TotalEnergies EP Brasil to Exchange Interest in Santos Basin Project with Shell Brasil

TotalEnergies EP Brasil, a subsidiary of France’s energy giant TotalEnergies, has initiated a strategic move to transfer its non-operated interest in a deepwater development project in the pre-salt area of the Santos Basin to Shell Brasil, an affiliate of the UK-headquartered oil and gas heavyweight Shell. In return, TotalEnergies will receive a partial stake in Shell’s producing field off the coast of Brazil.

The agreement stipulates that TotalEnergies will exchange its 20% non-operated interest in the Gato do Mato project for an additional 3% interest in the Lapa oil field, pending regulatory approvals. This transaction will elevate TotalEnergies’ stake in the Lapa field to 48%, alongside Shell (27%) and Repsol Sinopec (25%).

Located 270 kilometers off the coast of Brazil in the Santos Basin, the Lapa deep-offshore field is poised for expansion with the approval of the Lapa South-West tie-back development in 2023. This expansion is projected to boost production by 25,000 barrels per day upon commencement by the end of the year, increasing the field’s total output to 60,000 barrels per day.

Javier Rielo, Senior Vice President Americas of Exploration & Production at TotalEnergies, stated, “This transaction aligns with our strategy to prioritize low-cost, low-emission projects like Atapu 2 and Sepia 2 in Brazil, sanctioned in 2024. Furthermore, it reinforces our operational presence in the Lapa field within the pre-salt Santos Basin.”

Conversely, the swap agreement allows Shell to enhance its operated working interest in Gato do Mato to 70%, while Ecopetrol retains its 30% stake. This consolidation encompasses the BM-S-54 concession agreement and the Gato do Mato South production sharing agreement (PSC).

Both licenses are under Shell’s operation with a 50% stake, in conjunction with Ecopetrol (30%), TotalEnergies (20%), and Pré-Sal Petróleo S.A. (PPSA) serving as the PSC manager. The partners of Gato do Mato project made a significant investment decision in March 2025, with an estimated volume of recoverable resources reaching approximately 370 million barrels. The project is scheduled to commence operations in 2029.

This exchange deal follows TotalEnergies’ recent divestment of its stake in a production sharing contract offshore Nigeria to Shell, showcasing the company’s strategic realignment and focus on key projects in the energy sector.