Royal Dutch Shell plc

February 2007 strategy update: Refocusing the portfolio for long-term growth

As part of his annual strategy update, Chief Executive Jeroen van der Veer
said "We have made solid progress with our strategy and portfolio development
in 2006. I expect reserves replacement including oil sands to be some 150%*.
In addition, our exploration and business development activities upstream have
added well over 2 billion barrels oil equivalent of new conventional
resources, for the second successive year. In Downstream, we have added to our
growth portfolio, especially in China.”

 “We took important investment decisions in 2006. Upstream, we have launched
major investments in unconventionals and deep water. Downstream, our plans are
progressing to expand refining capacity on US Gulf Coast, and chemicals
capacity in Singapore. We announced a recommended offer to buy out the
minority interests in Shell Canada Limited, and we signed a protocol with
Gazprom that stabilises our position in the Sakhalin II project in Russia,
with a strong partner.”

 “We recognised some time ago that our industry was witnessing important
changes. Today, I am pleased with our response. We look for competitive
returns and take a long-term, global approach. Shell adds value through
technology, and we are shifting our investment to where we can best apply our
know-how, often in more complex barrels. We are rejuvenating our portfolio
through new, long-life growth projects. These will become legacy assets, and
produce steady cash flow, for decades to come. They will be the foundations
for Shell in the first half of the 21st century.”

“Our Upstream investment is driven by a combination of exploration, LNG and
unconventionals. Downstream, we are investing in size and complexity in
manufacturing world-wide, and growth markets in the East. Today, we have
around 45 major projects under construction world-wide. Our strategy is on
track.”

“We have now implemented a deliberate policy of investing in large stakes in
major integrated projects. As part of the funding for that policy, we expect
asset sales to accelerate in 2007 to some $9 billion, as we continue to
refocus our company. Taken together with the purchase of the minority shares
in Shell Canada Limited, I therefore anticipate that net capital spending will
be around $22-23 billion in 2007, compared to some $21 billion in 2006”.

“As a result of these portfolio developments, I expect a reduction in near
term refining capacity.  For Upstream, the outlook continues to be impacted by
security problems in Nigeria, affecting 2007 production and future growth. We
now expect overall oil and gas production in 2007 to be in the range 3.3-3.5
million boe/d, in the event that Nigerian volumes remain deferred for the rest
of the year. The reduced Nigeria outlook, and divestments including the
dilution of our stake in Sakhalin II, mean we expect only modest production
growth to the end of the decade”.

“Downstream, we are a leading global player, with clear growth plans. Our
upstream investment focuses on building on our global leadership in LNG, GTL,
deepwater and oil sands, and we have the resource base to grow long term
upstream production by some 2-3%/year. But I am value-driven, so that absolute
production growth is not a core target for the Group, and is the outcome of
our value choices.”

“Technology also has a major role to play in the environmental challenge. We
continue to invest in cleaner fuels. We are developing clean coal and
renewables technologies. And we are researching technologies for CO2
solutions. In all these themes, and especially for CO2, we have a clear view
that governments need to set frameworks to allow business-driven solutions.”

“In 2006, we recruited some 1500 young graduates, and around 4500 experienced
professionals, from over 60 countries, all to help on our agenda for delivery”

Van der Veer concluded “Royal Dutch Shell is in a good position to drive new,
standardised ways of working through the company, to reduce complexity and
speed up decision making. Operational synergies and cost savings should add
some $0.5 billion to earnings each year, across the medium term.”

“We are announcing a step-up in dividend payment for 2007, with an increase in
the Q1 2007 dividend of 14%, to $0.36/ordinary share. This increase will give
our investors an early share in the profitability and success I expect for the
future.”

*SEC proved oil & gas reserves, and SEC provable mining reserves (oil sands)

Contacts:
Shell Investor Relations:
Den Haag	Tjerk Huysinga		+31 70 377 3996
London	Gerard Paulides 		+44 207 934 6287
New York	Harold Hatchett		+1 212 218 3112

Shell Media Relations:
International, US, UK Press		+44 207 934 5963/ 3277/ 6238
The Netherlands and European Press	+31 70 377 8750

Disclaimer Statement
This document contains forward-looking statements concerning the financial
condition, results of operations and businesses of Royal Dutch Shell. All
statements other than statements of historical fact are, or may be deemed to
be, forward-looking statements. Forward-looking statements are statements of
future expectations that are based on management’s current expectations and
assumptions and involve known and unknown risks and uncertainties that could
cause actual results, performance or events to differ materially from those
expressed or implied in these statements. Forward-looking statements include,
among other things, statements concerning the potential exposure of Royal
Dutch Shell to market risks and statements expressing management’s
expectations, beliefs, estimates, forecasts, projections and assumptions.
These forward-looking statements are identified by their use of terms and
phrases such as ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’,
‘‘expect’’, ‘‘intend’’, ‘‘may’’, ‘‘plan’’, ‘‘objectives’’, ‘‘outlook’’,
‘‘probably’’, ‘‘project’’, ‘‘will’’, ‘‘seek’’, ‘‘target’’, ‘‘risks’’,
‘‘goals’’, ‘‘should’’ and similar terms and phrases. There are a number of
factors that could affect the future operations of Royal Dutch Shell and could
cause those results to differ materially from those expressed in the
forward-looking statements included in this Report, including (without
limitation): (a) price fluctuations in crude oil and natural gas; (b) changes
in demand for the Group’s products; (c) currency fluctuations; (d) drilling
and production results; (e) reserve estimates; (f) loss of market and industry
competition; (g) environmental and physical risks; (h) risks associated with
the identification of suitable potential acquisition properties and targets,
and successful negotiation and completion of such transactions; (i) the risk
of doing business in developing countries and countries subject to
international sanctions; (j) legislative, fiscal and regulatory developments
including potential litigation and regulatory effects arising from
recategorisation of reserves; (k) economic and financial market conditions in
various countries and regions; (l) political risks, project delay or
advancement, approvals and cost estimates; and (m) changes in trading
conditions. All forward-looking statements contained in this document are
expressly qualified in their entirety by the cautionary statements contained
or referred to in this section. Readers should not place undue reliance on
forward-looking statements. Each forward-looking statement speaks only as of
the date of this presentation. Neither Royal Dutch Shell nor any of its
subsidiaries undertake any obligation to publicly update or revise any
forward-looking statement as a result of new information, future events or
other information. In light of these risks, results could differ materially
from those stated, implied or inferred from the forward-looking statements
contained in this document.

The United States Securities and Exchange Commission (SEC) permits oil and gas
companies, in their filings with the SEC, to disclose only proved reserves
that a company has demonstrated by actual production or conclusive formation
tests to be economically and legally producible under existing economic and
operating conditions.  We use certain terms in this presentation, such as
“resources" that the SEC's guidelines strictly prohibit us from including in
filings with the SEC.  U.S. Investors are urged to consider closely the
disclosure in our Form 20-F, File No 1-32575 and disclosure in our Forms 6-K
file No, 1-32575, available on the SEC website www.sec.gov - opens in new
window. You can also obtain these forms from the SEC by calling
1-800-SEC-0330.