Petronas farms out stakes in blocks offshore Malaysia, Indonesia to TotalEnergies

TotalEnergies has acquired interests from Petronas in various blocks offshore Malaysia and in one block offshore Indonesia.

Exploration, appraisal and development programs will take place across the blocks; the licenses, which are in different stages of maturity cover a total area of more than 100,000 sq km.

TotalEnergies, in partnership with Petronas Carigali, will have a 50% operated interest in blocks SK301b and SK313 offshore Sarawak, where gas discoveries containing more than 4 Tcf are set to be developed to support gas supply to Malaysia LNG from 2030.

In other exploration blocks offshore Malaysia, TotalEnergies will also hold interests alongside Petronas.

The transaction remains subject to regulatory approvals.

At the Energy Asia event this week, Patrick Pouyanné, chairman and CEO of TotalEnergies, and Tan Sri Tengku Muhammad Taufik, president and group CEO of Petronas, also signed a strategic cooperation agreement to strengthen the two companies’ partnership in E&P globally.

Pouyanné said his company also viewed its emerging position as a gas producer in Malaysia “as a strategic platform for our future low-cost, low-carbon production and cash-flow growth, underpinned by the exposure to Asian LNG market”.

Since acquiring SapuraOMV Upstream, TotalEnergies now claims to be the country’s third largest gas operator, with various operated blocks offshore Sarawak and other interests offshore Sabah.

In addition, the company agreed to acquire 24.5% of Petronas’ share in the Bobara exploration Block offshore Indonesia, where the partners will pursue oil prospects. Petronas will remain operator.