OMV Divests Malaysian Upstream Gas Assets to TotalEnergies

Austrian oil, gas and chemicals group OMV has signed an agreement to divest its 50% stake in Malaysian gas producer SapuraOMV Upstream to TotalEnergies for $903 million, which includes the transfer of a $350 million loan granted by OMV to SapuraOMV.

Headquartered in Kuala Lumpur, SapuraOMV is a joint venture established in 2019 between Sapura Energy Berhad and OMV. The company has production and development assets in shallow waters offshore Malaysia and exploration interests in Mexico, Australia and New Zealand.

SapuraOMV is reported to have operational output of approximately 500 million cubic feet per day of gas by 2023, supplying the Petronas-operated Bintulu LNG plant, and 7,000 barrels per day of condensate.

"This agreement simplifies our energy portfolio and is consistent with OMV's 2030 strategy to reduce oil and gas production over time. Additionally, this divestment will help OMV realize value and redeploy capital for new strategic projects. " said Alfred Stern, CEO of OMV.

Patrick Pouyanné, Chairman and CEO of TotalEnergies, commented: "We are pleased to strengthen TotalEnergies' position in Malaysia by becoming a shareholder in independent natural gas producer SapuraOMV. Over the past few years, we have established a strategic international partnership with Petronas.

This transaction will solidify our future growth in the country and strengthen our partnership with Petronas. With its low production costs and low greenhouse gas intensity, SapuraOMV's assets will fit perfectly into TotalEnergies' portfolio and participate in meeting Asia's growing gas demand. "

The transaction is expected to close around the end of the first half of 2024, inter alia, subject to regulatory approvals.