In its first-ever investment in South America, Qatar Petroleum International (QPI) has signed an agreement with Shell to buy the latter’s 23% stake in the Parque das Conchas (BC-10) project, an offshore Brazilian oil field, for $1bn.
Shell will continue to operate BC-10 with a 50% working interest and retains a significant presence in Brazil, while QPI will be an “active non-operating partner” and will support the developments of the project.
The transaction is subject to final approvals from the National Petroleum and Gas Agency (ANP, Brazil’s Oil and Gas regulator) and the Administrative Council for Economic Defense (CADE, Brazil’s anti-trust authority).
Currently, BC-10 is producing approximately 50,000 barrels oil equivalent a day (boe/d). Since coming onstream in 2009, BC-10 has produced more than 80mn barrels of oil equivalent (boe).
Phase 2 of the project, to tie-in the Argonauta O-North field, came online on October 1, 2013, with an expected peak production of 35,000 boe a 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.
Qatar Petroleum International CEO Nasser al-Jaidah expressed “great satisfaction” with the agreement and said, “QPI’s interest in Brazil’s BC-10 demonstrates our commitment to expanding our strategic and international investments globally”.
QPI was established in 2006 as a wholly-owned subsidiary of Qatar Petroleum (QP). Through its strategic partnership and ventures with major energy players worldwide, QPI is carving a pivotal role as an international energy investor.
QPI’s multibillion portfolio of investments are global in scope, including partnerships and joint venture initiatives in the United States, Canada, United Kingdom, Italy, Greece, Singapore, Vietnam, China, Egypt, Democratic Republic of Congo and Mauritania.
