Shell has agreed to sell a 20% stake in its Orca project offshore Brazil to Kuwait Foreign Petroleum Exploration Company (KUFPEC), the oil major said on Tuesday.
Shell will maintain a 50% stake and remain the operator, the company said, adding it would retain its position as the largest foreign producer in Brazil. It expects the deal to complete by the end of 2026.
The deal is subject to regulatory clearance, the election of preferential rights and closing conditions, Shell said.
Upon completion, Shell will hold a 50% operating stake in the project, Colombia's Ecopetrol 30% and KUFPEC 20%.
Orca is a deep-water project in the pre-salt Santos Basin, offshore Brazil.
Earlier on Tuesday, the CEO of Kuwait Petroleum Corporation said KUFPEC would sign a contract to invest in a field in Brazil with Shell.
"Building on this momentum, we look forward to expanding on our successful project with KUFPEC in Egypt," said Peter Costello, upstream president for Shell. "This further deepens our long-term commitment and strategic partnership in Kuwait through our strong collaboration with Kuwait Petroleum Corporation."
In July a subsidiary of KUFPEC announced a final investment decision with Shell Egypt to develop gas exploration at Egypt's Mina West field, Kuwaiti state news agency reported.
(Reuters)