TotalEnergies Announced Sale of Brunei Subsidiary

SEATTLE (Oil Monster): TotalEnergies- the leading global integrated energy company announced that it has entered into agreement to sell its wholly-owned subsidiary TotalEnergies EP (Brunei) B.V. to Malaysia-based Hibiscus Petroleum Berhad for a total consideration of approximately $259 million. The transaction is expected to close during the final quarter of the current year.

According to sources, TotalEnergies EP (Brunei) holds a 37.5% interest in Block B, located 85 km off the coast of Brunei. In addition, Shell and Brunei Energy Exploration hold 35% and 27.5% stakes respectively in Block B. Block B includes the Maharaja Lela/Jamalulam (MLJ) field which officially commenced production in 1999.

The acquisition will help Hibiscus Petroleum to add a net of up to 21.7mn barrels of oil equivalent (boe) to its 2P reserves. The additional volumes from the transaction are expected to provide an uplift of nearly 86% to its gas production, thereby helping it come closer to its previously announced production target of 35,000-50,000 boe/day by 2026, noted Kenneth Pereira, Managing Director, Hibiscus.

Meantime, Jean-Pierre Sbraire, Chief Financial Officer of TotalEnergies commented that the transaction fits with the company strategy to monetize its mature assets towards active management of its overall portfolio.