TotalEnergies follows US expansion with move to spread its Southeast Asia gas wings

France’s energy giant TotalEnergies has augmented its oil and gas arsenal by buying stakes in multiple blocks offshore Malaysia and one block off the coast of Indonesia, which enables it to boost its strategic partnership with Petronas, bolstering its position in Southeast Asia’s natural gas market.

While revealing the details of its acquisition of Petronas’ interests in multiple blocks offshore Malaysia and in one offshore Indonesia, TotalEnergies said that exploration, appraisal, and development programs would be progressed at these licenses, all in different maturation stages, covering more than 100,000 square kilometers.

The French player, alongside Petronas’ wholly-owned subsidiary Petronas Carigali, will hold a 50% operated working interest in blocks SK301b and SK313, where significant gas discoveries of over 4 tcf were made. These discoveries are expected to be developed to support gas supply to Malaysia LNG from 2030.

Patrick Pouyanné, Chairman and CEO of TotalEnergies, commented:“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 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.”

The duo will also have interests in several exploration blocks offshore Malaysia. This transaction, which is subject to customary conditions, including regulatory approvals, is seen as a move that strengthens TotalEnergies’ position in Southeast Asia with Malaysia as an anchor point, in partnership with Petronas, following SapuraOMV’s acquisition in December 2024.

Building on the long-standing collaboration between the two companies in the upstream business across several countries, Chairman and CEO of TotalEnergies and President and Group CEO of Petronas also signed a strategic cooperation agreement to deepen their partnership in exploration and production businesses globally.

Tan Sri Tengku Taufik, Petronas President and Group Chief Executive Officer, noted:“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.”

TotalEnergies has also broadened its global strategic collaboration to Indonesia with Petronas by inking an agreement to obtain a 24.5% interest from the latterin the Bobara block, offshore Indonesia, to carry out an exploration work program targeting oil prospects.

Upon completion, the French firm will hold 24.5% working interest in the production sharing contract while Petronas will retain the remainder of the working interest and operatorship of the block.

This acquisition arrangement comes shortly after TotalEnergies expanded its U.S. oil and gas portfolio by purchasing interests in 40 exploration blocks that Chevron currently operates.