Austrian energy group OMV has agreed to establish a joint venture with Sapura Energy Bhd, paying $540 million for a 50 percent stake in the Malaysian firm’s exploration assets.
Sapura Energy will transfer $350 million of its debt into the new firm, called SEB Upstream Sdn Bhd (SUP), of which OMV has agreed to refinance half, an OMV spokesman said.
OMV also agreed to pay up to an extra $85 million, dependent on whether an exploration in Mexico is successful and on the future oil price, the spokesman said, adding that there was no time frame for the payment of the sum.
The Austrian group, which is betting on increasing demand for fossil fuels, wants to grow in low-cost countries outside Europe and has declared Southeast Asia a new core market.
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