TotalEnergies (TTE) said Wednesday it agreed with Shell (SHEL) Brasil to exchange its 20% non-operated stake in the Gato do Mato project for an additional 3% interest in the producing Lapa offshore oil field.

The company said after the deal closes, its share in Lapa will rise to 48%, joining Shell's 27% and Repsol Sinopec's 25% in the Santos Basin field, located 270 km off Brazil's coast.

Operated by TotalEnergies, Lapa is undergoing expansion through the Lapa South-West tie-back, which is expected to boost production by 25,000 barrels per day by year-end, thereby raising total output to 60,000 barrels per day, the company said, adding that the agreement is subject to regulatory approvals.