ShellBrasil Petróleo has agreed to sell a 20% stake in the Orca Project to KUFPEC. The deal’s financial terms were not disclosed. Located in Brazil’s Santos Basin, the project includes both a concession contract and a production sharing contract. Shell will remain the project operator with a 50% ownership stake post-transaction. The deal is pending regulatory approval and is expected to close by late 2026.

The agreement underscores Shell’s capital allocation strategy and strengthens its partnership with KUFPEC. Shell’s upstream president, Peter Costello, highlighted the importance of the deal in sustaining liquids production. The company aims to build on its successful collaboration with KUFPEC in Egypt and deepen its partnership with Kuwait Petroleum Corporation.

Currently, Shell holds a 70% stake in the Orca Project, with Ecopetrol holding the remaining 30%. Last month, Shell awarded a contract to Vallourec for offshore operations at the Orca Project. Drilling at the project is scheduled to commence in April 2027, with plans to drill ten wells requiring 12,000–15,000t of pipes.

Read more at Yahoo Finance: Shell to sell 20% Orca Project stake to Kuwait’s KUFPEC