Shell PLC (NYSE:SHEL) stock rose Tuesday after its Brazilian subsidiary, Shell Brasil Petróleo Ltda., disclosed the sale of a 20% stake in the Orca deep-water development in Brazil's pre-salt Santos Basin to Kuwait Foreign Petroleum Exploration Company (KUFPEC).
The Orca project is a unitized development that includes the BM-S-54 Concession Contract and the Sul de Orca Production Sharing Contract (PSC).
Before KUFPEC's entry, the licenses were held by Shell (operator with 70% working interest), Ecopetrol (30% WI), and Pré-Sal Petróleo S.A. (PPSA) as PSC manager.
Deal Details
The transaction aids Shell in managing capital efficiently across its portfolio.
Also, the company aims to maintain its position as the largest foreign oil producer in Brazil.
The deal is expected to close by the end of 2026, upon fulfillment of customary closing conditions.
After the transaction, Shell will hold a 50% interest as operator, Ecopetrol 30%, and KUFPEC 20%.
Bets On Nigeria
Last month, Shell reached a roughly $5 billion final investment decision on the Bonga North project in Nigeria, followed by approval of an additional $2 billion for the HI/Feed shallow-water gas development.
Also, in October 2025, the company announced that Shell Nigeria Exploration and Production Company Limited and Sunlink Energies and Resources Limited had approved the final investment decision for the HI gas project, located offshore in Nigeria.
Shell plans to release fourth-quarter earnings results on February 5.
SHEL Price Action: Shell shares were up 1.13% at $76.58 at the time of publication on Tuesday. The stock is approaching its 52-week high of $78.17, according to Benzinga Pro data.
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