The Malaysian energy group Petronas and its French counterpart TotalEnergies have signed a Strategic Cooperation Agreement (SCA) and two Farm Out Agreements (FOAs) to expand their collaboration in Malaysia and Indonesia. The strategic cooperation agreement aims to deepen their partnership in exploration and production businesses globally, focusing on exploration and production, gas and LNG, carbon footprint reduction and cooperation.
TotalEnergies will acquire interests in multiple blocks offshore Malaysia, including a 50% operated working interest in Blocks SK301b and SK313 offshore Malaysia, where more than 110 bcm of gas reserves have been discovered. The transaction is subject to customary conditions, including regulatory approvals. TotalEnergies has also signed an agreement to acquire a 24.5% interest from Petronas in the Bobara block, located offshore Indonesia, to carry out an exploration work program targeting oil prospects. Petronas will retain the remainder of the working interest.
In addition, Petronas and the Italian energy group Eni have signed a framework agreement to create a 50:50 joint venture to oversee assets in Indonesia and Malaysia through business combination, based on what Eni pursued in Norway with Var Energy or in Angola with Azule. The new company will deliver in the medium term an estimated production of 500 kboe/d, mainly gas, and it will combine approximately 3 Gboe of reserves with an additional 10 Gboe of potential exploration upside.