France’s TotalEnergies, one of the world’s largest LNG players, has signed a deal with Sapura Upstream Assets to acquire its 50 percent interest in Malaysian gas producer SapuraOMV.
This agreement follows a first agreement TotalEnergies signed with Austria’s OMV in January this year to buy its 50 percent interest in SapuraOMV.
After completion of both transactions, which are subject to some conditions precedent, in particular regulatory approvals, TotalEnergies would own 100 percent of SapuraOMV, it said in a statement on Monday.
TotalEnergies said it will pay $530 million to Sapura Upstream Assets for the 50 percent stake, subject to closing adjustments.
Additionally, Sapura Energy will be relieved by TotalEnergies of a $175 million obligation in respect of a financing facility extended by OMV, Sapura said in a separate statement.
Closing is expected in the second half of 2024.
Bintulu LNG
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 Mcf/d of natural gas, feeding the giant 30 mtpa Bintulu LNG plant operated by Petronas, as well as 7 kb/d of condensates, TotalEnergies said.
On block SK408, the development of Jerun gas field is “on track” for a startup in the second half of 2024, TotalEnergies said.
SapuraOMV also holds interests in exploration licenses in Malaysia, Australia, New Zealand and Mexico, where a discovery was made in 2023 on block 30.
“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,” Patrick Pouyanné, chairman and CEO of TotalEnergies said.
“We look forward to strengthening our global partnership with Petronas in Malaysia, a country where we see further development opportunities for our company,” he said.