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EnQuest PLC on Wednesday said it has agreed to buy interests in four offshore production-sharing contracts in Malaysia via a reverse takeover, which would see its production more than double in size. The oil and gas producer, which already has operations in both the UK and Malaysia, says the proposed acquisition will see its wholly owned local subsidiary EnQuest Petroleum Production Malaysia Ltd enter three separate farm-out agreements with Petronas Carigali Sdn Bhd and E&P Malaysia Venture Sdn Bhd. Petronas Carigali is the upstream arm of Petroliam Nasional Bhd, or Petronas, the state oil company of Malaysia, and the approval of Petronas is one of the conditions for the deal to proceed. Additionally, pre-emption rights for package two of the three give existing production sharing contract partners the right to match the proposed terms for the acquisition. The maximum total consideration is $833 million, of which $554 million is payable on completion, which is expected on December 31. EnQuest shares were up 19% to 22.77 pence early Wednesday in London, giving the company a market capitalisation of £422.8 million, meaning the new acquisition is larger than the entire existing company. EnQuest says the proposed acquisitions would deliver a step change in its production, reserves and cash flow, as well as providing ‘significant organic opportunities’ for future growth. The acquisition is expected to be funded by EnQuest’s existing debt facilities and cash resources. Production for the enlarged group would rise to over 100,000 barrels of oil equivalent per day, more than double 2025 production. It has the potential to deliver that 100,000 barrel rate through the end of the decade, EnQuest said. Probable, or 2P, reserves would rise around 85% from 2025 levels to around 300 million barrels of oil equivalent. Contingent, or 2C, resources would be up around 46% to 660 million barrels. The enlarged company would have had annual revenue of $1.82 billion in 2025, Enquest says, producing more than $900 million in adjusted earnings. ‘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,’ says Chief Executive Officer Amjad Bseisu. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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