Shell and ONGC buy Petrobras offshore stake for $1.64 billion


Shell and ONGC buy Petrobras offshore stake for $1.64 billion


HAGUE (Bloomberg) -- Royal Dutch Shell and Oil & Natural Gas Corporation raised their stake in an offshore Brazilian development by acquiring Petroleo Brasileiro’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 company said in a separate statement. The purchase effective January 1 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 110 km off southeast Brazil. The Parque das Conchas project, which came online in 2009, is producing an estimated 50,000 boed.

The development’s second phase, to tie into the Argonauta 0-North field, started on October 1 and is expected to reach peak production of 35,000 bpd, Shell said. The third phase of BC-10 is forecast to pump as much as 28,000 bpd.

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 October 21.

Petrobras confirmed the asset sale and purchase price in a Brazilian regulatory filling.

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