TotalEnergies to divest Brunei subsidiary to Hibiscus Petroleum for $259 million

TotalEnergies, the global energy giant, entered a definitive agreement to sell its wholly owned subsidiary, TotalEnergies EP (Brunei) B.V., to Malaysia's Hibiscus Petroleum Berhad for $259 million. The transaction is anticipated to be finalised in the fourth quarter of 2024.

TotalEnergies EP (Brunei) B.V. holds and operates a 37.5% interest in Block B, a significant offshore oil and gas block located 85 kilometers off the coast of Brunei. The other stakeholders in Block B include Shell Deepwater Borneo, which owns a 35% interest, and Brunei Energy Exploration, which holds a 27.5% stake. The block encompasses the Maharaja Lela/Jamalulam (MLJ) field, which has been in production since 1999. In 2023, the MLJ field generated a net production of approximately 9,000 barrels of oil equivalent per day for TotalEnergies.

Jean-Pierre Sbraire, Chief Financial Officer of TotalEnergies, emphasised the strategic alignment of the transaction with the company's broader goals. "This transaction fits with our strategy to actively manage our portfolio by monetising mature assets and to allocate our talents to the most promising assets," he stated.

The divestment is part of TotalEnergies' ongoing effort to optimise its asset portfolio and focus on areas with higher growth potential. By selling its stake in the Brunei subsidiary, TotalEnergies aims to reallocate resources and talents to more promising ventures, ensuring sustained growth and profitability.

Hibiscus Petroleum's acquisition of TotalEnergies EP (Brunei) B.V. marks a significant milestone for the Malaysian company, enhancing its portfolio and expanding its footprint in the Southeast Asian oil and gas sector. The deal underscores Hibiscus Petroleum's commitment to growth and diversification, leveraging new opportunities in the region's energy landscape.

As the transaction progresses towards closure, both companies are expected to work closely with regulatory authorities to ensure a smooth and compliant transition. The completion of this deal will mark a new chapter for both TotalEnergies and Hibiscus Petroleum, reflecting their strategic priorities and ambitions in the ever-evolving energy market.