SapuraOMV to sell stakes in Peninsular Malaysia producing assets for US$9mil

KUALA LUMPUR: SapuraOMV Upstream (Malaysia) Inc, has agreed to sell its entire interests under SapuraOMV Upstream (PM) Inc in various producing assets located offshore Peninsular Malaysia to Singapore-based Jadestone Energy PLC for US$9 million (US$1=RM4.09).

In a statement today, SapuraOMV said the effective date of the transaction was Jan 1, 2021 involving producing assets comprising of PM323, PM329, PM318, and AAKBNLP Production Sharing Contracts (PM assets).

Apart from the US$9 million agreed purchase price, there were also contingent payments of up to US$6 million dependent on certain oil price criteria being met, it added.

SapuraOMV Upstream, headquartered in Kuala Lumpur, is a strategic partnership between Sapura Energy Bhd and OMV Exploration & Production GmbH, a subsidiary of Austria’s OMV Aktiengesellschaft.

SapuraOMV chairman Tan Sri Shahril Shamsuddin said the company placed the assets in the good and capable hands of Jadestone, which specialises in optimising mature oil fields.

As the company embraced the energy transition, the divestment would consolidate SapuraOMV’s position to focus on its discovered resources off the coast of Sarawak and exploration opportunities in Western Australia, he added.

"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,” said Shahril.

SapuraOMV’s average year-to-date net entitlement production of the PM Assets is around 6,000 barrels oil equivalent per day.

The closing of the transaction will be subjected to regulatory approval from Petroliam Nasional Bhd (Petronas) and preemption rights by the joint-venture partner in the PM Assets such as Petronas Carigali Sdn Bhd.

SapuraOMV is currently producing 37,000 barrels oil equivalent per day from its Malaysia operations. - Bernama