French oil and gas company TotalEnergies is set to acquire a 50% stake in OMV’s Malaysia-based gas producer and operator SapuraOMV Upstream for a total of $903m.

TotalEnergies has signed an agreement with the Austrian oil and gas company to purchase the stake, and the total consideration includes a $350m loan granted by OMV to SapuraOMV.

The transaction is subject to customary conditions precedent, in particular the receipt of regulatory approvals. Closing is expected by the end of the first half of 2024.

TotalEnergies chairman and CEO Patrick Pouyanné said: “We are pleased to strengthen TotalEnergies’ position in Malaysia by becoming a shareholder of the independent gas producer SapuraOMV.

“Over the past few years, we have developed a strategic international partnership with Petronas, the national company of Malaysia. This transaction will anchor our future growth in the country and reinforce our partnership with Petronas.

“With their low production costs and low GHG intensity, SapuraOMV’s assets will perfectly fit in TotalEnergies’ portfolio and participate in meeting the growing demand for gas in Asia.”

SapuraOMV holds a 40% operated interest in block SK408 and a 30% operated interest in block SK310, both located offshore Sarawak in Malaysia.

Last year, SapuraOMV recorded an operated production of about 500Mcf/d of natural gas, feeding the Bintulu LNG plant operated by Petronas, along with 7kb/d of condensates.

The development of the Jerun gas field on block SK408 is currently underway and is expected to start operations in the second half of the year 2024.

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