SapuraOMV Upstream (Malaysia) Inc (“SapuraOMV”), has agreed to sell its entire interests, under SOMV Upstream (PM) Inc. in various producing assets, located offshore Peninsular Malaysia to Jadestone Energy PLC, a Singapore-based, London-listed, an independent oil and gas company. These producing assets are PM323, PM329, PM318 and AAKBNLP Production Sharing Contracts (the “PM Assets”). The agreed purchase price is USD 9 million, subject to closing adjustments. There are also contingent payments of up to USD 6 million dependent on certain oil price criteria being met. The effective date of the transaction is January 1, 2021. SapuraOMV’s average year-to-date net entitlement production of the PM Assets is around 6 thousand barrels oil equivalent per day.
The closing of the transaction is subject to regulatory approval from PETRONAS and preemption rights by the Joint Venture partner in the PM Assets i.e. PETRONAS Carigali Sdn. Bhd.
SapuraOMV’s Chairman, Tan Sri Shahril Shamsuddin said, “We are placing these assets in the good and capable hands of Jadestone, who specialises in optimising mature oil fields. As we embrace the energy transition, this divestment will consolidate SapuraOMV’s position to focus our discovered resources in off the coast of Sarawak and exploration opportunities in Western Australia. This is in line with our growth strategy in becoming one of the leading independent operators in this region with Malaysia remaining our core region as we undertake several major gas development projects and continue to increase our resource base.”
SapuraOMV is currently producing at 37 thousand barrels oil equivalent per day from its Malaysia operations.