ONGC, Shell buy Petrobras offshore stake for $1.64 billion1 min read . Updated: 31 Dec 2013, 06:29 PM IST
Shell raises stake to 73% from 50%, while ONGC's stake climbs to 27% from 15% in Parque das Conchas project
Brasilia Newsroom: Royal Dutch Shell Plc and India’s Oil and Natural Gas Corp. Ltd (ONGC) raised their stake in an offshore Brazilian development by acquiring Petroleo Brasileiro SA’s share for $1.64 billion, Petrobras said.
Shell increased its stake to 73% from 50%, while ONGC’s stake climbed to 27% from 15% in the Parque das Conchas project, also known as BC-10, the Hague-based company said on Tuesday in a separate statement. The purchase effective 1 January is the result of pre-empting an unidentified bid for Petrobras’s 35% stake in the field, Shell said, without elaborating.
Shell operates the heavy-oil block, about 110km off southeast Brazil. The Parque das Conchas project, which came online in 2009, is producing an estimated 50,000 barrels of oil equivalent a day.
“The development’s second phase, to tie into the Argonauta 0-North field, started on 1 October and is expected to reach peak production of 35,000 barrels a day," Shell said. “The third phase of BC-10 is forecast to pump as much as 28,000 barrels a day."
Petrobras, the most indebted publicly traded oil company, has been selling assets to help finance projects in Brazil’s deep waters. The state-controlled company took a 40% stake in an offshore field called Libra, the largest discovery in Brazil’s history, in a government auction on 21 October.
Petrobras confirmed the asset sale and purchase price in a Brazilian regulatory filling. Bloomberg