Sapura Energy proposes financial assistance up to RM2.3b

Sapura Energy Bhd intends to obtain financing facilities from local and/or foreign financial institution(s) and/or OMV Exploration & Production GMBH, or another entity within the OMV AG group, for an aggregate amount of up to US$550 million (RM2.29 billion), but not less than US$350 million.

In an exchange filing yesterday, Sapura Energy said the group may also be required to provide corporate guarantees, undertakings and/or securities for 50% of the financing facilities to be obtained by the SEB Upstream Sdn Bhd, a joint-venture company incorporated to hold the entire stake in Sapura Upstream Sdn Bhd.

SEB Upstream will use the proceeds from the financing facilities of US$350 million to partially repay the amount owed by Sapura Upstream to Sapura Energy Group (excluding management fees for the three-month period prior to the closing and amounts relating to the provision of oil and gas services provided by Sapura Energy) amounting to US$890 million as set out in the subscription agreement; and the remaining, if any, for the working capital of SEB Upstream.

The proposed financial assistance is to be undertaken after the completion of the proposed strategic partnership between Sapura Energy and OMV through SEB Upstream which is expected to be completed by the first quarter of 2019. — TMR