TotalEnergies to acquire OMV’s stake in SapuraOMV for $903m

TotalEnergies has signed a definitive agreement to acquire OMV‘s 50% interest in SapuraOMV, a Malaysian independent gas producer and operator, for $903m (€837.21m).  

The deal consideration includes the transfer of a $350m loan granted by OMV to SapuraOMV.  

SapuraOMV, headquartered in Kuala Lumpur, was established in 2019 as a joint venture between Sapura Energy and OMV.  

The company has shallow-water production and development assets offshore Malaysia, with additional exploration interests across Mexico, Australia and New Zealand.

SapuraOMV’s primary assets include a 40% operated interest in block SK408 and a 30% operated interest in block SK310, both situated offshore Sarawak in Malaysia. 

The development of the Jerun gas field, located in block SK408, is progressing with an anticipated start-up in the second half of 2024.

Last year, the acquired company’s operated production reached approximately 500,000 cubic feet per day of natural gas, which is supplied to the Bintulu liquefied natural gas plant operated by Petronas, along with 7,000 barrels per day of condensates.

TotalEnergies chairman and CEO Patrick Pouyanné said: “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.  

“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.”

OMV CEO Alfred Stern said: “This agreement streamlines our energy portfolio and is in line with the OMV Strategy 2030 of reducing oil and gas production over time. Furthermore, this divestment will help OMV crystalize value and redeploy capital for new strategic projects.”

The completion of this transaction is contingent upon customary closing conditions, including the receipt of necessary regulatory approvals.  

It is expected to close at the end of the first half of 2024.

This acquisition follows TotalEnergies’ recent expansion in the Namibian offshore sector, where the company increased its stakes in two blocks, 2913B and 2912.

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