TotalEnergies acquired PETRONAS interests in multiple blocks offshore Malaysia and in one block offshore Indonesia. The blocks are still under operations of exploration, appraisal and development programs.
According to the partnership, TotalEnergies is to take over 50% of PETRONAS’s shares in Blocks SK301b and SK313. Significant gas discoveries were made at these blocks, with production capacities exceeding 4 trillion cubic feet (tcf) of gas. The blocks are expected to be developed to support gas supply to Malaysia LNG from 2030.
TotalEnergies will also own interests in several other exploration blocks offshore Malaysia. The transaction is pending customary conditions, including regulatory approvals. This project is expected to strengthen TotalEnergies’ position in South-East Asia with Malaysia.
Furthermore, a statement by TotalEnergies mentioned that Patrick Pouyanné, the company’s Chairman and CEO, and Tan Sri Tengku Muhammad Taufik, President and Group CEO of PETRONAS, also signed a strategic cooperation agreement to bolster their partnership in exploration and production businesses globally.
“TotalEnergies 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 Asian LNG market,” said Pouyanné. He added, “TotalEnergies and PETRONAS’ strategic collaboration, which extends well beyond Malaysia through our multiple joint ventures worldwide, enables us to access a large and diverse portfolio in the country, spanning from exploration to production.”
“For a long time, PETRONAS and TotalEnergies have demonstrated how complementary strengths can unlock new opportunities. Today’s signing marks another significant step forward in our shared commitment to responsible growth and long-term value creation. Together, we will pursue and develop advantaged barrels across Malaysia’s and Indonesia’s frontier emerging exploration blocks. Our focus is on maximizing high commercial potential while delivering sustainable value for all stakeholders”, said Tan Sri Tengku Taufik, PETRONAS President and Group Chief Executive Officer.
TotalEnergies has maintained a long-standing presence in Malaysia, primarily focused on upstream oil and gas exploration and production. The company has been active through various joint ventures and partnerships, most notably with PETRONAS. Its collaboration with PETRONAS involves joint development of hydrocarbon resources, including production sharing contracts (PSCs) and advanced subsea technologies.
