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PARIS - TotalEnergies (NYSE:TTE), a $142 billion market cap energy giant with a robust financial health score of "GOOD" according to InvestingPro, announced Monday it has acquired interests in multiple offshore blocks in Malaysia and Indonesia from PETRONAS, strengthening its position in Southeast Asia.
The transaction includes a 50% operated working interest in Malaysia’s Blocks SK301b and SK313, which contain significant gas discoveries exceeding 4 trillion cubic feet. These resources are expected to support gas supply to Malaysia LNG from 2030, according to a company press release. The deal aligns with TotalEnergies’ strategic growth, supported by its impressive $191.6 billion in revenue and stable 4.48% dividend yield.
The licenses, at various stages of development, cover more than 100,000 square kilometers across both countries. In Indonesia, TotalEnergies will acquire a 24.5% interest in the Bobara block, while PETRONAS will retain the remaining interest and operatorship.
Patrick Pouyanné, Chairman and CEO of TotalEnergies, said Malaysia represents "a strategic platform for our future low-cost, low-carbon production and cash-flow growth, underpinned by the exposure to Asian LNG market."
The companies also signed a strategic cooperation agreement to expand their partnership in exploration and production globally. This agreement builds on existing collaborations between the two energy firms across multiple countries.
The Malaysian transaction follows TotalEnergies’ acquisition of SapuraOMV in December 2024, which established the company as Malaysia’s third-largest gas operator.
The deals are subject to customary conditions, including regulatory approvals. TotalEnergies has operated in Malaysia since 1985 and currently employs approximately 300 people in the country.
In other recent news, TotalEnergies has made significant strides in its global operations. The company reported a strategic acquisition of a 25% stake in Chevron’s offshore blocks in the U.S., which includes 40 federal leases across various areas, enhancing its exploration portfolio. Additionally, TotalEnergies expanded its stake in the Lapa offshore field in Brazil to 48%, while simultaneously reducing its stake in the Gato Do Mato field, as part of its portfolio optimization strategy.
In another development, TotalEnergies entered into a 20-year Sales and Purchase Agreement with Ksi Lisims LNG for 2 million tons per year of liquefied natural gas. The company also acquired a 5% stake in Western LNG, with options to increase its involvement, aligning with its strategy to diversify its LNG portfolio in North America. Meanwhile, Morgan Stanley upgraded TotalEnergies’ stock rating to Overweight, reflecting confidence in the company’s financial strategy and resilience amid industry pressures.
In the UK, offshore workers employed by TotalEnergies are contemplating strike action over a pay dispute, as reported by the Unite union. The potential strike involves approximately 50 union members on the Elgin Franklin and North Alwyn platforms. These recent developments highlight TotalEnergies’ ongoing strategic maneuvers and challenges within the global energy sector.
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