Sapura Energy Berhad (Sapura Energy) recently announced that it has entered into a Heads of Agreement with Austria’s OMV Aktiengesellschaft (OMV AG) to form a strategic partnership. OMV AG intends to acquire a 50% stake in Sapura Energy’s wholly-owned subsidiary, Sapura Upstream Sdn Bhd (Sapura Upstream, previously known as Sapura Exploration and Production Sdn Bhd). The proposed transaction is based on an enterprise value of USD 1.6 billion. The parties have agreed to continue ongoing negotiations on an exclusive basis.
By joining forces, Sapura Energy and OMV AG will be strategically positioned to create sustainable long-term growth, expand portfolios and future business activities as well as realise synergies in the value chain.
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 AG has a strong base in Romania and Austria as well as 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 BEO/D.
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 AG will benefit from Sapura Energy’s in-house capabilities.
