Shell sells stake in Brazil project to Qatar for $1bn

Shell has agreed a deal to sell a 23 per cent interest in the Parque das Conchas project (BC-10), off the coast of Brazil, to Qatar Petroleum International.

The deal will see the oil giant make around $1bn (£0.6bn), as it continues its two-year, $15bn divestments drive.

A series of three disappointing quarterly results and a shock profit warning for the fourth quarter means Shell’s moving to do all it can to keep up with European competitors, tightening controls on costs and upping disposals in order to generate cash flow.

Shell will continue to operate BC-10 with a 50 per cent working interest, retaining a “significant upstream presence in Brazil”.

BC-10 produces around 50,000 barrels of oil equivalent (boe) a day and, since coming on-stream in 2009, has produced more than 80m boe.

Phase 2 of the project came online on 1 October with an expected peak production of 35,000 boe a day.

Shares in Shell are currently up 0.6 per cent.