• 4 minutes Is The Three Gorges Dam on the Brink of Collapse?
  • 8 minutes The Coal Industry May Never Recover From The Pandemic
  • 11 minutes China Raids Bank and Investor Accounts
  • 9 hours In a Nutshell...
  • 8 hours Is OilPrice a cover for Green Propganda
  • 7 hours Why Wind is pitiful for most regions on earth
  • 20 hours During March, April, May the states with the highest infections/deaths were NY, NJ, Ma. . . . . Today (June) the three have the best numbers. How ? Herd immunity ?
  • 1 day Putin Paid Militants to Kill US Troops
  • 2 days Victor Davis Hansen on Biden's mental acuity " . . unfit to serve". With 1 out of 5 Democrats admitting it. How many Dem's believe it but will not admit it?
  • 2 days Putin Forever: Russians Given Money As Vote That Could Extend Putin's Rule Draws To A Close
  • 2 days Tesla Model 3 police cars pay for themselves faster than expected, says police chief
  • 20 hours Joe Biden to black radio host, " If you don't vote for me you ain't black". That's our Democratic Party nominee ?
  • 2 days Happy 4th of July!
  • 2 days Apology Accepted!
  • 3 days The Political Genius of Donald Trump
  • 4 days Per most popular Indian websites it was Indian troops not Chinese troops breach of LAC that caused the clashes. If you know any Indian media that claim to the contrary please provide the link
Another OPEC Producer Looks To Back The Aramco IPO

Another OPEC Producer Looks To Back The Aramco IPO

As the world’s largest initial…

The Worst Oil Trades Ever Made

The Worst Oil Trades Ever Made

Wall Street is full of…

Joao Peixe

Joao Peixe

Joao is a writer for Oilprice.com

More Info

Premium Content

Shell to Sell Brazilian Oil Field to Qatar for $1bn

Energy giant Royal Dutch Shell has announced a deal with Qatar Petroleum to sell 23% of its take in a Brazilian oil field for $1 billion as Shell seeks to purge some of its assets to offset soaring spending costs.

Shell acquired a 23% stake in the Brazilian oilfield, Parque das Conchas field, or BC-10, from state-run Petrobras and the sale is expected to net minimum, if any, profit.

Only last October, Shell and its other partner in BC-10, India’s Oil & Natural Gas Corp., had agreed to raise their stakes in the venture by dint of blocking another group’s bid to acquire Petrobras’ 35% stake.

With a new CEO at helm of Shell, however, and problems justifying soaring expenditures, it’s all about downsizing and divesting some of the company’s biggest, most expensive endeavors that have shown less reward in relation to risk.

Related article: Shell Cancels Arctic Drilling Campaign Amid Declining Profitability

In this latest deal, Shell will be giving up an oil field that is producing about 50,000 barrels of oil equivalent a day, with a second project phase projecting an additional 35,000 bpd at peak. The final investment decision for the third phase was approved last summer and would add an additional 28,000 bpd.

Shell has agreed to sell $2.1 billion in holdings in Australia and Brazil and is said to be considering divesting some of its troublesome Nigeria assets. There has also been talk that Shell might sell off all or part of its $6.3 billion stake in Woodside Petroleum Ltd. The company has already sold around $300 million in assets in Q4 2013, including a liquids-rich shale play in Ohio.

Shell’s Q4 2013 earnings of $2.9 billion were down from $5.6 billion for the same quarter in 2012. Shell blames high exploration costs and problems in Nigeria for the most part. Overall, profits were down 71% based on earnings statements released on Thursday. Shell’s oil production was down 5% in 2013 to 3.25 million barrels per day, largely because of issues in Nigeria and overall natural decline in its mature oil fields.

By. Joao Peixe of Oilprice.com


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News