Shell share price: Divestments continue with stake in Brazilian oil project

on Jan 29, 2014
Updated: Apr 9, 2020
Listen, Wednesday, January 29: Royal Dutch Shell Plc (LON:RDSA) is offloading a stake in an oilfield offshore Brazil, in line with its plans to step up divestments this year amid investor pressure to improve returns and keep costs in check. Shell said today that it had agreed to sell a 23 percent interest in the Parque das Conchas field to Qatar Petroleum International for about $1 billion (£602 million).

Shell’s share price has been little changed in morning trading in London, having added just under 0.5 percent.
**Shell offloads 23 percent stake in Brazil oilfield**
The European energy giant announced today in a statement that it had agreed to sell a 23 percent stake in the Parque das Conchas or BC-10 project offshore Brazil to Qatar Petroleum International for about $1 billion. Following the transaction, subject to regulatory approval, Shell will continue to operate the field with a 50 percent interest.

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The project, which came on-stream in 2009, has produced more than 80 million barrels of oil equivalent (boe) and is currently producing about 50,000 boe per day. The final investment decision on the third phase of the project was approved in July last year.
The European energy giant noted that it would retain “a significant upstream presence in Brazil”. In October, a consortium of companies including Shell won a 35-year production-sharing contract to develop the giant Libra pre-salt oil discovery located in the Santos Basin offshore Brazil.

**Ramping up disposals**
Shell has signalled that it would step up divestments in 2014 and 2015 to bring down its capital expenditure which climbed to a record $45 billion last year. The company’s divestments are expected to total $15 billion over the next two years.

Earlier this month, Shell agreed to sell its stakes in a liquefied natural gas (LNG) project in Western Australia for $1.135 billion. (Shell share price: Company reportedly eyeing Ho-Ho pipeline stake sale)

Shell, which is scheduled to publish its fourth-quarter results tomorrow, recently issued its first profit warning in a decade, saying that its earnings would be adversely impacted by across-the-board issues. (Shell share price drops as energy giant issues profit warning)
**As of 08:46 UTC, buy Shell shares at 2133.50p.**
**As of 08:46 UTC, sell Shell shares at 2132.00p.**
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