The 85% interest in Block 2E represents an effective 8.5% stake in the Marjoram gas field, which is currently under development as part of the Shell-operated Rosmari-Marjoram project offshore Sarawak, TotalEnergies said on July 2.

TotalEnergies said the transaction would enable it to realise the full value of a minority position in a non-operated project while directing investment towards its operated Malaysian portfolio.

“This agreement is fully aligned with our strategy of actively managing our portfolio and prioritising material positions to support our ambition to develop low-cost, low-emission projects,” the French major said. “With Jerun field now on stream and a large portfolio of opportunities, Malaysia is a strategic platform for TotalEnergies’ low-cost, low-emission growth strategy, serving both the country and the wider Southeast Asia region.”

Rosmari-Marjoram lies around 220 km off Bintulu and comprises an offshore platform and an onshore gas-processing plant. Shell has said the development is expected to produce up to 800mn cubic feet per day of gas, equivalent to around 100,000 barrels of oil equivalent per day, with first gas targeted later this decade.

TotalEnergies has operated in Malaysia since 1985 and became the country’s third-largest gas producer following its acquisition of SapuraOMV Upstream in December 2024. The company also acquired 50% interests in two gas-rich blocks off the coast of Sarawak from state-owned Petronas in June last year.

All told,TotalEnergies holds operated and non-operated interests in 17 offshore blocks off Sarawak and Sabah.

The company also markets petroleum products in Malaysia. In 2023, it agreed with Petronas and Japan’s Mitsui to develop a regional carbon-storage project and assess potential storage sites in the Malay Basin.

TotalEnergies and Abu Dhabi renewable energy company Masdar also announced a $2.2bn joint venture on April 2 to expand renewable power development across Asia, with Malaysia among its priority markets.