PETALING JAYA: TotalEnergies SE enlarged its upstream portfolio in Malaysia through the acquisition of interest in several offshore blocks from Petroliam Nasional Bhd (PETRONAS).
In a statement, PETRONAS said it inked a strategic cooperation agreement (SCA) and two farm out agreements (FOAs) with TotalEnergies to “broaden their upstream collaboration in Malaysia”.
The national oil company added the agreements “build on the longstanding partnership between the two companies with the SCA outlining potential opportunities both internationally and domestically in strategic areas that cover exploration and production, gas and liquefied natural gas (LNG), carbon footprint reduction and cooperation.
For the offshore blocks in the country, PETRONAS, through its wholly-owned subsidiary, PETRONAS Carigali Sdn Bhd and TotalEnergies EP Malaysia will jointly explore several offshore exploration blocks across the country’s “most prospective” hydrocarbon basins.
“This strategic partnership combines PETRONAS' exploration and operational expertise with TotalEnergies' technical capabilities to optimise exploration efficiency and sustainably develop Malaysia's hydrocarbon resources,” PETRONAS said.
Meanwhile, in Indonesia, PETRONAS through its wholly-owned subsidiary, PETRONAS Energy Bobara Sdn Bhd and TotalEnergies have successfully finalised the terms of an FOA for the Bobara production sharing contract (PSC).
“This collaboration aims to leverage the combined expertise of both companies to unlock a new hydrocarbon resource in Bobara, a frontier ultra-deepwater block located in the Eastern Indonesia region,” PETRONAS stated.
Relevant transactions are currently pending regulatory approvals.
PETRONAS president and group chief executive officer Tan Sri Tengku Muhammad Taufik Tengku Aziz said the signing marks another “significant step forward” in their 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 exploration blocks. Our focus is on maximising high commercial potential while delivering sustainable value for all stakeholders,” he said.
TotalEnergies chief executive officer and chairman, Patrick Pouyanné, said the company’s strategic collaboration with PETRONAS, which extends well beyond Malaysia through its multiple joint ventures worldwide, enables the group to access a large and diverse portfolio in the country, spanning from exploration to production.
“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,” he said.
