Shell Increases Interest Offshore Brazil For $1 Billion

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Acquired an additional 23% WI in the BC-10 project offshore Brazil bringing total WI to 73%.

Shell (NYSE: RDS-A, RDS-B) announced Dec. 30 it has completed the acquisition of an additional 23% interest in the Parque das Conchas (BC-10) project offshore Brazil for US$1 billion.

Regulatory approvals have been obtained and Shell, based in The Hague, the Netherlands, will now hold a 73% operating interest. The purchase is effective Jan. 1, 2013. Partner ONGC, previously holding a 15% working interest, will now hold a 27% working interest. This purchase is the result of pre-empting a third party’s bid for Petrobras’ 35% interest in BC-10.

Currently, BC-10 is producing 50,000 barrels of oil equivalent per day (BOE/d). Since coming onstream in 2009, BC-10 has produced more than 80 million BOE. Phase two of the project, to tie-in the Argonauta O-North field, came online on Oct. 1, 2013, with an expected peak production of 35,000 BOE/d. Final investment decision for phase three of the BC-10 project was taken in July 2013 and once online is expected to reach a peak production of 28,000 BOE.