Sapura Energy forms strategic partnership with OMV AG
Published by Lydia Woellwarth,
Sapura Energy Berhad has 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 US$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.
“The partnership with OMV AG complements our continued strategy to grow our portfolio and expand our 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,” said Tan Sri Dato’ Seri Shahril Shamsuddin, President and Chief Executive Officer, Sapura Energy.
OMV AG is one of Austria’s largest listed industrial companies with group sales of €20 billion and a workforce of more than 20 000 employees. In Upstream, OMV AG has a strong base in Romania and Austria and 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 boe/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.
Sapura Energy has been evaluating various options as part of the Group’s broader strategic plan to strengthen its core businesses, boost its financial position and create better value for its 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 oil and gas player serves our goals and aspirations better while providing certainty in timing and valuation,” said Tan Sri Shahril.
Read the article online at: https://www.worldpipelines.com/business-news/13092018/sapura-energy-forms-strategic-partnership-with-omv-ag/
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