TotalEnergies, Shell agree to asset swap to add equity to operated Brazil positions

TotalEnergies and Shell Brasil Petróleo Ltda have agreed to swap working interest shares in deepwater Santos basin presalt assets offshore Brazil.

TotalEnergies will exchange its entire 20% non-operated interest in the Shell-operated Gato do Mato project for an additional 3% interest in the TotalEnergies-operated Lapa oil field.

Upon closing, TotalEnergies will increase its stake in Lapa field (Block BM-S-9A) to 48% (operator), alongside Shell (27%) and Repsol Sinopec (25%).

The Lapa oil and gas development lies about 300 km off the coast of São Paulo, Brazil. The Lapa South-West tie-back development, approved in 2023, is expected to increase production by 25,000 b/d upon start-up by year-end, bringing total output of the field to 60,000 b/d, the operator said (OGJ Online, Jan. 17, 2023).

Upon completion, TotalEnergies will hold 48% interest in the field (operator). Shell Brasil’s share will be reduced to 27% interest, and Repsol Sinopec will retain its 25% share.

In return, Shell will increase its share in the newly sanctioned Santos basin Gato do Mato gas-condensate discovery. Shell Brasil Petróleo Ltda. took final investment decision on the deepwater project in March (OGJ Online, Mar. 21, 2025).

Through the swap with TotalEnergies, Shell’s interest in Gato do Mato will increase to 70%. Ecopetrol will continue to hold 30% interest.

Gato do Mato development calls for the installation of a floating production, storage and offloading unit (FPSO), designed to produce up to 120,000 b/d of oil. The estimated volume of recoverable resources from the Gato do Mato project is about 370 million bbl, according to Shell.

This interest swap is subject to regulatory clearance and closing conditions.