Shell subsidiary ShellBrasil Petróleo has entered into an agreement with the Kuwait Foreign Petroleum Exploration Company (KUFPEC) to divest a 20% interest in the Orca Project.
The financial terms of the deal were not disclosed.
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Located in the pre-salt region of Brazil’s Santos Basin, the Orca Project – formerly known as Gato do Mato – is a deep-water, unitised development that includes both the BM-S-54 concession contract and the South Orca production sharing contract (PSC).
Shell will continue as the project operator and retain a 50% ownership following the transaction.
According to the company, the deal underscores its capital allocation strategy across its global portfolio, maintaining its position as the largest foreign oil and gas producer in Brazil.
Additionally, it enhances the strategic alliance between Shell and KUFPEC in various upstream sectors.
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By GlobalDataThe closing of the deal is pending regulatory approval and subject to preemptive rights and closing conditions. It is expected to conclude by late 2026.
Shell upstream president Peter Costello said: “We are pleased to welcome KUFPEC as a partner in Orca, a project essential to sustaining liquids production in our Upstream portfolio.
“With this advancement, we expect to expand on the positive results of our collaboration with KUFPEC in Egypt. This move further deepens our long-term commitment and strategic partnership in Kuwait, in line with the strong collaboration we maintain with Kuwait Petroleum Corporation.”
Currently, Shell holds a 70% stake in the Orca Project. Ecopetrol holds the remaining 30%, with Pré-Sal Petróleo managing the PSC.
Last month, Shell awarded a contract to Vallourec to support the offshore operations at the Orca Project. Awarded through a competitive bidding process, the contract involves providing oil country tubular goods products and services.
Drilling at the Orca Project is scheduled to begin in April 2027, with plans to drill ten wells that will require 12,000–15,000t of pipes.
