Malaysian oil and gas giant Petronas and French energy major TotalEnergies have officially signed a Strategic Cooperation Agreement (SCA) along with two Farm Out Agreements (FOA) to deepen their collaboration in upstream oil and gas operations in Malaysia and jointly manage the Production Sharing Contract (PSC) for the Bobara Working Area in Indonesia.

Petronas Carigali North Madura II Ltd was declared the winning bidder for the Bobara Working Area (WA) in early 2024. This block was offered as part of Indonesia’s 2023 Third Round of oil and gas working area tenders.

Located offshore in West Papua, the Bobara block spans an area of 8,444.49 square kilometers. It is estimated to hold around 6.8 billion barrels of oil equivalent (BBOE) in hydrocarbon resources.

The agreements further reinforce the longstanding partnership between the two companies. The SCA outlines various strategic opportunities at both domestic and international levels, including activities in exploration and production, natural gas and LNG development, carbon emission reduction efforts, and other forms of cooperation.

In Malaysia, Petronas, through its subsidiary PETRONAS Carigali Sdn Bhd, will partner with TotalEnergies EP Malaysia to explore several offshore blocks located in the country’s most prospective basins. This strategic collaboration combines Petronas’ exploration and operational strengths with TotalEnergies’ technical expertise, aiming to optimize exploration efficiency and sustainably develop Malaysia’s hydrocarbon resources.

Meanwhile, in Indonesia, Petronas—via its subsidiary Petronas Energy Bobara Sdn Bhd—and TotalEnergies have reached a FOA for the Production Sharing Contract of the Bobara Working Area. The collaboration is intended to leverage the combined strengths of both companies to develop new hydrocarbon potential in this deepwater block located in eastern Indonesian waters. The transaction is currently pending approval from the Indonesian Government.

The signing ceremony was attended by top executives from both firms, including Petronas President and Group Chief Executive Officer Tan Sri Tengku Muhammad Taufik, Petronas Executive Vice President and CEO of Upstream Mohd Jukris Abdul Wahab, TotalEnergies Chairman and CEO Patrick Pouyanné, and TotalEnergies President of Exploration & Production Nicolas Terraz.

Tan Sri Tengku Muhammad Taufik noted that the agreement marks a significant milestone in their joint commitment to long-term value creation and growth. The partnership also aims to complement each other in unlocking new opportunities.

"Through this alliance, we will explore and develop high-potential hydrocarbons in frontier exploration blocks across Malaysia and Indonesia. Our focus is to optimize commercial potential while delivering sustainable value for all stakeholders," he stated in a written release on Friday (June 20, 2025).

On the other hand, Patrick Pouyanné, Chairman and CEO of TotalEnergies, emphasized that this agreement solidifies their role as a leading gas producer in Malaysia.

"We are very excited to expand our presence in this country, which we see as a strategic platform for low-cost, low-emission production while enhancing cash flow through access to the Asian LNG market," he explained.

He added, “The strategic partnership between TotalEnergies and Petronas, which extends beyond Malaysian borders through various global collaborations, grants us access to a wide-ranging and diverse portfolio in the country—from exploration to production stages.”