The bosses of multinational oil companies Petronas and TotalEnergies have enhanced their partnership through the exchange of interests in promising exploration and development blocks.
While the two companies compete in products like agricultural oil, they have complementary capacities in exploration and upstream development. Under the agreement and over time, TotalEnergies will acquire interests in multiple blocks covering over 100,000 square kilometres, mostly offshore of Malaysia.
Some of these blocks are for exploration, while others have already seen discoveries. Most notably, TotalEnergies will buy from Petronas 50% interests in Blocks SK313 and SK301b, which have seen more than a trillion cubic feet in gas discoveries. These are anticipated to supply liquified natural gas (LNG) production in Malaysia from 2030. The two companies also signed a new agreement for strategic collaboration that will strengthen their partnership globally.
The group chief executive officer and president at Petronas, Tan Sri Tengku Taufik, said the two companies had long demonstrated how fresh opportunities could be unlocked through their complementary strengths, adding:
“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.”
The market for LNG in Asia is expected to grow substantially over the coming decades. In partnership with Petronas, TotalEnergies expects to use Malaysia as an anchor point to strengthen its position in South East Asia.
