TotalEnergies (NYSE: TTE) has signed a strategic asset swap agreement with Shell Brasil to raise its operated interest in the Lapa oil field from 45% to 48%, while simultaneously exiting the Gato do Mato pre-salt development. The move solidifies TotalEnergies’ position as operator of Lapa, a deepwater producing field located in Brazil’s Santos Basin.
The transaction involves the acquisition of an additional 3% stake in Lapa from Shell, in exchange for TotalEnergies’ 20% non-operated interest in the Gato do Mato discovery. Once completed—pending regulatory approvals—the Lapa partnership will consist of TotalEnergies (48%, operator), Shell (27%), and Repsol Sinopec (25%).
Lapa, situated about 270 kilometers offshore, is a key asset in TotalEnergies’ Brazilian upstream portfolio. The field is undergoing a production boost through the Lapa South-West tie-back project, approved in 2023. Once online by the end of 2025, the new development is expected to raise total output by 25,000 barrels per day, bringing the field’s production capacity to 60,000 barrels per day.
“This transaction is aligned with our strategy to focus on low-cost, low-emission projects,” said Javier Rielo, SVP Americas for TotalEnergies’ Exploration & Production division. He highlighted similar recent developments, including the Atapu 2 and Sepia 2 projects, sanctioned in 2024, as examples of the company’s Brazil-centric growth strategy.
The deal reflects broader sector trends as energy majors recalibrate portfolios toward producing, lower-carbon intensity assets and away from capital-intensive exploration ventures. Lapa’s status as a producing asset with scalable output potential complements TotalEnergies’ commitment to disciplined upstream growth and emissions efficiency.
Gato do Mato, while part of the promising pre-salt cluster, is still in the pre-development phase. Shell, already a key stakeholder in the field, is positioned to take on TotalEnergies’ 20% interest.
TotalEnergies has operated in Brazil for five decades, employing nearly 4,000 people across oil, gas, renewables, and downstream sectors. The company’s upstream production in Brazil averaged 153,000 barrels of oil equivalent per day in 2024, and it is rapidly expanding into renewables through partnerships like the 12 GW joint venture with Casa dos Ventos launched in 2022.
The Lapa stake increase underscores TotalEnergies’ long-term commitment to Brazil’s offshore sector, particularly in the prolific and technically complex pre-salt domain, while maintaining its portfolio discipline amid the energy transition.