TotalEnergies has agreed to sell its majority stake in Block 2E offshore Sarawak, Malaysia, to Japanese energy company Inpex in a deal worth $350 million, as the French energy giant sharpens its focus on key growth assets in the country.

The transaction gives Inpex an 85% interest in Block 2E, which translates into an 8.5% stake in the Marjoram gas field, part of the Rosmari-Marjoram sour gas development operated by Shell. The project is one of Sarawak’s largest integrated offshore and onshore gas developments and is expected to begin production before the end of 2026.

Inpex said the acquisition aligns with its long-term strategy to expand its natural gas and liquefied natural gas (LNG) business across Southeast Asia. The company added that the investment supports its Vision 2035 growth plan and strengthens its presence in Malaysia’s upstream sector.

Malaysia’s state-owned Petronas Carigali will retain its 15% non-operated interest in the Block 2E production sharing contract.

TotalEnergies said the divestment is part of its broader portfolio management strategy, allowing it to realise the value of a minority interest in a non-operated project while concentrating on assets where it has greater operational control.

Nicolas Terraz, President of Exploration and Production at TotalEnergies, said the sale is consistent with the company’s objective of prioritising significant positions that support the development of low-cost and lower-emission energy projects.

He noted that Malaysia remains an important market for the company, particularly following the start-up of the Jerun gas field and with several other opportunities in its portfolio.

TotalEnergies currently employs about 300 people in Malaysia and holds interests in 17 offshore blocks across Sarawak and Sabah, both as an operator and non-operator. The company said it remains committed to expanding its presence in the country’s energy sector despite the latest asset sale.