Shells sells stake in Brazilian project for $1bn

Oil major Shell, which earlier this month delivered a shock profit warning, is to sell part of its interest in a Brazilian offshore oil project for about $1 billion (£603 million).

The sale of the 23 per cent stake in the deepwater BC-10 asset to Qatar Petroleum International is subject to clearance from regulators in Brazil.

Following the deal, Shell will continue as operator with a 50 per cent working interest in BC-10, which the group has described as one of its most challenging deepwater projects.

Shell’s new chief executive, Ben van Beurden, earlier this month admitted the group’s fourth-quarter was “not what I expect” as he warned of a profits shortfall.

Underlying earnings for the quarter are expected to almost halve to around $2.9bn, well below market expectations of $4bn. This is set to leave full-year results 23 per cent lower at $19.5bn.