Malaysian oil and gas services company Sapura Energy has entered into an agreement with Austrian energy company OMV to sell a 50% stake in its upstream business.
The proposed deal is based on an enterprise value of $1.6bn and the two companies have agreed to continue negotiations on an excusive basis.
“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,” Tan Sri Shahril Shamsuddin, CEO of Sapura Energy, said.
“The intended partnership with Sapura is a major step to develop OMV’s activities in South East Asia. The oil and gas demand in this region is expected to increase strongly until 2030 and OMV is taking the opportunity to further expand the business and build up the new core region”, said Rainer Seele, CEO and chairman of OMV.
