TotalEnergies is acquiring Sapura Upstream Assets Sdn Bhd’s remaining 50% interest in Malaysian independent gas producer and operator SapuraOMV Upstream Sdn for $530 million, subject to closing adjustments.

Combined, the full interests in the assets will cost the French company more than $1.4 billion.

TotalEnergies had already acquired 50% of SapuraOMV from OMV in January for $903 million. After completion of both transactions, which are both subject to certain conditions and regulatory approvals, Total will own 100% of SapuraOMV. 

SapuraOMV’s main assets include 40% operated interest in Block SK408 and 30% operated interest in Block SK310 offshore Sarawak in Malaysia. The Jerun gas field in Block SK408 is on track for startup in the second half of 2024.

Sapura also holds interests in exploration licenses in Malaysia, Australia, New Zealand and Mexico. A discovery was made in Block 30 in 2023.

“The SapuraOMV assets are fully in line with our strategy to grow our gas production to meet demand growth, focusing our portfolio on low-cost and low-emission assets,” Patrick Pouyanné, chairman and CEO of TotalEnergies. “We look forward to strengthening our global partnership with Petronas in Malaysia, a country where we see further development opportunities for our company.”

The transaction with Sapura Upstream Assets is expected to close in the second half of 2024.