By Brazil Stock Guide – Shell has agreed to sell a 20% stake in its Orca deepwater project in Brazil’s pre-salt Santos Basin to the Kuwait Foreign Petroleum Exploration Company, reinforcing the British major’s strategy of disciplined capital allocation while preserving operational control. Following the transaction, Shell will remain operator with a 50% interest, while Ecopetrol will retain 30%.
The Orca project is a unitized development covering the BM-S-54 concession and the Sul de Orca production-sharing contract, one of Shell’s core upstream bets in Brazil. Before the deal, Shell held 70% of the asset alongside Ecopetrol, with Pré-Sal Petróleo S.A. managing the government’s interests under the production-sharing agreement. The transaction is expected to close by the end of 2026, subject to regulatory approvals, pre-emptive rights and customary closing conditions.
“We are pleased to welcome KUFPEC as a partner in Orca, a key project to sustain liquids production in our upstream portfolio,” said Peter Costello, Shell’s upstream president. He added that the move builds on the companies’ cooperation in Egypt and deepens Shell’s long-term strategic partnership with Kuwait and the Kuwait Petroleum Corporation.
The sale comes after the Orca partners reached a final investment decision in March 2025, underscoring Shell’s effort to recycle capital while remaining the largest foreign oil and gas producer in Brazil. For KUFPEC, the entry strengthens its upstream footprint outside Kuwait and expands its exposure to Brazil’s pre-salt, one of the most competitive deepwater provinces globally. For Shell, the deal balances risk and funding needs without diluting operational leadership in a flagship offshore development.
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