EnQuest to Buy Malaysia Offshore Interests in $833M Deal

EnQuest has agreed to acquire interests in four offshore production sharing contracts (PSCs) in Malaysia for up to $833 million, a deal that would significantly increase the independent energy company's production, reserves and cash flow.

The proposed acquisitions will be made through EnQuest Petroleum Production Malaysia Limited, which has entered into three separate farmout agreements with Petronas Carigali and E&P Malaysia Venture.

The maximum consideration for the acquisitions is $833 million, of which $554 million is payable upon completion, which is expected on December 31, 2026, subject to customary conditions including the waiver or expiry of pre-emption rights associated with one of the transaction packages.

EnQuest said the acquisitions would constitute a reverse takeover under UK listing rules and that a combined prospectus and shareholder circular will be published in due course.

The company said the acquisitions would increase group production by 134% from 2025 levels to more than 100,000 barrels of oil equivalent per day, with the acquired interests contributing about 57,400 boepd of production.

The deal would also increase EnQuest's proved and probable reserves by about 85% to around 300 million barrels of oil equivalent, with the acquired assets adding 138 million boe of 2P reserves.

South East Asia would account for 69% of the enlarged group's production, compared with 31% from the UK North Sea.

EnQuest said the acquisitions would add 208.3 million boe of 2C resources and provide opportunities to unlock a further 65 million to 100 million boe through recovery factor enhancements.

The company expects the consideration to be funded through existing debt facilities and cash resources. Assuming completion had occurred on December 31, 2025, the enlarged group's net debt-to-EBITDA ratio would have been 1.1 times, compared with EnQuest's standalone ratio of 0.9 times.

The enlarged group would have generated revenue of about $1.82 billion and more than $900 million of EBITDA based on the 12 months ended December 31, 2025, 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,” said Amjad Bseisu, Chief Executive Officer of EnQuest.

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