Malaysia M&A - TotalEnergies to acquire OMV's 50% interest in SapuraOMV
(Originally published on January 31, 2024)
Earlier today, TotalEnergies announced that they have agreed to acquire OMV's 50% interest in SapuraOMV. The transaction is for a consideration of US$ 903 million (including the transfer of a US$ 350 million loan granted by OMV to SapuraOMV) and is subject to customary conditions precedent, in particular the receipt of regulatory approvals. Closing is expected by the end of first half of 2024.
This is a big move for TotalEnergies. They had a limited exploration position in deepwater Sabah and this deal gives them anchor production and a number of development opportunities to allow them to both remain and grow in Malaysia.
TotalEnergies existing Malaysia assets prior to this deal were:
- Block SB-N (34.9% + operator) was awarded back in 2007, with the Tepat-1 discovery drilled in 2018. Appraisal was delayed by COVID but the Tepat-2 appraisal well was finally drilled in late-2022.
- Block SB-2K (same ownership as SB-N) was awarded in October 2022.
It is also great news for the upstream industry in Malaysia. With TotalEnergies having previously been a candidate to exit the country. Keeping a major IOC is a great result!
SapuraOMV's producing assets are all in Malaysia, and they also hold interests in exploration licenses in Malaysia, Australia, New Zealand and Mexico. I have provided a detailed view of the Malaysia assets below, together with a summary of the other assets.
