TotalEnergies to sell stake in Malaysian gas block to Thailand's PTTEP

TotalEnergies has agreed to sell an indirect stake of almost 10% in a Malaysian offshore gas block to Thailand’s state-backed PTTEP for an undisclosed sum, the French oil major said on Tuesday.

TotalEnergies will retain a 30.002% interest in Block SK408 after the deal closes, it said.

The block hosts the Jerun gas field, which supplies the 29.3 million-metric-ton per year Bintulu LNG complex operated by Malaysian state firm Petronas.

TotalEnergies last year bought Malaysian upstream company SapuraOMV in two deals worth $1.6 billion to expand its natural gas portfolio as demand for the fuel rises.

This year, under investor pressure to cut debt, it has started selling mature fields and minority stakes to offset a series of costly acquisitions.

"With this transaction, TotalEnergies ensures efficient management of its portfolio in Malaysia, while strengthening ties with PTTEP, a longstanding partner," Nicolas Terraz, president of exploration and production, said in a statement.

In 2023, TotalEnergies sold PTTEP a 25% stake in its Seagreen wind farm offshore Scotland for $661 million and signed a partnership to explore joint upstream opportunities.

Malaysia was the world's fifth-largest liquefied natural gas exporter last year, shipping nearly 28 million tons mainly to Japan, China and South Korea, according to Kpler data. Thailand is Southeast Asia's top LNG importer.

Block SK408 is also owned by subsidiaries of Petronas (30%) and Shell (30%).

TotalEnergies on Tuesday also signed a 21-year deal to supply solar electricity to Malaysian data centres owned by Alphabet's Google.