EnQuest Acquires $833 Million Offshore Assets from Petronas in Malaysia
Key Details of the EnQuest-Petronas Offshore Asset Acquisition
June 10 (Reuters) - North Sea-focused oil producer EnQuest agreed on Wednesday to buy interests in four offshore contracts in Malaysia for up to $833 million from state-run Petronas, as the British company expands its South East Asian presence.
The deal comes as EnQuest and other energy firms grapple with Britain's levies on energy profits, raising concerns around the competitiveness of North Sea producers and prompting the company to diversify its portfolio.
Transaction Structure and Strategic Rationale
Here are a few details:
Farm-Out Agreements and Participating Interests
• EnQuest, via its Malaysian unit, has entered three farm-out agreements with Petronas unit Carigali and E&P Malaysia for participating interests in four contract sharing projects offshore Malaysia.
Reverse Takeover and Listing Status
• The deal will be structured as a reverse takeover under British rules given the size of the assets changing hands, with EnQuest maintaining its London listing and operations.
Funding and Financial Strategy
• EnQuest plans to fund the transactions with existing debt facilities and cash on hand.
Production Impact and Portfolio Diversification
• EnQuest, which operates in the UK's North Sea as well as Malaysia and Vietnam, expects production of about 100,000 barrels of oil equivalent per day, up 13% from 2025 levels, following the addition of the assets.
CEO Statement on Strategic Focus
• "It (the agreement) reflects our clear focus on building a larger, more diversified portfolio, while maintaining our discipline in pursuing opportunities that enhance value, strengthen cash generation and support long-term Shareholder returns," EnQuest CEO Amjad Bseisu said in a statement.
Deal Timeline and Market Reaction
• The deal is expected to conclude by the end of the year.
• Shares of EnQuest rise more than 21% to 23.2 pence in early trade.
Reporting and Editorial Credits
(Reporting by Prerna Bedi in Bengaluru; Editing by Nivedita Bhattacharjee and Sherry Jacob-Phillips)