Glossary

Accountable Technical Authority (ATA): The ATA role is fulfilled by an authorised Technical Authority who consolidates the responsible discipline’s input and provides integrated quality assurance to the project team (Ref. 4).

Asset Manager (AM): The individual who is accountable for the day-to-day management and performance of a discrete asset or set of small assets. The Asset Manager assigns roles and responsibilities for the operation and access authorisation of the asset, including the implementation of the HSSE&SP Control Framework, to individuals within their organisation.

Business: An internal organisation charged with managing a part of Shell’s portfolio of investments in accordance with a common set of objectives and strategies. The businesses include Downstream, Projects & Technology, Upstream International and Upstream Americas. The lines of business are: Upstream Engine, Downstream Engine, Integrated Gas, Deepwater & Arctic, Heavy Oil, Exploration and Unconventional (Ref. 2).

Business Opportunity Manager (BOM): The individual responsible for the overall management of the opportunity, who is responsible to the Decision Executive (Ref. 1).

Business One: The data repository that collects and aggregates forward-looking data for business planning, portfolio and project reporting captured at a local (project or asset), regional and corporate level.

Capital Project: Any opportunity that involves the development of a technical concept and the realisation of hardware (Ref. 1).

Control: A pre-defined, routine activity (manual or within an IT system) executed on an ongoing or regular basis, that addresses one or more specific risks to the achievement of business objectives (Ref. 2).

Controlling Interest: The power to govern the financial and operating policies of an entity in order to obtain benefits from its activities. Control is presumed to exist when an entity acquires, directly or indirectly through subsidiaries, more than half of the voting power of an entity unless, in exceptional circumstances, it can be demonstrated that such ownership does not constitute control (Ref. 3).

Discipline Controls and Assurance Framework (DCAF): DCAF is part of the quality assurance framework focusing on business- and safety-critical decisions and deliverables (referred to as control points) in exploration, capital projects and assets. The framework stipulates the control points that are to be considered by the project team and facilitates effective collaboration between projects teams and disciplines (Ref. 4).

Decision Gate (DG): The point where an opportunity moves from one phase to the next phase of the Opportunity Realisation Process (Ref. 1).

Decision Executive (DE): The individual who provides direction, supervision and support and who is accountable for all decisions relating to the opportunity, its overall delivery and for quality decisions (Ref. 1).

Decision Review Board (DRB): The board consists of senior management with the appropriate functional expertise, which advises and supports the Decision Executive and Business Opportunity Manager (Ref. 1).

Decision Analysis (DA): A structured approach to help stakeholder optimise their decision making in the face of risks and uncertainties and employs a combination of facilitation and modelling (also known as decision analysis, decision risk management, decision science).

Decision Quality (DQ): Involves six elements, appropriate frame, useful information, achievable alternatives, clear values, sound reasoning and commitment to action. DQ should be assessed by the decision makers to determine whether sufficient work has been undertaken to justify making a decision.

Discipline: Describes functional and engineering teams and their contribution to projects and assurance. For example, Civil Engineering is a discipline that contributes to project development.

Expected Practices: These are fundamental processes, that are expected to be used by projects. Justification for deviation needs to be recorded and approved.

Function: An internal organisation reporting to a function head that provides a combination of functional guidance and services to businesses and other functions. The functions are Finance, Human Resources and Corporate, Legal, Sustainable Development, CO2, Contracting and Procurement, Government Relations, Information Technology and Technical Functions (Ref. 2).

Front End Development Manager (FEDM): A Projects & Technology resource who is accountable for the delivery of a technical development concept and basis for design (Ref. 1).

Front End Loading (FEL): The process for the conceptual development of projects. This involves sourcing sufficient strategic information early in project maturation so that the owner’s team can address risk and make decisions to commit resources in order to maximise potential for success

Headline Size: The maximum financial commitment (or minimum expected receipts) of a proposal, which is always shown in US$. It provides a uniform basis for determining who has authority to give approval to the proposal (Ref. 1).

Integrated Project Management System (iPMS): The delivery vehicle for the Project Management Framework system and the “one stop shop” used for all project management related information.

Joint Venture (JV): An association of two or more participants who engage in business together, sharing profits or production, losses and liabilities. Between them they exercise control over that business through a governance structure that is distinct from the governance structure of each of the participants (Ref. 3).

Library: Approved practices, procedures and templates for use in the specific context of individual projects.

Line of Sight (LoS): The clearly documented chain of accountable relationships that exist during the lifetime of an opportunity from each member of the opportunity team, upwards via the BOM and DE, to the individual in the Shell organisation with the appropriate delegated organisational authority (Ref. 1).

Mandatory Deliverables: Deliverables defined in the PS0, which all opportunities/ projects under the PMF shall generate. The mandatory deliverables serve as containers, where the evidence of meeting (multiple) controls from the PS 1 to 5 is recorded. They represent DCAF control points.

Manuals: Provide more detailed mandatory instructions on how to implement Standards or other foundation components (Ref. 2).

Non-Shell Operated Venture (NOV): Any Joint Venture (JV) where an external party has been formally designated as the Operator under the terms of the JV documentation (Ref. 1).

Operating Standards: These are business mandatory requirements (Ref. 1).

Opportunities: Business opportunities which include realisation of commercial and new business development, exploration and appraisal, Upstream and Downstream capital projects, development of unconventional resources and long-term sale and purchase commitments (Ref. 1).

Opportunity Assurance Plan (OAP): The plan, approved by the Decision Executive of the opportunity/project, that sets out the control framework and specific assurance activities that are be undertaken to enhance the decision quality around the opportunity/project (Ref. 5).

Opportunity Realisation Process (ORP): The six phase, stage-gated process (Identify, Assess, Select, Define, Execute, Operate) for managing business opportunities (Ref. 1).

Opportunity Realisation Standards (ORS): The Opportunity Realisation Standard (ORS) provides the Group Requirements for the selection, development and delivery of new Business Opportunities in Shell. The ORS applies to all Business Opportunities that have an anticipated Headline Size of USD 100 million (Shell share) or higher; or 200 ktpa of Scope 1 and 2 CO2 Emissions or higher, or which involve Unusual Risk.

Opportunity and Project Leadership: The FEDM/PM, BOM and AM for an opportunity/project.

Opportunity Value Assurance (OVA): The organisation that delivers fit-for-purpose, scalable assurance services, to support the business in delivering its objectives.

Project Control and Assurance Plan (PCAP): Risk-based listing of control points for each project phase owned by the project team specifying who leads in providing quality assurance (Ref. 4).

PLATO: The Pro-active Learning Assessment Tool for Opportunity Leadership Teams. The objective of the tool is 1) to protect value by ensuring that opportunity teams properly manage repeated risks and avoidable issues which have been highlighted in our assurance reviews over the last several years and 2) to facilitate the capturing of lessons learned and practices worth replicating prior to a gate review for dissemination to opportunities and functions

Portfolio Project: This is a capital project with a lower in headline size, typically <100 million US$ (Shell share).

Post-Investment Review (PIR): This is carried out 12-18 months after start-up of a project. The objectives are to determine if the promises made in the GIP are being realised, establish what has been learned and assess if the forward plans maximise value. The PIR was formerly known as VAR5.

Practices, Guides and Tools: This is the lowest level in the hierarchy of the Shell Performance Framework. It represents the non-mandatory guidelines and best practices that teams can employ (Ref. 2).

Principal Technical Expert (PTE): A recognised expert with deep technical skills in an area of significant impact for the business covering a number of subject matter areas (Ref. 4).

Project Delivery Reporting (PDR): The Finance Projects division in Projects & Technology provides project delivery management information to senior management (P&T Leadership Team, Executive Committee and Board).

Project Manager (PM): A Projects & Technology resource who is specifically responsible for the development and realisation of the hardware of the assets in a capital project. The Project Manager leads the project team in the execution of all elements of the project from the Define phase onwards (Ref. 1).

Project Management Framework (PMF): This is the system comprising Project Standards, Expected Practices and the Library (Approved Knowledge). It is the framework that describes how capital projects are to be done.

Project Standard: Mandatory project controls to manage risks to outcome objectives.

Responsible Technical Authority (RTA): The RTA role is carried out by a Technical Authority who provides quality assurance from his/her respective discipline perspective to the ATA (Ref. 4).

Shell Company: Any company in which Shell plc holds a controlling interest, either directly or indirectly. A Shell company may be wholly owned or a Joint Venture. A controlling interest allows Shell to require the implementation of the Shell Performance Framework (SPF) by the company, even if in practice, Shell chooses not to apply some components of the SPF, for example by agreeing that the company operates to materially equivalent standards (Ref. 3).

Shell Performance Framework (SPF): The overarching framework adopted by Shell plc to deliver on its strategy. The SPF applies to all Shell companies and provides a consistent approach for how each company in Shell operates. It seeks to empower in a way that is fit for purpose for each company, while delivering on overall objectives. A controlling interest allows Shell to require the implementation of the SPF in that company. Similarly, where a Shell company is the operator of a joint venture, the SPF is to be applied to the operation of that joint venture (Ref. 2).

Shell Operated Venture (SOV): A Joint Venture where a Shell company has been formally designated as the Operator under the terms of the Joint Venture documentation (Ref. 3).

Standards: Mandatory rules, established where major risks are present or matters that are subject to external stakeholder expectations and external disclosures or regulations that require common treatment across Shell (Ref. 2).

Subject Matter Expert (SME): Acknowledged expert in a very specific area of the business (Ref. 4).

Technical Practices: Technical requirements for all design engineering and construction activities as well as for the operation of assets and wells (Ref. 2).

Technical Functions: A technical function is a collection of related technical disciplines. Technical functions are Development, Discipline Engineering, Exploration, Manufacturing, Maritime, Process Engineering, Projects, Research and Development, Safety, Environment & Social Performance, Upstream Production and Wells (Ref. 2).

TECOP: A framework used to ensure full consideration of all aspects (technical and non-technical) of an opportunity. The five dimensions are Technical, Economic (including Financial), Commercial, Organisational and (Socio-) Political.

Users of the PMF: The users of the PMF are staff involved in the development and execution of capital projects, including the BOM, PM, FEDM, AM and all practitioners dealing with cross discipline integration.

8 Project Principles: Shell's 8 Project Principles set out clearly and simply what is expected of all people working across the project life-cycle, regardless of business or function, underpinned by Goal Zero (Ref. 6). The intent of the principles is embedded in the PMF.