As part of its active portfolio management, TotalEnergies has announced the sale of its subsidiary TotalEnergies EP (Brunei) B.V. to Hibiscus Petroleum Berhad, an independent Malaysian oil and gas exploration and production company. The transaction, valued at $259 million, is expected to close in the fourth quarter of 2024.
Long-term mature assets
TotalEnergies EP (Brunei) B.V. had owned and operated a 37.5% interest in Block B, an offshore oil and gas field located 85 kilometers off the coast of Brunei, for several decades. The historical partners on this block were Shell Deepwater Borneo (35%) and Brunei Energy Exploration (27.5%). The main Block B field, Maharaja Lela/Jamalulam (MLJ), came on stream in 1999 and has been a significant part of TotalEnergies’ activities in the region.
Declining but profitable production
Although mature, the MLJ field will still generate net production of around 9,000 barrels of oil equivalent per day for TotalEnergies in 2023. However, in view of the field’s natural decline and with a view to rationalization, the Group decided to withdraw from this asset in favor of Hibiscus Petroleum, a local player better placed to optimize its management in the future.
Portfolio optimization
Jean-Pierre Sbraire, CFO of TotalEnergies, emphasized that :
“this transaction is in line with our strategy of actively managing our portfolio by monetizing mature assets and allocating our talents and resources to the most promising assets for the future.”
Energy transition at the heart of the strategy
Present in some 100 countries with over 100,000 employees, TotalEnergies places sustainable development at the heart of its strategy, projects and operations. The Group is thus pursuing its commitment to more reliable, affordable and sustainable energy, while optimizing its portfolio of traditional assets.
