Commercial Case Study Candidate Info Pack PDF

GRADUATE ASSESSMENT – STAGE 2
COMMERCIAL
Case Study Exercise
CANDIDATE INFORMATION PACK
SHELL GRADUATE RECRUITMENT
Commercial Case Study Exercise – Candidate Information Pack
INTRODUCTION
You have been sent this information to prepare for your case study exercise, a part of your Stage 2
Assessment. Prior to this assessment, your only task is to familiarise yourself with this information pack
provided. You will be provided with more instructions on the day of your Stage 2 Assessment, once you
log onto the HireVue video-interviewing platform.
Please note, this exercise will NOT be an assessment of your technical knowledge. It will instead assess
the way in which you analyse and use the information provided. No specialist knowledge or experience
of the subject will be required to complete the exercise; you only need the information in this document.
The information is fictitious. You are not required to conduct further research over the internet or otherwise
– such research would not be of use to you in the assessment.
We recommend that you spend a maximum of 90-120 minutes familiarising yourself with this document.
This should be entirely sufficient for the task you will be asked to complete.
Before undertaking the assessment, we strongly advise that, if possible, you print this information pack for
your reference during the assessment, or ensure that it is available on an alternative viewing platform to
your main computer screen. Please also ensure that you have a pen and some paper available during the
assessment.
The exercise setting
The exercise is set within a fictional region of the world: The Turpaq Region1. Within Turpaq there are
three neighbouring countries: Bavar, Khad and Almay. You are a graduate working for Shell,
supporting your line manager who is working in the Turpaq Project Team. This team consists of 210
individuals, spanning various locations in the region. Your line manager is Sam Freeman; however, you
will be working with all members of the Project Team as required. For the purposes of this exercise, the
year is 2022.
Disclaimer: The Turpaq region and all the associated information provided is fictitious. Any similarity to
real countries and political/business climates is entirely coincidental.
1 The term region should be understood to mean a cluster of countries in the same area.
Shell HR Analytics & Assessment

July 2017 2
 INTRODUCTION FROM SAM FREEMAN
Date Today, March 16th 2022
From: Sam Freeman To: You
Subject Welcome
Hi there,
I hope you’re well today and welcome to the team!
We’re continuing to pursue our investigation into the Turpaq region and, to help you
understand the current situation, I have pulled together the attached folder of information. I’d
like you to spend no more than 2 hours reviewing this. At our meeting, I will be able to explain
what I need your help with.
There was a big meeting last week where all 25 members of the Commercial Review Board
were present and I know a good few are really interested in what we might do in the Turpaq
region.
I look forward to meeting you soon.
Kind regards,
Sam
Project Turpaq Team Lead
FOLDER CONTENTS
Section Page Number
Section 1: Introduction to the Turpaq Region 4
Section 2: Bavar 7
Section 3: Khad 9
Section 4: Almay 11
Section 5: The Shell Service Station Offering 13
Section 6: Commercial Information about the Turpaq Region 19
Section 7: Shell’s investment in Turpaq 23
Section 8: Emails 25
Section 9: Articles 27

July 2017 3
 SECTION 1: INTRODUCTION TO THE TURPAQ REGION
INTRODUCTION TO THE TURPAQ REGION

The Turpaq region (see map below), situated in the Turpaq Peninsula, has demonstrated steady
economic and political progress over the last five years. The region has long benefitted from
strong overground trade routes to the North, West and East, and from fishing along the Almay
coastline. Exports of raw materials such as timber, coal and minerals have been traditional
industries. Interest in the Almay coastline (and indeed the wider region for the more
adventurous) as a cost-effective and unique tourist destination has grown over the years. Over
the last eighteen months, the region has seen significant investment in telecommunications by
telecoms organisations from the wealthy and technologically and socio-politically progressive
Parabean continent. The economic and social impact of this investment on local economies has
been very positive; the Turpaq region has provided outsourced services, especially in Bavar, for
Parabean organisations. This, in turn, has led to a broader range of employment opportunities
and rejuvenated local commerce.

July 2017 4
TURPAQ REGION OVERVIEW
POPULATION GDP PER CAPITA2 UNEMPLOYMENT MAIN INDUSTRIES
Currently Growth rate Last year Estimated Currently Estimated Currently Growth rate over
per year economic change next 5 years
growth over next
rate per 5 years
year
Bavar 3,400,000 1.4% $53,000 Moderate 7.2% 3.0% Raw Materials Slight decline
Growth decrease (Timber)
Manufacturing Moderate growth
Services Strong growth
Khad 3,750,000 1.2% $43,000 Strong- 9.5% 1.2% Agriculture Moderate growth
Moderate increase
Growth Raw Materials Static
(Timber, coal,
minerals)
Manufacturing Strong growth
Almay 4,150,000 1.9% $60,000 Moderate 15.0% 2.1% Fishing Static

growth decrease
Outsourced Moderate growth
Services
Tourism Strong growth
2GDP per capita: “Gross Domestic Product per person” – GDP is commonly used as an indicator of the economic
health of a country, as well as to gauge a country's standard of living.
July 2017 5
SHELL’S STRATEGIC PRIORITIES
Shell’s Global Strategy
 Shell aims to be the world’s leading energy company.

 Our global business exists in an age of unprecedented social, economic and
technological change. This constant change means we must continue to adapt in order
to meet our customers’ needs and strive for strong returns for our shareholders.
 The global transition to a lower-carbon energy system is already underway, and opens
many opportunities for innovation and increased sustainability. At the same time, we
know that conventional oil and gas products are heavily relied upon and will be for
some time to come.
 We value sustainability, aiming to help meet growing energy needs in creative,
economically, environmentally and socially responsible ways.
 Technology is at the core of our strategy and our engineering enterprise continues to be
a pivotal area of focus that will help to shape our future growth as a business.
 Above all, Safety is Shell’s top priority; our goal is to have zero fatalities and no
incidents that cause harm to our people and neighbours, and put our facilities at risk.
Shell’s Strategy for the Turpaq Region
 Shell continue to see Turpaq as an area for market expansion and growth despite a
small number of isolated threats of sabotage and criminal activity. In particular, the
retail fuel market in the Turpaq region is expected to grow rapidly in the next decade,
as a result of economic development. In line with this, our key focus in Turpaq is to
expand our retail presence; the area is seen to hold much potential
 Final investment decisions by our regional strategy makers have resulted in a 25%
increase in investment in the region over the next year. This additional investment is
partly a result of action to increase retail presence, and partly a result of the recent
identification of 2 potential field sites approximately 25km off the coast of Almay in the
Sumarti sea.
The next five years will see project work to commence production in new sites and further
exploration activity. Increased investment such as this will help Shell to increase our assets
across Bavar, Khad and Almay, and put us in a stronger position to increase our proportional
share of local market revenues.

July 2017 6
SECTION 2: BAVAR
OVERVIEW OF HISTORY, POPULATION AND ECONOMY
 Bavar, the country with the highest altitude in the Turpaq region, contends with the most extreme
weather conditions. Snow and ice storms in the Harlan Mountain range can be severe.
 Historically, Bavar has been the most economically developed country in the region. Its proximity
to the Parabean continent meant a key trade route ran through it to the agriculture-rich planes of
Khad. These trade routes, now on modern roads, are critical for transporting raw materials and
manufactured goods northwards from Khad and Bavar itself.
 75% of the population of Bavar is concentrated in five mid-size cities, at the sites of ancient
trade towns. The remaining 25% are spread in smaller towns and some small remote villages in
the foothills of the Harlan mountains.
 The main industries have been manufacturing and timber, but there has been a marked increase
in providing outsourced services to organisations in the Parabean peninsula in recent years. This
has included remote customer service centres, IT services and a number of entrepreneurial
businesses providing innovative digital services.
 Bavar has had a stable, democratically elected government for the last three decades.
STAKEHOLDERS
 The Bavar government has traditionally welcomed investment by foreign companies by offering
moderate tax incentives. The government’s relatively open policy has meant foreign investment
has been greater than in most surrounding countries, giving Bavar a long-standing reputation
for being the most outward-looking in the region.
 The population splits into two groups in terms of its response to foreign investment and, in
particular, energy. Those in major cities, following the lead of their government, are generally
open to new investment, and appreciate the opportunities this brings. However, some remote
communities in the mountains have traditionally been resistant to change and have been vocal
about preserving their unique culture and way of life.
 The national oil company, Grahal, has a moderate market share3 of service station4 revenue in
Bavar, and a positive reputation with the population. Despite this, Grahal has not modernized
as quickly as other competitors in the local service station market.
 International energy company G-Energy has a solid foothold in the Bavar service station market
and is well known for both price and quality.
 Petrolink, headquartered in the Parabean continent, also has a good share of the service station
market and offers competitive prices.
SHELL IN BAVAR
 Shell entered the market in Bavar six years ago, building four initial service stations in major
cities. Three more followed four years ago.
 Gaining market share has proved challenging due to significant competition, particularly from
G-Energy. Shell is currently successful largely because its service stations are not close to other
3Market share: the proportion of the total income from service stations within the region last year.
4Service Station: a retail site where fuel and associated services are available for purchase from a
shop, sometimes with additional maintenance services and amenities.
July 2017 7
competitor’s sites. In the town of Jiovar, where G-Energy has two service stations, Shell’s station
is struggling.
Bavar Times
Claasmat is coming to
Bavar
Days after an internal document
referring to a major new
manufacturing site was found at a
popular café, the Bavar Times can
confirm a brand-new vehicle factory
will be built by German auto
manufacturer Claasmat. This confirms
ongoing rumours about whether
Classmat was ready to expand into the
Turpaq region. There are suggestions that its latest FCEV5 is ready for a major launch in the Parabean.
The lost document suggested land negotiations have been ongoing since last April and are due to be finalized
within weeks. Detailed plans suggest Claasmat will be bringing the very latest in robotic production methods and
will be producing both its new FCEV and a percentage of well-known petrol-fuelled cars and trucks.
5FCEV: Fuel Cell Electric Vehicle – a vehicle with an electric motor, generally using oxygen from the air and
compressed hydrogen to generate electricity
July 2017 8
 SECTION 3: KHAD
 Khad is the largest country in the region by geographical area. The majority of the country
comprises moderate-altitude flat plains, many of which have rich soils suitable for a range of
agriculture. The climate is mild in many areas, with the largest challenges being flooding in the
long rainy season.
 Historically, Khad has generally enjoyed economic stability from agriculture, though significant
flooding occurs every 6-10 years, which can be devastating if either large swathes of farmland
or cities are affected. There is rising concern that global warming is causing more frequent and
more powerful floods in Khad; a flood two years ago resulted in a decrease in GDP of 14% for
that year.
 Khad’s population is spread between six medium-sized cities, many mid-sized towns and a
great number of small agricultural villages.
 The main industries have included manufacturing as well as mining raw materials and
agriculture. The expanses of flat, open country are well-suited to large factories and, as
agriculture has been affected by more frequent weather events, the investment in manufacturing
has risen significantly. This has, in turn, brought more disposable income to the population.
 A relatively small number of tourists are now exploring the beautiful plains of Khad. Whilst
tourism in the Turpaq region began in Almay, the more adventurous are now coming to
appreciate the scenery and take in some local culture in traditional agricultural villages in Khad.
 Khad has had a chequered political history, having experienced a series of inflexible, though
relatively peaceful, dictatorships. However, recent cultural and social changes have meant that
the country has had a stable, democratically elected government for nearly two decades.
STAKEHOLDERS
 The Khad government has not traditionally welcomed investment by foreign companies,
preferring to support nationalized services and products. However, it has become increasingly
open in the last decade and there has been a small boom in external investment, particularly in
manufacturing and higher-tech agriculture. The government still retains one way of benefitting
from foreign investment however; the price of land in Khad is particularly high for the Turpaq
region.
 The population is mixed in its response to foreign investment and, in particular, investment from
energy companies. The generations who experienced ‘safe’ employment in state-run
organisations are fairly resistant to what they may see as ‘uncontrolled’ external forces. The
younger generations have more focus on opportunity and progression, and welcome investment
in all areas.
 The national oil company, Khadan, has the majority market share of service stations in Khad,
and a loyal following with the population.
 International energy company G-Energy and the Parabean company, Alforgas, have made the
first small inroads into offering alternative service stations in Khad. None have been received
with great success as yet.

July 2017 9
SHELL IN KHAD
 Shell chose to invest in Khad by building 4 service stations in the most significant cities across
the country in 2018.
 The use by residents has been reasonable, but Shell has faced significant competition from
national oil company, Khadan.
Khad Today
Environmental Protestors blockade route through the Harlan Mountains for 4
hours.
Last week a group of around 50 protestors from well-known environmental group, Environment Now, blocked
traffic entering Khad from Bavar for 4 hours, causing significant tailbacks, delays and frustration for drivers. The
protestors’ main concern was the increased haulage through Khad that, some say, may be directly contributing to
the more extreme weather patterns experienced in Khad due to vehicle emissions and their impact on global
warming.
Khad, once viewed as a somewhat unloved and unimportant vast wasteland of a country, has become an
important economic and cultural centre. Its agriculture provides a vast proportion of the food for its citizens, as
well as neighbouring countries in all directions. The recent devastating floods in the east of Khad and dust storms
in the west have riled up even those who were previously unconcerned about global warming. Many of the
protestors last week held ‘Save our Agriculture’ and ‘Save our Landscape’ signs. Environment Now has grown in
influence throughout the entire Turpaq region after initially starting in Almay two years ago.
Public opinion in Khad is still polarized about environmental concerns. The recent surge in manufacturing has
provided stable jobs and revitalized the eastern cities. Citizens proudly engage with the latest devices and in some
places are now as connected digitally as in Bavar – the first in the region to become truly ‘connected’. This group
have seen the benefits of industry and the use of energy has been a critical component. Not only are there car
manufacturers in Bavar, they are in Khad, and locals are fiercely loyal about Khad-made products.

July 2017 10
Khad Daily Times
Hydrogen-fuelled HGVs6 on the horizon in Khad
Khad’s increase in manufacturing facilities and

general productivity has shown the world that
Khad is fast becoming a global player in multiple
markets. Production of machinery itself is nothing
new, and residents have already been wowed by
the introduction of world-class robotics in several
of our leading facilities.
However, something even more exciting is due to

arrive soon. Something that may in fact help
unite our country, pulling together those who
resist industrial progress with its accompanying
impact on the environment, and those who
embrace it. We are about to witness the birth of
FCEV trucks and vans.
The government has announced a partnership with our very own Kralak Heavy Haulage Manufacture, the local
firms JRL and RaansLab, and the Austrian Tirolt. Tirolt has been testing their FCEV HGV prototype over the last
three months and with some small adjustments it will be fully ready for production. Tirolt has sought a series of
partnerships and a location to manufacture its model, and has settled on Khad. We believe this may be indicating
a new era of collaboration in our country and beyond.
The first vehicles are expected to be commercially available in 18-24 months. Interest in testing them as fleet
vehicles has been indicated by three major firms.
6 HGV: Heavy Goods Vehicle – a large truck used to transport heavy or large materials or goods
July 2017 11
 SECTION 4: ALMAY
 Almay comprises a long stretch of beautiful natural coastline, and a small mountainous ridge
along its border with Khad. The climate is mild all year and warm between May and
September, with a brief rainy season in October.
 Almay has the oldest evidence of human civilization in the region. Early settlements along the
coastline have been excavated and suggest there have been fishing, cloth-making and simple
agriculture in the region for 1,200 years. Modern Almay still counts fishing as a significant
industry and local fisheries supply not only Almay itself but also southern Khad and some
neighbouring countries along the coast by boat.
 60% of the population of Almay is concentrated in 3 large cities, and the remaining 40% are in
small-medium towns that line the coast from east to west.
 The main industries are now fishing and tourism. Tourism in the region was boosted significantly
fifteen years ago by government grants to support local businesses. Visitors have mainly come
from surrounding countries, but a successful marketing campaign across the Parabean to
spread awareness of the Almay coastline has brought visitors from further afield in recent years.
 Almay has had a stable, democratically elected government for the last three and a half
decades.
STAKEHOLDERS
 The Almay government has traditionally welcomed investment by foreign companies, being
particularly open to those that support the tourism industry. However, in recent times there has
been growing awareness of the value of retaining cultural heritage and traditions, and so the
government have shifted back towards supporting local businesses rather than foreign investors
such as big multinational hotel chains.
 The population have traditionally been open to foreign investment, including investment from
energy companies providing the fuel that supports tourists getting around. In recent years there
have, however, been a small number of vocal voices who oppose large multinational energy
companies. There has been a drive towards ecotourism and more environmentally friendly forms
of energy.
 The national oil company, Alamack, has a reasonable foothold in the service station market,
and has started to invest in greener sources of energy such as wind and solar. Alamack provide
a range of services for electric vehicles.
 The international G-Energy and the local Almayan company, High-Gas, have thrived in recent
years. High-Gas has a loyal following and was the first in the country to offer services to electric
vehicles.
SHELL IN ALMAY
 Shell entered the market five years ago, building four service stations initially and another four
twelve months later.
 Gain of market share (in terms of service station revenue) has been reasonable, but the locals
tend to be loyal to the national Alamack, and increasingly numbers of eco-tourists tend to make
the choice not to rent cars but to stay in one location for their holiday and travel on foot/via
bicycle to see local sites.
July 2017 12
Almay Today
Land dispute halts station build
Building at the site of a new G-Energy service station has been halted today, due to an ongoing
dispute over land.
The land, originally owned privately and used as an orchard was sold by the landowner to G-
Energy 12 months ago. At that time, other local landowners were unhappy at the change of
land use and petitioned for the sale to be halted, but were unsuccessful.
Last month, a dispute over the exact boundaries of the site have arisen. Two of the landowners
on either side of the site have contested the sale, bringing forth evidence that the boundaries
had been inaccurately drawn. Each claims that a small strip of the site actually belonged to them
making the sale unlawful.
The dispute will clearly require further investigation. G-Energy has already shipped sections of
the prefabricated station and associated building materials to the area. The company has also
allocated construction teams to the area who will now need to be released or paid a holding
fee. G-Energy declined to comment at this stage, but a full statement is expected after further
historical documentation has been examined.

July 2017 13
 SECTION 5: THE SHELL SERVICE STATION OFFERING
Part of Shell’s Downstream business is the sale of fuel and motor products, such as diesel, gasoline
(petrol) and motor vehicle oil and lubricants direct to business and domestic customers, via our roadside
service stations.
MOTORISTS
At Shell, we want to offer motorists the best of everything we can to support great driving experiences.
At our service stations we offer:
Shell Fuels Shell Engine Oils and Lubricants
Shell offers customers the best quality fuels for the Shell offers the world’s best oils and lubricants to keep
best prices we can afford. One highlight is our your vehicle in top condition and performing at its peak.
award-winning high performance Supreme Power Shell’s offering includes lubricants for cars, motorcycles,
and Protect+. Another is our liquefied petroleum trucks and vans.
gas (LPG) from our partner EuroGas – a more cost
effective and cleaner fuel for our customers offered
in increasing numbers of service stations
worldwide.
Motoring tips and advice Shell Drivers Club
Many of our customers can become much more Signing up for the Shell Drivers club takes only a couple
fuel efficient with a few simple changes to how minutes in one of our service stations and offers
they drive. Online and in our service stations we customers a huge number of benefits, including cost
offer tips and advice on fuel efficiency, safety and savings, points that build up to rewards and much more.
how to take care of your vehicle

July 2017 14
Car Wash, Air and Accessories Attended Service

Shell service stations excel at helping you keep Basic car care – check oil levels, screen wash levels, tyre
your vehicle in perfect condition. As well as the car pressure and tread.
wash and air we offer a range of accessories you
may need as you travel – country ID stickers,
breathalysers, car scents, de-icer, etc.
Ultimate Convenience Restaurant
Our service stations are stocked with a range of Many of our service stations offer fresh hot and cold
immediate conveniences including the most critical food and a relaxing place to refuel yourself for your
drinks, snacks and essential groceries, as well as journey. There’s no need to miss out on quality for
newspapers and other sundries. convenience, we offer both.
BUSINESS CUSTOMERS
At Shell, we want to offer the best possible support to our business customers through our service stations. On top
of the services for motorists, business customers have the fuel card.
The Shell Fuel Card

The Shell fuel card provides an efficient and secure way for business customers to buy fuel and access a range of
services. Typically, each driver in a fleet will carry a Shell fuel card, gaining discounts every time they visit a Shell
service station. The business can easily monitor the fuel consumption of every driver with a card. They are quick to
order and can be blocked instantly in the event of loss or fraud. Shell will provide one simple invoice for a whole
fleet of vehicles, alongside 24/7 online account management services and support.
Shell provides different fuel cards to suit the different demands placed on businesses around the world. For
example, the Shell EuroPlus card has plenty of additional features; it can be used to pay for tolls and road taxes in
all major European cities. This means that drivers don’t need to expense these back to the company, and the
charge is simply added to the business owner’s next invoice. This adds one more layer of security and fraud
prevention for business owners. For vehicles over 3 tons, the Shell EuroPlus card also offers reliable breakdown
assistance in 45 European and eastern European counties. Drivers can swiftly access the assistance they need
24/7 and be back on the road as soon as possible.
Accommodating Business Customers

Some business customers, especially those driving cars and vans, simply use the service station in a very similar
way to leisure motorists. They fill up at the pump, make use of the service station’s conveniences, and then the only
difference will be paying with a Shell fuel card. However, for larger fleet vehicles such as trucks and coaches,
service stations need to provide larger, wider forecourts to accommodate the size of the vehicles. The service
stations used frequently by larger vehicles offer a completely separate service area for business customers to fill up,
pay and rest. These business-specific forecourts offer a tailored range of products in their convenience stores
including appropriate lubricants and accessories to support larger vehicles.
For businesses that undertake light couriering of goods and/or focus on services (where employees may have
company cars), a standard service station is sufficient. Where businesses have to transport large goods, service
stations accommodating large vehicles will be needed.

July 2017 15
INTERNAL EMAIL
Date and Time Today, March 16th 2022
From: Sam Freeman To: You
Subject Shell Lubricants Business
Hi,
The document attached was forwarded to me yesterday – I thought you might find it useful as an
introduction to our main lubricants offering. These are the draft marketing materials for lubricants that
we’ll be sharing with customers shortly. The latest performance and evaporation figures for Shell
Supreme are hopefully going to make an impact on customers. This doesn’t include all the lubricants we
supply for agricultural machinery, construction machinery, manufacturing and aviation of course, but it’s
a good start!
Have a look and let me know if you have any questions.
Thanks,
Sam
Shell: Leading the Lubricants Business
Shell Supreme Car Lubricants
 Performance: Shell Supreme flows rapidly to the critical parts of your engine. This
means engines are easier to start and quicker to warm up even in freezing
temperatures where ice has infiltrated the engine. Shell Supreme also performs well in
extreme heat, outperforming competitors by an average of 15%.
 Reduced friction: Shell Supreme has extremely low friction formulations, which means
your engine parts move more easily and you can use up to 5% less fuel than with
typical lubricants. This reduces damage to your engine and can extend the life of
certain engine parts significantly.
 Less top up: With less than 8% volume lost through evaporation, where some lubricants
can lose up to 20%, Shell Supreme reduces your oil consumption and your costs.
 Engine cleanliness: Shell Supreme offers the ultimate in active cleansing power,
reducing the risk of engine damage and increasing performance.

July 2017 16
Shell Ultra Motorcycle Lubricants
 Shell Ultra is Shell’s motorcycle lubricant, with a product range to suit all sizes of
motorbike and Scooters.
 Fuel Economy: Shell Ultra minimises the build-up of deposits that can lead to friction,
leading to more efficient transmission of power and better fuel economy.
 Power retention: Shell Ultra does not degrade between lubricant changes, meaning
your bike performs at its best without the typical increase in friction that leads to
reduced efficiency and power loss.
 Oil Drain interval: Most motorcycle lubricants degrade due to volatility and oil
oxidation. Shell Advance Ultra does not degrade within 8,000km, beating the typical
drain level by 120%.
Shell Proform Truck and Heavy-Duty Engine Lubricants
Shell Proform synthetic lubricants offer fantastic fuel economy and protection against wear.
 Wear control: Shell Proform engine lubricants protect engines by reacting under heat
and pressure and forming a protective film that reduces wear. This is particularly
important at critical high-pressure points in an engine.
 Deposit protection: dirt in an engine can reduce efficiency and therefore have a
significant impact on fuel costs. Shell Proform engine lubricants remove the particles
that form into deposits, effectively cleaning and protecting engines.
 Acid protection: Acids from combustion in the engines of trucks and heavy-duty
engines can escape into other areas of the engine, causing corrosion and, eventually,
engine failure. Shell Proform lubricants contain powerful agents that neutralise acids.

July 2017 17
Hydrogen-powered Electric Vehicles: A look to the future
Hydrogen: helping to balance the power grid
Shell and other energy companies are continually striving to find more sustainable, low-carbon
ways of providing fuel. The use of hydrogen has emerged as a potentially important option as
we move towards a low-carbon future. It all starts with an opportunity to balance the power
grid.
Power plants work hard to meet the demand for electricity from homes and businesses, always
aiming to keep supply and demand in perfect balance. However, if supply exceeds demand,
this presents a problem as electricity cannot be stored in large volumes. In such situations, the
supply needs to be reduced and since conventional power plants usually take many hours to
scale down, it is generally renewable power stations that are shut down instead.
Hydrogen powered FCEVs provide a promising potential solution. Excess electrical energy can
be converted into hydrogen and stored for use by specially developed FCEVs. The only other
ingredient required is tap water - which is split into hydrogen and oxygen.
The FCEVs
When they are driven, the FCEV’s internal fuel cell converts compressed hydrogen from its fuel
tank into electricity - which then powers the motor. These vehicles have a large environmental
benefit in that they produce zero tailpipe emissions, only water. In fact, if renewable energy is
used to create the hydrogen in the first place, the FCEV can rightly claim to drive without
generating any carbon emissions. Importantly for customers, these vehicles have the same
acceleration and performance of the petrol and diesel fuelled cars they are used to. They also
present a huge step forward for motorists compared to most battery-electric cars which can be
driven relatively short distances and take many hours to recharge. FCEVs can be refuelled in
minutes, exactly as you would refuel a vehicle with petrol.
The challenge of getting FCEVs into wider use
Shell already has hydrogen refuelling facilities in several countries around the world. These
innovative service stations take around seven months to build and undergo extensive safety
testing before being signed off for use. This includes ensuring the site meets all relevant
regulations and testing the storage vessel for its ability to handle pressure and a wide internal
and external range of temperatures. To motorists, the facilities look similar to a regular filling
July 2017 18
station, with the addition of large hydrogen storage vessels.
However, for hydrogen to really have an impact in the fuel market, manufacturers of FCEVs,
fuel suppliers and governments will need to collaborate. At the same time as the manufacturers
produce the vehicles, the infrastructure for them to be used in refuelling needs to be built.
Consumers will only invest if both vehicles are available and refuelling is possible and
convenient.
Shell has taken a leading role in several such collaborations around the world. These involve,
at the very least, a car manufacturer – and often other energy companies and governments to
provide support and funding.
Could we see fuel cell electric trucks fuelled by hydrogen in the future?
While there aren’t yet any such trucks on the road or indeed service stations that have the
facilities to cater to FCEV trucks, this is a definite possibility. Several prototypes of a hydrogen
fuelled truck are known to have been built by German auto manufacturer, Artotech, and are in
the testing phase this year. The fuelling service stations required are likely to be similar to those
for smaller vehicles, but with significantly larger storage tanks.

July 2017 19
SECTION 6: COMMERCIAL INFORMATION ABOUT THE TURPAQ REGION
PREDICTED MARKET VALUE7 ($ BILLIONS)8 OF OIL AND GAS PRODUCTS OVER NEXT 5
YEARS (BY COUNTRY)
Predicted Petrol Market Predicted Diesel Market

Value in the Turpaq Region Value in the Turpaq Region
3.5 5
4.5
3
4
2.5 3.5
3
$Billions
$Billions
2
2.5
1.5
2
1 1.5
1
0.5
0.5
0 0
This year In five years This year In five years
Bavar Khad Almay Bavar Khad Almay
Predicted Lubricants Predicted FCEV hydrogen

Market Value in the Turpaq fuel Market Value in the
Region Turpaq Region
5 1.2
4.5
1
4
3.5
0.8
3
$Billions
$Billions
2.5 0.6
2
0.4
1.5
1 0.2
0.5
0 0
This year In five years This Year In five years
Bavar Khad Almay Bavar Khad Almay
7Market value: the gross revenue (sales value) of product across all suppliers before costs, based on
predicted demand.
8 Market Value in Billions – $1 Billion = $1,000 million ($1,000,000,000)

July 2017 20
SHELL AND TURPAQ REGION COMPETITORS
BAVAR: CURRENT SITE FIGURES

Number of Shell owned Number of Grahal Number of G-Energy Number of Petrolink
retail sites owned retail sites owned retail sites owned retail sites
Standard HGV Standard HGV Standard HGV Standard HGV
Basic Station 5 2 6 4 14 12 16 14
FCEV recharging area 0 0 0 0 10 0 14 0

Basic
Enhanced retail area: groceries 5 0 3 0 14 5 8 8
service
stations Enhanced retail area: lubricants 2 0 3 4 10 8 10 14
with:
Car/HGV wash 3 1 1 0 14 8 14 10
Outdoor family area 0 0 4 0 8 0 6 0
Bavar: A view over the last three years

Market Share by energy company: 2019-2021
Key changes over the last three years: 100%
90%
 In early 2019, G-Energy added eight new HGV sites 35 29
80% 39
70%
 In mid 2020, Petrolink upgraded its retail areas for lubricants
60%
in all HGV sites and added FCEV services to six sites
50%
40 48
 Grahal’s service stations have seen no real investment since 40% 38
2018 30%
20% 10 8 9
10% 15 15 14
0%
2019 2020 2021
July 2017 21 Shell Grahal G-Energy Petrolink
KHAD: CURRENT SITE FIGURES

Number of Shell owned Number of Khadan Number of G-Energy Number of Alforgas
Basic Station 2 2 15 18 5 2 3 4
Basic service Enhanced retail area: lubricants 2 2 8 10 5 2 3 3
stations with:
Car/HGV wash 0 0 8 12 5 2 2 1
Khad: A view over the last three years

Market Share by energy company: 2019-2021
100%
Key changes over the last three years: 10 10
13
90%
 In early 2019, Khadan invested in six more HGV sites 80% 10 15
25
across the country
70%
 In mid-late 2020, G-Energy fitted out 100% of its 60%

Standard and HGV sites with a lubricants area 50%
66 65
40% 55
 Alforgas brought out 3 new FCEV recharging areas
30%
in late 2021
20%
10%
11 10 10
0%
2019 2020 2021
Shell HR Analytics & Assessment Shell Khadan G-Energy Alforgas

July 2017 22
ALMAY: CURRENT SITE FIGURES

Number of shell owned Number of Alamack Number of G-Energy Number of High-Gas
Basic Station 5 2 10 2 14 4 16 8

Basic service
Enhanced retail area: lubricants 2 0 3 2 6 4 16 8
stations with:
Car/HGV wash 5 2 10 2 10 4 10 3
Almay: A view over the last three years Market Share by energy company: 2019-2021
100%
Key changes over the last three years:
90%
30
 In early 2019, Alamack enhanced all Standard sites with 80% 44
groceries 70%
50
 In mid 2019, G-Energy and High-Gas both made 60%

significant investments in FCEV recharging areas for of 50% 38
their Standard sites
40% 36
32
 High-Gas added lubricants into all Standard and HGV 30%
Site in early 2020. 20% 21
13 11
10%
11 7 7
0%
2019 2020 2021
Shell Alamac G-Energy High-Gas
July 2017 23
 SECTION 7: SHELL’S INVESTMENT IN THE TURPAQ REGION
SETTING UP RETAIL SITES IN TURPAQ - AVERAGE COST PER SITE
COUNTRY TYPE OF SITE ACQUISITION CONSTRUCTION BASIC FIT OUT ADDITIONAL COST FOR STAFF TOTAL
OF LAND (STANDARD (FURNISHING, IT, ACCOMMODATING RECRUITMENT
PRE-FABRICATED9 BASIC CATERING) FCEVs AND TRAINING
BUILD) COSTS
Bavar Standard Site $1.3 million $1.5 million $1 million $1.8 million $0.5 million $6.1 million
HGV Site $1.5 million $1.8 million $1 million n/a $0.5 million $4.8 million
Khad Standard Site $2.5 million $1.5 million $1 million $1.8 million $0.4 million $7.2 million
Almay Standard Site $1.7 million $1.5 million $1 million $1.8 million $0.5 million $6.5 million
Notes
 An HGV site includes a forecourt with an average of eight fuel pumps set far enough apart to accommodate large haulage vehicles and a service station in which
customers pay for fuel and buy ancillary items. These HGV sites are often built next to a Standard Site. However, customers utilise either one site or the other;
services/pay kiosk are not shared
 Currently there are no HGV FCEVs so the additional option for accommodating FCEVs is not applicable for HGVs
 Recruitment and training costs are lower in Khad because it has a lower national average wage
 The average construction time of a new site, from completion of the land purchase to opening for business, is 12 months.
9 Pre-fabricated: a construction method where the building (external walls, roof panels etc.) is constructed in components at a factory and then
transported to the site and reassembled.
July 2017 24
SETTING UP RETAIL SITES IN TURPAQ - AVERAGE COST PER SITE FOR ADDITIONAL SITE OPTIONS
COUNTRY TYPE OF SITE Restaurant to seat Enhanced retail area Enhanced retail Motorised car/ Outdoor family rest area TOTAL
circa 40 Customers providing groceries/ area for HGV wash with picnic benches,
everyday essentials lubricants playground for under 12s
(50ft 2)
Bavar Standard Site $1 million $1 million $0.5 million $0.5 million $0.5 million $3.5 million
HGV Site $0.8 million $1 million $0.7 million $0.6 million n/a $3.1 million
Khad Standard Site $1.5 million $1 million $0.5 million $0.5 million $0.5 million $4 million
HGV Site $1 million $1 million $0.7 million $0.6 million n/a $3.3 million
Almay Standard Site $0.7 million $1 million $0.5 million $0.5 million $0.4 million $3.1 million
HGV Site $0.5 million $1 million $0.7 million $0.6 million n/a $2.8 million
Notes:
 All costs above include purchase of additional land, and staff recruitment and training costs, where applicable. For illustration, the restaurant requires multiple
kitchen and serving staff and the enhanced retail area for lubricants requires 1-2 additional expert customer service team members. The enhanced retail area
providing groceries/everyday essentials, the motorized car/HGV wash and the outdoor family rest area do not require additional staff.
 40-person restaurant fit-out costs are higher for standard sites compared to HGV sites because the standard of decoration and furnishings are higher
 Motorised HGV wash machines are more expensive and require a larger site than car washes
 An enhanced retail area for lubricants costs more for an HGV site compared to a standard site because the variety of lubricants and the quantities involved are
greater, requiring a larger footprint

July 2017 25
 SECTION 8: EMAILS
DOCUMENT MODIFY LAYOUT TOOLS SUPPORT Close

From Liselotte Hermann, Regional Manager, Eastern Europe
To Turpaq Region Team
Subject Update on Eastern Europe retail expansion project
Received Today March 16th 2022
Hi there,
I understand that you’re looking into the Tupaq Region and getting to know the market there. As
we’re almost neighbours and I’ve recently undergone a significant development project in the Yamar
Region I thought you might be interested in some of our experiences.
In the last 12 months, we built 15 new service stations throughout Yamar; ten serving motorists and
five for HGVs. The five HGV sites have been the greatest success. We equipped each with an
enhanced lubricants retail area, complete with an expert attendant to give advice and discuss the
most suitable products.
Unfortunately, some of the standard service stations have not been as successful. In two cases this
was due to us not fully taking into account the more intangible factors such as customer perceptions
when making our decisions. We received feedback about our station changing the nature and
ambience of the area.
On the positive side, we fitted out three service stations with FCEV service areas and two of these
have been very successful. Whilst the market is new and there aren’t yet a high proportion of FCEVs
on the road, our publicity, including social media, around the launch drove business of all types to
our service stations. It even increased regular petrol and diesel traffic! The third FCEV site has been
less profitable - it retrospect, it was in a particularly desirable and costly area to buy land. Whilst
profitability is down, we hope to see a return on investment over time.
We did have some unexpected and sometimes challenging negotiations with several national oil
companies in our region. In one country, a small number of employees from a local G-Energy service
station actually mounted a small campaign against us. We managed to turn things around, but I
think we underestimated how threatened people might feel about losing their jobs and livelihoods to
new competition.
I’d be happy to discuss this with you if that would be helpful?

Kind regards,
Liselotte
Regional Manager, Eastern Europe

July 2017 26
DOCUMENT MODIFY LAYOUT TOOLS SUPPORT Close

From Sam Soldini, Marketing Associate, Western Europe
To Turpaq Region Team
Subject Western Europe latest marketing success
Received Today March 16th 2022
Hi,
I heard you’re looking into the Turpaq region – sounds like exciting times out there! I thought you
might like to know about the recent activities we’ve undertaken over here that have been really
successful.
Our social media campaign ‘Make the future’ had incredible uptake; 80% more followers on Twitter
than expected - and unplanned spinoff discussions we hadn’t expected on Facebook. Some
interesting posts on Have@It and YouSay stimulated some heated but also passionate debates!
In terms of ROI10 of the marketing campaign, we’re yet to see the full results. First indication of impact
has been 22% increase in traffic to the Shell website over the first month. There’s also been a 13%
increase in applications for job roles in some countries.
I heard mobile coverage in Turpaq is improving all the time. Wasn’t there a big new investment in
infrastructure in Almay recently? I know the ecotourism lobby probably isn’t appreciating mobile
signal masts, but I imagine that would be a big opportunity for the region. Does Khad still have the
poor mobile reception it used to?
Looking forward to catching up with you on our call on Friday!
Sam,
Marketing Associate, Western Europe
10 ROI: Return on Investment – the benefit gained from investing resources such as time and money
into a specific venture or project

July 2017 27
 SECTION 9: ARTICLES
EnergyWise Magazine
Trends to watch in the energy sector
In this time of unprecedented change we felt it was time to provide some clarity on the key changes in our sector.
We’ve just completed the biggest survey we’ve ever sent out to you, our readers, on what you see as the biggest
trends in our sector. Here is a summary of the five main trends.
Further, deeper, colder Lower for Longer Thriving together in

The oil and gas industry as a whole is Oil and gas companies are partnership
now looking further and deeper for having to plan for the Partnerships with governments,
reserves. More remote locations, likelihood of future energy national oil companies and other
deep water exploration and extreme prices staying low for a energy companies have been
weather conditions make this a true significant period of time. essential for some time. Now,
challenge. For example, G-Energy Reducing costs, creating value however, it is negotiating the
has built two platforms in the Kragor in new ways and huge partnerships with our complex
Sea despite the most challenging organisational changes are network of suppliers of ancillary
weather conditions ever faced by an common responses. We’ve products and services that is the
offshore site. seen the value of energy true challenge. Fluctuations in
companies who haven’t energy prices have affected us
responded, such as DrumLock, all and we must now find
drop dramatically. mutually suitable arrangements
in a very different world.
e New energies Digitalisation

One more?
Digital communications impact our interactions around energy.
As new energies driven by the need
for more, cleaner energy arise, energy Consumers can now compare, buy, manage and monitor their
companies are all challenged to energy use with apps and devices.
innovate; 30% of energy companies G-Energy’s GoDigital vehicle performance tracker is already as
expect to start investing in serving huge hit with consumers wishing to reduce fuel consumption and
fuel to hydrogen vehicles within 2 environmental impact.
years and 20% say biomass will
become critically important within
three years.

July 2017 28
Haulage News and Opinion

Developments in Turpaq: looking forward and looking back
Recent investment in infrastructure, tunnels and service stations has led to significant steps forward in opening up
the Turpaq Region for haulage.
Torvar Tunnel
The Harlan Mountains have historically been a source of challenge for getting vehicles through the Bavar-Khad
border. As the requirement for heavy trucks through the mountain passes has increased, so have the queues at the
Porvan tunnel and the Krikan overpass. The Torvar Tunnel, completed three months ago, has significantly
improved traffic flow. Tolls are still a slight source of contention. The cash booths still experience long queues and
some argue there were too few booths allocated for cash which is still frequently used.
Road surface improvements in western Khad

The vast planes of Khad first experienced concrete east-west highways 18 years ago. Providing almost entirely flat
expanses, laying the highways was considered easy. Whilst the region was historically renowned for flooding, the
concrete highways have increased the regularity of flooding due to decreased drainage. The extremely windy
conditions across large swathes of western Khad can blow dust that completely covers the roads, especially in
areas that had been farmed.
The Khad Government has made some significant investments to improve roads in Khad. This has included
resurfacing roads and building high verges to hold back dust in strategic points. We expect this may well
encourage greater haulage through Khad (west/east), making journeys safer and more profitable.
Almay: An untapped frontier?

Almay has generally been seen as the reserve of rental-car driving holiday makers, motorcyclists taking in the
coastal views, and more recently, fuel cell vehicles for those able to invest in them and their low-carbon properties.
But could the sunny strip be opening up for haulage?
The coastlines of Jirvir have long enjoyed a steady shipping trade. Goods from countries to the south across the
Sumarti Sea would reach Jirvar by boat and travel north via a reliable trucking fleet. Recent political and economic
shifts, in Jirvir in particular, have led to a spate of pirate attacks off the coast of Jirvir. Whilst 85% of shipping still
arrives, companies are already looking for safer alternatives. With the newly resurfaced roads in western Khad
enabling smooth passage into Jirvir, there has been rumours of a permanent shift in transportation of goods. Three
global shipping firms have already begun to transport goods through Almay as a temporary measure - which may
become permanent.

July 2017 29

Commercial Case Study Candidate Info Pack PDF

Încărcat de

Informații document

Descriere originală:

Titlu original

Drepturi de autor

Formate disponibile

Partajați acest document

Partajați sau inserați document

Opțiuni de partajare

Vi se pare util acest document?

Este necorespunzător acest conținut?

Drepturi de autor:

Formate disponibile

Commercial Case Study Candidate Info Pack PDF

Încărcat de

Drepturi de autor:

Formate disponibile

GRADUATE ASSESSMENT – STAGE 2

Shell HR Analytics & Assessment

 INTRODUCTION FROM SAM FREEMAN

Date Today, March 16th 2022

From: Sam Freeman To: You

Project Turpaq Team Lead

Section Page Number

Section 1: Introduction to the Turpaq Region 4

Section 5: The Shell Service Station Offering 13

Section 6: Commercial Information about the Turpaq Region 19

Section 7: Shell’s investment in Turpaq 23

Shell HR Analytics & Assessment

 SECTION 1: INTRODUCTION TO THE TURPAQ REGION

INTRODUCTION TO THE TURPAQ REGION

Shell HR Analytics & Assessment

TURPAQ REGION OVERVIEW

POPULATION GDP PER CAPITA2 UNEMPLOYMENT MAIN INDUSTRIES

Manufacturing Moderate growth

Services Strong growth

Manufacturing Strong growth

Almay 4,150,000 1.9% $60,000 Moderate 15.0% 2.1% Fishing Static

Tourism Strong growth

SHELL’S STRATEGIC PRIORITIES

Shell’s Global Strategy

 Shell aims to be the world’s leading energy company.

Shell’s Strategy for the Turpaq Region

Shell HR Analytics & Assessment

OVERVIEW OF HISTORY, POPULATION AND ECONOMY

OVERVIEW OF HISTORY, POPULATION AND ECONOMY

Shell HR Analytics & Assessment

Shell HR Analytics & Assessment

Khad Daily Times

Hydrogen-fuelled HGVs6 on the horizon in Khad

Khad’s increase in manufacturing facilities and

However, something even more exciting is due to

OVERVIEW OF HISTORY, POPULATION AND ECONOMY

Land dispute halts station build

Shell HR Analytics & Assessment

 SECTION 5: THE SHELL SERVICE STATION OFFERING

Shell Fuels Shell Engine Oils and Lubricants

Motoring tips and advice Shell Drivers Club

Shell HR Analytics & Assessment

Car Wash, Air and Accessories Attended Service

The Shell Fuel Card

Accommodating Business Customers

Shell HR Analytics & Assessment

Date and Time Today, March 16th 2022

From: Sam Freeman To: You

Subject Shell Lubricants Business

Shell: Leading the Lubricants Business

Shell Supreme Car Lubricants

Shell HR Analytics & Assessment

Shell Ultra Motorcycle Lubricants

Shell Proform Truck and Heavy-Duty Engine Lubricants

Shell HR Analytics & Assessment

Hydrogen-powered Electric Vehicles: A look to the future

Hydrogen: helping to balance the power grid

The challenge of getting FCEVs into wider use

station, with the addition of large hydrogen storage vessels.

Shell HR Analytics & Assessment

SECTION 6: COMMERCIAL INFORMATION ABOUT THE TURPAQ REGION

Predicted Petrol Market Predicted Diesel Market