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  • TotalEnergies signs an agreement to buy OMV’s 50% stake in SapuraOMV for $903 million
  • SapuraOMV is a Malaysian independent gas producer and operator with assets offshore Sarawak and exploration interests in Mexico, Australia and New Zealand
  • The deal will strengthen TotalEnergies’ position in Malaysia and its partnership with Petronas, the national oil company
  • The acquisition will also add low-cost and low-carbon gas production to TotalEnergies’ portfolio

TotalEnergies, a global multi-energy company, has announced that it has signed a definitive agreement to acquire OMV’s 50% interest in SapuraOMV, a Malaysian independent gas producer and operator, for $903 million (including the transfer of a $350 million loan granted by OMV to SapuraOMV) . The transaction is subject to customary closing conditions, including the receipt of regulatory approvals, and is expected to be completed by the end of the first half of 2024.

SapuraOMV was established in 2019 as a joint venture between Sapura Energy, a leading Malaysian integrated oil and gas services and solutions provider, and OMV, an Austrian integrated oil and gas company . SapuraOMV’s headquarters are in Kuala Lumpur, Malaysia.

SapuraOMV’s main assets are its 40% operated interest in block SK408 and 30% operated interest in block SK310, both located offshore Sarawak in Malaysia. These blocks contain several gas fields, including the producing Gorek, Larak and Bakong fields, and the Jerun field, which is under development and expected to start up in the second half of 2024 .

SapuraOMV also holds interests in exploration licenses in Malaysia, Australia, New Zealand and Mexico, where it made a discovery in 2023 on block 30 .

In 2023, SapuraOMV’s operated production (100%) was 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 .

Why is TotalEnergies buying SapuraOMV?

TotalEnergies is a global multi-energy company that produces and markets energies: oil and biofuels, natural gas and green gases, renewables and electricity. It has more than 100,000 employees and operates in nearly 130 countries .

TotalEnergies has been present in Malaysia since 1980. It owns interests in two production sharing contracts (PSCs) in exploration phase and signed an agreement with Petronas and Mitsui in June 2023 to develop a carbon storage project in Southeast Asia and evaluate several CO2 storage sites in the Malay Basin .

By acquiring SapuraOMV, TotalEnergies will strengthen its position in Malaysia by becoming a shareholder of an independent gas producer with significant growth potential. It will also reinforce its strategic partnership with Petronas, the national oil company of Malaysia, with whom it has developed several international projects over the past few years .

Moreover, the acquisition will add low-cost and low-carbon gas production to TotalEnergies’ portfolio and participate in meeting the growing demand of gas in Asia. SapuraOMV’s assets have low production costs and low greenhouse gas intensity, which are aligned with TotalEnergies’ ambition to achieve net-zero emissions by 2050 .

Patrick Pouyanné, Chairman and CEO of TotalEnergies, said: “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”.

TotalEnergies and SapuraOMV, both significant players in the energy sector, offer a variety of job opportunities in Malaysia. TotalEnergies is looking for individuals with a diverse range of skills to meet growing energy demand and societal challenges. They offer stimulating working conditions and a compensation policy that combines a fixed salary, variable components, social protection, retirement benefits, and advantageous shareholding programs.

On the other hand, Sapura Energy Berhad, part of SapuraOMV, offers opportunities across a full range of roles in the upstream oil and gas industry, including fabrication, hook-up and commissioning, drilling services, renewables, production and exploration, geotechnical and geophysical survey, installation of pipelines and facilities, marine, diving and remotely operated underwater vehicle (ROV) services, operations, and maintenance services. They have a multinational workforce spanning over 35 nationalities and operate in over 20 countries. Job seekers can explore career opportunities on their respective websites.

https://totalenergies.my/career

https://www.sapuraenergy.com/career/

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