Shell has agreed to sell a 23% stake in the Parque das Conchas (BC-10) project, offshore Brazil, to Qatar Petroleum International, for about US$1 billion.
Shell will continue to operate BC-10, with a 50% working interest, and retains a significant upstream presence in Brazil.
In addition to the recent entry into the Libra oil discovery, Shell is currently operating two floating, production, storage and offloading (FPSO) vessels in Brazil’s offshore – the Espírito Santo (pictured) at Parque das Conchas and the Fluminense at the Bijupirá/Salema fields.
Currently, BC-10 is producing about 50,000 boe/d. Since coming on-stream in 2009, BC-10 has produced more than 80MM boe.
Phase 2 of the project, to tie-in the Argonauta O-North field, came online on 1 October 2013, with an expected 35,000 boe/d peak production.
The final investment decision for the BC-10 Phase 3 project was taken in July 2013, and, once online, it is expected to reach a peak production of 28,000 boe/d.
Shell has also other interests in Brazil, particularly our Lubricants business and our joint venture Raízen, the leading sugar cane ethanol producer.
Today's deal is subject to approval by the National Petroleum and Gas Agency (ANP, Brazil’s Oil and Gas regulator) and the Administrative Council for Economic Defense (CADE, Brazil’s anti-trust authority).
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