Shell has signed an agreement with Qatar Petroleum International to dispose a 23% interest in the Parque das Conchas (BC-10) project offshore Brazil.
The transaction is worth approximately US $1 billion, and it 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).
Shell will retain 50% interest in BC-10 and will continue to operate it.
Currently, BC-10 is producing approximately 50,000 boe/d. Since coming on-stream in 2009, BC-10 has produced more than 80 million barrels of oil equivalent (boe).
Phase 2 of the project, to tie-in the Argonauta O-North field, came online on October 1st 2013, with an expected peak production of 35,000 boe per day. The final investment decision for Phase 3 of the BC-10 project was taken in July 2013 and once online is expected to reach a peak production of 28,000 boe.
Shell is currently operating two FPSO vessels offshore Brazil.
Press Release, January 29, 2014; Image: Shell