TotalEnergies Acquires SapuraOMV's Malaysia Gas Assets

On December 10, 2024, TotalEnergies finalized its acquisition of SapuraOMV Upstream, a Malaysian independent gas producer previously co-owned by OMV and Sapura Upstream Assets, with each holding a 50% stake. This strategic acquisition strengthens TotalEnergies’ position in the Asia-Pacific region and underscores its commitment to meeting the growing demand for low-carbon energy.

The acquired assets include two significant interests: a 40% operated stake in Block SK408 and a 30% operated stake in Block SK310, both located offshore Sarawak, Malaysia. These blocks are vital contributors to Malaysia’s natural gas output and play a critical role in supplying feedstock to the Bintulu LNG plant operated by Petronas. The Bintulu facility is a key player in the global LNG market, making this acquisition a notable enhancement to TotalEnergies’ portfolio in the liquefied natural gas sector.

In 2024, SapuraOMV’s operated production is forecasted to reach approximately 590 million cubic feet per day (Mcf/d) of natural gas, supported by the successful start-up of the Jerun gas field in July. Additionally, the assets are expected to produce around 10,000 barrels per day (b/d) of condensates. These volumes significantly bolster Malaysia’s energy landscape while contributing to TotalEnergies' ambition to expand its low-carbon energy footprint.

A notable feature of these assets is their efficiency and sustainability. Production costs are estimated at less than $5 per barrel of oil equivalent (boe), ensuring economic viability even in fluctuating energy markets. Moreover, the assets boast an overall carbon emission intensity of less than 10 kilograms of CO2 equivalent per boe, aligning with TotalEnergies’ strategy to reduce the carbon footprint of its operations and transition towards a sustainable energy future.

This acquisition reflects TotalEnergies' dedication to leveraging advanced technologies and operational efficiencies to optimize production while adhering to stringent environmental standards. By integrating SapuraOMV’s assets, TotalEnergies not only expands its resource base but also reinforces its commitment to supporting the energy transition through investments in cleaner and more sustainable energy solutions. The deal highlights TotalEnergies’ proactive approach to balancing energy demand and environmental responsibility, positioning the company as a key player in shaping the future of global energy.

TotalEnergies has been operating in Malaysia since 1985 and has maintained a strong partnership with the national oil company, Petronas. Following the completion of the acquisition of SapuraOMV Upstream, TotalEnergies now employs approximately 300 people in Malaysia. The company holds operated interests of 40% in Block SK408 and 30% in Block SK310, in addition to a 40% stake in Block SB412. These assets complement TotalEnergies' existing portfolio, which includes a 34.9% interest in both Blocks SB-2K and SB-N, as well as an 85% stake in Block DW2E. Through its affiliate, TotalEnergies Marketing Malaysia, the company also markets petroleum products in the region. In 2023, TotalEnergies signed an agreement with Petronas and Mitsui to develop a CO2 storage project in Southeast Asia, evaluating several potential sites in the Malay Basin.