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UK-based oil producer EnQuest has agreed to acquire interests in four offshore production-sharing contracts in Malaysia from Petronas in a deal valued at up to USD 833 million. The transaction marks a significant step in EnQuest’s strategy to expand its presence in Southeast Asia and diversify beyond the North Sea. The acquisition is expected to boost the company’s production levels and strengthen its international portfolio. Investors welcomed the announcement, sending EnQuest shares sharply higher in early trading.
UK-based oil and gas producer EnQuest has agreed to acquire interests in four offshore production-sharing contracts in Malaysia from Petronas for up to USD 833 million, further expanding its footprint in Southeast Asia. The acquisition comes as EnQuest continues to diversify its operations beyond the North Sea, where energy companies have faced increasing pressure from higher taxes on energy profits and concerns over the long-term competitiveness of UK offshore production.
The transaction will be carried out through EnQuest’s Malaysian subsidiary, which has entered into three farm-out agreements with Petronas subsidiaries, including Petronas Carigali and E&P Malaysia. Through these agreements, EnQuest will acquire participating interests in four offshore contract-sharing projects located in Malaysian waters.
Due to the size of the assets involved, the acquisition will be structured as a reverse takeover under UK listing regulations. Despite this classification, EnQuest will continue to maintain its London stock market listing and existing operations. The company said it plans to finance the acquisition through a combination of existing debt facilities and available cash resources.
EnQuest currently operates oil and gas assets across the UK North Sea, Malaysia and Vietnam. Following completion of the acquisition, the company expects production to reach approximately 100,000 barrels of oil equivalent per day, representing an increase of around 13 percent compared with expected 2025 production levels. Chief Executive Officer Amjad Bseisu stated that the agreement reflects the company’s focus on building a larger and more diversified portfolio while maintaining discipline in pursuing opportunities that enhance value, strengthen cash generation and support long-term shareholder returns.
The acquisition is expected to be completed by the end of the year, subject to the necessary approvals and transaction conditions. Investors responded positively to the announcement. EnQuest shares surged more than 21 percent in early trading, reflecting confidence in the strategic benefits of the acquisition and its potential contribution to future production growth.
The deal also builds on EnQuest’s broader strategy of increasing its presence in Southeast Asia. In recent years, the company has expanded operations in Malaysia and Vietnam as part of efforts to reduce reliance on the mature North Sea basin and create a more geographically balanced asset portfolio.
The acquisition highlights the growing importance of Southeast Asia as a destination for energy investment and portfolio expansion. For EnQuest, the deal represents a significant step toward increasing production capacity and broadening its operational base beyond traditional North Sea assets. As energy companies continue to adapt to changing regulatory and fiscal environments, diversification is becoming a key strategy for long-term growth. The successful completion of the transaction could strengthen EnQuest’s position in the region and provide additional flexibility as it pursues future opportunities across international energy markets.
Source - Reuters
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