TotalEnergies has struck a deal to buy OMV’s stake in a Malaysian unit for $903 million.
The French company will receive a 50% stake in SapuraOMV Upstream, while the remaining 50% is held by Sapura Energy.
OMV and Sapura launched the joint venture in 2019, based in Kuala Lumpur. OMV set out plans to sell off the Malaysian unit – and its New Zealand assets – in February 2023.
On entering the joint venture, OMV paid $540mn for its 50% stake.
Total’s payment includes the full repayment of an outstanding $350mn shareholder loan, which OMV provided to the joint venture.
There may also be closing adjustments to the price, with the deal expected to close around the end of the first half of 2024. The deal has an effective date of December 31, 2022.
“This agreement streamlines our Energy portfolio and is in line with the OMV Strategy 2030 of reducing oil and gas production over time,” said OMV CEO Alfred Stern. “Furthermore, this divestment will help OMV crystallise value and re-deploy capital for new strategic projects.”
Asset plans
SapuraOMV has production and development assets in Malaysia’s shallow waters. It also has exploration interests in Mexico, Australia and New Zealand.
OMV is continuing its efforts to sell off its separate New Zealand entity. The company, in December, said there was “limited interest” in a combined deal.
SapuraOMV produced around 500 million cubic feet per day in 2023, with output going to the Bintulu LNG facility.
Esgian, in a recent update, reported that Borr Drilling’s Gunnlod jackup had completed its work on SapuraOMV’s Jerun field, off Sarawak. The rig drilled six development wells.
The company previously forecast it would start up in 2024 and provide net production of around 25,000 barrels of oil equivalent per day. Total said this was on track to start up in the second half of this year.
The French company also noted SapuraOMV’s stake in Mexico’s Block 30, where Wintershall Dea made a discovery in 2023.
OMV published its 2030 strategy paper in March 2022. Under this, it committed to reducing its oil and gas production by 20% by 2030. It also set out to shift from E&P to geothermal energy and carbon capture.
“We are pleased to strengthen TotalEnergies’ position in Malaysia by becoming shareholder of the independent gas producer SapuraOMV,” said Total chairman and CEO Patrick Pouyanné.
“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.”
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