TotalEnergies strengthens Malaysia gas portfolio with $1.4bn SapuraOMV acquisition

TotalEnergies, a leading force in the global energy sector, has finalised the acquisition of SapuraOMV Upstream, marking a significant expansion of its operations in Malaysia. The $1.43 billion transaction grants TotalEnergies complete ownership of the independent gas producer and its assets, underscoring the company’s commitment to low-emission, cost-efficient energy production.

The deal includes stakes previously held by OMV and Sapura Upstream Assets, each constituting 50% of SapuraOMV. These assets include operated interests of 40% in block SK408 and 30% in block SK310, located offshore Sarawak, Malaysia. With the operational start-up of the Jerun gas field in mid-2024, SapuraOMV’s production is projected to reach an impressive 590 million cubic feet of natural gas daily, supplying the Petronas-operated Bintulu LNG plant.

Focus on low-cost and low-emission energy

Patrick Pouyanné, Chairman and CEO of TotalEnergies, highlighted the strategic importance of this acquisition in aligning with the company’s global objectives. Pouyanné indicated that these assets enhance TotalEnergies’ focus on meeting growing gas demand through assets characterised by low production costs—below $5 per barrel of oil equivalent—and low carbon intensity, at just 10 kilograms of CO₂ equivalent per barrel of oil equivalent.

This acquisition strengthens TotalEnergies’ foothold in Malaysia, where it has operated since 1985. Beyond its upstream ventures, the company also engages in petroleum marketing and collaborates with Petronas on initiatives such as a CO₂ storage project in Southeast Asia.

Boosting production and operational capacity

SapuraOMV’s assets play a critical role in Malaysia’s energy landscape. The Jerun gas field, which began operations in July 2024, contributes significantly to the Bintulu LNG plant’s output, reinforcing Malaysia’s status as a major liquefied natural gas (LNG) exporter. Additionally, SapuraOMV’s condensate production, estimated at 10,000 barrels per day, further diversifies its energy output.

TotalEnergies’ enhanced portfolio now includes additional stakes in block SB412 (40%) and existing interests in blocks SB-2K and SB-N (34.9% each). The company also holds a dominant position in block DW2E (85%). These holdings ensure that TotalEnergies remains a vital partner to Petronas while exploring new growth opportunities in the Malay Basin.

Strategic financial implications for Sapura Energy

For Sapura Energy, divesting its 50% stake in SapuraOMV is a step towards financial restructuring. The company, burdened with debt, plans to utilise the $530.3 million proceeds from this transaction to resolve outstanding obligations. According to Datuk Mohd Anuar Taib, CEO of Sapura Energy Group, the move ensures the company can focus on stabilising its financial position while TotalEnergies steers SapuraOMV toward its growth potential.

Regulatory approvals and future developments

The acquisition, announced in phases beginning in April 2024, awaited regulatory clearances, with TotalEnergies finalising the OMV deal in the first half of the year and the Sapura transaction in the second half. The deal not only enhances TotalEnergies’ relationship with Petronas but also establishes a foundation for future collaborations in Malaysia’s burgeoning energy market.