MALAYSIA: TotalEnergies has reached an agreement with Sapura Upstream Assets Sdn Bhd (SUA) to acquire its 50 per cent interest in Malaysian gas producer SapuraOMV Upstream Sdn (SapuraOMV) for $530 million.
This deal, which is still subject to closing adjustments, is expected to be completed in the second half of 2024.
This agreement follows an earlier deal with OMV signed on 31 January 2024, to acquire its 50 per cent interest in SapuraOMV.
Upon completion of both transactions and meeting regulatory approvals, TotalEnergies will own 100 per cent of SapuraOMV.
SapuraOMV’s key assets include a 40 per cent operated interest in block SK408 and a 30 per cent operated interest in block SK310, both offshore Sarawak, Malaysia.
In 2023, SapuraOMV produced about 500 Mcf/d of natural gas and 7 kb/d of condensates, feeding the Bintulu LNG plant operated by Petronas.
The Jerun gas field development in block SK408 is on track for a startup in the second half of 2024.
Additionally, SapuraOMV holds interests in exploration licences in Malaysia, Australia, New Zealand, and Mexico, with a discovery made in 2023 on block 30.
Chairman and CEO of TotalEnergies Chairman and CEO Patrick Pouyanné commented: “The SapuraOMV assets are fully in line with our strategy to grow our gas production to meet demand growth, focusing our portfolio on low-cost and low-emission assets.
“We look forward to strengthening our global partnership with Petronas in Malaysia, a country where we see further development opportunities for our company.”
TotalEnergies already owns interests in two PSCs in the exploration phase in Malaysia.
In June 2023, the company also signed an agreement with Petronas and Mitsui to develop a carbon storage project in Southeast Asia, evaluating several CO2 storage sites in the Malay Basin.
