TotalEnergies Flat on Pact with Shell Brasil

TotalEnergies (NYSE:TTE) shares were virtually unchanged at the open on Wednesday, shortly after the company announced an agreement with Shell Brasil Petróleo Ltda to exchange its 20% non-operated interest in the Gato do Mato project for an additional 3% interest in Lapa, a producing offshore oil field. Upon closing, TotalEnergies will increase its stake in Lapa to 48% (Operator), alongside Shell (27%) and Repsol Sinopec (25%).Located in the Santos Basin, 270 kilometers off the coast of Brazil, Lapa is a deep-offshore field operated by TotalEnergies. The Lapa South-West tie-back development, approved in 2023, will increase production by 25,000 barrels per day upon start-up by year-end, bringing total output of the field to 60,000 barrels per day.Said Total Senior Vice President Javier Rielo, “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.” This agreement is subject to customary conditions precedent, notably regulatory approvals.TotalEnergies is a global integrated energy company that produces and markets energies: oil and biofuels, natural gas, biogas and low-carbon hydrogen, renewables and electricity. According to this morning’s news release, “Our more than 100,000 employees are committed to providing as many people as possible with energy that is more reliable, more affordable and more sustainable.”TTE shares edged up 12 cents to $60.19.