TotalEnergies Deepens Southeast Asia Footprint Through Strategic Acquisition of PETRONAS Interests in Malaysia and Indonesia
At the prestigious Energy Asia 2025 conference held in Kuala Lumpur, global energy leader TotalEnergies (Paris: TTE) (LSE: TTE) (NYSE: TTE) announced a major milestone in its ongoing expansion in Southeast Asia. The company revealed a significant acquisition from PETRONAS, Malaysia’s national oil and gas company, involving multiple offshore assets in Malaysia and one in Indonesia. This strategic deal reflects the shared ambition of both companies to strengthen their collaboration in upstream exploration and production while advancing the development of low-cost, low-carbon energy resources.
The acquisition covers a diverse portfolio of offshore blocks at varying stages of maturity, totaling over 100,000 square kilometers across Malaysian and Indonesian waters. These assets encompass exploration, appraisal, and development opportunities that will significantly enhance TotalEnergies’ presence in the region and contribute to long-term supply security and energy transition goals.
A New Era of Cooperation Between Two Energy Majors
This latest agreement marks a deepening of the well-established relationship between TotalEnergies and PETRONAS, particularly in upstream hydrocarbon ventures. It builds upon the collaborative framework developed through previous joint projects and highlights a shared vision to develop “advantaged barrels”—a term used to describe hydrocarbon resources with strong commercial potential, cost efficiency, and lower carbon intensity.
A key element of the acquisition is TotalEnergies’ 50% operated working interest in Blocks SK301b and SK313, both located offshore Sarawak in Malaysian waters. These blocks are of high strategic value, as they have already yielded significant natural gas discoveries totaling more than 4 trillion cubic feet (Tcf). These discoveries are expected to form the foundation for future gas development projects aimed at supplying feedstock to Malaysia’s liquefied natural gas (LNG) export facilities, including the globally significant Malaysia LNG complex, from 2030 onward.
These assets will be jointly developed with Petronas Carigali Sdn Bhd, the wholly owned upstream subsidiary of PETRONAS, which remains a cornerstone of Malaysia’s exploration and production operations. The collaboration ensures that local knowledge and operational excellence are retained, while leveraging TotalEnergies’ global technical expertise and capital capabilities.
In addition to the producing and appraisal blocks, TotalEnergies has also acquired interests in several exploration blocks offshore Malaysia. These are designed to support long-term production growth and bolster the company’s ability to replenish reserves with low-carbon intensity resources in close proximity to existing infrastructure.
The completion of this transaction is subject to standard regulatory approvals and other customary closing conditions.
Strengthening TotalEnergies’ Southeast Asia Strategy
This acquisition follows TotalEnergies’ December 2024 acquisition of SapuraOMV, a move that further cemented its long-term commitment to Southeast Asia and Malaysia in particular. With these new assets, TotalEnergies not only deepens its role in Malaysia’s upstream sector but also gains strategic access to growth corridors across Asia, particularly the dynamic LNG markets.
By positioning Malaysia as an anchor point for its Southeast Asian operations, TotalEnergies is strengthening its ability to deliver low-cost, low-carbon LNG, a fuel seen as a transitional energy source critical to global decarbonization pathways. The company’s growing footprint in Malaysia also supports its broader ambition to balance hydrocarbons and renewables in its portfolio, with natural gas playing a key role in replacing higher-emission coal in power generation across Asia.
Patrick Pouyanné, Chairman and CEO of TotalEnergies, expressed his enthusiasm for this deepened collaboration:
“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 the Asian LNG market. TotalEnergies and PETRONAS’ strategic collaboration, which extends well beyond Malaysia through our multiple joint ventures worldwide, enables us to access a large and diverse portfolio in the country, spanning from exploration to production.”
PETRONAS and TotalEnergies: A Global Strategic Partnership
Beyond the asset-level acquisitions, the announcement also included a new strategic cooperation agreement signed by Patrick Pouyanné and Tan Sri Tengku Muhammad Taufik, President and Group CEO of PETRONAS. The agreement sets a framework for expanding their joint activities beyond Southeast Asia, into upstream sectors across the globe.
This broader strategic alignment is based on complementary strengths: TotalEnergies brings technological leadership and international experience in complex exploration and production operations, while PETRONAS contributes deep regional knowledge, access to reserves, and a growing reputation as a progressive national oil company.
Tan Sri Tengku Taufik underscored this sentiment during the joint signing ceremony:
“For a long time, PETRONAS and TotalEnergies have demonstrated how complementary strengths can unlock new opportunities. 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.”
This agreement reflects PETRONAS’ ambition to become a regional champion in sustainable energy and signals that it is embracing global partnerships to responsibly extract resources while preparing for an energy future that increasingly prioritizes emissions reductions, operational efficiency, and resilience.
Expansion into Indonesia: Unlocking New Frontiers
TotalEnergies’ regional expansion is not limited to Malaysian waters. As part of the same announcement, the company also revealed that it had signed an agreement to acquire a 24.5% interest in the Bobara block, located offshore Indonesia, from PETRONAS.
The Bobara block represents a new frontier for exploration, offering potential oil-bearing structures in an underexplored basin. PETRONAS will retain operatorship and the remaining 75.5% interest, with TotalEnergies joining as a non-operating partner. Together, the companies will execute an exploration work program targeting new oil prospects, with the possibility of scaling the partnership further depending on results.
This move reinforces TotalEnergies’ commitment to exploring new basins in the Asia-Pacific region, which continues to present strong opportunities for discoveries thanks to favorable geology and increasing regulatory and political stability.
It also aligns with Indonesia’s own national strategy of revitalizing offshore exploration and attracting international capital and expertise to develop its hydrocarbon reserves responsibly.
Significance for the Global Energy Landscape
The timing and scope of this transaction are significant. As the world navigates the dual challenge of increasing energy access while transitioning to lower-carbon systems, strategic partnerships like the one between PETRONAS and TotalEnergies serve as vital platforms for innovation and pragmatic progress.
Natural gas, particularly in LNG form, is considered a vital “bridge fuel” that can help reduce global emissions when it replaces coal-fired power generation. Asia remains the world’s fastest-growing LNG market, with demand expected to rise steadily through 2040, particularly in nations like India, China, and the ASEAN countries.
TotalEnergies’ enhanced access to gas reserves and LNG infrastructure in Malaysia provides it with a clear competitive edge in meeting this demand sustainably.
Moreover, TotalEnergies’ approach of securing low-cost and low-carbon intensity assets reflects the evolving business model of international oil companies (IOCs). No longer focused solely on volumes or reserves, companies are increasingly seeking high-margin, lower-emissions barrels that complement their broader decarbonization strategies and support their ability to invest in renewables and new energies.
