EnQuest PLC has agreed to buy interests in four production sharing contracts offshore Malaysia from local state firm Petronas for up to $833 million, as the UK-based oil and gas producer bets on growth opportunities in Southeast Asia.
EnQuest on Wednesday said that its wholly-owned subsidiary, EnQuest Petroleum Production Malaysia Limited, has agreed to acquire three separate packages that include interests in four offshore production sharing contracts in Malaysia. The proposed acquisitions involve EnQuest entering into three separate farm-out agreements with Petronas Carigali and E&P Malaysia Venture Sdn Bhd, for a maximum total consideration of $833 million.
Of this, $554 million would be payable upon completion of the transaction, which is expected on December 31, 2026, subject to customary completion conditions, including the waiver or expiry of applicable pre-emption rights for some of the offshore production sharing contracts.
Currently, EnQuest is active in Malaysia’s upstream with the PM8 Extension Production Sharing Contract, consisting of the PM8 and Seligi Fields, over which the company assumed operatorship and a 50% working interest in 2014.
With uncertainties over its domestic UK operations with the energy profits levy and the planned ban on new licenses in the UK North Sea, EnQuest is looking to double down on opportunities for upstream growth in Southeast Asia.
The deal for interests in four offshore contracts would add about 57,400 barrels of oil equivalent per day (boepd) to EnQuest’s production, and raise Southeast Asia’s contribution to the group production to 69%, with the UK North Sea contributing the remaining 31%, the UK company said today.
The proposed transaction “reflects our clear focus on building a larger, more diversified portfolio, while maintaining our discipline in pursuing opportunities that enhance value, strengthen cash generation and support long-term Shareholder returns,” said EnQuest’s CEO Amjad Bseisu.
Meanwhile, Malaysia’s crude and condensate production dropped by 5.5% from a year earlier to 43 million barrels in the first quarter of 2026, due to a slump in crude output, the Department of Statistics Malaysia (DOSM) said last week.
By Charles Kennedy for Oilprice.com
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