Shell Completes Acquisition of Additional 23% Interest in BC-10 Project

Royal Dutch Shell plc announced Monday that it has completed the acquisition of an additional 23 percent interest in the Parque das Conchas (BC-10) project offshore Brazil for $1 billion.

Regulatory approvals have been obtained and Shell will now hold a 73 percent operating interest. The purchase is effective Jan. 1. Partner ONGC, previously holding a 15 percent working interest, will now hold a 27 percent working interest. This purchase is the result of pre-empting a third party’s bid for Petrobras’ 35 percent interest in BC-10.

Currently, BC-10 is producing approximately 50,000 barrels of oil equivalent per day (boepd). 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 Oct. 1, with an expected peak production of 35,000 boep/d.  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.