Petronas approves SapuraOMV's planned asset sale to Jadestone
KUALA LUMPUR (July 17): Petroliam Nasional Bhd (Petronas) has approved UK-listed Jadestone Energy plc's proposed US$9 million (about RM37.85 million) acquisition of SapuraOMV Upstream Sdn Bhd's Peninsular Malaysia oil and gas assets. The approval will partly facilitate the transaction's completion by end of this month (July 2021).
Jadestone announced in a statement yesterday (July 16) the satisfaction of all conditions required including the receipt of Petronas' approval to complete its proposed acquisition of the assets located off Peninsular Malaysia's east coast.
"Jadestone and SapuraOMV will now proceed to complete the transaction, which will entail Jadestone paying the headline consideration of US$9 million, subject to agreed adjustments. At completion, Jadestone will also receive the economic benefits from the assets accruing from the effective date of Jan 1, 2021.
"Under the terms of the acquisition agreement, completion is scheduled to occur on or about July 30, 2021," Jadeston said.
Sapura Energy Bhd and Austria-based OMV Aktiengesellschaf through SEB Upstream Sdn Bhd own the entire equity interest of SapuraOMV Upstream, according to Sapura Energy's Bursa Malaysia filing.
According to Sapura Energy, SapuraOMV Upstream was formerly known as Sapura Exploration and Production Sdn Bhd.
Sapura Energy said on its website that SapuraOMV Upstream has identified Malaysia as its hub to expand into Asia-Pacific, and SapuraOMV Upstream's combined strengths and expertise will pave the way for SapuraOMV Upstream to become a leading global independent oil and gas company.
Jadestone said in its statement that upon completion of the acquisition of SapuraOMV Upstream's Peninsular Malaysia oil and gas assets, the assets will add immediate cash flow from around 6,000 barrels of oil equivalent per day to Jadestone's portfolio.
Adding the assets to Jadestone portfolio will increase the group's 2P reserves by 34%, according to Jadestone.
In oil and gas terminology, 2P reserves refer to the total amount of proven and probable oil and gas reserves.
Jadestone initially announced the planned acquisition of SapuraOMV Upstream's Peninsular Malaysia oil and gas assets in April 2021.
In a statement dated April 30, 2021, Jadestone said it had executed the sale and purchase agreement with SapuraOMV Upstream to acquire interests in four upstream oil and gas licences, two of which, would be operated by Jadestone.
Under the deal, Jadestone said it would acquire a "70% operated interest" in the PM329 oil and gas production sharing contract (PSC) which involved the East Piatu field and a "60% operated interest" in the PM323 PSC, which contained the East Belumut, West Belumut and Chermingat fields.
"In addition, the assets include a 50% non-operated working interest in the PM318 and AAKBNLP PSCs, which are operated by Petronas Carigali Sdn Bhd," Jadestone said.
Online reports indictated that the AAKBNLP PSC stands for the Abu, Abu Kecil, Bubu, North Lukut and Penara PSC.
At Bursa yesterday (July 16), Sapura Energy's share price settled unchanged at 12 sen, valuing the group at about RM1.92 billion.
Sapura Energy has 15.98 billion issued shares.