Shell to sell stake in offshore Brazil project for $1bn

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.

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.

The two vessels include the Espírito Santo at Parque das Conchas and the Fluminense at the Bijupirá/Salema fields.

The 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.

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.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.

According to the company, the transaction is subject to approval by the National Petroleum and Gas Agency and the Administrative Council for Economic Defense.

_{source : offshore-technology.com}