Beyond Oil: TotalEnergies Doubles Down On Renewables, Gas

TotalEnergies SE TTE inked a deal with OMV AG OMVKY to acquire its 50% stake in Malaysian independent gas producer and operator SapuraOMV Upstream Sdn (SapuraOMV) for $903 million.

The acquisition price includes the transfer of a $350 million loan granted by OMV to SapuraOMV, subject to customary closing adjustments.

Notably, SapuraOMV's main assets are its 40% operated stake in block SK408 and 30% operated interest in block SK310, both located offshore Sarawak in Malaysia. 

The transaction is expected to close by the end of the first half of 2024, subject to customary conditions.

Patrick Pouyanné, chairman and CEO said, "Over the past few years, we have developed a strategic international partnership with Petronas, the national company of Malaysia. This transaction will anchor our future growth in the country and reinforce our partnership with Petronas. With their low production costs and low GHG intensity, SapuraOMV's assets will perfectly fit in TotalEnergies' portfolio and participate in meeting the growing demand of gas in Asia."

Last week, the company and its partner Corio Generation disclosed winning a 20-year contract from the State of New Jersey to supply 1.34 GW of renewable electricity to the state. 

TTE Price Action: TotalEnergies shares are down 0.98% at $65.36 on the last check Wednesday.

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