TotalEnergies to Acquire 30% Operating Stake in Two Malaysian Gas Fields
Key Facts
TotalEnergies announced agreements to acquire a 30% operating stake in the offshore Lang Lebah and B14 gas fields off Malaysia’s Sarawak state, in arrangements involving Petronas Carigali, PTTEP and KUFPEC. The company said the stake would give it the operator role at both fields, while completion of the agreements remains subject to regulatory approvals. Once completed, PTTEP will hold 25%, KUFPEC 25% and Petronas Carigali 20%, alongside TotalEnergies’ stake. The announcement did not specify the value of the transaction. The agreements bring new fields into the company’s Malaysian portfolio and form part of a development plan targeting substantial gas resources and flows to an existing LNG facility.
The companies plan to develop Lang Lebah and neighboring B14 as an integrated project that TotalEnergies expects to unlock more than 6.5 trillion cubic feet of gas resources, equivalent to more than 1 billion barrels of oil equivalent. The plan targets stable production of about 10 billion cubic meters a year. The gas is set to be sent to the existing Malaysia LNG facility, linking development of the two fields to infrastructure already in operation. The company said a project of this scale could strengthen its position in Malaysia’s gas market. Chief Executive Patrick Pouyanné also linked resource development to establishing another major gas hub in the country, using shared infrastructure to meet rising Asian demand for LNG.
The deal forms part of TotalEnergies’ strategy to strengthen its integrated position in Malaysia’s gas sector, following its acquisition of SapuraOMV assets in 2024 and expansion of its partnership with Petronas in 2025. The company said the SapuraOMV acquisition added to its activity in the country and made it Malaysia’s third-largest gas producer. The new agreement reflects continued work with Petronas and other partners on offshore resources, with TotalEnergies to operate the two new fields once the agreements are completed. The move sits within a portfolio that includes current production and future development projects. It concerns Lang Lebah and B14, however, and the announcement does not link the fields to blocks SK301B and SK313, where the company previously announced an expansion.
TotalEnergies announced in June 2025 that it held a 50% operating stake in blocks SK301B and SK313 alongside Petronas, where gas discoveries exceeded 4 trillion cubic feet. It said at the time that development of those discoveries was expected to support gas supplies to the Malaysia LNG facility starting in 2030. Those plans provide context for the company’s expansion in Malaysian gas resources, but involve blocks different from the Lang Lebah and B14 fields. Across the local gas sector, Petronas’ total LNG sales reached 20.29 million metric tons in the first half of 2026, up 17% from 17.34 million metric tons in the first half of 2025. The Petronas LNG complex in Bintulu has production capacity of 29.3 million tons a year, according to the company’s business outlook.
The addition of the two fields comes as Malaysia pursues a broader effort to replenish production resources and develop new discoveries. The Malaysia Petroleum Management unit of Petronas said its upstream plan for 2026 to 2028 includes accelerating the assessment of recently discovered resources, alongside intensifying exploration in new and mature areas to support domestic energy security and production sustainability. The plan also said a third floating LNG facility in Sipitang, Sabah, is expected to begin operations by 2027. Petronas’ average daily production was 2.423 million barrels of oil equivalent in 2025, compared with 2.451 million in 2024, the company said. These figures underscore the value of adding developable and producible resources to Malaysia’s gas supply chain, while the new agreement remains subject to regulatory approvals before completion.
Ahead of the announcement, TotalEnergies shares closed at $93.76 on October 26, then at $92.35 on October 27 and $92.88 on October 28. The closing price rose to $94.03 on October 29 and then to $95.33 on October 30, according to EL7 data. These prices cover the five sessions before the announcement in this report and do not include any subsequent comparison of the stock’s reaction to it. The company’s statement did not set a completion date for the transaction, saying only that the agreements require regulatory approvals. The next step related to the deal is therefore to secure those approvals, while the development plan targets stable annual production of about 10 billion cubic meters and gas supplies to the existing Malaysian liquefaction facility.