Oil and gas company Shell has completed the acquisition of an additional 23% interest in the Parque das Conchas (BC-10) project offshore of Brazil for $1bn.
The company secured regulatory approvals and will hold a 73% operating interest in the project.
According to Shell, the purchase is effective as of 1 January 2013 and is the result of pre-empting a third party’s bid for Petrobras’s 35% interest in BC-10.
Partner ONGC, which earlier owned a 15% working interest, will now hold a 27% interest.
Parque das Conchas, which came on-stream in 2009, is producing about 50,000boe/d at present and has produced more than 80 million barrels of oil equivalent (boe) since then.
The first phase of the project included development of three fields tied back to the floating, production, storage and offloading vessel (FPSO) Espirito Santo through subsea wells and manifolds.
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The phase involved nine producing wells as well as one gas injector well and by July 2013 the project had produced more than 70 million boe.
Phase two of the project, which came online on 1 October 2013 with a daily expected peak production of 35,000boe, was to tie-in the Argonauta O-North field.
Shell noted that the final investment decision for phase three of the BC-10 project was taken in July 2013 and is expected to reach a peak production of 28,000boe, once online.
During this phase, the company and its partners Petrobras and ONGC will move forward with the installation of subsea-infrastructure at the Massa and Argonauta O-South fields.
Parque das Conchas (BC-10), which lies in around 1,780m of water, represents a key milestone in the development and commercialisation of Brazil’s deep-water oil.
Image: Shell’s head office, Carel van Bylandtlaan, The Hague. Photo courtesy of P.L. van Till.