EnQuest shareholders approve Malaysia asset acquisition

EnQuest PLC said on Friday its shareholders had approved the acquisition of oil and gas assets in Malaysia from state-owned Petronas for $1.1 billion, marking a significant expansion of the company’s upstream portfolio.

The deal, first announced in March, involves the purchase of EnQuest’s 40% stake in the North West Lang Lebah field and a 25% interest in the Kasawari gas project, both located offshore Sarawak. The acquisition is expected to close by the end of the second quarter, subject to customary regulatory approvals.

EnQuest, which operates primarily in the North Sea, said the Malaysian assets would diversify its production base and extend its reserve life. The company aims to increase its output to 50,000 barrels of oil equivalent per day (boepd) by 2026, up from around 35,000 boepd currently.

Shareholders voted overwhelmingly in favor of the transaction during an extraordinary general meeting, with 99.8% approval. EnQuest’s CEO, Amjad Bseisu, described the deal as a strategic step to enhance shareholder value and reduce exposure to volatile North Sea operations.

The acquisition is part of EnQuest’s broader strategy to strengthen its balance sheet and fund growth projects. The company has secured financing for the deal through a combination of debt and equity, including a $700 million term loan facility.

Petronas, Malaysia’s national oil company, will retain a 60% stake in the North West Lang Lebah field and a 75% interest in Kasawari, while EnQuest will operate both assets under a joint venture structure.