MALAYSIA’S Sapura Energy will sell its entire 50 per cent stake in oil and gas upstream company SapuraOMV to French energy group TotalEnergies for US$705.3 million, the company said on Monday (Apr 22).

The deal, which includes a cash payment of US$530.3 million and the release of a US$175 million obligation related to a financing facility, will make TotalEnergies the sole owner of SapuraOMV, after Austrian oil and gas company OMV sold its 50 per cent stake in February.

“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,” TotalEnergies said in a statement.

SapuraOMV holds a 40 per cent and 30 per cent operating interest in blocks SK408 and SK310 respectively, both located offshore Sarawak in Malaysia, and also has exploration interests in Mexico, Australia and New Zealand.

The portfolio rationalisation marks Sapura Energy’s strategic shift away from the exploration and production business, its Group CEO Mohd Anuar Taib said in a statement.

Sapura will use the proceeds from the divestment to repay outstanding liabilities, including some immediate obligations, it said. REUTERS

A NEWSLETTER FOR YOU

Friday, 8.30 am

Asean Business

Business insights centering on South-east Asia's fast-growing economies.

Sign Up