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TotalEnergies expands southeast Asia presence with $903 million SapuraOMV acquisition

TotalEnergies expands southeast Asia presence

TotalEnergies SE has recently reached an agreement to acquire OMV AG's stake in SapuraOMV, an independent Malaysian natural gas producer, for a substantial sum of $903 million. This strategic move is geared towards bolstering the French energy giant's footprint in southeast Asia, tapping into the region's dynamic energy market.

Headquartered in Kuala Lumpur, SapuraOMV is a collaborative effort between Sapura Energy Berhad and OMV, boasting production and development assets situated in shallow waters off Malaysia. Beyond its Malaysian operations, SapuraOMV holds exploration interests in countries such as Mexico, Australia, and New Zealand.

In 2023, SapuraOMV achieved an operated production level of approximately 500 million cubic feet per day of natural gas. This output not only supplies the Bintulu LNG plant operated by Petronas but also includes a significant contribution of 7,000 barrels per day of condensates.

TotalEnergies, in an official statement released on a Wednesday, highlighted the alignment of SapuraOMV's assets with their low production costs and minimal greenhouse gas intensity, emphasizing their seamless integration into TotalEnergies' existing portfolio.

Patrick Pouyanne, the CEO of TotalEnergies, expressed optimism about the acquisition, stating that SapuraOMV's assets are well-suited to meet the surging demand for gas in Asia.

The acquisition involves TotalEnergies securing a 50% stake in SapuraOMV, and the transaction is anticipated to conclude by the end of the first half of the current year, according to the timeline provided by the French energy company.

Separately, OMV, the Austrian multinational integrated oil, and gas company, disclosed that the sales process for all of OMV New Zealand Ltd. is ongoing.

This indicates a broader strategic evaluation and potential restructuring of OMV's global portfolio, showcasing the dynamic nature of the energy industry and companies adapting to changing market conditions.



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