TotalEnergies becoming the sole owner of Malaysian firm

France’s energy giant TotalEnergies has taken steps to bolster its overall gas production offshore Malaysia by signing a deal with Sapura Upstream Assets to obtain its entire stake in SapuraOMV Upstream – a 50:50 joint venture between Sapura Energy and Austria’s OMV – which is a Malaysian independent gas producer and operator.

The deal with Sapura comes after TotalEnergies inked a similar one with OMV to acquire its 50% interest in SapuraOMV. Thanks to the agreement to get Sapura’s 50% interest, the French giant will own 100% of SapuraOMV, following the completion of both transactions, which are subject to some conditions precedent, such as regulatory approvals.

Sapura’s part of the business will be acquired for a consideration of USD 530M, subject to closing adjustments. This acquisition is expected to be completed in the second half of 2024. TotalEnergies will now be able to own SapuraOMV’s main assets in full, encompassing 40% operated interest in block SK408 and 30% operated interest in block SK310, both located offshore Sarawak in Malaysia.

The Malaysia firm’s production was about 500 Mcf/d of natural gas in 2023, feeding the Bintulu LNG plant operated by Petronas, and 7 kb/d of condensates. TotalEnergies explains that the development of the Jerun gas field on block SK408 is on track for a start-up in the second half of 2024. SapuraOMV also holds interests in exploration licenses in Malaysia, Australia, New Zealand, and Mexico, where a discovery was made in 2023 on block 30.

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