INPEX replaces TotalEnergies in offshore Malaysia block
TotalEnergies has agreed to transfer its 85% interest in Block 2E offshore Sarawak, Malaysia, to INPEX for $350 million.
This equates to an effective 8.5% net interest in the Marjoram gas field, a deepwater sour gas development discovered in 2014 and currently operated by Shell (with Petronas Carigali holding the remaining interest in the block).
The French major described the stake as non-core, noting that the transaction allows it to crystallize value from a minority, non-operated position while refocusing resources on its operated assets and higher-impact growth opportunities in Malaysia.
Nicolas Terraz, President of Exploration & Production at TotalEnergies, said:
“This agreement is fully aligned with our strategy of actively managing our portfolio and prioritizing material positions to support our ambition to develop low-cost, low-emission projects. With Jerun field now on stream and a large portfolio of opportunities, Malaysia is a strategic platform for TotalEnergies’ low-cost, low-emission growth strategy, serving both the country and the wider Southeast Asia region.”
Broader strategy
The divestment in in Block 2E offshore Malaysia fits in with TotalEnergies’ broader offshore Malaysia strategy. The French supermajor has operated in Malaysia since 1985 and significantly strengthened its position with the 2024 acquisition of SapuraOMV Upstream, which elevated it to the country’s third-largest gas producer. Key operated assets include interests in Block SK408 (home to the recently started Jerun gas field) and other blocks, giving the company greater control over development, costs, and emissions performance.
By exiting this smaller, non-operated stake in Marjoram, TotalEnergies is high-grading its portfolio — divesting non-material assets to concentrate capital and expertise on positions where it can drive its low-emission gas ambitions more effectively.
INPEX, for its part, is expanding its footprint in a promising Southeast Asian gas play. The move underscores a classic upstream strategy: monetize non-core holdings while doubling down on core, operated growth in a key region.
About the Author
Jeremy Beckman
Editor, Europe
Jeremy Beckman has been Editor Europe, Offshore since 1992. Prior to joining Offshore he was a freelance journalist for eight years, working for a variety of electronics, computing and scientific journals in the UK. He regularly writes news columns on trends and events both in the NW Europe offshore region and globally. He also writes features on developments and technology in exploration and production.