TotalEnergies has entered into an agreement with Shell Brasil Petróleo to swap its 20% non-operated stake in the Gato do Mato project for an additional 3% stake in the producing Lapa oil field.
Both the assets are located in Brazilian waters.
Following the transaction, TotalEnergies will increase its ownership in the Lapa field to 48%, with Shell holding 27% and Repsol Sinopec maintaining 25%.
TotalEnergies Americas exploration and production senior vice president Javier Rielo said: “This transaction is aligned with our strategy to focus on low-cost, low-emission projects, such as Atapu 2 and Sepia 2 in Brazil, sanctioned in 2024. In addition, it further strengthens our operated position in the Lapa field, in the pre-salt Santos Basin.”
The Lapa field, situated approximately 270km off Brazil’s coast in the Santos Basin, is operated by TotalEnergies. The field’s production capacity is set to rise by 25,000 barrels per day through the Lapa South-West tie-back development, which was approved in 2023.
This expansion will boost total output at Lapa to 60,000 barrels daily by the end of the year following the expected start-up of Lapa South-West.
The expansion project involves an investment of around $1bn and includes the development of three wells connected to the existing Lapa floating production, storage and offloading (FPSO), which has been operational since 2016.
The Gato do Mato project, on the other hand, comprises the BM-S-54 Concession Agreement and the Gato do Mato South Production Sharing Agreement.
Partners in this initiative include Shell, serving as operator with a 50% working interest, Ecopetrol with a 30% stake, TotalEnergies holding 20%, and Pré-Sal Petróleo, acting as the PSC manager. A final investment decision for the project was made in March 2025.
The development at Gato do Mato will feature a floating production storage and offloading vessel capable of processing up to 120,000 barrels of oil per day. The estimated recoverable resource volume is approximately 370 million barrels, with production expected to commence in 2029.
The project covers two blocks acquired through different agreements: BM-S-54 via a concession contract in 2005 and Sul de Gato do Mato through a production-sharing agreement in 2017.
The agreement remains subject to preceding customary conditions, including regulatory approvals.
