Flexible octopus arms exhibit an exceptional ability to coordinate large numbers of degrees of freedom and perform complex manipulation tasks. As a consequence, these systems continue to attract the attention of biologists and roboticists alike. In this paper, we develop a three-dimensional model of a soft octopus arm, equipped with biomechanically realistic muscle actuation. Internal forces and couples exerted by all major muscle groups are considered. An energy shaping control method is described to coordinate muscle activity so as to grasp and reach in 3D space. Key contributions of this paper are: (i) modeling of major muscle groups to elicit three-dimensional movements; (ii) a mathematical formulation for muscle activations based on a stored energy function; and (iii) a computationally efficient procedure to design task-specific equilibrium configurations, obtained by solving an optimization problem in the Special Euclidean group SE(3). Muscle controls are then iteratively computed based on the co-state variable arising from the solution of the optimization problem. The approach is numerically demonstrated in the physically accurate software environment Elastica. Results of numerical experiments mimicking observed octopus behaviors are reported.