EnQuest looks to boost production by over 130% with Malaysian asset deals

EnQuest PLC subsidiary EnQuest Petroleum Production Malaysia Ltd. has agreed to acquire interests in producing upstream assets in Peninsular Malaysia and Sarawak. The company expects to leverage its integrated technical capabilities and experience in managing brownfield and late-life assets to support continued operations and redevelopment.

Under three separate transaction packages with Petronas Carigali Sdn. Bhd. and E&P Malaysia Venture Sdn. Bhd., EnQuest will acquire interests in four offshore production sharing contracts (PSCs) for a maximum total consideration of up to $833 million.

As part of the agreements, EnQuest Petroleum Production Malaysia will assume operatorship and participating interests in the Balingian PSC (Package 1, 90% participating interest), SK8 PSC (Package 1, 100% interest), and D35 PSC (Package 2, 50% interest), and will hold a nonoperated participating interest in the PM6/12 PSC (Package 3, 30% interest).

The transaction also includes participation by Terengganu-based TI Exploration & Production Sdn. Bhd. (TI EP), which will hold a nonoperated interest in the PM6/12 PSC. TI EP is a joint venture between TI Petroleum Sdn. Bhd., a subsidiary of state-owned Terengganu Inc., and Ping Petroleum Ltd., an independent upstream company.

On a 2025 net participating interest basis, the acquired interests are expected to add about 57,400 boe/d of production (47% liquids, 53% gas). This would increase EnQuest’s group production to more than 100,000 boe/d, representing a 134% increase compared with its 2025 production. The assets are expected to support production at around 100,000 boe/d through the end of the decade, the company said.

EnQuest would also add 138 MMboe of 2P reserves and 208 MMboe of 2C resources (net WI).

The acquisitions are expected to close by yearend, subject to customary conditions, including the waiver or expiry of applicable pre-emption rights associated with Package 2. 

Package 1, Package 2, and Package 3 are subject to separate acquisition agreements and are not inter-conditional on the completion of each other. If the pre-emption right is exercised on Package 2, the maximum total consideration for Package 1 and Package 3 would be $642 million, comprising upfront consideration of $363 million, deferred consideration of $189 million, and contingent consideration of $90 million.