TotalEnergies to sell stake in Malaysian gas block to PTTEP
TotalEnergies has announced its agreement to sell nearly 10% of its stake in a Malaysian offshore gas block to Thailand’s PTTEP for an undisclosed amount.
The French oil giant stated on Tuesday that, following the transaction, it will retain a 30.002% interest in Block SK408.
The block is home to the Jerun gas field, which provides gas to Malaysia's Bintulu LNG complex, with an annual capacity of 29.3 million metric tons. This complex is operated by the Malaysian state-owned company Petronas.
In a strategic move to expand its natural gas portfolio, TotalEnergies acquired the Malaysian upstream company SapuraOMV last year in two deals valued at $1.6 billion. This acquisition was part of TotalEnergies’ effort to boost its presence in the growing natural gas market.
Under investor pressure to reduce debt this year, the company has begun selling mature assets and minority stakes. "This transaction helps TotalEnergies manage its portfolio in Malaysia efficiently, while strengthening its relationship with PTTEP, a long-time partner," said Nicolas Terraz, President of Exploration and Production at TotalEnergies.
In 2023, TotalEnergies sold PTTEP a 25% stake in its Seagreen wind farm offshore Scotland for $661 million, and the two companies have also signed a partnership to explore joint upstream opportunities.
Malaysia ranked as the world’s fifth-largest liquefied natural gas (LNG) exporter in 2023, shipping nearly 28 million tons primarily to Japan, China, and South Korea, according to Kpler data. Thailand remains Southeast Asia’s largest LNG importer.
Block SK408 is jointly owned by subsidiaries of Petronas (30%) and Shell (30%). Additionally, TotalEnergies recently signed a 21-year agreement to supply solar electricity to Malaysian data centres operated by Alphabet’s Google.
Reuters
