KUALA LUMPUR (June 16): France’s TotalEnergies SE aims to double its stake in its Malaysian oil and gas portfolio through a soon-to-be-announced deal, its chief executive officer Patrick Pouyanné said on Monday.
“This afternoon, we will announce a new deal to double the stake in Malaysia because it's perfectly located to produce LNG (liquefied natural gas) and to serve the market,” Pouyanné said at a dialogue session at Energy Asia 2025 here, without giving specific details.
While TotalEnergies' business in Malaysia is largely in exploration and production, it also ventured into renewable energy, and carbon capture and storage.
Pouyanné sees the great potential of LNG as fuel to generate electricity in the region moving forward.
Speaking on the strategy, Pouyanné said he sees gas as a destination fuel in Asia, not a transition fuel, and he noted the group’s role in the region is to support the acceleration of new gas developments.
“So, we are doing everything we can to accelerate fit-for-basin technology, local content, and digital integration capacity to develop gas in Asia,” he said.
Since 2023, TotalEnergies invested US$2 billion (RM8.48 billion) in Malaysia, according to Pouyanné, “to take positions in the country”.
Last year, the group acquired a 50% stake in SapuraOMV Upstream Sdn Bhd for US$756.9 million. The acquisition added two gas production-phase blocks offshore Sarawak to TotalEnergies' portfolio.
SapuraOMV has a 40% interest in SK408 and 30% in SK310, both of which produce gas at low costs and emissions at below US$5 per barrel of oil equivalent (boe) and 10kg carbon dioxide per boe, according to TotalEnergies.
Besides the SapuraOMV assets, TotalEnergies also has exploration-phase blocks offshore Sabah.
In 2023, it signed an agreement with Petronas and Mitsui to develop a carbon dioxide storage project in Southeast Asia and evaluate several possible sites in the Malaysian basin.
The group also markets petroleum products and services to residential and business customers through subsidiary TotalEnergies Marketing Malaysia.
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