TotalEnergies Sells Malaysia Block 2E Stake to Inpex for USD 350 Million

TotalEnergies agreed to sell its 85% interest in Malaysia's offshore Block 2E to Inpex for USD 350 million. The stake represents an effective 8.5% net interest in the Marjoram gas field, which is currently under development.

Marjoram is a deepwater sour gas development discovered in 2014 and currently operated by Shell, with Petronas Carigali holding the remaining interest in the block.

Nicolas Terraz, President of Exploration & Production at TotalEnergies, said the agreement is aligned with the company's strategy of actively managing its portfolio and prioritizing material positions. Terraz said the strategy supports the company's ambition to develop low-cost, low-emission projects.

The sale trims a position TotalEnergies expanded through its 2024 acquisition of SapuraOMV Upstream, which elevated it to Malaysia's third-largest gas producer. After the Block 2E divestment, the company holds interests in 17 operated and non-operated offshore blocks off the coasts of Sarawak and Sabah.

TotalEnergies continues to build out its footprint in the country beyond upstream gas. Earlier this year it announced a USD 2.2 billion renewable energy joint venture with Masdar focused on Malaysia and the broader Asian market.

The transaction hands Inpex a share of a field still in development, replacing TotalEnergies as the incoming interest holder in the block alongside the Shell-operated venture and Petronas Carigali. For TotalEnergies, the divestment shrinks a minority position while the operator and state partner retain the balance of the block.