TotalEnergies has announced a significant expansion of its upstream oil and gas portfolio in Southeast Asia through a new strategic partnership with Malaysia’s national oil company, PETRONAS. The agreement grants the French energy major stakes in several offshore blocks in Malaysia and Indonesia, strengthening its long-term position in the region.

The acquisition includes a 50% operated working interest in Blocks SK301b and SK313 offshore Malaysia, where substantial natural gas discoveries exceeding 4 trillion cubic feet (Tcf) have been made. TotalEnergies will operate the blocks in collaboration with PETRONAS. The company has also secured interests in other exploration blocks in Malaysian waters, as well as one offshore block in Indonesia.

The newly acquired licenses span over 100,000 square kilometers and include assets at various stages of development—from exploration to appraisal and production. The transaction is pending customary regulatory approvals.

Deepening Global Ties

In tandem with the asset acquisition, TotalEnergies and PETRONAS signed a strategic cooperation agreement aimed at broadening their collaboration in upstream oil and gas projects globally. The agreement builds on decades of joint ventures and operational partnerships between the two companies across multiple countries.

"This partnership strengthens our ability to develop low-cost, low-emission resources at scale, while deepening our cooperation with a long-standing and trusted partner," a TotalEnergies spokesperson said.

Long-Term Presence in Malaysia

TotalEnergies has maintained operations in Malaysia since 1985 and currently employs approximately 300 people in the country. The company already holds interests in several offshore blocks, including SK408, SK310, and SB412. Beyond exploration and production, it also markets petroleum products in Malaysia via its local affiliate, TotalEnergies Marketing Malaysia.

The latest agreement marks a strategic move in TotalEnergies’ broader regional growth strategy, which focuses on enhancing cash flow while maintaining a commitment to lower-carbon operations. By leveraging its longstanding relationship with PETRONAS, the company aims to capitalize on the region’s resource potential and favorable operating environment.

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