NYReaders - TotalEnergies has signed an agreement with OMV to acquire its 50% interest in Malaysian independent gas producer and operator SapuraOMV Upstream Sdn (SapuraOMV) for a consideration of $903 million.
The acquisition value includes the transfer of a $350 million loan granted by OMV to SapuraOMV, subject to customary closing adjustments, Total Energies said in a statement on Wednesday (31/01).
SapuraOMV’s main assets are its 40% operated interest in block SK408 and 30% operated interest in block SK310, both located offshore Sarawak in Malaysia.
In 2023, SapuraOMV’s operated production (100%) 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.
The transaction is set to be completed by the end of the first half of 2024.
SapuraOMV also holds interests in exploration licenses in Malaysia, Australia, New Zealand and Mexico where a discovery was made in 2023 on block 30.
“We are pleased to strengthen TotalEnergies’ position in Malaysia by becoming a 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,” said Patrick Pouyanné, Chairman and CEO of TotalEnergies.
“This transaction will anchor our future growth in the country and reinforce our 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”, he said.
TotalEnergies owns interests in two PSCs in the exploration phase in Malaysia. In June 2023, it also inked an agreement with Petronas and Mitsui to develop a carbon storage project in Southeast Asia and evaluate several CO2 storage sites in the Malay Basin. (*)
