TotalEnergies to Sell Stake in Malaysian Gas Block to PTTEP

SEATTLE (Oil Monster):TotalEnergies has reached an agreement to divest an indirect stake of nearly 10% in a Malaysian offshore gas asset to Thailand’s state-owned energy company PTTEP, the French energy group announced on Tuesday. Financial terms of the transaction were not disclosed.

Following completion, TotalEnergies will continue to hold a 30.002% interest in Block SK408, which contains the Jerun gas field.

Gas produced from Jerun feeds the Bintulu liquefied natural gas complex, a 29.3 million-tonnes-per-year facility operated by Malaysia’s national oil company Petronas. The deal forms part of TotalEnergies’ broader portfolio optimization strategy after it significantly expanded its gas footprint last year through the $1.6 billion acquisition of Malaysian upstream producer SapuraOMV.

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Amid growing investor calls to rein in leverage, the company has increasingly focused on selling non-core and mature assets, as well as reducing minority holdings, to balance capital-intensive investments.

Exploration and Production President Nicolas Terraz said the transaction would streamline operations in Malaysia while reinforcing cooperation with PTTEP, a long-term strategic partner.

Malaysia remains a major global LNG supplier, while Thailand is the region’s largest importer. TotalEnergies also signed a long-term solar power supply agreement for Google-owned data centers in Malaysia.