KUALA LUMPUR: Sapura Energy Bhd has entered into a Heads of Agreement with Austria’s OMV Aktiengesellschaft (OMV AG) to form a strategic partnership through the acquisition of a 50 per cent stake in its unit, Sapura Upstream Sdn Bhd, at an enterprise value of US$1.6 billion (RM6.63 billion).
Sapura Upstream is involved in oil and gas (O&G) exploration, it said in a statement yesterday.
“The partnership with OMV AG complements our continued strategy to grow our portfolio and expand 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,” Sapura Energy’s president and chief executive officer Tan Sri Shahril Shamsuddin said.
He said the parties had agreed to continue ongoing negotiations on an exclusive basis.
“By joining forces, both 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,” he added.
OMV AG is one of Austria’s largest listed industrial companies with group sales of 20 billion euros (about RM96.2 billion) and a workforce of more than 20,000 employees.
Upstream, OMV AG has a strong base in Romania and Austria alongside a balanced international portfolio, with the North Sea, the Middle East & Africa and Russia as further core regions. Daily production in 2017 stood at about 348,000 barrels of oil equivalent per day (boe/d).
Meanwhile, the partnership will also 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.
Sapura Energy has been evaluating various options as part of the Group’s broader strategic plan to strengthen its core businesses, boost the financial position and create better value for shareholders.
“We have explored all options, including the potential listing of our upstream business. The invitation to enter into this strategic partnership with a leading O&G player serves our goals and aspirations better, while providing certainty in timing and valuation,” said Shahril. — Bernama