Wedoany.com Report-Dec.17, TotalEnergies has reached an agreement to transfer an indirect interest of nearly 10% in Malaysia's offshore Block SK408 to Thailand's state-supported PTTEP, with the financial details remaining confidential, as stated by the French energy company.

Upon completion of the transaction, TotalEnergies will hold a 30.002% stake in the block.

Block SK408 contains the Jerun gas field, which provides feedstock to the Bintulu LNG facility, a complex with an annual capacity of 29.3 million metric tons operated by Malaysia's national energy company Petronas.

The French firm expanded its natural gas assets in Malaysia last year through the acquisition of upstream operator SapuraOMV in transactions valued at $1.6 billion, reflecting growing regional demand for the resource.

In the current year, the company has initiated sales of certain mature assets and minority interests to optimize its capital structure following several significant investments.

"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.

Previous collaboration between the two companies includes a 2023 agreement in which TotalEnergies transferred a 25% interest in the Seagreen offshore wind project in Scotland to PTTEP for $661 million, alongside commitments to evaluate further joint opportunities in upstream activities.

Block SK408's ownership also comprises subsidiaries of Petronas with 30% and Shell with 30%.

Malaysia ranked as the fifth-largest exporter of liquefied natural gas globally last year, delivering close to 28 million tons primarily to markets in Japan, China, and South Korea, based on available shipping data. Thailand stands as the leading importer of LNG in Southeast Asia.

This divestment allows TotalEnergies to refine its regional holdings while maintaining a substantial operational presence in a key gas-producing area.

The continued partnership with PTTEP highlights established relationships that facilitate shared expertise and resource development across diverse energy projects.

By adjusting its stake, TotalEnergies supports balanced portfolio allocation, focusing on assets that align with long-term production and market strategies.

The Jerun field contributes valuable supply to the Bintulu complex, underscoring the block's importance in supporting Malaysia's prominent position in the global LNG trade.

Separately, TotalEnergies has entered into a 21-year agreement to deliver solar-generated electricity to data center facilities in Malaysia operated by Alphabet's Google.

This renewable supply arrangement demonstrates the company's broadening involvement in sustainable energy solutions alongside its traditional hydrocarbon activities.

Such initiatives reflect evolving approaches to meeting varied energy needs, from natural gas for liquefaction and export to clean power for technology infrastructure.

Overall, these developments illustrate strategic adjustments aimed at enhancing operational efficiency and fostering collaborative growth in Southeast Asia's dynamic energy landscape.