Malaysia’s national oil and gas company has signed a deal with Eni SpA to combine their upstream assets in Malaysia and Indonesia.
Separately Petroliam Nasional Bhd. (Petronas) penned multiple agreements with TotalEnergies SE to jointly explore several offshore blocks in Malaysia and signed another agreement for a farm-down in Indonesia to the French company.
The joint venture agreement with Italy’s state-backed Eni, expected to be finalized in the fourth quarter, would deliver 500,000 barrels of oil equivalent (boe) a day in the medium term. The combined portfolio would consist of about three billion boe of reserves and 10 billion boe of exploration potential, according to the companies.
“This collaboration will unlock new opportunities for us to contribute to the energy security in the region and deliver long-term value across Malaysia and Indonesia”, Petronas president and chief executive Muhammad Taufik said in an online statement.
The partnership would create “synergy in terms of assets, expertise and financial capabilities, in a transformational model that further strengthens the huge potential of the two countries”, Eni chief executive Claudio Descalzi said separately. “The new company will have a strong regional impact on gas production, bringing additional energy, infrastructures and employment for the benefit of both Indonesia and Malaysia”.
Meanwhile Petronas’ agreements with TotalEnergies in Malaysia and Indonesia involve offshore blocks in different maturation stages and covering over 100,000 square kilometers (38,610.19 square miles), TotalEnergies said in a press release.
“TotalEnergies will notably hold, alongside PETRONAS through its wholly-owned subsidiary Petronas Carigali Sdn. Bhd., a 50 percent operated working interest in Blocks SK301b and SK313, where significant gas discoveries (more than 4 Tcf) were made and are expected to be developed to support gas supply to Malaysia LNG from 2030”, TotalEnergies said.
“TotalEnergies will also hold, alongside PETRONAS, interests in several exploration blocks offshore Malaysia. The transaction is subject to customary conditions, including regulatory approvals.
“Following the SapuraOMV’s acquisition in December 2024, this transaction strengthens TotalEnergies’ position in South-East Asia with Malaysia as an anchor point, in partnership with PETRONAS”.
TotalEnergies chair and chief executive Patrick Pouyanne said, “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”.
In Indonesia TotalEnergies will acquire a 24.5 percent stake from Petronas in the Bobara block to explore oil prospects.
“Together, we will pursue and develop advantaged barrels across Malaysia’s and Indonesia’s frontier emerging exploration blocks. Our focus is on maximizing high commercial potential while delivering sustainable value for all stakeholders”, Taufik said.
New Block Awards
The agreements with Eni and TotalEnergies were signed at the Energy Asia forum in Kuala Lumpur, during which Petronas also awarded the first blocks offered under Malaysia’s 2025 bidding round.
The first award was the Mutiara Cluster offshore Sabah. It comprises five fields: Benrinnes, Kuda Terbang, Mutiara Hitam, Nymphe and Nymphe North. Dialog Resources Sdn. Bhd. is the sole owner.
“Strategically positioned off the coast of Sabah’s East Coast, the SFA PSC is envisioned as a catalyst to open up Sandakan Basin for further exploration for broader value creation and local participation, in line with PETRONAS’ aspiration to unlock Malaysia’s position as an attractive destination for upstream investments”, Petronas said. Production is expected to start 2029.
The other award so far went to Seascape Energy Asia (One) Sdn. Bhd. of Seascape Energy Asia PLC for the Temaris Cluster. Temaris consists of the Mengkuang and Tembakau and gas fields. The cluster is in the Malay Basin offshore Peninsular Malaysia near existing production infrastructure.
The production sharing contract is expected to begin production 2029 with a capacity of 100 million standard cubic feet a day of gas.
Petronas added, “As part of the strategic move to expand Peninsular Malaysia’s hydrocarbon resources, PETRONAS has also signed Technical Evaluation Agreement with AFED TEXCAL Energy Ventures for Langkasuka basin in the Straits of Malacca and POSCO International for Layang-Layang Basin off the coast of Sabah”.
To contact the author, email jov.onsat@rigzone.com
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