UK Oil Producer EnQuest to Acquire Malaysian Offshore Assets for Up to $833 Million
British oil producer EnQuest agreed to purchase interests in four offshore Malaysian contracts from state-run Petronas for up to $833 million, marking a significant expansion of its Southeast Asian operations. The acquisition reflects EnQuest's strategy to diversify away from the UK North Sea amid rising energy profit levies and regulatory pressures on British producers. The deal is expected to increase EnQuest's production by approximately 13 percent to around 100,000 barrels of oil equivalent per day by year-end.
EnQuest, a North Sea-focused oil producer, has agreed to acquire participating interests in four offshore contract sharing projects in Malaysia through three farm-out agreements with Petronas units Carigali and E&P Malaysia. The transaction, valued at up to $833 million, will be structured as a reverse takeover under British rules due to the asset size, while EnQuest maintains its London listing and operational headquarters. The company plans to fund the acquisition using existing debt facilities and cash reserves. This expansion reflects EnQuest's response to Britain's energy profit levies, which have raised competitiveness concerns for North Sea operators and prompted portfolio diversification. Following the deal's completion by year-end, EnQuest expects production to reach approximately 100,000 barrels of oil equivalent per day, representing a 13 percent increase from 2025 levels. CEO Amjad Bseisu emphasized the deal's alignment with the company's strategy to build a larger, more diversified portfolio while maintaining value discipline and supporting shareholder returns.
What different sources said
- Channel NewsAsiaCenter
UK's EnQuest expands Malaysian presence with $833 million assets deal
- Yahoo FinanceCenter
EnQuest Bets $833 Million on Malaysia's Offshore Oil
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