(Bloomberg) -- TotalEnergies SE, Petronas and Qatar Petroleum will join Brazil’s state-controlled oil giant at the key Sepia field, marking the latest expansion in Latin America’s largest crude producer. 

The consortium won the rights to help expand Sepia by offering 37.43% in so-called profit oil to the government on Friday. Petrobras already operates the field and exercised its rights to a 30% stake. Separately, rights to the Atapu field were awarded to TotalEnergies, Petrobras and Royal Dutch Shell Plc.  

Sweeter terms and higher oil prices have enhanced the appeal of Brazil’s offshore oil trove which includes some of the world’s largest oil discoveries this century. TotalEnergies was a winning bidder even as it pursues ambitious goals to reduce carbon emissions and invest heavily in cleaner energy sources in coming decades. 

As recently as November 2019, Sepia and Atapu failed to attract bidders in what was possibly the world’s priciest oil auction, with signing bonuses alone totaling $9 billion. The prospects are part of an area estimated to hold as much as 15 billion barrels of recoverable crude, according to a study by Houston-based consultancy Gaffney, Cline & Associates. That also includes Petrobras’s Buzios and Itapu fields.

Petrobras already produces oil in the area, eliminating most exploration risks. The company’s partner in a block that borders on Sepia is Portugal’s Galp Energia SGPS. Galp, Total, and Shell are its partners in a block that borders on Atapu. The pre-salt region has driven Brazil’s growth in recent years.

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