French oil and gas major TotalEnergies has agreed to offload its wholly owned subsidiary in Bruneito Malaysian company Hibiscus Petroleum for $259m.

TotalEnergies EP Brunei owns a 37.5% operated interest in the MLJ field, which is located in Block B.

The offshore gas asset, which was commissioned in 1999, holds potential long-term production rights until 2039.

Shell Deepwater Borneo and Brunei Energy Exploration, owned by the Brunei Minister for Finance Corporation, hold 35% and 27.5% interests, respectively, in the MLJ field.

TotalEnergies CFO Jean-Pierre Sbraire said: “This transaction fits with our strategy to actively manage our portfolio by monetising mature assets and to allocate our talents to the most promising assets.”

Hibiscus Petroleum expects the acquisition to significantly bolster its reserves by up to 21.7 million barrels of oil equivalent.

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The addition is also projected to enhance the company’s daily net production by approximately 7,865boepd in 2024.

The acquisition aligns with Hibiscus Petroleum’s strategy to balance its portfolio towards gas assets in regions with stable regulatory frameworks.

Located 85km off Brunei’s coast, the MLJ field contributed around 9,000boepd to TotalEnergies’ net production in 2023.

Hibiscus Petroleum managing director Dr Kenneth Pereira said: “The additional volumes from this transaction are material for Hibiscus Petroleum and will provide an uplift of nearly 86% to our gas production whilst bringing us closer towards achieving our 2026 mission of growing the group’s net production to 35,000–50,000boe per day.

“In addition, employees of TotalEnergies Brunei, who have been operating this asset safely and efficiently for many years will be joining the group as part of the transaction.”

Subject to customary closing conditions, the transaction is expected to be finalised in the fourth quarter of 2024.

Last month, TotalEnergies announced plans to invest $600m to bolster exploration and production activities in the Republic of Congo’s offshore Moho Nord field this year.