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TotalEnergies acquires stake in Malaysia’s SapuraOMV
Deal valued at US$903 million expected to close at end of Q1 2024
Michael Marray 7 Feb 2024

TotalEnergies has signed an agreement with Vienna-based petrochemical firm OMV to acquire its 50% interest in Malaysian independent gas producer and operator SapuraOMV Upstream (SapuraOMV).

The transaction, including the transfer of a US$350 million loan granted by OMV to SapuraOMV, is valued at US$903 million, subject to customary closing adjustments. Closing is expected by the end of first half of 2024.

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 was about 500 Mcf/d (500 x 1,000 cubic feet per day) of natural gas, feeding the Bintulu LNG plant operated by Petronas, as well as seven kb/d of condensates. On block SK408, the development of the Jerun gas field is on track for start-up in the second half of the year 2024

SapuraOMV also holds interests in exploration licences in Malaysia, Australia, New Zealand and Mexico, where a discovery has been made on block 30 last year.

OMV is an integrated energy, fuels and feedstock, and chemicals and materials company headquartered in Vienna, Austria. The company is 31.5% owned by the Austrian state, and 24.9% by Abu Dhabi-based Mubadala Petroleum and Petrochemocals Holdong Company, with the rest of the share in free float.     

Over the past few years, TotalEnergies has developed a strategic international partnership with Malaysian national oil company Petronas.

"This transaction will anchor our future growth in the country and reinforce our partnership with Petronas," comments Patrick Pouyanne, chairman and CEO of TotalEnergies. "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."

TotalEnergies owns interests in two production sharing contracts in exploration phase, and in June 2023 signed an agreement with Petronas and Mitsui to develop a carbon storage project in Southeast Asia and evaluate several CO2 storage sites in the Malaysia.

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