How much is SapuraOMV selling its Malaysian producing assets for?

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SapuraOMV Agrees to Sell Malaysian Producing Assets for US$9 Million

SapuraOMV Upstream (Malaysia) Inc. has agreed to divest its complete interests in producing assets offshore Peninsular Malaysia to Jadestone Energy PLC for an initial sum of US$9 million (approximately RM36 million). This transaction also includes potential contingent payments of up to US$6 million, contingent upon the fulfilment of specific oil price criteria. The sale encompasses producing assets managed under SapuraOMV Upstream (PM) Inc., specifically those associated with the PM323, PM329, PM318, and AAKBNLP Production Sharing Contracts.
Transaction Details and Assets Involved

The agreement stipulates an effective date of January 1, 2021, for the transaction. The divested assets are specifically identified as the PM assets, which are part of the PM323, PM329, PM318, and AAKBNLP Production Sharing Contracts. These are established producing fields located offshore Peninsular Malaysia.
Financial Terms of the Sale

The base sale price agreed upon is US$9 million. In addition to this fixed amount, the deal includes provisions for contingent payments. These additional payments could amount to a maximum of US$6 million and are directly linked to whether certain oil price benchmarks are achieved.
Production Levels of the Divested Assets

Prior to the sale, SapuraOMV's average net entitlement production from these Malaysian assets, calculated year-to-date, stood at approximately 6,000 barrels of oil equivalent per day. This figure provides an indication of the operational scale of the assets being transferred.
Strategic Rationale for the Divestment

The divestment aligns with SapuraOMV's strategic direction to concentrate on its discovered resources off the coast of Sarawak and to pursue exploration opportunities in Western Australia. By divesting these mature producing assets, the company aims to solidify its position and reallocate resources towards its growth strategy, which includes developing major gas projects in Malaysia and expanding its resource base.

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How much is SapuraOMV selling its Malaysian producing assets for?

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