EnQuest Petroleum Production Malaysia, a fully owned subsidiary of the energy firm EnQuest, is actively pursuing an expansion of its oil and gas presence in Southeast Asia. The company has initiated a process to acquire stakes in four offshore production sharing contracts (PSCs) located off the coast of Malaysia.
This strategic expansion is being realized through three distinct farm-out agreements (FOAs) with Petronas Carigali and E&P Malaysia Venture (EPMV). These agreements cover stakes in the four offshore PSCs. The overall financial commitment for the proposed acquisition of the Malaysian PSC stakes is capped at $833 million. A substantial portion, $554 million, is scheduled for payment upon the completion of the deal, which is targeted for 31st December 2026. This completion is contingent upon meeting standard conditions, including the resolution of any applicable pre-emption rights related to one of the acquisition packages.
EnQuest’s strategic roadmap places a strong emphasis on growing its production base within the Southeast Asian region. The proposed Malaysian PSC stakes acquisition is expected to deliver a transformative change in the company’s production volumes, reserves, and cash flow generation. Furthermore, they present considerable opportunities for organic growth in the future. This move is consistent with EnQuest’s focus on building a more extensive and varied asset base.
Amjad Bseisu, Chief Executive Officer, EnQuest, said, “With these proposed acquisitions, we are taking a decisive step in the evolution of our business. It 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.”
The funding for the acquisition of these Malaysian PSC stakes is expected to be managed through the company’s existing debt facilities and available cash reserves. Based on projected figures for 2025, EnQuest anticipates a notable increase in its net participating interest production, exceeding 100,000 barrels of oil equivalent per day (boepd). This represents a 134% rise compared to the production levels anticipated for 2025. The newly acquired participating interests are estimated to contribute approximately 57,400 boepd to the total production. Consequently, the contribution from Southeast Asia to EnQuest’s overall operations will rise to 69%, with the UK North Sea accounting for the remaining 31%.
The projected production mix for 2025, including these new assets, is weighted at 63% liquids and 37% gas. The production from the newly acquired interests themselves is divided almost equally, with 47% liquids and 53% gas. In terms of reserves, the company forecasts an addition of approximately 300 million boe in 2P reserves. This figure represents an increase of around 85% over EnQuest’s reported 2P volumes as of 31st December 2025. The new participating interests alone contribute about 138 million boe (net) in 2P reserves, based on figures from 31st March 2026.
“I thank Carigali for its continued trust in EnQuest as a strategic partner and high-performing operator, and very much look forward to working with our partners to realise the full potential of these new additions to our portfolio,” Bseisu said.
