First, Shell agreed to divest a 20% stake in the Orca project, located offshore Brazil, as part of its strategy to optimize its exploration and production portfolio. The transaction incorporates Kuwait Foreign Petroleum Exploration Company as a new partner in one of the country’s most important pre-salt developments.
The sale of the Orca project shareholding
Subsequently, the Anglo-Dutch oil company confirmed that it will maintain operational control of the asset with a 50% stake, allowing it to continue leading the project’s technical and strategic decisions. In this way, Shell reinforces its position as the largest foreign producer in Brazil and consolidates its presence in the Santos basin.
On the other hand, the shareholding structure of the project will be formed by Shell with 50%, Ecopetrol with 30% and KUFPEC with 20%, once the closing of the transaction is completed. The agreement still depends on regulatory approvals, eventual preferential rights and other usual conditions in this type of operations, with an estimated completion date towards the end of 2026.
Orca is also being developed in the deep waters of the Brazilian pre-salt, an area that concentrates some of the largest offshore resources in Latin America and is key to Brazil’s energy strategy. The entry of a new international partner seeks to spread risks, secure financing and strengthen long-term execution.
At the same time, executives of Kuwait Petroleum Corporation announced that the participation in Orca is part of a broader international expansion plan. Shell emphasized that this operation is based on a previous relationship with KUFPEC, built on joint projects in other markets.
Finally, both companies recalled their collaboration in Egypt, where a subsidiary of KUFPEC and Shell recently advanced in a final investment decision for the development of gas in the Mina West field. This background reinforces mutual trust and explains the parties’ interest in deepening their cooperation also in Brazil.
Source: Reuters
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