KUALA LUMPUR (June 16): TotalEnergies SE has expanded its upstream portfolio in Malaysia via the acquisition of interest in multiple offshore blocks from Petroliam Nasional Bhd (Petronas).
Petronas and TotalEnergies inked a strategic cooperation agreement and two farm-out agreements to broaden the upstream collaboration, Petronas said in a statement on Monday.
In a separate statement, TotalEnergies detailed that the agreement saw the French oil major acquiring a 50% operated working interest in two blocks offshore Sarawak — SK301b and SK313 — which contain gas discoveries, amounting to more than four trillion cubic feet.
The remaining 50% interest will be held by Petronas Carigali Sdn Bhd, the national oil company's wholly-owned subsidiary.
TotalEnergies has sealed the investment deal despite rising concerns that the ongoing negotiation between Petronas and Petroleum Sarawak Bhd (Petros) over the rights to develop Sarawak's hydrocarbon resources has caused uncertainties, particularly among foreign investors.
Beyond this, TotalEnergies, alongside Petronas, will also hold interests in several exploration blocks offshore Malaysia and one offshore Indonesia. The transaction is subject to customary conditions, including regulatory approvals, TotalEnergies noted.
“The licences, which are all in different maturation stages, cover more than 100,000km²,” the group added.
SK301b and SK313 are both expected to be developed to supply gas for Malaysian LNG from 2030, said TotalEnergies.
This acquisition follows TotalEnergies' acquisition of the remaining 50% in SapuraOMV in December 2024. This latest transaction strengthens the group’s position in Southeast Asia with Malaysia as an anchor point, in partnership with Petronas, said TotalEnergies.
SapuraOMV has a 40% interest in SK408 and 30% in SK310. Both these blocks produce gas offshore Sarawak.
TotalEnergies chairman and CEO Patrick Pouyanné said the group has established itself as a significant gas producer in Malaysia.
"We are pleased to further expand our presence in the country, which we see as a strategic platform for our future low-cost, low-carbon production and cash-flow growth, underpinned by the exposure to the Asian LNG market," he said.
Referring to the block offshore Indonesia, TotalEnergies said it has inked an agreement to acquire 24.5% interest from Petronas in the Bobara block, to carry out exploration work targeting oil.
“After completion, TotalEnergies will hold 24.5% working interest in the production sharing contract while Petronas will retain the remainder working interest and operatorship in the block,” the group added.