TotalEnergies SE (NYSE:TTE) is selling its wholly-owned subsidiary, TotalEnergies EP (Brunei) B.V., to Malaysian oil and gas company Hibiscus Petroleum Berhad for $259 million.

The deal aligns with TotalEnergies' strategy to optimize its portfolio and focus on growth areas while enabling Hibiscus Petroleum to expand its assets and operations in Brunei.

TotalEnergies EP (Brunei) B.V. holds a 37.5% stake in Block B, in partnership with Shell Deepwater Borneo (35%) and Brunei Energy Exploration (27.5%).

Block B, situated 85 kilometers off the coast of Brunei, includes the Maharaja Lela/Jamalulam (MLJ) field, which began production in 1999.

In 2023, it contributed about 9,000 barrels of oil equivalent per day to TotalEnergies' net production. The transaction is set to close in the fourth quarter of 2024.

Jean-Pierre Sbraire, Chief Financial Officer of TotalEnergies, said, "This transaction fits with our strategy to actively manage our portfolio by monetizing mature assets and to allocate our talents to the most promising assets."

This month, TotalEnergies disclosed that it is signing two new LNG medium and long-term contracts in Asia.

Investors can gain exposure to the stock via First Trust Exchange-Traded Fund IV FT Energy Income Partners Strategy ETF (NYSE:EIPX) and Keating Active ETF (NASDAQ:KEAT).

Also Read: Suriname Oil Boom On the Horizon: TotalEnergies, APA Near FID for Block 58

Price Action: TTE shares were trading lower by 3.22% at $65.20 premarket at the last check on Friday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.