OMV to Divest Upstream Gas Assets in Malaysia to TotalEnergies
Austrian oil, gas and chemicals group OMV has signed an agreement to divest its 50% stake in Malaysia’s natural gas producer SapuraOMV Upstream to TotalEnergies for $903 million, including the transfer of a $350 million loan granted by OMV to SapuraOMV.
SapuraOMV, headquartered in Kuala Lumpur, is a 50:50 joint venture between Sapura Energy Berhad and OMV established in 2019. It has production and development assets in shallow waters offshore of Malaysia, as well as exploration interests in Mexico, Australia, and New Zealand.
SapuraOMV’s operated production in 2023 was reported to be about 500 million cubic feet per day of natural gas, feeding the Bintulu LNG plant operated by Petronas, as well as 7,000 barrels per day of condensates.
“This agreement streamlines our Energy portfolio and is in line with the OMV Strategy 2030 of reducing oil and gas production over time. Furthermore, this divestment will help OMV crystalize value and re-deploy 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 shareholder of the independent gas producer SapuraOMV. Over the past few years, we have developed a strategic international partnership with Petronas, the national company of Malaysia. This transaction will anchor our future growth in the country and reinforce our partnership with Petronas. With their low production costs and low GHG intensity, SapuraOMV’s assets will perfectly fit in TotalEnergies’ portfolio and participate in meeting the growing demand of gas in Asia.”
The transaction is expected to close around the end of the first half of 2024, in particular subject to regulatory approvals.
