London, June 10, 2026, 16:02 (BST)
- EnQuest shares jumped after the company said it would purchase stakes in four Malaysian offshore production-sharing contracts for as much as $833 million.
- The deal is set to more than double 2025 production and move most of the expanded group’s output into South East Asia.
- The deal still needs shareholder sign-off, PETRONAS approval, and has pre-emption rights on one package.
EnQuest PLC surged in London trading Wednesday after the oil and gas group announced plans to buy Malaysian assets in a deal valued at $833 million. Investors saw the proposed purchase as a possible shift for EnQuest, which has mostly been known for its older UK North Sea fields and heavy tax burden.
EnQuest traded up 5.20p, or 27.23%, on a delayed Hargreaves Lansdown quote, with a sell/buy spread at 24.15p/24.55p. The shares opened at 22.00p, versus a prior close at 19.10p. Volume was 89.5 million shares.
EnQuest said its Malaysia unit signed three farm-out deals with PETRONAS Carigali and E&P Malaysia Venture for stakes in four offshore production-sharing contracts. With these contracts, companies produce oil or gas for a share of the returns while the government keeps ownership of the resource.
Big jump in scale for EnQuest. The company said the new assets would bring in around 57,400 barrels of oil equivalent per day, using “oil equivalent” to sum up oil and gas production. For 2025, group output would top 100,000 barrels a day, up 134% on EnQuest’s 2025 forecast. London South East
EnQuest shares moved sharply. The company had been guiding for 41,000 to 45,000 barrels of oil equivalent a day through 2026 up until Wednesday. If the Malaysian deal goes through, that number would jump, putting the company on a new level.
EnQuest said the assets would shift its footprint, with South East Asia making up 69% of total production for the combined group and the UK North Sea down to 31%. Reuters reported that the deal lands as North Sea operators face extra UK energy profit taxes, a climate that has led management teams to seek more growth abroad.
EnQuest said buying the stakes will take its 2P reserves—proved plus probable barrels—up to about 300 million barrels of oil equivalent, an 85% jump. The company is guiding for bigger group revenue of around $1.82 billion, and EBITDA of more than $900 million based on 2025 numbers. EBITDA is profit before interest, tax, depreciation and amortisation.
The company plans to use its current debt lines and cash to pay for the deal. It is putting up $554 million up front, with another $189 million to be paid out over three years. There is also up to $90 million more, which depends on final investment decisions for three Balingian projects.
EnQuest CEO Amjad Bseisu said the deal is a “decisive step in the evolution of our business,” adding that the move would help grow EnQuest’s position in South East Asia and boost its global portfolio. London South East
The seller is calling the deal a mature-asset partnership. Mohd Jukris Abdul Wahab, chief operating officer and upstream head at PETRONAS, said mature assets require “the right partnerships,” as reported by The Edge Malaysia. The Edge Malaysia
EnQuest got a lift from broker commentary. Sharecast cited Shore Capital keeping its buy call on the stock, expecting the deal to add free cash flow once finished. The note also pointed out EnQuest would see production top 100,000 barrels of oil equivalent a day after the deal, if it goes through.
There are execution risks here. The deal counts as a reverse takeover under UK Listing Rules, so EnQuest needs to put out a combined prospectus and a circular for shareholders. The deal can’t close until shareholders sign off and PETRONAS gives its approval. Existing partners still have 30 days to use pre-emption rights on Package 2, the D35-D21-J4 production-sharing contract.
EnQuest said finishing Package 1 will cancel its shares from the Official List and Main Market, but they should be re-admitted the next business day. Investors need to track the circular, shareholder vote and Package 2 pre-emption before the planned December 31 finish.
