London-listed independent energy company EnQuest has cleared a key hurdle in its proposed $833 million acquisition of interests in four offshore production sharing contracts in Malaysia after existing partners waived their pre-emption rights over one of the three transaction packages.
The waiver relates to Package 2, covering a 50% operated participating interest in the D35-D21-J4 production sharing contract (PSC). Packages 1 and 3 were not subject to pre-emption rights.
As a result, subject to the remaining completion conditions, EnQuest will acquire the full set of participating interests covered by three conditional farm-out agreements signed with Petronas Carigali and E&P Malaysia Venture, as applicable.
The acquisitions comprise a 90% operated interest in the Balingian PSC and a 100% operated interest in the SK8 PSC under Package 1, the 50% operated interest in the D35-D21-J4 PSC under Package 2, and a 30% non-operated interest in the PM6-12 PSC under Package 3.
Completion is expected on December 31, 2026, subject to customary conditions.
EnQuest first announced the proposed acquisitions on June 10. The transactions carry maximum total consideration of $833 million, including $554 million payable upon completion, and are expected to add about 57,400 barrels of oil equivalent per day of production on a 2025 net participating interest basis.
If completed, the acquisitions would lift the enlarged group's 2025 production to more than 100,000 boepd, a 134% increase from EnQuest's 2025 production, with potential to sustain a 100,000 boepd rate through the end of the decade.
The new interests would also add 138 million barrels of oil equivalent of net proved and probable reserves as of March 31, 2026, taking enlarged group 2P reserves to about 300 million boe.
They would add a further 208.3 million boe of net 2C resources, lifting the enlarged group's total to about 660 million boe, while South East Asia would account for 69% of its production.
The proposed acquisitions would constitute a reverse takeover under UK Financial Conduct Authority listing rules if all three packages complete. EnQuest plans to publish further information in a combined shareholder circular and prospectus in due course.
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