EnQuest Petroleum Production Malaysia, a wholly owned affiliate of UK-based EnQuest, has agreed to acquire participating interests in four offshore production sharing contracts (PSCs) in Malaysia in a transaction valued at up to $833m.
The proposed acquisitions require the company to enter into three distinct farmout agreements with Petronas Carigali and E&P Malaysia Venture.
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The deal involves an upfront payment of $554m expected at completion, subject to customary conditions. Completion is targeted for 31 December 2026.
According to EnQuest, the planned acquisition would increase the group’s 2025 net production to more than 100,000 barrels of oil equivalent per day (boepd), a 134% rise over projected 2025 levels.
The new interests are expected to contribute approximately 57,400boepd of production.
The enlarged entity’s proved and probable reserves would be around 300 million barrels of oil equivalent (mboe), up 85% from previous volumes, with the new assets adding 138mboe.
Nearly all reserves from the new interests would be operated by EnQuest.
The company reported that the contribution of South East Asia to its total production would increase to 69%, compared to 31% from the UK North Sea, following completion.
The agreement includes pre-emption rights for existing PSC partners, specifically relating to Package 2, allowing them to match the proposed terms.
EnQuest stated that it would issue updates if any of the acquisitions did not proceed.
If the acquisition closes as planned, the move will constitute a reverse takeover under UK Listing Rules.
Based on EnQuest’s financial policies, the company plans to fund the acquisition through current debt facilities and cash reserves.
Assuming the deal closes at the end of 2025, the company expects net debt-to-EBITDA (earnings before interest, taxes, depreciation and amortisation) of 1.1-times, up from 0.9-times on a stand-alone basis.
EnQuest highlighted anticipated reductions in operating costs and increased exposure to a region where it has established operations.
It expects the enlarged group to achieve a revenue of approximately $1.82bn and generate more than $900m in EBITDA for the 12 months to 31 December 2025, assuming completion.
EnQuest CEO Amjad Bseisu 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.
“This is an exciting moment for EnQuest that expands our South East Asia position, strengthens our global portfolio, provides a material milestone in the delivery of our growth strategy, and, we believe, will deliver significant value for shareholders.”
In November 2025, EnQuest signed new senior secured reserve-based lending facilities totalling $800m.
