dividend Access Trust [Member]
Disclosure Of Detailed Information About Borrowings [Line Items]
Undrawn borrowing facilities	$ 3,035,000,000	3,409,000,000
Credit Facility [Member]
Disclosure Of Detailed Information About Borrowings [Line Items]
Credit facility expires	The committed credit facility is available at pre-agreed margins and expires in 2020
CP Programmes [Member]
Disclosure Of Detailed Information About Borrowings [Line Items]
Issuance of Debt	$ 10,000,000,000
Debt maturity period	270 days
Issuance of Debt	$ 10,000,000,000
Debt maturity period	397 days
Undrawn borrowing facilities	$ 20,000,000,000	19,659,000,000
EMTN Programme [Member]
Disclosure Of Detailed Information About Borrowings [Line Items]
Issuance of Debt	0
Universal Shelf Registration [Member]
Disclosure Of Detailed Information About Borrowings [Line Items]
Net debt	$ 3,000,000,000
Debt issued
Bottom of Range [Member]
Disclosure Of Detailed Information About Borrowings [Line Items]
Expected gearing ratio	0.00%
Top of Range [Member]
Disclosure Of Detailed Information About Borrowings [Line Items]
Expected gearing ratio	30.00%
Derivative financial instruments [Member]
Disclosure Of Detailed Information About Borrowings [Line Items]
Collateral On Debt Related Derivatives	$ 72,000,000

Debt and Lease Arrangements - Schedule of Gearing (Detail) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Gearing [Abstract]
Gearing ratio	20.30%	25.00%
Net debt	$ 51,428	$ 65,944
Total equity	202,534	197,812	$ 188,511	$ 164,121
Total capital	$ 253,962	$ 263,756

The amount of residual interest in the assets of the entity after deducting all its liabilities.

+ References + Details

Debt and Lease Arrangements - Schedule of Borrowing Facilities and Amounts Undrawn (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
CP Programmes [Member]
Borrowing Facilities [Line Items]
Borrowing facilities	$ 20,000	$ 20,000
Undrawn borrowing facilities	$ 20,000	$ 19,659
EMTN Programme [Member]
Borrowing Facilities [Line Items]
Borrowing facilities	unlimited	unlimited
US Registration [Member]
Borrowing Facilities [Line Items]
Borrowing facilities	unlimited	unlimited
Committed Credit Facility [Member]
Borrowing Facilities [Line Items]
Borrowing facilities	$ 8,840	$ 8,500
Undrawn borrowing facilities	$ 8,840	$ 8,500

Debt and Lease Arrangements - Schedule of Difference in Contractual Cash Flows for Debt Excluding Finance Lease Liabilities (Detail) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Disclosure Of Maturity Analysis For Nonderivative Financial Liabilities [Line Items]
Bonds	$ 60,988	$ 67,899
Bank and other borrowings	1,629	1,763
Total (excluding interest)	62,617	70,003
Interest	21,730	22,944
Carrying amount	76,824	85,665
Commercial paper		341
Bonds [Member]
Disclosure Of Maturity Analysis For Nonderivative Financial Liabilities [Line Items]
Difference from carrying amount	181	131
Carrying amount	61,169	68,030
Bank and Other Borrowings [Member]
Disclosure Of Maturity Analysis For Nonderivative Financial Liabilities [Line Items]
Difference from carrying amount		2
Carrying amount	1,629	1,765
Total Exclude Interest [Member]
Disclosure Of Maturity Analysis For Nonderivative Financial Liabilities [Line Items]
Difference from carrying amount	181	138
Carrying amount	62,798	70,141
Commercial Paper [Member]
Disclosure Of Maturity Analysis For Nonderivative Financial Liabilities [Line Items]
Difference from carrying amount		5
Carrying amount		346
Less Than 1 Year [Member]
Disclosure Of Maturity Analysis For Nonderivative Financial Liabilities [Line Items]
Bonds	8,163	8,989
Bank and other borrowings	945	1,321
Total (excluding interest)	9,108	10,651
Interest	1,780	1,957
Commercial paper		341
Between 1 and 2 Years [Member]
Disclosure Of Maturity Analysis For Nonderivative Financial Liabilities [Line Items]
Bonds	5,900	8,306
Bank and other borrowings	39	43
Total (excluding interest)	5,939	8,349
Interest	1,555	1,688
Between 2 and 3 Years [Member]
Disclosure Of Maturity Analysis For Nonderivative Financial Liabilities [Line Items]
Bonds	4,993	5,900
Bank and other borrowings	209	127
Total (excluding interest)	5,202	6,027
Interest	1,426	1,457
Between 3 and 4 Years [Member]
Disclosure Of Maturity Analysis For Nonderivative Financial Liabilities [Line Items]
Bonds	4,458	5,047
Bank and other borrowings	50	56
Total (excluding interest)	4,508	5,103
Interest	1,319	1,328
Between 4 and 5 Years [Member]
Disclosure Of Maturity Analysis For Nonderivative Financial Liabilities [Line Items]
Bonds	4,312	4,620
Bank and other borrowings	27	180
Total (excluding interest)	4,339	4,800
Interest	1,244	1,221
5 Years and Later [Member]
Disclosure Of Maturity Analysis For Nonderivative Financial Liabilities [Line Items]
Bonds	33,162	35,037
Bank and other borrowings	359	36
Total (excluding interest)	33,521	35,073
Interest	$ 14,406	$ 15,293

Debt and Lease Arrangements - Schedule of Future Minimum Lease Payments for Finance and Operating Leases (Detail) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Disclosure Of Finance Lease And Operating Lease By Lessee [Line Items]
Finance leases, Future minimum lease payments	$ 22,939	$ 25,563
Finance leases Interest	8,913	10,039
Finance leases, Present value of future minimum lease payments	14,026	15,524
Operating leases Future minimum lease payments	24,219	25,285
Less Than 1 Year [Member]
Disclosure Of Finance Lease And Operating Lease By Lessee [Line Items]
Finance leases, Future minimum lease payments	2,061	2,274
Finance leases Interest	1,039	1,190
Finance leases, Present value of future minimum lease payments	1,022	1,084
Operating leases Future minimum lease payments	4,784	4,909
Between 1 and 5 Years [Member]
Disclosure Of Finance Lease And Operating Lease By Lessee [Line Items]
Finance leases, Future minimum lease payments	7,508	8,246
Finance leases Interest	3,391	3,887
Finance leases, Present value of future minimum lease payments	4,117	4,359
Operating leases Future minimum lease payments	11,575	12,415
5 Years and Later [Member]
Disclosure Of Finance Lease And Operating Lease By Lessee [Line Items]
Finance leases, Future minimum lease payments	13,370	15,043
Finance leases Interest	4,483	4,962
Finance leases, Present value of future minimum lease payments	8,887	10,081
Operating leases Future minimum lease payments	$ 7,860	$ 7,961

Debt and Lease Arrangements - Schedule of Future Minimum Lease Payments for Finance and Operating Leases (Parathetical) (Detail) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Disclosure Of Finance Lease And Operating Lease By Lessee [Line Items]
Operating leases Future minimum lease payments	$ 24,219	$ 25,285
Drilling Ancillary Equipment
Disclosure Of Finance Lease And Operating Lease By Lessee [Line Items]
Operating leases Future minimum lease payments	$ 5,348	$ 6,473

Trade and Other Payables - Summary of Detailed Information About Trade and Other Payables (Detail) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Trade and Other Payables Current [Member]
Trade And Other Payables [Line Items]
Trade payables	$ 30,351	$ 33,196
Other payables	5,597	5,767
Amounts due to joint ventures and associates	2,851	2,021
Accruals and deferred income	10,089	10,426
Total	48,888	51,410
Trade and Other Payables Non-Current [Member]
Trade And Other Payables [Line Items]
Other payables	2,413	3,090
Amounts due to joint ventures and associates	33	29
Accruals and deferred income	289	328
Total	$ 2,735	$ 3,447

Taxation - Summary of Taxation Charges (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Current tax:
Charge in respect of current period	$ 10,415	$ 7,204	$ 3,936
Adjustments in respect of prior periods	60	(613)	(1,205)
Total	10,475	6,591	2,731
Relating to the origination and reversal of temporary differences, tax losses and credits	1,438	(4,102)	(2,688)
Relating to changes in tax rates and legislation	(157)	2,004	(200)
Adjustments in respect of prior periods	(41)	202	986
Total	1,240	(1,896)	(1,902)
Total taxation charge	$ 11,715	$ 4,695	$ 829

Disclosure Of Classes Of Share Capital [Line Items]

The aggregate amount included in the determination of profit (loss) for the period in respect of current tax and deferred tax. [Refer: Current tax expense (income); Deferred tax expense (income)]

+ References + Details

Taxation - Summary of Reconciliation of Applicable Tax Charge Credit at Statutory Tax Rates to Taxation Charge (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Disclosure Of Income Tax [Abstract]
Income before taxation	$ 35,621	$ 18,130	$ 5,606
Share of profit of joint ventures and associates	(4,106)	(4,225)	(3,545)
Income before taxation and share of profit of joint ventures and associates	31,515	13,905	2,061
Applicable tax charge/(credit) at statutory tax rates	11,444	4,532	(344)
Adjustments in respect of prior periods	19	(411)	(219)
Tax effects of:
Income not subject to tax at statutory rates	(1,783)	(1,852)	(1,740)
Expenses not deductible for tax purposes	1,379	2,423	2,066
(Recognition)/derecognition of deferred tax assets	(381)	(957)	1,575
Deductible items not expensed	(371)	(584)	(516)
Taxable income not recognised	312	251	509
Changes in tax rates and legislation	(157)	2,004	(200)
Other	1,253	(711)	(302)
Total taxation charge	$ 11,715	$ 4,695	$ 829

Taxation - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Disclosure Of Income Taxes [Line Items]
Weighted average of statutory tax rates	36.00%	33.00%	(17.00%)
Income tax recoverable	$ 1,042	$ 933
Deferred tax assets dependent on future taxable profits	9,979	12,452
Unrecognised taxable temporary differences associated with undistributed retained earnings of investments in subsidiaries, joint ventures and associates	3,951	3,746
Unrecognised deductible temporary differences, unused tax losses and credits carried forward	34,910	34,773
Unrecognised deductible temporary differences, unused tax losses and credits carried forward that are subject to time limits for utilisation of five years or later or are not time limited	27,604	28,016
Brazil Real Australian Dollar and Argentinian Peso [Member]
Disclosure Of Income Taxes [Line Items]
Impact of currency movements on deferred tax positions, included in other reconciling items	$ 819	$ (585)	$ (607)

Taxation - Summary of Tax Receivables and Payables (Detail) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Disclosure Of Income Tax Payables And Receivables [Abstract]
Income taxes	$ 3,990	$ 4,062
Sales taxes, excise duties and similar levies	3,507	3,188
Total	$ 7,497	$ 7,250

Taxation - Summary of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Disclosure Of Deferred Tax Assets And Liabilities [Line Items]
Deferred tax asset, Beginning balance	$ 31,257	$ 37,270
(Charge)/credit to income	91	(5,154)
Currency translation differences	(806)	1,166
Other	(1,212)	(2,025)
Deferred tax asset, Ending balance	29,330	31,257
Deferred tax liability, Beginning Balance	(30,473)	(38,119)
(Charge)/credit to income	(1,331)	7,050
Currency translation differences	469	(844)
Other	(735)	1,440
Deferred tax liability, Ending Balance	(32,070)	(30,473)
Net deferred tax liability	(2,740)
Net deferred tax assets		784
Balance Sheet [Member]
Disclosure Of Deferred Tax Assets And Liabilities [Line Items]
Net deferred tax liability	(14,837)	(13,007)
Net deferred tax assets	12,097	13,791
Decommissioning And Other Provisions
Disclosure Of Deferred Tax Assets And Liabilities [Line Items]
Deferred tax asset, Beginning balance	6,182	7,733
(Charge)/credit to income	166	(1,853)
Currency translation differences	(177)	269
Other	(269)	33
Deferred tax asset, Ending balance	5,902	6,182
Property, plant and equipment [member]
Disclosure Of Deferred Tax Assets And Liabilities [Line Items]
Deferred tax asset, Beginning balance	3,379	3,510
(Charge)/credit to income	345	189
Currency translation differences	(32)	49
Other	26	(369)
Deferred tax asset, Ending balance	3,718	3,379
Deferred tax liability, Beginning Balance	(26,904)	(33,963)
(Charge)/credit to income	(1,751)	6,437
Currency translation differences	409	(711)
Other	475	1,333
Deferred tax liability, Ending Balance	(27,771)	(26,904)
Tax Losses and Credits Carried Forward [Member]
Disclosure Of Deferred Tax Assets And Liabilities [Line Items]
Deferred tax asset, Beginning balance	13,684	16,600
(Charge)/credit to income	(553)	(2,732)
Currency translation differences	(462)	554
Other	(502)	(738)
Deferred tax asset, Ending balance	12,167	13,684
Retirement Benefits
Disclosure Of Deferred Tax Assets And Liabilities [Line Items]
Deferred tax asset, Beginning balance	3,868	5,053
(Charge)/credit to income	14	(493)
Currency translation differences	(93)	216
Other	(479)	(908)
Deferred tax asset, Ending balance	3,310	3,868
Deferred tax liability, Beginning Balance	(742)	(582)
(Charge)/credit to income	180	(129)
Currency translation differences	24	(63)
Other	(1,136)	32
Deferred tax liability, Ending Balance	(1,674)	(742)
Other temporary differences [member]
Disclosure Of Deferred Tax Assets And Liabilities [Line Items]
Deferred tax asset, Beginning balance	4,144	4,374
(Charge)/credit to income	119	(265)
Currency translation differences	(42)	78
Other	12	(43)
Deferred tax asset, Ending balance	4,233	4,144
Deferred tax liability, Beginning Balance	(2,827)	(3,574)
(Charge)/credit to income	240	742
Currency translation differences	36	(70)
Other	(74)	75
Deferred tax liability, Ending Balance	$ (2,625)	$ (2,827)

Retirement Benefits - Summary of Retirement Benefit Expense (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Defined benefit plans:
Current service cost, net of plan participants’ contributions	$ 1,494	$ 1,500	$ 1,527
Interest expense on obligations	2,282	2,309	2,643
Interest income on plan assets	(2,087)	(2,019)	(2,358)
Other	(221)	(404)	(116)
Total	1,468	1,386	1,696
Defined contribution plans	410	429	485
Total retirement benefit expense	$ 1,878	$ 1,815	$ 2,181

Retirement Benefits - Summary of Remeasurement of Net Defined Benefit Liability Assets (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Actuarial gains/(losses) on obligations:
Due to changes in financial assumptions	$ 8,186	$ (4,495)	$ (11,391)
Due to experience adjustments	(268)	37	642
Due to changes in demographic assumptions	(459)	933	809
Total	7,459	(3,525)	(9,940)
Return on plan assets (shortage)/in excess of interest income	(2,312)	4,942	5,106
Other movements	66	50	18
Total remeasurements	$ 5,213	$ 1,467	$ (4,816)

Retirement Benefits - Summary of Defined Benefit Plans (Detail) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Disclosure Of Defined Benefit Plans [Abstract]
Obligations	$ (91,856)	$ (104,285)
Plan assets	85,803	93,243
Net liability	(6,053)	(11,042)
Non-current assets	6,051	2,799
Non-current liabilities	(11,653)	(13,247)
Current liabilities	$ (451)	$ (594)

Retirement Benefits - Summary of Defined Benefit Plan Obligations (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Disclosure Of Net Defined Benefit Liability Asset [Line Items]
Beginning balance	$ 1,467	$ (4,816)
Current service cost	1,494	1,500	$ 1,527
Due to changes in financial assumptions	8,186	(4,495)	(11,391)
Other movements	(66)	(50)	(18)
Ending balance	5,213	1,467	(4,816)
Defined Benefit Pension Plans [Member]
Disclosure Of Net Defined Benefit Liability Asset [Line Items]
Beginning balance	104,285	94,405
Current service cost	(1,491)	(1,550)
Interest expense/income	(2,282)	(2,309)
Due to changes in financial assumptions	7,459	(3,525)
Benefit payments	4,435	4,579
Other movements	(360)	(949)
Currency translation differences	3,948	(8,024)
Ending balance	91,856	104,285	94,405
Defined Benefit Plan Assets [Member]
Disclosure Of Net Defined Benefit Liability Asset [Line Items]
Beginning balance	93,243	81,276
Return on plan assets (in excess of interest income)	(2,312)	4,942
Interest expense/income	2,087	2,019
Employer contribution	763	1,804
Plan participants? contributions	47	50
Benefit payments	4,123	4,294
Other movements	(102)	(245)
Currency translation differences	(3,800)	7,691
Ending balance	$ 85,803	$ 93,243	$ 81,276
Cash	1.00%	0.00%
Funded Pension Plans [Member] \| Defined Benefit Pension Plans [Member]
Disclosure Of Net Defined Benefit Liability Asset [Line Items]
Beginning balance	$ 94,903
Ending balance	$ 83,276	$ 94,903
Weighted average duration	17 years	19 years
Unfunded Pension Plans [Member] \| Defined Benefit Pension Plans [Member]
Disclosure Of Net Defined Benefit Liability Asset [Line Items]
Beginning balance	$ 4,824
Ending balance	$ 4,359	$ 4,824
Weighted average duration	13 years	12 years
Other Unfunded Plans [Member] \| Defined Benefit Pension Plans [Member]
Disclosure Of Net Defined Benefit Liability Asset [Line Items]
Beginning balance	$ 4,558
Ending balance	$ 4,221	$ 4,558
Weighted average duration	12 years	13 years
Quoted in Active Markets [Member] \| Defined Benefit Plan Assets [Member] \| Equity Securities [Member]
Disclosure Of Net Defined Benefit Liability Asset [Line Items]
Contributions to plan net defined benefit liability asset in percentage	24.00%	32.00%
Quoted in Active Markets [Member] \| Defined Benefit Plan Assets [Member] \| Debt Securities [Member]
Disclosure Of Net Defined Benefit Liability Asset [Line Items]
Contributions to plan net defined benefit liability asset in percentage	53.00%	45.00%
Quoted in Active Markets [Member] \| Defined Benefit Plan Assets [Member] \| Real Estate [Member]
Disclosure Of Net Defined Benefit Liability Asset [Line Items]
Contributions to plan net defined benefit liability asset in percentage	1.00%	1.00%
Quoted in Active Markets [Member] \| Defined Benefit Plan Assets [Member] \| Investment Funds [Member]
Disclosure Of Net Defined Benefit Liability Asset [Line Items]
Contributions to plan net defined benefit liability asset in percentage	0.00%	1.00%
Quoted in Active Markets [Member] \| Defined Benefit Plan Assets [Member] \| Others [Member]
Disclosure Of Net Defined Benefit Liability Asset [Line Items]
Contributions to plan net defined benefit liability asset in percentage	1.00%	1.00%
Other [Member] \| Defined Benefit Plan Assets [Member] \| Equity Securities [Member]
Disclosure Of Net Defined Benefit Liability Asset [Line Items]
Contributions to plan net defined benefit liability asset in percentage	8.00%	7.00%
Other [Member] \| Defined Benefit Plan Assets [Member] \| Debt Securities [Member]
Disclosure Of Net Defined Benefit Liability Asset [Line Items]
Contributions to plan net defined benefit liability asset in percentage	3.00%	3.00%
Other [Member] \| Defined Benefit Plan Assets [Member] \| Real Estate [Member]
Disclosure Of Net Defined Benefit Liability Asset [Line Items]
Contributions to plan net defined benefit liability asset in percentage	6.00%	6.00%
Other [Member] \| Defined Benefit Plan Assets [Member] \| Investment Funds [Member]
Disclosure Of Net Defined Benefit Liability Asset [Line Items]
Contributions to plan net defined benefit liability asset in percentage	3.00%	3.00%
Other [Member] \| Defined Benefit Plan Assets [Member] \| Others [Member]
Disclosure Of Net Defined Benefit Liability Asset [Line Items]
Contributions to plan net defined benefit liability asset in percentage	0.00%	1.00%

Retirement Benefits - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Disclosure Of Defined Benefit Plans [Line Items]
Employer contributions to defined benefit pension plans		$ 8,186	$ (4,495)	$ (11,391)
Defined Benefit Plans [Member]
Disclosure Of Defined Benefit Plans [Line Items]
Description of additional payment to defined benefit plan		Additional contributions to the Netherlands defined benefit pension plan would be required if the 12-month rolling average local funding percentage falls below 105% for six months or more.
Defined Benefit Plans [Member] \| Top of Range [Member] \| Netherlands [Member]
Disclosure Of Defined Benefit Plans [Line Items]
Percentage of average local funding requirment for additional payments		105.00%
Events After Reporting Period [Member] \| Defined Benefit Plans [Member]
Disclosure Of Defined Benefit Plans [Line Items]
Employer contributions to defined benefit pension plans	$ 900

Retirement Benefits - Summary of Sensitivity Analysis for Actuarial Assumptions (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Actuarial Assumption of Rate of Increase in Pensionable Remuneration [Member]
Disclosure Of Sensitivity Analysis For Actuarial Assumptions [Line Items]
Discount rate	4.10%	4.70%
Range of assumptions	(1.00%)
Range of assumptions	1.00%
Actuarial Assumption of Rate of Increase in Pensionable Remuneration [Member] \| Bottom of Range [Member]
Disclosure Of Sensitivity Analysis For Actuarial Assumptions [Line Items]
Increase/(decrease) in defined benefit obligations	$ (1,576)	$ (2,150)
Actuarial Assumption of Rate of Increase in Pensionable Remuneration [Member] \| Top of Range [Member]
Disclosure Of Sensitivity Analysis For Actuarial Assumptions [Line Items]
Increase/(decrease) in defined benefit obligations	$ 1,819	$ 2,782
Actuarial Assumption of Rate of Increase in Pensions in Payment [Member]
Disclosure Of Sensitivity Analysis For Actuarial Assumptions [Line Items]
Discount rate	1.80%	1.90%
Range of assumptions	(1.00%)
Range of assumptions	1.00%
Actuarial Assumption of Rate of Increase in Pensions in Payment [Member] \| Bottom of Range [Member]
Disclosure Of Sensitivity Analysis For Actuarial Assumptions [Line Items]
Increase/(decrease) in defined benefit obligations	$ (8,304)	$ (10,120)
Actuarial Assumption of Rate of Increase in Pensions in Payment [Member] \| Top of Range [Member]
Disclosure Of Sensitivity Analysis For Actuarial Assumptions [Line Items]
Increase/(decrease) in defined benefit obligations	$ 10,104	$ 12,662
Actuarial Assumption of Rate of Increase in Healthcare Costs [Member]
Disclosure Of Sensitivity Analysis For Actuarial Assumptions [Line Items]
Discount rate	6.30%	6.60%
Range of assumptions	(1.00%)
Range of assumptions	1.00%
Actuarial Assumption of Rate of Increase in Healthcare Costs [Member] \| Bottom of Range [Member]
Disclosure Of Sensitivity Analysis For Actuarial Assumptions [Line Items]
Increase/(decrease) in defined benefit obligations	$ (410)	$ (451)
Actuarial Assumption of Rate of Increase in Healthcare Costs [Member] \| Top of Range [Member]
Disclosure Of Sensitivity Analysis For Actuarial Assumptions [Line Items]
Increase/(decrease) in defined benefit obligations	$ 496	$ 551
Actuarial Assumption of Discount Rate For Pension Plans [Member]
Disclosure Of Sensitivity Analysis For Actuarial Assumptions [Line Items]
Discount rate	2.90%	2.50%
Range of assumptions	(1.00%)
Range of assumptions	1.00%
Actuarial Assumption of Discount Rate For Pension Plans [Member] \| Bottom of Range [Member]
Disclosure Of Sensitivity Analysis For Actuarial Assumptions [Line Items]
Increase/(decrease) in defined benefit obligations	$ 15,606	$ 19,042
Actuarial Assumption of Discount Rate For Pension Plans [Member] \| Top of Range [Member]
Disclosure Of Sensitivity Analysis For Actuarial Assumptions [Line Items]
Increase/(decrease) in defined benefit obligations	$ (12,078)	$ (14,567)
Actuarial Assumption of Discount Rate For Healthcare Plans [Member]
Disclosure Of Sensitivity Analysis For Actuarial Assumptions [Line Items]
Discount rate	4.20%	3.50%
Range of assumptions	(1.00%)
Range of assumptions	1.00%
Actuarial Assumption of Discount Rate For Healthcare Plans [Member] \| Bottom of Range [Member]
Disclosure Of Sensitivity Analysis For Actuarial Assumptions [Line Items]
Increase/(decrease) in defined benefit obligations	$ 536	$ 599
Actuarial Assumption of Discount Rate For Healthcare Plans [Member] \| Top of Range [Member]
Disclosure Of Sensitivity Analysis For Actuarial Assumptions [Line Items]
Increase/(decrease) in defined benefit obligations	$ (436)	$ (483)
Men [Member]
Disclosure Of Sensitivity Analysis For Actuarial Assumptions [Line Items]
Range of assumptions	-1 year to +1 year
Average age	87 years	87 years
Men [Member] \| Bottom of Range [Member]
Disclosure Of Sensitivity Analysis For Actuarial Assumptions [Line Items]
Increase/(decrease) in defined benefit obligations	$ (1,538)	$ (1,906)
Men [Member] \| Top of Range [Member]
Disclosure Of Sensitivity Analysis For Actuarial Assumptions [Line Items]
Increase/(decrease) in defined benefit obligations	$ 1,583	$ 2,022
Women [Member]
Disclosure Of Sensitivity Analysis For Actuarial Assumptions [Line Items]
Range of assumptions	-1 year to +1 year
Average age	89 years	89 years
Women [Member] \| Bottom of Range [Member]
Disclosure Of Sensitivity Analysis For Actuarial Assumptions [Line Items]
Increase/(decrease) in defined benefit obligations	$ (1,436)	$ (1,720)
Women [Member] \| Top of Range [Member]
Disclosure Of Sensitivity Analysis For Actuarial Assumptions [Line Items]
Increase/(decrease) in defined benefit obligations	$ 1,476	$ 1,828

Decommissioning and Other Provisions - Summary of Decommissioning and Other Provisions (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Disclosures Of Decommissioning And Other Provisions [Line Items]
Current beginning balance	$ 3,465	$ 3,784
Non-current beginning balance	24,966	29,618
Decommisioning and other provision beginning balance	28,431	33,402
Additions	2,410	3,798
Amounts charged against provisions	(2,300)	(2,816)
Accretion expense	852	1,038
Disposals	(1,858)	(2,902)
Remeasurements and other movements	(1,731)	(5,266)
Currency translation differences	(612)	1,177
Change in decommisioning and other provisions	(3,239)	(4,971)
Current ending balance	3,659	3,465
Non-current ending balance	21,533	24,966
Decommisioning and other provision ending balance	25,192	28,431
Decommissioning and Restoration [Member]
Disclosures Of Decommissioning And Other Provisions [Line Items]
Current beginning balance	817	797
Non-current beginning balance	19,767	24,368
Decommisioning and other provision beginning balance	20,584	25,165
Additions	418	1,168
Amounts charged against provisions	(497)	(491)
Accretion expense	755	897
Disposals	(1,781)	(2,807)
Remeasurements and other movements	(1,065)	(4,245)
Currency translation differences	(481)	897
Change in decommisioning and other provisions	(2,651)	(4,581)
Current ending balance	876	817
Non-current ending balance	17,057	19,767
Decommisioning and other provision ending balance	17,933	20,584
Legal [Member]
Disclosures Of Decommissioning And Other Provisions [Line Items]
Current beginning balance	423	500
Non-current beginning balance	1,095	1,066
Decommisioning and other provision beginning balance	1,518	1,566
Additions	196	390
Amounts charged against provisions	(200)	(327)
Accretion expense	17	61
Disposals	(14)	(2)
Remeasurements and other movements	(47)	(190)
Currency translation differences	(10)	20
Change in decommisioning and other provisions	(58)	(48)
Current ending balance	213	423
Non-current ending balance	1,247	1,095
Decommisioning and other provision ending balance	1,460	1,518
Other [Member]
Disclosures Of Decommissioning And Other Provisions [Line Items]
Current beginning balance	1,180	1,360
Non-current beginning balance	2,326	2,434
Decommisioning and other provision beginning balance	3,506	3,794
Additions	1,070	988
Amounts charged against provisions	(887)	(1,207)
Accretion expense	48	47
Disposals	(49)	(71)
Remeasurements and other movements	(122)	(178)
Currency translation differences	(64)	133
Change in decommisioning and other provisions	(4)	(288)
Current ending balance	1,815	1,180
Non-current ending balance	1,687	2,326
Decommisioning and other provision ending balance	3,502	3,506
Environmental [Member]
Disclosures Of Decommissioning And Other Provisions [Line Items]
Current beginning balance	287	296
Non-current beginning balance	1,218	1,186
Decommisioning and other provision beginning balance	1,505	1,482
Additions	191	496
Amounts charged against provisions	(212)	(173)
Accretion expense	17	20
Disposals	(11)	(4)
Remeasurements and other movements	(130)	(352)
Currency translation differences	(22)	36
Change in decommisioning and other provisions	(167)	23
Current ending balance	264	287
Non-current ending balance	1,074	1,218
Decommisioning and other provision ending balance	1,338	1,505
Redundancy [Member]
Disclosures Of Decommissioning And Other Provisions [Line Items]
Current beginning balance	758	831
Non-current beginning balance	560	564
Decommisioning and other provision beginning balance	1,318	1,395
Additions	535	756
Amounts charged against provisions	(504)	(618)
Accretion expense	15	13
Disposals	(3)	(18)
Remeasurements and other movements	(367)	(301)
Currency translation differences	(35)	91
Change in decommisioning and other provisions	(359)	(77)
Current ending balance	491	758
Non-current ending balance	468	560
Decommisioning and other provision ending balance	$ 959	$ 1,318

Decommissioning and Other Provisions - Additional Information (Detail) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Disclosure Of Other Provisions [Line Items]
Discount rate applied to provision	4.00%	4.00%
Decommissioning and Restoration [Member]
Disclosure Of Other Provisions [Line Items]
Amount of provisions expected to be utilized	$ 982	$ 3,980
Decommissioning and Restoration [Member] \| Between 1 and 5 Years [Member]
Disclosure Of Other Provisions [Line Items]
Amount of provisions expected to be utilized	3,490
Decommissioning and Restoration [Member] \| Between 6 and 10 Years [Member]
Disclosure Of Other Provisions [Line Items]
Amount of provisions expected to be utilized	$ 2,173

Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Disclosure Of Risk Management Strategy Related To Hedge Accounting [Line Items]
Increase in interest rate risk	1.00%
Decrease in income before taxation	$ 37
Foreign exchange risk management	10.00%
Percentage of value at risk statistical assessment	95.00%
Net (losses) gains on derivative contracts excluding realized commodity contracts, before tax	$ (1,818)	$ (1,321)	$ 414
Unrealized net losses related to assets and liabilities	(36)	39
Interest Rate and Currency Derivatives [Member] \| Derivative Carrying Amount [Member]
Disclosure Of Risk Management Strategy Related To Hedge Accounting [Line Items]
Liability of derivative contracts, net of accrued interest	1,242	$ 826
Other Contracts [Member]
Disclosure Of Risk Management Strategy Related To Hedge Accounting [Line Items]
Embedded derivative expiry term		2019-2025
Commodity Derivatives [Member]
Disclosure Of Risk Management Strategy Related To Hedge Accounting [Line Items]
Net carrying amount of commodity derivative contracts	120	$ 620
Trade Payables [Member]
Disclosure Of Risk Management Strategy Related To Hedge Accounting [Line Items]
Carrying amount of collateral held	535	282
Trade Receivables [Member]
Disclosure Of Risk Management Strategy Related To Hedge Accounting [Line Items]
Carrying amount of financial assets pledged as collateral for liabilities or contingent liabilities	$ 3,094	1,890
Floating Interest Rate [Member]
Disclosure Of Risk Management Strategy Related To Hedge Accounting [Line Items]
Decrease in income before taxation		$ 174

Financial Instruments - Summary of 10% Appreciation Against the Dollar of Main Currencies (Detail) - 10% Percentage Appreciation [Member] - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Canadian Dollar [Member]
Disclosure Of Foreign Exchange Risk [Line Items]
Increase/(decrease) in income before taxation	$ (40)	$ (43)
Increase in net assets	1,245	1,111
Euro [Member]
Disclosure Of Foreign Exchange Risk [Line Items]
Increase/(decrease) in income before taxation	65	130
Increase in net assets	1,190	1,086
Australian Dollar [Member]
Disclosure Of Foreign Exchange Risk [Line Items]
Increase/(decrease) in income before taxation	(109)	(24)
Increase in net assets	835	786
Sterling [Member]
Disclosure Of Foreign Exchange Risk [Line Items]
Increase/(decrease) in income before taxation	(46)	(77)
Increase in net assets	$ 779	$ 632

Financial Instruments - Schedule of Value at Risk Pre-tax (Detail) - Commodity Price Risk [Member] - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Global Oil [Member]
Disclosure Of Risk Management Strategy Related To Hedge Accounting [Line Items]
Value At Risk	$ 28	$ 25
North America Gas and Power [Member]
Disclosure Of Risk Management Strategy Related To Hedge Accounting [Line Items]
Value At Risk	11	11
Europe Gas and Power [Member]
Disclosure Of Risk Management Strategy Related To Hedge Accounting [Line Items]
Value At Risk	3	3
Carbon-Emission Rights [Member]
Disclosure Of Risk Management Strategy Related To Hedge Accounting [Line Items]
Value At Risk	$ 2	$ 1

Financial Instruments - Schedule of Trade and Other Receivables, Other Payables and Derivative Financial Instruments (Detail) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Trade Payables [Member]
Disclosure Of Offsetting Of Financial Assets [Line Items]
Gross amounts before offset	$ 12,931	$ 10,442
Amounts off set	8,264	6,486
Net amounts as presented	4,667	3,956
Cash collateral received/pledged	97	41
Other off setting instruments	221	51
Net amounts	4,349	3,864
Derivative Financial Liabilities [Member]
Disclosure Of Offsetting Of Financial Assets [Line Items]
Gross amounts before offset	12,227	7,315
Amounts off set	5,044	2,392
Net amounts as presented	7,183	4,923
Cash collateral received/pledged	1,115	300
Other off setting instruments	2,653	2,326
Net amounts	3,415	2,297
Trade Receivables [Member]
Disclosure Of Offsetting Of Financial Assets [Line Items]
Gross amounts before offset	12,697	10,642
Amounts off set	8,340	6,486
Net amounts as presented	4,358	4,156
Cash collateral received/pledged	62	42
Other off setting instruments	221	51
Net amounts	4,075	4,063
Derivative Financial Assets [Member]
Disclosure Of Offsetting Of Financial Assets [Line Items]
Gross amounts before offset	12,323	6,987
Amounts off set	6,353	2,387
Net amounts as presented	5,970	4,600
Cash collateral received/pledged	437	186
Other off setting instruments	2,653	2,326
Net amounts	$ 2,880	$ 2,088

Financial Instruments - Schedule of Carrying Amounts of Derivative Contracts Designated and Not Designated as Hedging Instruments for Hedge Accounting (Detail) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Disclosure Of Detailed Information About Hedging Instruments [Line Items]
Assets Designated	$ 272	$ 505
Assets Not designated	7,495	5,718
Assets, Total	7,767	6,223
Liabilities Designated	1,409	980
Liabilities Not designated	7,174	5,254
Liabilities, Total	8,583	6,234
Net	(816)	(11)
Interest Rate Swaps [Member]
Disclosure Of Detailed Information About Hedging Instruments [Line Items]
Assets Designated	86
Assets Not designated	3	16
Assets, Total	89	16
Liabilities Designated	174	165
Liabilities Not designated	14	34
Liabilities, Total	188	199
Net	(99)	(183)
Forward Foreign Exchange Contracts [Member]
Disclosure Of Detailed Information About Hedging Instruments [Line Items]
Assets Designated		22
Assets Not designated	331	403
Assets, Total	331	425
Liabilities Designated	33
Liabilities Not designated	264	591
Liabilities, Total	297	591
Net	34	(166)
Currency Swap and Options [Member]
Disclosure Of Detailed Information About Hedging Instruments [Line Items]
Assets Designated	186	483
Assets Not designated	26	208
Assets, Total	212	691
Liabilities Designated	1,202	815
Liabilities Not designated	203	76
Liabilities, Total	1,405	891
Net	(1,193)	(200)
Commodity Derivatives [Member]
Disclosure Of Detailed Information About Hedging Instruments [Line Items]
Assets Not designated	6,864	4,929
Assets, Total	6,864	4,929
Liabilities Not designated	6,637	4,428
Liabilities, Total	6,637	4,428
Net	227	501
Other Contracts [Member]
Disclosure Of Detailed Information About Hedging Instruments [Line Items]
Assets Not designated	271	162
Assets, Total	271	162
Liabilities Not designated	56	125
Liabilities, Total	56	125
Net	$ 215	$ 37

Financial Instruments - Summary of Net Carrying Amounts of Derivative Contracts Measured Using Predominantly Unobservable Inputs (Detail) - Unobservable Inputs [Member] - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Disclosure Of Significant Unobservable Inputs Used In Fair Value Measurement Of Liabilities [Line Items]
Beginning balance	$ 297	$ 468
Net (losses)/gains recognised in revenue	(258)	372
Purchases	461	252
Sales	(540)	(562)
Recategorisations (net)	18	(248)
Currency translation differences	(5)	15
Ending balance	$ (27)	$ 297

Share Capital - Summary of Issued and Fully Paid Ordinary Shares (Detail) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

^[1]

$ (4,519)

Disclosure Of Classes Of Share Capital [Line Items]

$ 4,751

$ 5,282

Share Capital [Member]

696

683

^[1]

(11)

Class A Shares [Member] | Share Capital [Member]

$ 685

$ 696

$ 683

Disclosure Of Classes Of Share Capital [Line Items]

Beginning balance, in shares

4,597,136,050

4,428,903,813

Repurchases of shares, in shares

(125,246,754)

Scrip dividends, in shares

168,232,237

Ending balance, in shares

4,471,889,296

4,597,136,050

4,428,903,813

$ 387

$ 374

(11)

Class B Shares [Member] | Share Capital [Member]

$ 376

$ 387

$ 374

Disclosure Of Classes Of Share Capital [Line Items]

Beginning balance, in shares

3,745,486,731

Ending balance, in shares

3,745,486,731

$ 309