France’s energy giant TotalEnergies has expanded its gas portfolio with more assets off the coast of Malaysia by wrapping up the acquisition of stakes OMV and Sapura Upstream held in SapuraOMV Upstream Assets, a Malaysian independent gas producer and operator.
TotalEnergies disclosed in April 2024 its plans to become the sole owner of SapuraOMV Upstream after first inking a deal with OMV to acquire its 50% interest and then following it up by signing an agreement with Sapura Upstream Assets to obtain its entire stake, enabling it to own 100% of the Malaysian firm.
The acquisition was expected to be completed in the second half of 2024, with the French player seizing control over 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.
TotalEnergies has now confirmed the completion of the acquisition of interests OMV (50%) and Sapura Upstream Assets (50%) had in SapuraOMV Upstream. The asset’s operated production, supported by the start-up of the Jerun gas field in July 2024, is expected to reach approximately 590 Mcf/d of natural gas, feeding the Bintulu LNG plant operated by Petronas, as well as 10 kb/d of condensates.
Shahin Farouque Jammal Ahmad , Sapura Energy’s Interim Chairman, said: “This strategic initiative underscores our commitment to Sapura Energy’s long-term Reset and debt restructuring plan; this divestment streamlines our portfolio and enables us to focus on our core capabilities, namely to deliver safe and innovative solutions to the energy industry.”
The assets have an overall emission intensity below 10 kg CO 2 e/boe. OMV has also confirmed the closing of the transaction with TotalEnergies for the overall cash consideration of $957 million. The economic effective date of the transaction is December 31, 2022.
The French energy giant is currently working on multiple developments, including the divestment of a minor stake in two blocks off the coast of Namibia.