In a move to expand its gas production, TotalEnergies SE (TTE) has agreed to acquire a 50% stake in SapuraOMV Upstream Sdn, a Malaysian independent gas producer and operator, for $530 million. The deal, which is subject to closing adjustments, is expected to be finalized in the second half of 2024. Post-closure, TotalEnergies will fully own SapuraOMV, which holds a 40% operated stake in block SK408 and a 30% operated interest in block SK310, both located in offshore Sarawak, Malaysia. This acquisition aligns with TotalEnergies’ strategy to grow its gas production and focus on low-cost, low-emission assets.
Notably, this deal follows TotalEnergies’ agreement to acquire a 50% stake in OMV for $903 million in January 2024. In a separate announcement, TotalEnergies disclosed a sale and purchase agreement with Oman LNG to supply 0.8 metric tonnes per year of liquefied natural gas (LNG) for ten years, starting from 2025. TotalEnergies also revealed the Final Investment Decision (FID) for the Marsa LNG project, a joint venture with OQ Alternative Energy (the Oman National Oil Company). The project aims to develop a portfolio of up to 800 MW of renewable energy, including a 300 MWp solar project to supply Marsa LNG.
Patrick Pouyanné, Chairman and CEO of TotalEnergies, emphasized the company’s innovative spirit and commitment to a responsible energy transition. He stated that the Marsa LNG project paves the way for the next generation of very low emission LNG plants, contributing to the long-term role of gas as a transition energy. This deal strengthens the partnership between TotalEnergies and Oman LNG, following their extension agreement signed in November 2023. Investors can gain exposure to TotalEnergies through the First Trust Exchange-Traded Fund IV FT Energy Income Partners Strategy ETF (EIPX) and the Keating Active ETF (KEAT).
