Shell Increases Interest in Offshore Brazil BC-10

Shell today has announced that 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 will now hold a 73% operating interest. The purchase is effective January 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 approximately 50,000 boe/d. Since coming on-stream in 2009, BC-10 has produced more than 80 million barrels of oil equivalent (boe). Phase 2 of the project, to tie-in the Argonauta O-North field, came online on October 1st 2013, with an expected peak production of 35,000 boe per day. Final Investment Decision for Phase 3 of the BC-10 project was taken in July 2013 and once online is expected to reach a peak production of 28,000 boe.