Photo: East Piatu platform located on the PM 329 license; Source: SapuraOMV

Jadestone and SapuraOMV bound to close Malaysia deal as all conditions satisfied

Jadestone Energy has informed that all conditions required to complete its proposed acquisition of the Peninsular Malaysia assets of SapuraOMV, including receipt of Petronas approval, have been satisfied.

SapuraOMV agreed to sell its entire interests in producing assets located offshore Peninsular Malaysia to Jadestone Energy in late April 2021. The assets in question are the PM323, PM329, PM318, and AAKBNLP production sharing contracts.

The closing of the transaction was subject to regulatory approval from Petronas and preemption rights by the joint venture partner in the assets – Petronas Carigali.

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Following the satisfaction of all conditions, Jadestone said on Friday that together with SapuraOMV it will now proceed to complete the transaction, which will entail Jadestone paying the headline consideration of $9 million, subject to agreed adjustments. At completion, Jadestone will also receive the economic benefits from the assets accruing from the effective date of 1 January 2021.

Under the terms of the acquisition agreement, completion is scheduled to occur on or about 30 July 2021.

Paul Blakeley, President and CEO commented: “I am delighted to see that the conditions to complete this transaction are now satisfied, allowing us to conclude our acquisition of the Peninsular Malaysia assets in a very efficient way. Our ability to complete this transaction within just three months of announcing the deal is a testament to the strong spirit of collaboration with each of the Seller, Petronas Carigali and Petronas.

“I would like to acknowledge the clear and practical regulatory processes as well as the efficiency exhibited by Petronas during this approval process.

“Jadestone is well prepared for working within the Malaysian regulatory regime, with a significant in-country presence and our operational leadership team already on the ground. We now look forward to rebuilding our operating presence in-country, deepening key relationships, and establishing a significant business, drawing on the deep pool of Malaysian national talent”.