Sapura, OMV in talks on global partnership

Sapura Energy has entered a heads of agreement with OMV on forming a strategic partnership.

Offshore staff

KUALA LUMPUR, Malaysia – Sapura Energy has entered a heads of agreement with OMV on forming a strategic partnership.

OMV intends to acquire a 50% stake in Sapura subsidiary Sapura Upstream, formerly known asSapura Exploration and Production, for $1.6 billion.

“The partnership with OMV AG complements our continued strategy to grow our portfolio and expand our acreage position,” said Tan Sri Dato’ Seri Shahril Shamsuddin, president and CEO of Sapura Energy.

OMV CEO and Chairman Rainer Seele said the arrangement would help his company develop its activities in Southeast Asia, where oil and gas demand is forecast to intensify between now and 2030.

In upstream, OMV has offshore operations or activity in Romania, the North Sea, Middle East, and Australasia. The company produced 348,000 boe/d last year.

Sapura Upstream recently started production from its SK310 B15 gas field offshore Sarawak, and is currently ramping up development of its SK408 block. It has also secured block 30 in the Sureste basin offshore Mexico.

Last week, the company announced farm-in agreements to three offshore exploration permits held by Perth-based Finder Exploration on the North West Shelf offshore Western Australia. Subject to regulatory approvals, Sapura Upstream will acquire interests in blocks EP 483 & TP/25, WA-412-P, and AC/P 61.

The EP 483 & TP/25 permit is close to infrastructure in shallow water at the southern margins of the Carnarvon basin while WA-412-P is in the north of the basin, close to various large oil and gas fields. Both permits contain drill-ready prospects with upside potential.

AC/P 61, holding numerous prospects and leads, is in the Vulcan sub-basin, with numerous oil and gas discoveries nearby.

On completion of the transaction, Sapura Upstream will acquire a 70% interest in all three exploration permits and assume operatorship, while Finder will retain a 30% interest in each case. The new partners plan to drill two exploration wells in the Carnarvon basin concessions in 2019-2020 and to acquire seismic over AC/P 61 next year to mature potential drilling locations.

09/12/2018

More in Regional Reports