TotalEnergies set to fully acquire SapuraOMV Upstream in $530.3m deal

TotalEnergies, a major player in the global energy sector, has announced plans to take complete ownership of SapuraOMV Upstream by purchasing the remaining 50% stake from Sapura Upstream Assets, a subsidiary of Sapura Energy, for $530.3 million. This follows a prior agreement earlier this year where TotalEnergies acquired the other 50% from Austrian oil and gas company OMV for $903 million, bringing the total investment to secure full ownership to approximately $1.43 billion.

Strategic Acquisition Enhances TotalEnergies’ Gas Operations in Malaysia

The acquisition is a strategic move by TotalEnergies to become a significant gas operator in Malaysia. Patrick Pouyanné, Chairman and CEO of TotalEnergies, emphasized the alignment of the SapuraOMV assets with the company’s strategy to expand its gas production. “The SapuraOMV assets are fully in line with our strategy to grow our gas production to meet demand growth, focusing our portfolio on low-cost and low-emission assets,” said Pouyanné.

TotalEnergies to Acquire Full Ownership of SapuraOMV for $530.3 Million

Details of the Transaction and Regulatory Approvals

The completion of both deals is subject to regulatory approvals, with the OMV transaction expected to close by the end of the first half of 2024, and the acquisition from Sapura Upstream Assets anticipated in the second half of the same year. TotalEnergies is looking to capitalize on this acquisition to strengthen its global partnership with Petronas and explore further development opportunities in Malaysia.

Operational and Financial Highlights

SapuraOMV Upstream’s notable assets include significant interests in two blocks located offshore Sarawak, Malaysia, which as of 2023, had an output of approximately 500,000 cubic feet per day of natural gas and 7,000 barrels per day of condensates. These operations contribute to the supply chain of the Bintulu LNG plant operated by Petronas.

Impact on Sapura Energy

For Sapura Energy, the divestiture is part of a broader restructuring effort aimed at managing its debt. The proceeds from this divestment will primarily be used to settle outstanding obligations to creditors involved in multi-currency financing arrangements. Datuk Mohd Anuar Taib, CEO of Sapura Energy Group, commented on the divestiture, “With full ownership of SapuraOMV, we are confident that TotalEnergies will provide the right focus to further develop the growth potential of its assets.”