Sapura Energy Berhad (Sapura Energy) and OMV have signed a Share Subscription Agreement and a Shareholders\u2019 Agreement to form a strategic partnership.<\/p>\n
Under the agreements, OMV Exploration and Production GmbH (OMV E&P), a wholly-owned subsidiary of OMV Aktiengesellschaft, will buy a 50 per cent stake of the enlarged issued share capital in a newly formed joint venture company, SEB Upstream Sdn Bhd (SUP), based on an enterprise value of up to U$D1.6 billion comprising an equity value of up to US$1,250 million and debt of US$350 million.<\/p>\n
As part of the transaction, OMV will pay US$540 million for 50 per cent interest in SUP at closing by subscribing to newly issued shares. In addition, the parties agreed to additional consideration of up to US$85 million based on certain occurrences mainly linked to the resource volume in Block 30, Mexico at
the time of taking the final investment decision.<\/p>\n
Both parties have also agreed to refinance the existing inter-company debt of US$350 million.<\/p>\n
This transaction will result in Sapura Energy receiving up to US$975 million from the proceeds from OMV\u2019s subscription payment of US$540 million and additional consideration of up to US$85 million, as well as from the repayment from the refinancing of intercompany debts of US$350 million.<\/p>\n
Sapura Upstream is a major independent oil and gas (O&G) company based in Malaysia with an expected life of field production of approximately 260 million barrels of oil equivalent (mn boe) and strong growth prospects.<\/p>\n
Production and development assets are located in shallow waters offshore Malaysia. Sapura Upstream\u2019s production entitlement in 2017 was approximately 4.1 mn boe per annum, from fields in Peninsular Malaysia.<\/p>\n
Sapura Upstream has two natural gas exploration and production blocks offshore
Sarawak in a well-developed area with existing infrastructure. The significant discoveries in its SK408 fields offshore Malaysia between 2014 to 2017 showcases Sapura Upstream\u2019s strong in-house upstream capabilities.<\/p>\n
The development of the SK408 gas fields are on track and first gas is expected in 2020 with a significant ramp-up in 2023. This would lead to an estimated total plateau production entitlement of approximately 21 mn boe per annum which translates to approximately 60 kboe\/d.<\/p>\n
In addition to its O&G assets in Malaysia, Sapura Upstream also has access to exploration blocks in New Zealand, Australia and Mexico.<\/p>\n
\u201cThe oil and gas demand is expected to increase by 20 per cent until 2030 in Malaysia and OMV is taking the opportunity to capitalise on this growing market.<\/p>\n
The cooperation will allow OMV to enter into a partnership with a highly esteemed regional independent company and will support our Upstream
strategy towards establishing Australasia as a new core region,\u201d said Rainer Seele, CEO and Chairman of the Executive Board, OMV Group.<\/p>\n
Johann Pleininger, OMV Board Member Upstream and Deputy Chairman of the Executive Board said: \u201cThis acquisition will add attractive reserve volumes to our portfolio and significant near-term increase in production. As Asia Pacific is an attractive growing market, Malaysia will represent OMV\u2019s platform for further regional growth.\u201d<\/p>\n
\u201cOMV\u2019s expansion strategy into Asia Pacific bodes well with Sapura Upstream\u2019s long-term growth targets. We believe the partnership will create sustainable growth for the business, realising synergies from both sides to achieve our vision of creating the largest regional independent O&G company,\u201d said Tan Sri Shahril Shamsuddin, President and Group Chief Executive Officer, Sapura Energy.<\/p>\n
As part of the agreement, the management of the partnership will be based in Malaysia and there will be equal representation from both sides for the board of directors.<\/p>\n
According to the agreement, OMV will fully consolidate Sapura Upstream in its financial statements.<\/p>\n
Completion of the transaction is subject to conditions including Sapura Energy\u2019s shareholder approval, Petronas approval and other third-party consents as well as finalization of the transaction documents including ancillary agreements.<\/p>\n
\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"
Sapura Energy Berhad (Sapura Energy) and OMV have signed a Share Subscription Agreement and a Shareholders\u2019 Agreement to form a strategic partnership. Under the agreements, OMV Exploration and Production GmbH (OMV E&P), a wholly-owned subsidiary of OMV Aktiengesellschaft, will buy a 50 per cent stake of the enlarged issued share capital in a newly formed […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[35],"tags":[],"class_list":["post-2277","post","type-post","status-publish","format-standard","hentry","category-corporate"],"_links":{"self":[{"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/posts\/2277","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/comments?post=2277"}],"version-history":[{"count":1,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/posts\/2277\/revisions"}],"predecessor-version":[{"id":6034,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/posts\/2277\/revisions\/6034"}],"wp:attachment":[{"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/media?parent=2277"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/categories?post=2277"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/tags?post=2277"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}