TotalEnergies has signed an agreement with OMV to acquire a 50 per cent stake in Malaysian independent gas producer and operator SapuraOMV Upstream Sdn (SapuraOMV) for US$903 million (including the transfer of an OMV loan of US$350 million to SapuraOMV), subject to customary closing adjustments.
SapuraOMV’s primary assets include its 40 per cent operated interest in block SK408 and 30 per cent operated interest in block SK310, both of which are located offshore Sarawak, Malaysia.
In 2023, SapuraOMV’s operated production (100 per cent) was about 500 Mcf/d of natural gas, feeding the Bintulu LNG plant operated by Petronas, as well as 7 kb/d of condensates.
On block SK408, the development of the Jerun gas field is on track for startup in the second half of the year 2024.
The transaction is subject to customary conditions precedent, in particular the receipt of regulatory approvals. Closing is expected by the end of first half of 2024.
SapuraOMV also holds interests in exploration licences in Malaysia, Australia, New Zealand and Mexico where a discovery has been made in 2023 on block 30.
TotalEnergies Chairman and CEO Patrick Pouyanné said: “We are pleased to strengthen TotalEnergies’ position in Malaysia by becoming shareholder of the independent gas producer SapuraOMV. Over the past few years, we have developed a strategic international partnership with Petronas, the national company of Malaysia.”
The transaction is said to anchor TotalEnergies future growth in the country and reinforce the company’s partnership with Petronas.
“With their low production costs and low GHG intensity, SapuraOMV’s assets will perfectly fit in TotalEnergies’ portfolio and participate in meeting the growing demand of gas in Asia,” said Pouyanné.
