Shell divests partial interest in Orca project offshore Brazil
Shell Brasil Petróleo Ltda., a subsidiary of Shell Plc, has agreed to sell a 20% stake in the Orca project offshore Brazil to the Kuwait Foreign Petroleum Exploration Co. (KUFPEC). A deal price was not disclosed.
Shell will remain operator of the Santos Basin presalt project with a 50% stake.
In a Feb. 3 press release, Shell said the deal strengthens the partnership between the two companies “in several upstream markets.”
The Orca gas-condensate project is a unitized development covering the BM-S-54 concession contract and the South Orca production sharing contract (PSC).
Shell and partners took final investment decision in March 2025 on what was then known as Gato do Mato. Initial operations involve reinjecting natural gas to support reservoir pressure, with the future possibility of exporting gas to onshore plants.
The blocks lie along the coast of Rio de Janeiro, in water depths of 1,750-2,050 m.
Prior to KUFPEC's entry, the contracts involved Shell (operator, 70%), Ecopetrol (30%) and Pré-Sal Petróleo SA (PPSA), as manager of the PSC. Upon completion of the farm-out, Shell will hold 50% as operator, with partners Ecopetrol (30%) and KUFPEC (20%).
Shell’s deal to divest the partial interest is subject to regulatory approval, the exercise of preemptive rights and closing conditions. Completion is expected by year-end.
