Why did TotalEnergies decide to sell its stake in the Marjoram field?

TotalEnergies sold its 8.5% stake as part of a broader strategy to optimize its global portfolio. The company is actively divesting non-operated, minority interests in order to reallocate capital toward high-margin, operated projects where it can exert greater strategic control and capture higher returns.

What makes the Marjoram gas field strategically important to Inpex?

The Marjoram field is a crucial source of feed gas for the Bintulu LNG complex in Sarawak. By acquiring this additional stake, Inpex secures a larger volume of reliable gas reserves, aligning with Japan's national energy strategy to maintain stable, long-term LNG imports from politically stable partners in Southeast Asia.

Does this transaction signal a broader retreat of European majors from Southeast Asia?

Not necessarily a complete retreat, but rather a shift in focus. While European majors like TotalEnergies and Shell are rationalizing their portfolios by selling smaller, non-operated stakes, they remain selective investors in the region, focusing primarily on large-scale, integrated LNG projects or deepwater blocks where they hold operatorship.

Offshore Technology · July 3, 2026 (Jul 3) · 1 min read

TotalEnergies sells 8.5% stake in Marjoram gas field to Inpex

TotalEnergies SE

Isometric technical illustration of offshore oil and gas operations with drillship and support vessel — Illustration: TotalEnergies SE

Analysis

AI-assisted analysis · reviewed by Yuri Kan

TotalEnergies' divestment of its 8.5% stake in Malaysia's offshore Marjoram gas field to Inpex for $350 million represents a strategic portfolio optimization. By monetizing this minority position, the French major is streamlining its global upstream portfolio to focus on higher-margin, core operated assets. For Inpex, the acquisition strengthens its existing footprint in Sarawak's prolific gas province, aligning with Japan's broader energy security strategy to secure long-term LNG feed gas.

Key Facts

TotalEnergies agreed to sell its entire 8.5% net interest in the Marjoram gas field to Japanese energy firm Inpex.
The transaction value for the minority stake is confirmed at $350 million, subject to customary regulatory approvals.
The Marjoram gas field is located within Block 2E, situated in the deepwater offshore region of Sarawak, Malaysia.
The field serves as a key supply source for the Petronas LNG Complex in Bintulu, Sarawak.
Inpex was already a partner in the block, and this acquisition increases its working interest in the asset.
The deal reflects TotalEnergies' ongoing strategy of active portfolio management, prioritizing high-yield and operated assets globally.

Background & Context

The Marjoram and Rosmari deepwater gas fields were discovered in Block 2E offshore Sarawak and are being developed to supply gas to the Bintulu LNG export terminal. Historically, Malaysia's offshore Sarawak basin has been a cornerstone of Southeast Asian gas production, attracting major international oil companies due to its established infrastructure and proximity to energy-hungry Asian markets. TotalEnergies has been re-evaluating its non-operated minority stakes globally, redirecting capital toward deepwater projects in Brazil, the US Gulf of Mexico, and Namibia, where it holds operatorship and larger equity shares.

Market Impact

This transaction strengthens Inpex's position in the Malaysian upstream sector, allowing the Japanese firm to secure additional equity gas destined for the critical Bintulu LNG liquefaction plant. For TotalEnergies, the $350 million cash inflow enhances capital discipline and improves return on capital employed (ROCE) by exiting a non-core, non-operated asset. The deal demonstrates that despite global energy transition pressures, high-quality offshore gas assets in Southeast Asia retain robust valuation and strong buyer demand, particularly from Japanese buyers focused on energy security.

What to Watch

Looking ahead, the transaction is expected to close once standard regulatory approvals from Petronas and Malaysian authorities are secured. Industry observers will monitor whether TotalEnergies pursues further divestments of its remaining non-operated assets in Southeast Asia to fund its aggressive deepwater exploration campaign elsewhere. Additionally, the progress of the Rosmari-Marjoram development project toward first gas will be closely watched as a bellwether for deepwater project execution in Malaysia.

Frequently Asked Questions

Why did TotalEnergies decide to sell its stake in the Marjoram field?: TotalEnergies sold its 8.5% stake as part of a broader strategy to optimize its global portfolio. The company is actively divesting non-operated, minority interests in order to reallocate capital toward high-margin, operated projects where it can exert greater strategic control and capture higher returns.
What makes the Marjoram gas field strategically important to Inpex?: The Marjoram field is a crucial source of feed gas for the Bintulu LNG complex in Sarawak. By acquiring this additional stake, Inpex secures a larger volume of reliable gas reserves, aligning with Japan's national energy strategy to maintain stable, long-term LNG imports from politically stable partners in Southeast Asia.
Does this transaction signal a broader retreat of European majors from Southeast Asia?: Not necessarily a complete retreat, but rather a shift in focus. While European majors like TotalEnergies and Shell are rationalizing their portfolios by selling smaller, non-operated stakes, they remain selective investors in the region, focusing primarily on large-scale, integrated LNG projects or deepwater blocks where they hold operatorship.

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