(MENAFN - The Peninsula) Qatar Petroleum International (QPI) has entered into an agreement with oil major Royal Dutch Shell to buy 23 percent stake in the Brazilian oilfield Parque das Conchas (BC-10) for approximately 1bn. Shell will continue to operate BC-10 with a 50 percent 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), QPI said here yesterday
Currently, BC-10 is producing approximate 50,000 boe/d. 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 October 1st 2013, with an expected peak production of 35,000 boe per 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
The agreement marks the first investment QPI has made in South America. Nasser Al-Jaidah, QPI's Chief Executive Officer, expressed his great satisfaction with the agreement stating "QPI's interest in Brazil's BC-10 demonstrates our commitment to expanding our strategic and international investments globally.