São Paulo – Kuwait Foreign Petroleum Exploration Company (KUFPEC), a Kuwaiti oil and gas company, has agreed to purchase a 20% stake in the Orca Project, a deepwater pre-salt exploration venture in Brazil’s Santos Basin. The announcement was made by Shell Brasil Petróleo Ltda. (Shell Brasil), a subsidiary of Shell plc, which sold the stake to the Gulf country company.
Founded in April 1981 by Kuwait Petroleum Corporation (KPC), state-owned KUFPEC operates internationally in the exploration, development, and production of crude oil and natural gas outside Kuwait. The Arab country produces heavily domestically and ranks among the world’s largest oil producers and exporters.
Shell said that after the transaction is completed, it will remain the operator of the Orca project, retaining a 50% stake. The company says the deal reinforces disciplined capital allocation across Shell’s global portfolio, keeps it as the largest foreign oil and gas producer in Brazil, and strengthens its strategic partnership with Kufpec in various upstream markets.
“We are pleased to welcome KUFPEC as partner in Orca, a project which contributes to maintaining liquids production from our advantaged Upstream business,” said Shell’s Upstream President, Peter Costello. Upstream refers to oil exploration and production operations. According to the company, the transaction is subject to regulatory approval, the exercise of pre-emptive rights, and closing conditions. Shell expects the deal to be completed by the end of 2026.
Before the deal, the Orca Project participants were Shell with 70%, Ecopetrol with 30%, and Pré-Sal Petróleo S.A. (PPSA) as manager of the Production Sharing Contract (PSC). After the transaction, Shell retains 50% and remains the operator, Ecopetrol keeps its 30%, and KUFPEC takes 20%.
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Translated by Guilherme Miranda
