As per the deal, announced in November 2018, OMV paid $540m for the stake in the upstream business, which has been renamed as SapuraOMV Upstream.
The agreement also includes an additional consideration of up to $85m to be paid by the Austrian firm based on certain conditions, which are primarily linked to the resource volume in Block 30, Mexico, at the time of taking the final investment decision.
The two oil and gas companies also agreed then to refinance the current inter-company debt of $350m.
Sapura Energy took up the deal as part of its larger strategic plan to strengthen its core businesses, and boost its financial position. The Malaysian company will use a portion of the transaction proceeds to repay its debt.
The stake in Sapura Upstream was offloaded by the Malaysian firm to OMV Exploration & Production, a wholly-owned subsidiary of the Austrian company.
OMV, in a statement, said: “The management of the partnership will be based in Malaysia and an equal number of representatives from both sides will sit on the board of directors.”
The new upstream joint venture will be consolidated fully in OMV’s financial statements.
Based in Malaysia, SapuraOMV Upstream will have an expected life of field production of around 260 mn boe and strong prospects for growth, said the Austrian oil and gas firm.
Its production entitlement in 2017 was about 4.1 million boe per annum, coming from fields located in Peninsular Malaysia. The upstream company has two natural gas exploration and production blocks located offshore Sarawak.
Last month, Sapura Energy bagged contracts worth RM760m ($184.65m) to provide drilling services across Angola, Africa and Malaysia.
In December 2018, the Malaysian company won a contract worth about RM3bn ($720m) for the $5bn KG-DWN-98/2 project in Krishna Godavari basin offshore India in consortium with Shapoorji Pallonji Group.
Sapura Fabrication, a subsidiary of Sapura Energy, will have a 48.3% share in the consortium, and will earn nearly RM1.47bn ($352.8m) from the contract.
