TotalEnergies divests stake in Malaysian oil and gas block to Japan’s Inpex for $350mn

TotalEnergies has reached an agreement to sell its 85% interest in Block 2E offshore Sarawak, Malaysia, to Japan’s Inpex for $350 million. The transaction includes an 8.5% effective stake in the Marjoram gas field, which is currently being developed as part of the Shell-operated Rosmari-Marjoram project. This move allows the French energy major to monetize a minority, non-operated position while refocusing its capital on its operated assets and low-emission growth strategy within the region.

TotalEnergies announced the $350 million sale of its interest in Block 2E, which includes the Marjoram gas field located approximately 220 km off the coast of Bintulu. The Marjoram field is currently under development as part of the Rosmari-Marjoram project, which is operated by Shell and includes both an offshore platform and an onshore gas-processing plant. The project is designed to produce up to 800 million cubic feet of gas per day, equivalent to 100,000 barrels of oil equivalent per day, with first gas expected to be delivered later this decade.

The company stated that the transaction is fully aligned with its strategy to actively manage its portfolio by prioritizing material positions and low-cost, low-emission projects. By divesting this minority, non-operated stake, TotalEnergies intends to realize the full value of the asset while redirecting capital toward its operated Malaysian portfolio. The major emphasized that Malaysia remains a strategic platform for its growth in Southeast Asia, particularly following the recent start of production at the Jerun field and the acquisition of other gas-rich blocks from Petronas.

TotalEnergies has maintained a presence in Malaysia since 1985 and significantly expanded its footprint to become the country's third-largest gas producer after acquiring SapuraOMV Upstream in December 2024. The company currently holds interests in 17 offshore blocks across Sarawak and Sabah and continues to expand into adjacent sectors. These efforts include a regional carbon-storage project in the Malay Basin with Petronas and Mitsui, as well as a $2.2 billion joint venture with Masdar to develop renewable power across Asia, with Malaysia identified as a priority market.