North Sea oil and gas company Enquest is tilting the bulk of its operations from the North Sea to Malaysia in an $833 million acquisition of four offshore production-sharing contracts.
The acquisitions will be completed through three separate farm-out agreements with Petronas Carigali and E&P Malaysia Venture.
They will raise its production above 100,000 barrels of oil equivalent, a 134% increase over 2025 output and greatly shift EnQuest’s geographic footprint.
The company said the acquisition strengthens its position in Malaysia, where the company has built a strong operating presence.
Based on 2025 working interest production, South East Asia would contribute 69% to the enlarged group while the North Sea contribution would fall to 31%.
The move comes as oil and gas firms seek out new opportunities to diversify from, or exit, the maturing North Sea basin where they are also grappling with high government taxation.
Analysts were divided on what the move says about its commitment to the North Sea.
Broker Shore Capital said: “Although this tips the balance of the business away from the UK North Sea and towards SE Asia, we are confident EnQuest retains the financial capacity and appetite to continue pursuing transformational acquisitions in the UK.”
Danni Hewson, head of financial analysis at AJ Bell, said: “Traditionally EnQuest has been focused on the UK North Sea where it has been hit by increasing regulation and significant levels of taxation. This has led to a shift from EnQuest, with the company picking up previous assets in Southeast Asia in some piecemeal deals.”
Enquest chief executive 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.”
Enquest shares soared by 5.55p (26.96%) to close at 24.25p.
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