TotalEnergies divests 10% stake in Malaysia’s SK408 gas block to PTTEP

TotalEnergies has completed the sale of an indirect 9.998% interest in Malaysia’s SK408 offshore gas block to PTTEP, strengthening the companies’ long-standing partnership while allowing TotalEnergies to optimize its upstream portfolio in the country. 

Following the transaction, TotalEnergies retains a 30.002% working interest in SK408 and remains operator of the block, which is considered a key contributor to Malaysia’s domestic gas supply. Financial terms of the deal were not disclosed.

The divestment builds on a series of recent moves by TotalEnergies to consolidate its position in Malaysia, including the acquisition of SapuraOMV Upstream in December 2024 and the purchase of additional interests from PETRONAS Carigali earlier this year. The company is now the country’s third-largest gas operator.

“With this transaction, TotalEnergies ensures efficient management of its portfolio in Malaysia, while strengthening ties with PTTEP, a long-standing partner of our company,” said Nicolas Terraz, E&P president at TotalEnergies.

SK408 is operated by TotalEnergies and forms part of its integrated upstream gas portfolio offshore Sarawak. The block plays an important role in supporting Malaysia’s energy security, supplying gas to domestic markets.

Beyond upstream operations, TotalEnergies has been active across the Malaysian energy value chain since 1985. The company holds operated interests in multiple offshore blocks and is also advancing low-carbon initiatives, including a regional carbon dioxide storage project in the Malay basin and hybrid renewable energy developments to supply business customers.

The transaction underscores the continued appeal of Malaysia’s offshore gas sector to international operators and national oil companies alike, as partners seek to balance portfolio optimization with long-term gas supply growth in Southeast Asia.