News

TotalEnergies to Acquire SapuraOMV's Stake in Malaysian Gas Producer

James L. Flint

• January 31, 2024

TotalEnergies, a global energy company, has announced its agreement with OMV to acquire a 50% interest in SapuraOMV, an independent gas producer and operator in Malaysia. The deal is valued at $903 million and includes the transfer of a $350 million loan from OMV to SapuraOMV. The transaction is subject to regulatory approval and is expected to close by the end of the first half of 2024.

SapuraOMV's key assets include a 40% operated interest in block SK408 and a 30% operated interest in block SK310, both located offshore Sarawak in Malaysia. The company's gas production in 2023 was approximately 500 Mcf/d, supplying the Bintulu LNG plant operated by Petronas, along with 7 kb/d of condensates. The Jerun gas field, located in block SK408, is scheduled to start production in the second half of 2024.

In addition to its interests in Malaysia, SapuraOMV also holds exploration licenses in Australia, New Zealand, and Mexico. Notably, a significant discovery was made in 2023 on block 30 in Mexico.

TotalEnergies sees this acquisition as an opportunity to strengthen its presence in Malaysia and expand its strategic partnership with Petronas, the national energy company of Malaysia. The company views SapuraOMV's assets as a valuable addition to its portfolio, given their low production costs and low GHG (greenhouse gas) intensity. The acquisition aligns with TotalEnergies' goal of meeting the growing demand for gas in Asia.

Patrick Pouyanné, Chairman and CEO of TotalEnergies, expressed his satisfaction with the agreement, emphasizing the company's commitment to its partnership with Petronas. He stated that the acquisition of SapuraOMV will support TotalEnergies' future growth in Malaysia.

TotalEnergies already has a strong presence in Malaysia, with interests in two production sharing contracts (PSCs) in the exploration phase. Additionally, the company signed an agreement in June 2023 with Petronas and Mitsui to develop a carbon storage project in Southeast Asia and evaluate potential CO2 storage sites in the Malay Basin.

Overall, this acquisition represents a significant milestone for TotalEnergies, as it expands its operations in Malaysia and strengthens its position in the Asian gas market.

TotalEnergies: Committed to a Sustainable Energy Future

TotalEnergies is a global multi-energy company focused on producing and marketing various forms of energy, including oil, biofuels, natural gas, green gases, renewables, and electricity. With over 100,000 dedicated employees, our mission is to make energy more affordable, sustainable, reliable, and accessible to as many people as possible.

Sustainability lies at the core of our projects and operations. Operating in nearly 130 countries, TotalEnergies is committed to sustainable development in all its dimensions, working towards the well-being of individuals and the planet.

Cautionary Note

In this document, the terms "TotalEnergies," "TotalEnergies company," or "Company" refer to TotalEnergies SE and its directly or indirectly controlled consolidated entities. Likewise, the pronouns "we," "us," and "our" may also pertain to these entities or their employees. The entities in which TotalEnergies SE has ownership are separate legal entities.

This document contains forward-looking information and statements based on economic data and assumptions relevant to the prevailing economic, competitive, and regulatory environment. However, these projections may prove inaccurate in the future and are subject to various risk factors. TotalEnergies SE and its subsidiaries do not undertake any obligation to publicly update forward-looking information or statements, objectives, or trends contained in this document, whether due to new information, future events, or otherwise.

For detailed information on risk factors that may impact TotalEnergies' financial results or activities, please refer to the latest Universal Registration Document filed by TotalEnergies SE with the French securities regulator Autorité des Marchés Financiers (AMF) and the Form 20-F filed with the United States Securities and Exchange Commission (SEC).