TotalEnergies has announced a significant agreement with OMV to acquire a 50% stake in SapuraOMV, the Malaysian independent gas producer and operator. The deal, valued at $903 million, includes the transfer of a $350 million loan from OMV to SapuraOMV. The transaction is subject to customary closing adjustments and regulatory approvals, with completion expected by the end of the first half of 2024.
SapuraOMV’s Key Assets
SapuraOMV holds valuable interests in two offshore blocks in Sarawak, Malaysia. It operates with a 40% stake in block SK408 and a 30% stake in block SK310. In 2023, SapuraOMV’s production stood at approximately 500 Mcf/d of natural gas and 7 kb/d of condensates. The gas feeds into the Bintulu LNG plant, operated by Petronas. Furthermore, the Jerun gas field on block SK408 is set to commence operations in the second half of 2024.
Expanding TotalEnergies’ Presence
TotalEnergies views this acquisition as an opportunity to strengthen its position in Malaysia while building on its strategic partnership with Petronas. As Patrick Pouyanné, Chairman and CEO of TotalEnergies, explains, “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 for gas in Asia.”
Additional Exploration Interests
In addition to its assets in Malaysia, SapuraOMV holds exploration licenses in Australia, New Zealand, and Mexico. Notably, the company made a discovery on block 30 in Mexico in 2023.
TotalEnergies’ Involvement in Malaysia
TotalEnergies already has interests in two exploration phase production sharing contracts (PSCs) in Malaysia. Furthermore, the company recently partnered with Petronas and Mitsui to develop a carbon storage project in Southeast Asia and assess multiple CO(2) storage sites in the Malay Basin.
TotalEnergies: Powering the World with Sustainable Energy
TotalEnergies, a global multi-energy company, is dedicated to producing and distributing various forms of energy including oil, biofuels, natural gas, green gases, renewables, and electricity. With a workforce exceeding 100,000 employees, our mission is to make energy more affordable, sustainable, reliable, and accessible to everyone around the globe. Operating in almost 130 countries, TotalEnergies prioritizes sustainable development across all its projects and operations to enhance the well-being of people.
Introduction
In today’s fast-paced world, the demand for energy has never been greater. TotalEnergies recognizes this need and has positioned itself as a leading player in the energy sector. Our expansive portfolio allows us to cater to diverse energy requirements while reducing our environmental footprint.
Commitment to Sustainability
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Global Reach
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Forward Thinking
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Cautionary Note
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