Illustration; Source: TotalEnergies

TotalEnergies to splash out $903 million on its gas footprint expansion off Malaysia

France’s energy giant TotalEnergies has set the wheels into motion to enrich its overall gas portfolio with more assets offshore Malaysia by inking a deal with Austria’s OMV to get its hands on a stake in SapuraOMV Upstream, a 50:50 joint venture between Sapura Energy and the Austrian firm, which works as a Malaysian independent gas producer and operator. The French player’s portfolio enhancement is expected to be obtained for a total cash consideration of $903 million.

Illustration; Source: TotalEnergies

This amount, which will enable TotalEnergies to acquire 50% interest in SapuraOMV, entails the full repayment of the outstanding $350 million shareholder loan granted by OMV to the Malaysian player, as well as net working capital and other elements with the consideration being subject to closing adjustments. This acquisition, which is anticipated to close around the end of the first half of 2024, is subject to regulatory approvals.

With this deal, the French oil major will get interests in SapuraOMV’s production and development assets in shallow waters offshore of Malaysia, which entail a 40% operated interest in Block SK408 and a 30% operated interest in Block SK310 located offshore Sarawak. In addition, TotalEnergies will get stakes in exploration licenses in Malaysia, Australia, New Zealand, and Mexico, where a discovery has been made in 2023 on Block 30.

Patrick Pouyanné, Chairman and CEO of TotalEnergies, commented: “We are pleased to strengthen TotalEnergies’ position in Malaysia by becoming shareholder of the independent gas producer SapuraOMV. Over the past few years, we have developed a strategic international partnership with Petronas, the national company of Malaysia.

“This transaction will anchor our future growth in the country and reinforce our partnership with Petronas. With their low production costs and low GHG intensity, SapuraOMV’s assets will perfectly fit in TotalEnergies’ portfolio and participate in meeting the growing demand of gas in Asia.”

Furthermore, SapuraOMV’s operated production in 2023 was about 500 Mcf/d of natural gas, feeding the Petronas-operated Bintulu LNG plant, as well as 7 kb/d of condensates. On Block SK408, the development of the Jerun gas field is on track for start-up in the second half of 2024. The Kuala Lumpur-headquartered SapuraOMV was established in 2019.

Alfred Stern, CEO of OMV, remarked: “This agreement streamlines our energy portfolio and is in line with the OMV Strategy 2030 of reducing oil and gas production over time. Furthermore, this divestment will help OMV crystalize value and redeploy capital for new strategic projects. On behalf of OMV, I thank all employees at SapuraOMV for their commitment and contributions.”

TotalEnergies is currently working on multiple projects around the world, including the Tyra II redevelopment project in the Danish sector of the North Sea, which the French giant, together with its partners in the Danish Underground Consortium (DUC), is preparing to bring on stream in March 2024.

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The oil major is also among the companies that have been offered 24 licenses across 74 blocks and part-blocks in the second tranche of the UK’s 33rd offshore oil and gas licensing round.


𝐃𝐨 𝐲𝐨𝐮 𝐰𝐚𝐧𝐭 𝐭𝐨 𝐠𝐫𝐚𝐛 𝐭𝐡𝐞 𝐚𝐭𝐭𝐞𝐧𝐭𝐢𝐨𝐧 𝐨𝐟 𝐲𝐨𝐮𝐫 𝐭𝐚𝐫𝐠𝐞𝐭 𝐚𝐮𝐝𝐢𝐞𝐧𝐜𝐞 𝐢𝐧 𝐨𝐧𝐞 𝐦𝐨𝐯𝐞? 𝐋𝐨𝐨𝐤 𝐧𝐨 𝐟𝐮𝐫𝐭𝐡𝐞𝐫 𝐭𝐡𝐚𝐧 𝐎𝐟𝐟𝐬𝐡𝐨𝐫𝐞 𝐄𝐧𝐞𝐫𝐠𝐲! 𝐎𝐮𝐫 𝐜𝐨𝐧𝐭𝐞𝐧𝐭 𝐢𝐬 𝐫𝐞𝐚𝐝 𝐛𝐲 𝐭𝐡𝐨𝐮𝐬𝐚𝐧𝐝𝐬 𝐨𝐟 𝐩𝐫𝐨𝐟𝐞𝐬𝐬𝐢𝐨𝐧𝐚𝐥𝐬 𝐞𝐧𝐠𝐚𝐠𝐞𝐝 𝐢𝐧 𝐨𝐢𝐥 & 𝐠𝐚𝐬, 𝐦𝐚𝐫𝐢𝐭𝐢𝐦𝐞, 𝐨𝐟𝐟𝐬𝐡𝐨𝐫𝐞 𝐰𝐢𝐧𝐝, 𝐠𝐫𝐞𝐞𝐧 𝐦𝐚𝐫𝐢𝐧𝐞, 𝐡𝐲𝐝𝐫𝐨𝐠𝐞𝐧, 𝐬𝐮𝐛𝐬𝐞𝐚, 𝐦𝐚𝐫𝐢𝐧𝐞 𝐞𝐧𝐞𝐫𝐠𝐲, 𝐚𝐥𝐭𝐞𝐫𝐧𝐚𝐭𝐢𝐯𝐞 𝐟𝐮𝐞𝐥𝐬, 𝐬𝐡𝐢𝐩𝐩𝐢𝐧𝐠, 𝐚𝐧𝐝 𝐨𝐭𝐡𝐞𝐫 𝐢𝐧𝐝𝐮𝐬𝐭𝐫𝐢𝐞𝐬 𝐨𝐧 𝐚 𝐝𝐚𝐢𝐥𝐲 𝐛𝐚𝐬𝐢𝐬.

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