TotalEnergies SE is acquiring the remaining 50 percent stake in Malaysian independent gas producer and operator SapuraOMV Upstream Sdn from Sapura Upstream Assets Sdn Bhd (SUA) for $530 million.The energy major in January signed an agreement with OMV AG to acquire its 50% interest in SapuraOMV for $903 million.
After the completion of both transactions, which are subject to certain conditions such as regulatory approvals, TotalEnergies would own 100 percent of SapuraOMV, TotalEnergies said in a news release Monday.
According to the release, SapuraOMV’s main assets are its 40 percent operated interest in block SK408 and 30 percent operated interest in block SK310, both located offshore Sarawak in Malaysia. In 2023, SapuraOMV’s operated production was about 500,000 cubic feet per day of natural gas, feeding the Bintulu LNG plant operated by Petronas, as well as 7,000 barrels per day of condensates. On block SK408, the development of the Jerun gas field is on track for startup in the second half. SapuraOMV also holds interests in exploration licenses in Malaysia, Australia, New Zealand and Mexico, where a discovery was made on block 30 last year.
“Following the transaction with OMV announced two months ago and this new transaction with Sapura Upstream Assets, TotalEnergies will have full ownership of SapuraOMV and become a significant gas operator in Malaysia,” Patrick Pouyanné, Chairman and CEO of TotalEnergies, said.
“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,” Pouyanné added.
SapuraOMV is headquartered in Kuala Lumpur, and is a joint venture between Sapura Energy Berhad and OMV Aktiengesellschaft, according to its website.
Sapura Energy describes itself as a leading global integrated oil and gas operator and solutions provider, with a wide spectrum of capabilities covering exploration, development, production, rejuvenation, as well as decommissioning and abandonment. OMV is one of Austria’s largest listed industrial companies, producing and marketing oil and gas, as well as chemical products and solutions.
“We are pleased to strengthen TotalEnergies’ position in Malaysia by becoming [a] shareholder of the independent gas producer SapuraOMV,” Pouyanne said in an earlier statement. “Over the past few years, we have developed a strategic international partnership with Petronas, the national company of Malaysia. This transaction will anchor our future growth in the country and reinforce our partnership with Petronas. With their low production costs and low GHG [greenhouse gas] intensity, SapuraOMV’s assets will perfectly fit in TotalEnergies’ portfolio and participate in meeting the growing demand of gas in Asia”.
TotalEnergies is a global integrated energy company that produces and markets energy such as oil and biofuels, natural gas and green gases, renewables and electricity.
Source:https://www.rigzone.com