Double Play in Asia: TotalEnergies Expands Gas Portfolio in Malaysia and Oman

On Monday, TotalEnergies SE TTE inked an agreement to buy a 50% stake in Malaysian independent gas producer and operator SapuraOMV Upstream Sdn for $530 million, subject to closing adjustments.

SapuraOMV’s primary assets are its 40% operated stake in block SK408 and 30% operated interest in block SK310, located in offshore Sarawak in Malaysia. 

The deal is expected to close in the second half of 2024, and post-closure, TotalEnergies will fully own SapuraOMV.

Patrick Pouyanné, Chairman and CEO of TotalEnergies, said, “Following the transaction with OMV announced two months ago and this new transaction with Sapura Upstream Assets, TotalEnergies will have full ownership of SapuraOMV and become a significant gas operator in Malaysia.”

“The SapuraOMV assets are fully in line with our strategy to grow our gas production to meet demand growth, focusing our portfolio on low-cost and low-emission assets.”

Notably, the deal follows the oil giant’s agreement to acquire its 50% stake in OMV for $903 million in January 2024.

In a separate release yesterday, TotalEnergies disclosed that it inked a sale and purchase agreement with Oman LNG to supply 0.8 metric tonnes per year of liquefied natural gas (LNG) for ten years from 2025.

In the first quarter of 2024, TotalEnergies’ production in Oman was 61 kboe/d, and the company owns a 5.54% stake in Oman LNG.

Patrick Pouyanné and Mr. Mulham Basheer Al Jarf, Chairman of OQ Alternative Energy (the Oman National Oil Company) also disclosed the Final Investment Decision (FID) for the Marsa LNG project.

TotalEnergies (49%) and OQ Alternative Energy (51%) said that they are at an advanced stage of discussions to jointly develop a portfolio of up to 800 MW, which includes the 300 MWp solar project to supply Marsa LNG.

Pouyanné commented, “This very innovative project illustrates our pioneer spirit and showcases the relevance of our integrated multi-energy strategy, with the ambition of being a responsible player in the energy transition. By paving the way for the next generation of very low emission LNG plants, Marsa LNG is contributing to making gas a long-term transition energy.”

This deal finalizes the partnership extension agreement between TotalEnergies and Oman LNG, signed in November 2023.

Also Read: Sun Power For Businesses: TotalEnergies Discloses Massive Solar Deals Globally

Investors can gain exposure to the stock via First Trust Exchange-Traded Fund IV FT Energy Income Partners Strategy ETF EIPX and Keating Active ETF KEAT.

Price Action: TTE shares are up 0.45% at $72.92 premarket on the last check Tuesday.