Offshore staff
PARIS, France — TotalEnergies has agreed to acquire Sapura Upstream Assets’ 50% interest in Malaysian gas producer/operator SapuraOMV Upstream for $530 million.
The deal, which should close later this year, follows an agreement in January with OMV to acquire its 50% share of the same company. Pending regulatory approvals, TotalEnergies would then have outright ownership.
SapuraOMV’s main assets, both offshore Sarawak, are a 40% operated interest in Block SK408 and a 30% operated interest in Block SK310. The company’s production last year of about 500 Mcf/d of gas headed exclusively to the Petronas-operated Bintulu LNG complex, with associated production of 7,000 bbl/d of condensate.
In Block SK408, development of the Jerun gas field is on course for startup in the second half of 2024. In addition, SapuraOMV has interests in exploration licenses offshore Malaysia, Australia, New Zealand and Mexico, where the Block 30 co-venturers made a discovery in 2023.
The transaction will make TotalEnergies a significant gas operator in Malaysia, said Chairman and CEO Patrick Pouyanné.
“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. We look forward to strengthening our global partnership with Petronas in Malaysia, a country where we see further development opportunities for our company.”
TotalEnergies already owns interests in two production sharing contracts in the exploration phase, and last June it signed an agreement with Petronas and Mitsui to develop a carbon storage project in Southeast Asia and assess several CO2 storage sites in the Malay basin.
04.22.2024
