Royal Dutch Shell and India's ONGC have plans to exercise their rights to buy a 35 percent stake in a Brazilian oil block owned by the country's Petrobras, according to Petrobras. If the deal goes through, Shell’s stake in the block, known as Parque das Conchas, will go from 50 to 73 percent, while ONGC’s will go from 15 to 27 percent. Petrobras received a purchase offer from a third party, for a 35-percent stake, but Shell and ONGC resorted to pre-emption rights to get the stake.
Parque das Conchas is a heavy oil development project that went into operation in 2009 and can produce 50,000 barrels of oil per day. A second development phase is expected to start by the end of this year, with peak production of 35,000 barrels of oil equivalent per day, according to Shell's website.