KUALA LUMPUR (April 30): SapuraOMV Upstream (Malaysia) Inc is disposing of its entire interests in several producing assets offshore Peninsular Malaysia to Jadestone Energy plc for US$9 million (RM36.95 million), subject to closing adjustments.
SapuraOMV is a strategic partnership between Sapura Energy Bhd and OMV Exploration & Production GmbH, a subsidiary of Austria’s OMV Aktiengesellschaft.
In a statement, SapuraOMV chairman Tan Sri Shahril Shamsuddin said the divestment will allow the company to consolidate its position to focus on discovered resources off the coast of Sarawak, as well as exploration opportunities in Western Australia.
The consideration also comes with contingent payments of up to US$6 million dependent on certain oil price criteria being met, according to the statement.
It said the producing assets to be sold consist of PM323, PM329, PM318 and AAKBNLP Production Sharing Contracts (PM assets), adding that its average year-to-date net entitlement production of the PM assets is around 6,000 barrels oil equivalent per day.
In total, SapuraOMV is currently producing 37,000 barrels oil equivalent per day from its Malaysian operations.
The effective date of the transaction is Jan 1, 2021. SapuraOMV said the closing of the transaction is subject to regulatory approval from Petroliam Nasional Bhd and pre-emption rights by Petronas Carigali Sdn Bhd, which is the joint venture in the PM assets.
“This is in line with our growth strategy in becoming one of the leading independent operators in this region with Malaysia remaining our core region as we undertake several major gas development projects and continue to increase our resource base,” he said.
At 12.30pm, Sapura Energy rose 0.5 sen or 3.7% to 14 sen, giving a market capitalisation of RM2.24 billion.
