TotalEnergies to purchase Sapura Energy upstream natural gas assets for $530 million
(Bloomberg) – TotalEnergies SE agreed to buy Sapura Energy Bhd.’s 50% stake in Malaysian natural gas producer SapuraOMV Upstream Sdn for $530 million, reaffirming its recent bet in the southeast Asian nation.
The French energy giant’s announcement on Monday comes less than three months after it agreed to buy OMV AG’s 50% stake in SapuraOMV for $903 million, including the transfer of a $350 million loan granted by OMV to SapuraOMV.
The deal underscores TotalEnergies’ bet that natural gas will play a role as a transition fuel as countries seek to mitigate carbon emissions from fossil fuels while meeting rising energy demand.
SapuraOMV’s operated production in 2023 was about 500 MMcfd of natural gas, feeding the Bintulu liquefaction plant operated by Petronas Nasional Bhd., as well as 7,000 bpd of condensates, TotalEnergies said in the statement. It also holds interests in exploration licenses in Malaysia, Australia, New Zealand and Mexico.
“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,” Chief Executive Officer Patrick Pouyanne said. “We look forward to strengthening our global partnership with Petronas in Malaysia, a country where we see further development opportunities for our company.”
The planned acquisition of 50% in SapuraOMV from Sapura Energy is expected to be completed in the second half of 2024, the French company said. After both transactions clear regulatory approvals, TotalEnergies will own 100% of SapuraOMV.
Lead image: East Piatu field offshore Malaysia (Source: Sapura Energy)
