TotalEnergies buys Malaysian firm
The massive French energy company TotalEnergies has signed an agreement with Sapura Upstream Assets to acquire all of its ownership in SapuraOMV Upstream, a 50:50 joint venture between Sapura Energy and Austria's OMV, a Malaysian independent gas producer and operator, in an effort to increase its overall gas production offshore Malaysia.
The agreement with Sapura is a follow-up to the one that TotalEnergies signed with OMV to purchase its 50% stake in SapuraOMV. The French behemoth will hold 100% of SapuraOMV upon completion of both transactions, which are contingent upon precedent-setting conditions like regulatory clearances, thanks to the agreement to acquire Sapura's 50% interest.
The purchase price for Sapura's portion in the company is $530 million, contingent upon closing modifications. It is anticipated that this acquisition will be finished in the second half of 2024. The primary assets of SapuraOMV, which include a 40% operated interest in block SK408 and a 30% operated interest in block SK310, both of which are situated offshore Sarawak, Malaysia, will now be fully owned by TotalEnergies.
"TotalEnergies will have full ownership of SapuraOMV and become a significant gas operator in Malaysia following the transaction with OMV announced two months ago and this new transaction with Sapura Upstream Assets," stated Patrick Pouyanné, Chairman and CEO of TotalEnergies.
The SapuraOMV assets are entirely consistent with our plan to concentrate our portfolio on low-cost, low-emission assets while increasing gas output to satisfy growing demand. We anticipate growing our international alliance with Petronas in Malaysia, a nation where we believe our business has more room to grow.
In 2023, the Malaysian company produced roughly 500 Mcf/d of natural gas, which fed Petronas's Bintulu LNG facility, and 7 kb/d of condensates. According to TotalEnergies, plans call for the Jerun gas field on block SK408 to begin production in the second half of 2024. In addition, SapuraOMV is a shareholder in exploration licenses in Malaysia, Australia, New Zealand, and Mexico, where block 30 yielded a discovery in 2023.
The SapuraOMV assets are entirely consistent with our plan to concentrate our portfolio on low-cost, low-emission assets while increasing gas output to satisfy growing demand. We anticipate growing our international alliance with Petronas in Malaysia, a nation where we believe our business has more room to grow.
In 2023, the Malaysian company produced roughly 500 Mcf/d of natural gas, which fed Petronas's Bintulu LNG facility, and 7 kb/d of condensates. According to TotalEnergies, plans call for the Jerun gas field on block SK408 to begin production in the second half of 2024. In addition, SapuraOMV is a shareholder in exploration licenses in Malaysia, Australia, New Zealand, and Mexico, where block 30 yielded a discovery in 2023.
As the first LNG bunkering center in the Middle East is anticipated to be created by this project, TotalEnergies emphasizes that the development highlights a competitive and readily available alternative marine fuel to lower emissions from the shipping industry.
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