OMV Forms JV with Sapura

Friday, November 9, 2018
(Photo: Sapura Energy)

Austria's OMV has agreed to establish a joint venture with Malaysia's Sapura Energy Bhd , paying $540 million for a 50 percent stake in its exploration assets in line with its strategy to expand in Southeast Asia.

Sapura Energy will transfer $350 million of its debt into the new firm, called SEB Upstream Sdn Bhd (SUP), of which OMV has agreed to refinance half, an OMV spokesman said.

OMV also agreed to pay up to an extra $85 million, dependent on whether exploration in Mexico is successful and on oil prices, the OMV spokesman said, adding that there was no time frame for the payment.

OMV shares were down 4.4 percent at 48.04 euros 1159 GMT following the news.

Sapura has a very good portfolio of oil and gas fields and will see production rise six-fold in the next six years, OMV exploration chief Johann Pleininger told journalists a few weeks ago.

OMV, which is betting on increasing demand for fossil fuels, wants to expand in low-cost countries outside Europe and has declared Southeast Asia a new core market.

The Austrian group has set aside 10 billion euros for acquisitions by 2025, of which it has now used around 2.5 billion.

Earlier this year, it expanded its operations in New Zealand and the United Arab Emirates to balance geopolitical risks it faces in countries such as Russia, Libya and Yemen.

OMV plans to produce 100,000 barrels of oil equivalent (boe) - or the amount of energy equivalent to that found in a barrel of crude oil - per day in Southeast Asia by 2023, according to Pleininger.

That would be comparable to OMV's current production in Russia and 40 percent more than in Norway.

OMV produced 406,000 boe per day in the third quarter 2018 and plans to increase that to 500,000 boe/d from 2019.

Malaysia's largest oil and gas services company has posted losses for four consecutive quarters, but its upstream business has been profitable.

SEB Upstream will be jointly managed by the Austrian and the Malaysian firms, Sapura said in a statement.


($1 = 0.8550 euros)

(Reporting by Alexandra Schwarz-Goerlich, writing by Kirsti Knolle; editing by Kirsten Donovan and Jason Neely)

Categories: Asia Finance Offshore Energy Industry News

Related Stories

PV Drilling Takes Ownership of Noble Corporation’s Stacked Jack-Up Rig

PV Drilling Takes Ownership of Noble Corporation’s Stacked Jack-Up Rig

Aquaterra Energy Nets Subsea Analysis Contracts with INPEX off Indonesia

Aquaterra Energy Nets Subsea Analysis Contracts with INPEX off Indonesia

Saipem Bags $1.5B Contract for Türkiye Largest Offshore Gas Field

Saipem Bags $1.5B Contract for Türkiye Largest Offshore Gas Field

TotalEnergies Inks 10-Year LNG Supply Deal with South Korea’s KOGAS

TotalEnergies Inks 10-Year LNG Supply Deal with South Korea’s KOGAS

Japan Picks Wood Mackenzie to Assess Trump-Backed Alaska LNG Scheme

Technip Energies Gets FEED Job for Inpex’ Abadi LNG Project in Indonesia

CIP, Petrovietnam Team Up for Offshore Wind Project in Vietnam

PXGEO Nets First Seismic Survey off Malaysia

MODEC and Terra Drone Renew FPSO Drone Inspection Partnership

Fugro Lands Deepwater Gas Field Job in Southeast Asia

Current News

Hibiscus Petroleum Starts Drilling at Teal West Field off UK

Yinson Production Nets DNV Approval for New FPSO Hull Design

Hanwha Ocean's Tidal Action Drillship Starts Maiden Job with Petrobras

Petronas to Leverage AI to Expedite Oil and Gas Exploration Activities

Brownfield Output Decline Accelerates, says IEA

PV Drilling Takes Ownership of Noble Corporation’s Stacked Jack-Up Rig

Hanwha Ocean Enlists ABB for Singapore’s First Floating LNG Terminal

Aquaterra Energy Nets Subsea Analysis Contracts with INPEX off Indonesia

POSH Set to Tow Nguya FLNG from China to Eni’s Congo Field

Chinese Contractor Secures Offshore Oil and Gas ‘Mega Deal’ from QatarEnergy

photo

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com