Sapura Energy to divest stake in SapuraOMV to TotalEnergies for RM3.37bil

PETALING JAYA: Sapura Energy Bhd’s wholly-owned subsidiary, Sapura Upstream Assets Sdn Bhd, is divesting its 50% equity interest in SapuraOMV Upstream Sdn Bhd to TotalEnergies Holdings SAS for RM3.37bil.

Under the terms of the agreement, Sapura Energy said in a filing with Bursa Malaysia that the acquisition is subject to regulatory approvals and customary closing adjustments.

“To account for regulatory approvals from certain jurisdictions, the closing is expected no later than the second half of 2025.

“Nevertheless, the management of both Sapura Energy and TotalEnergies are committed to expediting the completion of this transaction by year-end. “

The PN17 company said it had actively pursued the divestment of its stake in SapuraOMV, in line with the restructuring exercise to address its unsustainable debt and outstanding payables.

“Net disposal proceeds will be utilised mainly to settle amounts owing to Sapura Energy’s relevant scheme creditors, including its multi-currency financing lenders.

“The proposed divestment is expected to result in a net gain on disposal of approximately RM793mil upon its completion, enhancing the financial position of the group.”

Commenting on the transaction, Sapura Energy group chief executive officer Datuk Mohd Anuar Taib said he was pleased with the outcome of the divestment, which he believes is fair and equitable.

“With full ownership of SapuraOMV, we are confident that TotalEnergies will provide the right focus to further develop the growth potential of its assets.

“This portfolio rationalisation marks our strategic shift away from the exploration and production business, as we enhance our core capabilities to deliver innovative solutions to the dynamic energy industry.”

Meanwhile, Sapura Energy chairman Datuk Mohammad Azlan Abdullah said the board is fully supportive of the divestment, which when completed, would be a key milestone in the group’s recovery plans “for a long-term sustainable and viable future.”

“This achievement underscores Sapura Energy’s commitment to deliver on our Reset plan.

He also expressed satisfaction with the management’s diligent approach to the divestment exercise, ensuring the selection and negotiation process was conducted with integrity and according to governance protocols.

Shares of Sapura Energy have been voluntarily suspended from trading since 2.30pm last Friday.

Sapura Energy’s remaining core business segments are engineering and construction, drilling and operations and maintenance, with a collective order book of about RM6.6bil.

SapuraOMV’s assets include a 40% operated interest in block SK408 and a 30% operated interest in block SK310, both situated offshore Sarawak, Malaysia.

“The development of the Jerun gas field within block SK408 remains on track for startup in the latter half of 2024.

“SapuraOMV also holds exploration licences across strategic regions, including Malaysia, Australia, New Zealand and Mexico,” said Sapura Energy.

Trading in the company will resume with effect from 9am, tomorrow.

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