TotalEnergies has divested its minority 8.5% net interest in the Marjoram gas field offshore Sarawak, Malaysia, to Japan's Inpex for $350 million, as the French energy major continues to optimize its global portfolio. This strategic move allows TotalEnergies to focus on operated assets and high-growth opportunities within the region.
This divestment underscores a broader industry trend of major energy companies streamlining their portfolios, shedding non-operated or minority stakes to reallocate capital towards strategic growth areas and projects with lower emissions profiles. For Inpex, the acquisition strengthens its presence in Southeast Asia and expands its natural gas and LNG business, reflecting ongoing regional energy transition dynamics.
Executive Summary
TotalEnergies announced the sale of its 85% interest in Block 2E offshore Malaysia, which translates to an 8.5% net stake in the Shell-operated Marjoram gas field, to Japanese energy firm Inpex. The $350 million transaction, effective July 2, 2026, aligns with TotalEnergies' strategy to actively manage its portfolio and prioritize material positions in low-cost, low-emission projects. For Inpex, this acquisition enhances its Malaysian business portfolio and reinforces its natural gas and LNG strategy in the region.
What Happened
On July 2, 2026, TotalEnergies officially announced the divestment of its 85% interest in Block 2E offshore Malaysia to Inpex. This transaction, valued at $350 million, transfers TotalEnergies' 8.5% net stake in the Marjoram gas field, which is currently under development and operated by Shell.
Key Developments
- Portfolio Optimization: TotalEnergies divests a non-operated stake to focus on strategic, operated assets and low-emission projects globally.
- Inpex Expands Asian Footprint: Japanese firm Inpex strengthens its natural gas and LNG portfolio and business foundation in Malaysia through this acquisition.
- Significant Valuation: The 8.5% net interest in the Marjoram gas field was valued at a consideration of $350 million.
Regional Context
This transaction highlights the strategic importance of Southeast Asia's energy landscape, where both international and regional players are actively reshaping their portfolios. Malaysia remains a key platform for natural gas development, serving both domestic demand and the wider regional LNG market.
Market Impact
For traders and analysts, this deal signals continued portfolio rationalization by European majors and strategic expansion by Asian energy companies in key gas-producing regions. It reinforces the trend of capital redeployment towards higher-value, lower-emission projects and strengthens Inpex's position in the competitive Asian LNG supply chain.
Outlook
Future M&A activity in Southeast Asia is likely to see further divestments of non-core assets by Western majors, while Asian national oil companies and regional players will continue to seek opportunities to consolidate and expand their upstream and LNG portfolios.
