OMV to sell 50% stake in SapuraOMV to TotalEnergies for $903m

In a significant development within the energy sector, OMV has announced the sale of its 50 percent stake in Malaysia’s SapuraOMV Upstream Sdn. Bhd. to TotalEnergies Holdings SAS. The deal, valued at an overall cash consideration of USD 903 million, subject to closing adjustments, is expected to be completed by the end of the first half of 2024. This transaction stands as a pivotal moment for both companies, with OMV adhering to its Strategy 2030, aimed at reducing oil and gas production over time. The sale includes the repayment of an outstanding USD 350 million shareholder loan from OMV to SapuraOMV, net working capital, and other elements.

This divestment is a testament to OMV’s strategic vision of streamlining its energy portfolio and crystallizing value from its investments. According to OMV’s CEO, Alfred Stern, this move is aligned with OMV’s long-term objectives of gradually reducing its fossil fuel output while reallocating capital towards new strategic projects. The transaction also highlights the competitive nature of the bidding process, underscoring the attractiveness of SapuraOMV’s assets in the global energy market.

SapuraOMV, a joint venture established in 2019 between Sapura Energy Berhad and OMV, is a prominent player in the Malaysian upstream sector. It boasts significant production and development assets in Malaysia’s shallow waters, along with exploration interests in Mexico, Australia, and New Zealand. The divestment not only marks a strategic shift for OMV but also signifies TotalEnergies’ expansion and consolidation of its presence in Malaysia and the broader Asian market.

Patrick Pouyanné, Chairman and CEO of TotalEnergies, expressed enthusiasm about strengthening the company’s position in Malaysia through this acquisition. By becoming a shareholder in SapuraOMV, TotalEnergies aims to bolster its strategic international partnership with Petronas, Malaysia’s national oil company. The assets acquired, known for their low production costs and minimal greenhouse gas intensity, are set to enhance TotalEnergies’ portfolio and contribute to meeting Asia’s surging gas demand.