TotalEnergies has taken significant steps in bolstering its gas production portfolio with the signing of an agreement with Sapura Upstream Assets Sdn Bhd to acquire its 50 percent interest in SapuraOMV Upstream Sdn. The transaction, valued at $530 million, is poised to reinforce TotalEnergies’ position as a prominent gas operator in Malaysia. The closing of this deal, anticipated in the second half of 2024, is contingent upon customary closing adjustments and regulatory approvals.
This agreement follows TotalEnergies’ initial agreement with OMV on January 31st, 2024, for the acquisition of its 50 percent interest in SapuraOMV. Upon the completion of both transactions, TotalEnergies will possess full ownership of SapuraOMV.
SapuraOMV’s core assets include a 40 percent operated interest in block SK408 and a 30% operated interest in block SK310, situated offshore Sarawak in Malaysia. In 2023, SapuraOMV’s operated production amounted to approximately 500 Mcf/d of natural gas and 7 kb/d of condensates. Notably, the development of the Jerun gas field on block SK408 is progressing as planned, with a startup expected in the second half of 2024. Additionally, SapuraOMV holds exploration licences across Malaysia, Australia, New Zealand, and Mexico, where a significant discovery was made in 2023 on block 30.
Patrick Pouyanné, chairman and CEO of TotalEnergies, underscored the strategic significance of the transaction, stating, “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.” Pouyanné further expressed enthusiasm about strengthening TotalEnergies’ partnership with Petronas in Malaysia and identified the country as a region with ample development opportunities for the company.
The acquisition of SapuraOMV underscores TotalEnergies’ commitment to expanding its gas production capabilities and consolidating its presence in key energy markets worldwide.
For more information visit www.totalenergies.com
