KUALA LUMPUR (June 10): British energy company EnQuest PLC is acquiring interest in four offshore production sharing contracts in Malaysia for US$833 million (RM3.38 billion) from PETRONAS.

Under the agreements announced on Wednesday, EnQuest will assume operatorship in oil and gas fields Balingian, SK8 and D35-D21-J4 in Sarawak while also participating as a non-operating partner in PM6-12 in Peninsular Malaysia.

“As these assets mature, it is important that they continue to be supported by the right partnerships to sustain value creation responsibly and over the long term,” Mohd Jukris Abdul Wahab, the chief operating officer and head of upstream at PETRONAS, said in a statement.

For the national company officially known as Petroliam Nasional Bhd, the agreements form part of its broader portfolio optimisation efforts involving selected producing upstream assets in Peninsular Malaysia and Sarawak.

If the deal goes through, EnQuest will have a 90% stake in Balingian, 100% of SK8, and 50% of D35-D21-J4. The London-listed company will also have 30% of PM6-12. Together, the assets produce over 100,000 barrels of oil equivalent per day and a rate expected to sustain through the end of the decade.

For EnQuest, the acquisitions will double its output and add a total 138 million barrels of oil equivalent to its proven and probable reserves and another 208 million barrels of contingent resources.

A key component of one of these agreements is the participation of TI Exploration & Production Sdn Bhd that will hold a non-operating interest in PM6-12.

“The participation reflects continued efforts to facilitate state involvement in Malaysia’s upstream industry, enabling state-linked entities to build capabilities and participate meaningfully in the development of the nation’s petroleum resources,” PETRONAS said.

TI Exploration & Production is a joint venture between state-owned Terengganu Inc and Dagang NeXchange Bhd's (KL:DNEX) unit Ping Petroleum Ltd.