New York, February 4, 2026, 03:41 EST — Market closed
- On Tuesday, Shell’s U.S.-listed shares climbed 2.5%.
- The company struck a deal to offload 20% of Brazil’s Orca project to Kuwait’s KUFPEC, while retaining operatorship.
- Investors are turning their attention to Shell’s Feb. 5 earnings for clues on buybacks and dividends.
Shares of Shell Plc listed in the U.S. climbed on Tuesday, with the last price recorded at $77.63. The oil giant announced plans to offload a 20% stake in its Orca offshore Brazil project to Kuwait Foreign Petroleum Exploration Company (KUFPEC).
The deal arrives just as investors prepare for Shell’s earnings on Thursday, with oil prices back in focus and dividend policies under the microscope. While asset sales and project shifts unlock cash, they also hint at where management sees the most valuable barrels.
Shell announced it will retain a 50% stake and continue as operator, aiming to finalize the deal by late 2026. Once complete, Colombia’s Ecopetrol will own 30%, with KUFPEC holding the remaining 20%, Shell stated.
Orca, formerly Gato do Mato, is a deep-water project in Brazil’s pre-salt Santos Basin. Shell said it’s set to produce 120,000 barrels of oil per day, with first oil anticipated in 2029.
“Building on this momentum, we look forward to expanding our successful project with KUFPEC in Egypt,” said Peter Costello, Shell’s upstream president. Reuters
Oil prices edged higher early Wednesday as fresh U.S.-Iran tensions sparked concerns about possible disruptions through the Strait of Hormuz, a vital passage for Gulf crude exports. ING commodity strategists noted, “Uncertainty about how these talks will play out means the market will likely continue to price in some risk premium.” Reuters
European majors are under pressure over capital returns amid falling prices and geopolitical tensions clashing with hefty spending commitments. On Wednesday, Norway’s Equinor announced cuts to its buyback program after reporting a drop in fourth-quarter profits, emphasizing it is taking “firm actions to strengthen free cash flow.” Reuters
Shell CEO Wael Sawan said Monday that the liquefied natural gas (LNG) sector is expanding at roughly 3% annually, outstripping the overall gas market — a key argument investors use to push the company toward greater focus on gas and LNG.
Shell stated that its $3.5 billion share buyback plan, unveiled in October, was aimed to wrap up before the fourth-quarter earnings release, depending on market conditions. A buyback involves a company purchasing its own shares, reducing the total number of shares outstanding.
Shell plans to announce its fourth-quarter 2025 dividend on Feb. 5, with the ex-dividend date for ordinary shares set for Feb. 19.
The Brazil deal still faces regulatory approval and other closing hurdles. Shell also pointed to “preferential rights,” which let current partners match any stake sale. The project won’t produce oil for years, and deepwater costs and timelines often shift against operators.
Shell is set to release its earnings report and hold a call on Feb. 5. Investors will be focused on updates to the buyback pace, dividend guidance, and how the company plans new upstream spending following the Orca reshuffle.
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