(Reuters) - Malaysia's Sapura Energy will sell its entire 50% stake in oil and gas upstream company SapuraOMV to French energy group TotalEnergies (LON:TTEF) for $705.3 million, the company said on Monday.
The deal, which includes a cash payment of $530.3 million and the release of a $175 million obligation related to a financing facility, will make TotalEnergies the sole owner of SapuraOMV, after Austrian oil and gas company OMV sold its 50% stake in February.
"The SapuraOMV assets are fully in line with our strategy to grow our gas production to meet demand growth, focusing our portfolio on low-cost and low-emission assets," TotalEnergies said in a statement.
SapuraOMV holds a 40% and 30% operating interest in blocks SK408 and SK310 respectively, both located offshore Sarawak in Malaysia, and also has exploration interests in Mexico, Australia and New Zealand.
The portfolio rationalization marks Sapura Energy's strategic shift away from the exploration and production business, its Group CEO Mohd Anuar Taib said in a statement.
Sapura will use the proceeds from the divestment to repay outstanding liabilities, including some immediate obligations, it said. UK