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France’s energy giant TotalEnergies has strengthened its ties with PTT Exploration and Production Public Company (PTTEP) through an arrangement to offload a minor stake in a block off the coast of Malaysia.
TotalEnergies has closed an agreement to divest to PTTEP an indirect interest of 9.998% in block SK408 in Malaysia, which enables it to keep a 30.002% stake in the same block. This partnership is said to mark a new milestone for the French player in Malaysia, following the acquisition of SapuraOMV in December 2024 and the purchase of interests in multiple blocks from PETRONAS Carigali in June 2025.
Nicolas Terraz , President Exploration & Production at TotalEnergies, commented: “With this transaction, TotalEnergies ensures efficient management of its portfolio in Malaysia, while strengthening ties with PTTEP, a long-standing partner of our company. Together with PTTEP, we look forward to further contributing to the development of Malaysia’s energy resources.”
Operated by TotalEnergies, SK408 is perceived to be a major gas development, contributing to Malaysia’s energy security. The block forms part of the company’s integrated upstream portfolio in Malaysia.
PTTEP has confirmed its entrance into an investment with TotalEnergies by acquiring 49.99% interest in AzurVista Resources, a wholly owned subsidiary of TTE, which holds 20% participating interest in SK408 block.
The partners are TotalEnergies EP Sarawak (TEPS), holding 20%, Petronas Carigali (PCSB), with 30%, and Sarawak Shell (SSB) with the remaining 30%. Following the transaction, PTTEP’s indirect participating interest is 9.998% in SK408 block.
This block is a natural gas and condensate producing field in the shallow water of Malaysia under a production sharing contract (PSC) regime, with operations divided into two parts: the western area operated by TEPS and the eastern one operated by SSB.
The block has achieved commercially viable natural gas discoveries and both development and production activities are currently ongoing. The current production volume is approximately 750 million standard cubic feet of natural gas per day and 15,000 barrels of condensate per day.
The produced gas is fed to the onshore LNG liquefaction complex. The investment is interpreted to be aligned with PTTEP’s strategic plan, which focuses on expansion in key focus regions and strengthening collaboration with strategic partners.