TotalEnergies to acquire OMV’s Malaysian natural gas assets for $903 million

January 31, 2024

(WO) – TotalEnergies has signed an agreement with OMV to acquire its 50% interest in Malaysian independent natural gas producer and operator SapuraOMV Upstream Sdn (SapuraOMV) for $903 million (including the transfer of a $350 million loan granted by OMV to SapuraOMV). Sapura OMV is the joint venture between Sapura Energy Berhad and OMV.

TotalEnergies headquarters in Paris. (Photographer: Nathan Laine/Bloomberg)

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 Mcfd of natural gas, feeding the Bintulu LNG plant operated by Petronas, as well as 7,000 bpd of condensates. On block SK408, the development of the Jerun natural gas field is on track for startup in the second half of the year 2024

SapuraOMV also holds interests in exploration licenses in Malaysia, Australia, New Zealand and Mexico where a discovery has been made in 2023 on block 30.

“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 intensity, SapuraOMV’s assets will perfectly fit in TotalEnergies’ portfolio and participate in meeting the growing demand of gas in Asia”, said Patrick Pouyanné, Chairman and CEO of TotalEnergies.

TotalEnergies also owns interests in two PSCs in exploration phase and signed in June 2023 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 offshore Malaysia.

Lead image source: OMV Petrom

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