Jan 31 Reuters Austrian oil and gas company OMV has agreed to sell its 50 stake in the Malaysianheadquartered SapuraOMV to French energy group TotalEnergies for 903 million, OMV and TotalEnergies said in statements on Wednesday.

The payment includes the transfer of a 350 million loan granted by OMV to SapuraOMV, the companies added.

The transaction is expected to close towards the end of the second quarter of 2024.

Formed in 2019, SapuraOMV is a 5050 joint venture between Malaysia39;s Sapura Energy Berhad and OMV. It holds a 40 and 30 operating interest in blocks SK408 and SK310 respectively, which are both located offshore Sarawak in Malaysia.

It also has exploration interests in Mexico, Australia, and New Zealand.

On block SK408, the development of the Jerun gas field is on track for startup in the second half of 2024, according to the statement from TotalEnergies.

TotalEnergies also added that SapuraOMV39;s operated production for last year was at about 500 million cubic feet per day of natural gas and 7,000 barrels per day of condensates, and fed into the Bintulu liquefied natural gas plant operated by Malaysian state energy firm Petronas.

Reporting by Tristan Veyet in Gdansk and Emily Chow in Singapore; Editing by Rachel More and Emelia SitholeMatarise

Source Reuters