Earlier today, TotalEnergies announced a number of agreements with PETRONAS Carigali that will see the two companies continue to grow their partnership in Malaysia and across the region. Included in the deals are:
- Malaysia farm-in agreements: two agreements have been signed that will see TotalEnergies take a 50% operated stake in the SK-301B and SK-313 PSCs from PETRONAS Carigali, who previously held 100% interest in both the blocks.
- Malaysia strategic cooperation agreement (SCA): covers cooperation in a number of areas including exploration and production, gas and liquefied natural gas (LNG), carbon footprint reduction and cooperation. No specific asset have been mentioned in the press releases to-date.
- Indonesia farm-in agreement: an agreement has been signed that will see TotalEnergies take a 24.5% non-operated stake in the Bobara PSC in West Papua from PETRONAS Carigali, who previously held 100% interest in the block.
No value for these deals have been mentioned in any of the press releases. Completion will be dependent on the normal approvals.
Assets included in the deal
The confirmed assets mentioned to-date include two PSCs offshore Sarawak, Malaysia, and one PSC offshore West Papua, Indonesia.
Malaysia – SK-301B / SK-313
There are two Malaysian PSCs explicitly mentioned within the press releases: SK-301B and SK-313, which cover contiguous shallow-water blocks in Balingian province, offshore Sarawak. Prior to this deal, both of the blocks were held 100% by PETRONAS Carigali. On completion, TotalEnergies will hold 50% and operatorship, with PETRONAS Carigali retaining the other 50%.
- SK-301B: has two discoveries from 2023 in the form of Machinchang and Pangkin. Details on the scale of the discoveries is limited.
- SK-313: contains the Singsing field that was discovered in 2023 and appraised in 2024. There may also be a discovery related to the Tadom-1 well, also in 2023. Again, details on the scale of these discoveries is limited.
The press releases have indicated a combined resource base of more than 4 Tcf. The development of the fields would likely follow other discoveries offshore Sarawak, with platforms being installed at the fields, with the gas then tied-back into existing infrastructure, of which there is plenty 50-200km to the east of these blocks. The gas would then eventually go to MLNG for liquefaction and export.
Indonesia – Bobara PSC
The Bobara block is located in West Papua, Indonesia. The block was offered September, as a part of the 3rd bid round of 2023. As a reminder, PETRONAS Carigali (100% + operator) were awarded Bobara PSC in February 2024. The block covers a deepwater area of about 8,500 km2, offshore West Papua. The signature bonus was US$ 50,000, with a firm work commitment of US $16.92 million, which consists of G&G studies as well as seismic acquisition. Once complete, the rights holdings will be PETRONAS Carigali (75.5% + operator), and TotalEnergies (24.5%).