Austria’s OMV to buy half of Sapura Upstream

Malaysia’s Sapura Energy has entered into a heads of agreement with Austria’s OMV to form a strategic partnership and acquire half of Sapura Upstream for $1.6 billion. 

Source: Sapura Energy

OMV intends to acquire a 50 per cent stake in Sapura Energy’s wholly-owned subsidiary, Sapura Upstream (previously known as Sapura Exploration and Production).

The proposed transaction is based on an enterprise value of $1.6 billion. The parties have agreed to continue ongoing negotiations on an exclusive basis.

Announcing the agreement with OMV on Wednesday, Sapura said that by joining forces, Sapura Energy and OMV will be strategically positioned to create sustainable long-term growth, expand portfolios and future business activities as well as realize synergies in the value chain.

“The partnership with OMV AG complements our continued strategy to grow our portfolio and expand our acreage position. OMV AG’s existing footprint offers new opportunities for our upstream segment and increases market reach for our services segment where OMV operates,” said Tan Sri Dato’ Seri Shahril Shamsuddin, President and Chief Executive Officer, Sapura Energy.

OMV AG is one of Austria’s largest listed industrial companies with group sales of EUR 20 billion and a workforce of more than 20,000 employees. In Upstream, OMV has a base in Romania and Austria and a balanced international portfolio, with the North Sea, the Middle East & Africa and Russia as further core regions. 2017 daily production stood at approximately 348,000 boe/d.

Sapura said that the partnership will sharpen Sapura Energy’s competitive advantage by leveraging on the strength of its portfolio of commercially viable gas fields offshore Sarawak and its acreage in new markets in New Zealand, Gulf of Mexico and most recently, Australia. In addition, OMV will benefit from Sapura Energy’s in-house capabilities, Sapura said.

“We have explored all options including the potential listing of our Upstream business. The invitation to enter into this strategic partnership with a leading oil and gas player serves our goals and aspirations better while providing certainty in timing and valuation,” said Tan Sri Shahril.

Rainer Seele, OMV CEO and Chairman of the Executive Board, said: “The intended partnership with Sapura is a major step to develop OMV’s activities in South East Asia. The oil and gas demand in this region is expected to increase strongly until 2030 and OMV is taking the opportunity to further expand the business and build up the new core region.”

Share this article

Follow Offshore Energy Today

Posted on September 12, 2018 with tags , .

Events>

<< Nov 2018 >>
MTWTFSS
29 30 31 1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30 1 2

OSEA2018 International Conference

The OSEA International Conference is regarded as one of the preferred knowledge exchange platforms in the region and with over 18,000…

read more >

IMCA Annual Seminar

The focus of this year’s seminar is on the industry finding new strategies and ways of working in today’s…

read more >

Mauritanides 2018

Mauritanides (11-13 Dec 2018) is the foremost and largest event for companies seeking to invest in the Mining…

read more >

Jobs>

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply