Shares of EnQuest jumped more than 21% in early trading after the company revealed plans to buy stakes in four offshore Malaysian production sharing contracts from Petronas for up to $833 million.
The acquisition will be carried out by EnQuests Malaysian subsidiary under three farm-out agreements with Petronas unit Carigali and E&P Malaysia. The agreements cover participating interests in the four production sharing contracts located offshore Malaysia, expanding the British producers footprint in Southeast Asia.
Because of the scale of the assets involved, the transaction will be structured as a reverse takeover under British regulations. EnQuest said it will retain its London listing and continue to operate as before following completion of the deal.
EnQuest intends to fund the purchase from existing debt facilities together with available cash reserves. The company noted that the deal will increase its scale in the region while preserving continuity of its listing and operations.
Following the acquisition, EnQuest expects group production to reach approximately 100,000 barrels of oil equivalent per day, representing a 13% increase compared with 2025 production levels.
"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 CEO Amjad Bseisu said in a statement.
The company, which currently operates in the UK North Sea as well as in Malaysia and Vietnam, said the transaction is expected to conclude by the end of the year.
Context and market reaction
Market response to the announcement was immediate, with a more than 21% rise in EnQuest shares during early trading. The move expands the company's Southeast Asian portfolio and is intended to bolster production and cash generation.
What remains to be completed
The parties anticipate completion by the end of the year, subject to the procedural steps associated with a reverse takeover under British regulations.