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>

<< Sep 2018 >>
MTWTFSS
27 28 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

4th Oil and Gas Tanzania 2018 Products & Eqpt. Exhibition in Africa

It is truly remarkable how East Africa, and specifically Tanzania has in a short period of time become the main…

read more >

SPE Asia Pacific Oil & Gas Conference and Exhibition 2018

As the energy industry adapts to a new status quo operating under sustained low oil prices, there continues to be a need for the industry…

read more >

RIO OIL & GAS 2018

The leading oil and gas event in Latin America is organized every two years by the Brazilian Petroleum, Gas and Biofuels Institute (IBP)…

read more >

FPSO World Congress 2018

This year’s FPSO World Congress will tap on this green shoots of recovery and will focus on practical strategies to address key project…

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