Kuwait buys 20% stake in Brazilian oil project from Shell

Kuwait Foreign Petroleum Exploration Company will acquire a 20 percent stake in the Orca offshore project in Brazil from UK-based energy company Shell.

The Kufpec stake acquisition is subject to regulatory clearance in Brazil, the state-owned Kuwait News Agency reported.

Orca is a deep-water project in the pre-salt Santos Basin, with a capacity of 120,000 barrels of oil per day. The first shipment is expected in 2029. 

Pre-salt fields host oil reserves beneath thick layers of deposited salt.

The estimated recoverable resource volumes of the development are about 370 million barrels, the statement said.

Kufpec CEO Eisa Al-Maraghi said the deal grants access one of the world’s largest offshore oil basins.

Shell will maintain a 50 percent stake and remain the operator, the company said in a statement. It expects the deal closure by the end of 2026.

Kufpec was established in 1981 and is a subsidiary of Kuwait Petroleum Corporation. It focuses on upstream operations, including exploration, development and production of crude oil and natural gas outside of Kuwait. 

In July, Kufpec announced a final investment decision with Shell to develop gas exploration at the Mina West concession in Egypt.

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