Royal Dutch Shell has entered into a deal with Qatar Petroleum International to sell a 23% interest in the Parque das Conchas (BC-10) project offshore Brazil for approximately $1bn.
The company’s latest decision is said to be in line with its 2014 plan to ramp up disposals.
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The oil firm said it would continue to operate the project BC-10 with a 50% working interest and keeps a significant upstream presence in Brazil.
Shell’s sale of assets is aimed at bringing down the company’s net capital investment, or spending on projects adjusted for acquisitions and disposals, which increased $45bn in 2013.
Shell is operating two floating, production, storage and offloading (FPSO) vessels in Brazil’s offshore in addition to the recent entry into the Libra oil discovery.
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The two vessels include the Espírito Santo at Parque das Conchas and the Fluminense at the Bijupirá/Salema fields.
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By GlobalDataThe project, which came on-stream in 2009, has produced more than 80 million barrels of oil equivalent (boe) since then and is currently producing approximately 50,000boe/d.
On 1 October 2013, phase 2 of the project to tie-in the Argonauta O-North field came online, with an expected daily peak production of 35,000boe.
The company took the final investment decision for phase 3 of the project in July 2013 and once online, it is expected to reach a peak production of 28,000boe.
According to the company, the transaction is subject to approval by the National Petroleum and Gas Agency and the Administrative Council for Economic Defense.
Image: Shell headquarters in The Hague, Netherlands. Photo: courtesy of P.L. van Till.
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