KUALA LUMPUR (July 2): French oil supermajor TotalEnergies agreed to sell its 85% stake in Block 2E offshore Malaysia for US$350 million (RM1.43 billion) to Japanese energy firm Inpex.

The divestment, representing a net interest of 8.5% in the Marjoram gas field currently under development, unlocks the value of its minority interest in a non-operated gas project to focus on operated portfolio and growth opportunities in Malaysia, TotalEnergies said in a statement.

“This agreement is fully aligned with our strategy of actively managing our portfolio and prioritising material positions to support our ambition to develop low-cost, low-emission projects,” said Nicholas Terraz, president of exploration and production at TotalEnergies.

In Malaysia, TotalEnergies holds operated and non-operated interests in 17 offshore blocks post-divestment. TotalEnergies is also Malaysia’s third-largest gas producer following acquisition of SapuraOMV Upstream from the company now known as Vantris Energy Bhd (KL:VANTNRG). 

In April, the company formed a US$2.2 billion joint venture with United Arab Emirates state-owned renewable energy company Masdar to merge their onshore renewable activities in nine Asian countries including Malaysia.

“With Jerun field now onstream and a large portfolio of opportunities, Malaysia is a strategic platform for TotalEnergies’ growth strategy, serving both the country and the wider Southeast Asia region,” Terraz added.