Shell to sell 20% Orca Project stake to Kuwait’s KUFPEC

Core Viewpoint - Shell's subsidiary, Shell Brasil Petróleo, has agreed to divest a 20% interest in the Orca Project to Kuwait Foreign Petroleum Exploration Company (KUFPEC), while retaining a 50% ownership and continuing as the project operator [1][2]. Group 1: Transaction Details - The financial terms of the divestment were not disclosed [1]. - The Orca Project, located in Brazil's Santos Basin, is a deep-water development that includes both the BM-S-54 concession contract and the South Orca production sharing contract [1]. - The deal is pending regulatory approval and is expected to close by late 2026 [3]. Group 2: Strategic Implications - This transaction aligns with Shell's capital allocation strategy and reinforces its position as the largest foreign oil and gas producer in Brazil [2]. - The partnership with KUFPEC enhances strategic alliances in various upstream sectors, building on previous collaborations in Egypt and Kuwait [4]. Group 3: Project Operations - Shell currently holds a 70% stake in the Orca Project, with Ecopetrol owning the remaining 30% [4]. - A contract was awarded to Vallourec for offshore operations at the Orca Project, involving the provision of oil country tubular goods, with drilling scheduled to begin in April 2027 [5].