TotalEnergies Enhances Strategic Alliance With PETRONAS As It Broadens Energy Portfolio Across Key Malaysian Assets

TotalEnergies has announced the acquisition of interests in several offshore exploration and development blocks in Malaysia and Indonesia from PETRONAS, strengthening its footprint in Southeast Asia. The assets involved span more than 100,000 square kilometers and are at various stages of exploration and development. In Malaysia, TotalEnergies will acquire a 50% operated working interest in Blocks SK301b and SK313, alongside PETRONAS’ wholly-owned subsidiary, Petronas Carigali Sdn Bhd.

These two blocks have already seen significant gas discoveries estimated at over 4 trillion cubic feet (Tcf), and are expected to play a key role in supporting gas supply to Malaysia’s LNG facilities from 2030 onward. In addition to these development-focused blocks, TotalEnergies will also gain interests in a number of exploration licenses offshore Malaysia, again in partnership with PETRONAS. The transaction remains subject to customary regulatory approvals and other closing conditions.

This move follows TotalEnergies’ December 2024 acquisition of SapuraOMV and further solidifies Malaysia as a central hub in the company’s Southeast Asian strategy. It also reflects the continuation of a strong upstream collaboration between TotalEnergies and PETRONAS, with the companies working together on various projects around the world. To reinforce this partnership, TotalEnergies Chairman and CEO Patrick Pouyanné and PETRONAS President and Group CEO Tan Sri Tengku Muhammad Taufik also signed a strategic cooperation agreement to deepen collaboration in global exploration and production efforts.

Patrick Pouyanné, Chairman and CEO of TotalEnergies, stated, “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 the Asian LNG market. 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.”

Tan Sri Tengku Taufik, PETRONAS President and Group Chief Executive Officer, said in a statement, “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 maximising high commercial potential while delivering sustainable value for all stakeholders.”

Expanding their cooperation into Indonesia, TotalEnergies has agreed to acquire a 24.5% interest in the Bobara block offshore Indonesia from PETRONAS. This block is aimed at oil exploration and will be operated by PETRONAS, which retains the majority interest. TotalEnergies’ entry into this block marks a further step in its regional expansion and continued commitment to upstream growth in Asia.