TotalEnergies Acquires Remaining 50% Stake in SapuraOMV for $530 Million

TotalEnergies, the French energy giant, has signed an agreement to acquire the remaining 50% stake in Malaysian independent gas producer and operator SapuraOMV Upstream for $530 million. This follows a previous agreement signed with OMV in January 2024 to acquire its 50% interest in SapuraOMV. After the completion of both transactions, which are subject to regulatory approvals, TotalEnergies will own 100% of SapuraOMV.

SapuraOMV's main assets include a 40% operated interest in block SK408 and a 30% operated interest in block SK310, both located offshore Sarawak in Malaysia. In 2023, SapuraOMV's operated production was around 500 Mcf/d of natural gas and 7 kb/d of condensates. The development of the Jerun gas field on block SK408 is on track for a startup in the second half of 2024.

TotalEnergies sees this acquisition as an opportunity to grow its gas production and strengthen its global partnership with Petronas in Malaysia. "The SapuraOMV assets are in line with our strategy to grow our gas production to meet demand growth, focusing on low-cost and low-emission assets," said Patrick Pouyanné, Chairman and CEO of TotalEnergies.

Why this matters: The acquisition significantly expands TotalEnergies' presence in the Southeast Asian oil and gas sector. It positions the company as a major gas operator in Malaysia, aligning with its strategy to focus on low-cost, low-emission assets to meet growing energy demand.

In addition to the operated interests in blocks SK408 and SK310, SapuraOMV also holds exploration licenses in Malaysia, Australia, New Zealand, and Mexico. TotalEnergies and its partners are also developing a carbon storage project in Malaysia. The closing of the transaction to acquire the remaining 50% stake from Sapura Upstream Assets is expected in the second half of 2024, pending regulatory approvals and closing adjustments.

Key Takeaways

• TotalEnergies to acquire remaining 50% stake in SapuraOMV for $530 million.
• SapuraOMV's assets include 40% stake in block SK408 and 30% in block SK310 offshore Sarawak.
• SapuraOMV's 2023 production was around 500 Mcf/d of natural gas and 7 kb/d of condensates.
• Acquisition aligns with TotalEnergies' strategy to grow gas production and focus on low-cost, low-emission assets.
• Transaction expected to close in H2 2024, pending regulatory approvals and closing adjustments.