How TotalEnergies is building its Brazilian deepwater empire: From Lapa to Atapu and beyond

In 2025, TotalEnergies SE is emerging as one of the most strategically placed international oil companies in Brazil’s pre-salt deepwater frontier. With operated stakes in the Lapa field and expanding equity positions in Atapu, Sépia, and Mero, the French energy major is shifting its upstream focus toward high-margin, low-emissions deepwater production. Recent developments—including a new operatorship in Lapa and participation in large-scale FPSO deployments in Atapu-2 and Sépia-2—underscore the company’s deliberate pivot from non-operated legacy assets to fully-integrated deepwater operations in Brazil.

This transformation is occurring against the backdrop of rising global demand for secure oil supply and intensifying scrutiny on carbon intensity. By doubling down on Brazil’s prolific pre-salt basin, TotalEnergies is positioning itself at the intersection of economic performance and sustainability metrics.

Why is TotalEnergies prioritizing Brazilian deepwater assets in its 2025 upstream portfolio strategy?

TotalEnergies’ shift in Brazil reflects its wider upstream transformation strategy that focuses on assets with long reserve lives, low breakeven costs, and verifiable emissions performance. In its 2025 Sustainability Progress Report, the company reiterated its intent to reduce methane emissions by 60% from 2020 levels, while capping Scope 1 and Scope 2 emissions below 37 million tonnes of CO₂ equivalent. Brazil’s pre-salt sector, with its high-pressure, high-yield wells, offers precisely the production profile TotalEnergies is seeking to anchor its energy transition-era hydrocarbons portfolio.

Unlike other jurisdictions, Brazil provides contractual stability through the ANP (Agência Nacional do Petróleo), flexible fiscal terms, and ready-made infrastructure through FPSO contractors like MODEC and SBM Offshore. The combination of geology, infrastructure readiness, and policy alignment is making Brazil the centerpiece of TotalEnergies’ global deepwater ambitions.

What changes has TotalEnergies made to increase its operated presence in the Lapa offshore oil field?

The most significant operational milestone in 2025 for TotalEnergies in Brazil is its elevation to operator status at the Lapa field. In June 2025, the company increased its stake from 35% to 48% by swapping its non-operated equity in the Gato do Mato asset with Shell. Shell retains 27% in Lapa, while Repsol Sinopec holds 25%. The move formalizes TotalEnergies as the lead decision-maker for all production and development activity at the field, which lies 270 kilometers off São Paulo in Brazil’s Santos Basin.

Production at Lapa began in 2016 via the FPSO Cidade de Caraguatatuba MV27, which currently processes around 35,000 barrels per day. However, the Lapa South-West development, sanctioned in 2023 and now nearing completion, will add 25,000 bpd of incremental capacity through three new production wells tied back to the same FPSO. First oil from the South-West expansion is expected by Q4 2025, taking total field capacity to 60,000 bpd.

With this investment, TotalEnergies has moved Lapa from a marginal non-operated holding to a fully-integrated operated asset, reflecting its broader preference for field-level control and margin optimization.

What is TotalEnergies’ role in the Atapu and Sépia deepwater expansion projects?

TotalEnergies holds a 15% stake in the Atapu field and a 16.9% stake in Sépia. On May 27, 2024, together with Petrobras (operator), Shell, and other consortium partners, the company approved final investment decisions for Atapu-2 and Sépia-2—the second development phases for both fields. These projects will each be anchored by new-build FPSOs rated at 225,000 barrels per day, placing them among the largest deepwater production systems ever constructed.

The two FPSOs are being designed with minimal carbon intensity per barrel produced. Plans include gas reinjection systems, waste heat recovery, and predictive maintenance using AI-based digital twins. First oil is expected in 2029, and the production plateau from these assets could last well into the late 2030s.

These expansions will significantly increase TotalEnergies’ operated-equivalent production in Brazil and contribute to its long-term reserve base. The decision to participate in these FIDs aligns with the company’s strategic filter: high cash flow per barrel, low emissions, and long-life reserves.

How does TotalEnergies’ involvement in the Mero and Iara fields fit into its Brazilian deepwater portfolio?

Beyond Lapa and the new expansions at Atapu and Sépia, TotalEnergies also holds equity in other pre-salt powerhouses like Mero and Iara. In October 2024, the company achieved first oil from the Mero-3 development, adding 180,000 bpd of capacity via a next-generation FPSO. Mero-4, the next project in the sequence, is expected to come online by late 2025, replicating the same capacity profile.

In the Iara cluster, TotalEnergies has been active since the P-68 FPSO began operations in 2019 with a 150,000 bpd capacity. A second unit, P-70, followed soon after. While TotalEnergies is not the operator in either case, its equity positions provide material exposure to Brazil’s most stable, high-output pre-salt fields.

Together, these holdings complement its newer operated position in Lapa and reinforce its claim to a diversified but regionally focused deepwater growth model.

What technological or environmental strategies is TotalEnergies applying across its Brazilian deepwater portfolio?

Across all its Brazilian deepwater assets, TotalEnergies is deploying a combination of digital optimization and low-emission production systems. The company is heavily invested in platforms such as Shape Digital’s Aura predictive maintenance software, which was implemented on the Cidade de Caraguatatuba FPSO in 2024. This AI-powered solution has already shown up to 5% reductions in downtime and measurable improvements in energy efficiency.

In addition to smart asset performance systems, the company is committed to maximizing gas reinjection to reduce flaring and methane leaks. FPSOs being commissioned post-2024 are built with full vapor recovery units, closed flare systems, and energy integration designs that reduce carbon output per barrel produced.

The FIDs for Atapu-2 and Sépia-2 were approved partly on the strength of these emissions mitigation plans, which are required under Brazil’s latest offshore licensing terms issued by ANP in 2023–24.

How do these deepwater investments position TotalEnergies against competitors like Shell, Equinor, and Petrobras?

While Petrobras remains the dominant operator in Brazilian deepwater oil, and Shell commands significant equity across the pre-salt, TotalEnergies is carving out a distinct space as a low-carbon, high-margin operator. Its move to operate the Lapa field in 2025 gives it not only production control but also brand positioning as a technology-forward leader.

Compared to Shell, which has de-emphasized operatorship in favor of broad equity exposure, TotalEnergies appears more willing to take on field development responsibility where it aligns with its ESG and profitability filters. Against Equinor, which remains focused on offshore Brazil through Bacalhau and Carcará, TotalEnergies offers more diversification across development stages—ranging from mature producing (Iara, Lapa) to under-development (Atapu-2, Sépia-2).

This strategic spread may help TotalEnergies weather oil price volatility better than peers, while also scoring higher on Scope 1 and Scope 2 reporting benchmarks.

What is the long-term production and reserve outlook for TotalEnergies in Brazil?

Based on its current equity positions, TotalEnergies could see its Brazilian production base exceed 250,000 barrels per day of operated-equivalent output by the early 2030s. This assumes plateau rates from Lapa, Mero, Atapu-2, Sépia-2, and Iara FPSOs are sustained and infill wells are successfully deployed.

In terms of reserve life, these assets collectively represent over a billion barrels of recoverable reserves attributable to TotalEnergies. The Brazilian portfolio could contribute more than 15% of the company’s total upstream earnings by 2030, especially given its low lifting costs and limited geopolitical risk.

Brazil is also likely to remain a cornerstone of TotalEnergies’ global oil narrative well into the energy transition. By prioritizing low-emissions, high-return barrels and investing in future-ready FPSOs, the company is ensuring its hydrocarbon business continues to support—and not contradict—its broader sustainability commitments.