TotalEnergies is acquiring OMV’s 50% interest in Malaysian independent gas producer and operator SapuraOMV Upstream Sdn for $903 million cash, subject to closing adjustments, TotalEnergies and OMV announced Jan. 31.

The deal is subject to customary closing approvals, and closing is expected by the end of the first half of 2024.

Total consideration for the deal includes the transfer of a $350 million loan granted by OMV to SapuraOMV.

SapuraOMV, headquartered in Kuala Lumpur, is a 50:50 joint venture (JV) between Sapura Energy Berhad and OMV that was established in a 2019 deal for $540 million. The JV has shallow water production and development assets offshore Malaysia, as well as exploration interests in Mexico, Australia and New Zealand.

Following the deal, Sapura Energy will retain its 50% interest in SapuraOMV.

“This agreement streamlines our energy portfolio and is in line with the OMV Strategy 2030 of reducing oil and gas production over time,” OMV CEO Alfred Stern said in a press release.

TotalEnergies' CEO Patrick Pouyanné said in a press release the transaction anchors the company’s future growth in Malaysia and reinforces a strategic partnership with Petronas.

SapuraOMV’s main assets are its 40% operated interest in Block SK408 and 30% operated interest in block SK310, both of which are located offshore Sarawak in Malaysia.

Development of the Jerun gas field in Block SK408 is on track for startup in the second half of 2024.

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

In 2023, SapuraOMV’s operated production was about 500,000 cf/d of natural gas, feeding the Bintulu LNG plant operated by Petronas, as well as 7,000 bbl/d of condensates.