Austrian oil and gas company OMV has signed the final agreements to own 50 per cent of the EPC production unit of Malaysia’s Sapura Energy.

OMV, in which Abu Dhabi’s sovereign investment vehicle Mubadala owns 24.9 per cent shares, and Sapura inked a joint venture (JV) agreement for the strategic partnership on 9 November, as a follow-up to the Heads of Agreement (HoA) signed between the two parties on 12 September.

OMV has said it would use part of the proceeds of the deal to repay its debt.

The deal entails OMV subscribing to 50 per cent of the enlarged issued share capital of Sapura Upstream for $540m, and to repay $350m worth of loans owed by Sapura Upstream to Sapura Energy.

OMV also agreed for an additional consideration worth $55m, plus up to another $30m in contingency funds.

In total, Sapura Energy would receive minimum cash proceeds of between $920m and $975m, with a gain of disposal of approximately $649m, said the company.

Under the agreement, OMV will fully consolidate the JV company’s assets in its financial statements, which comprises 260 million barrels of oil equivalent in proven and probable (2P) and contingent (2C) reserves, which will no longer appear on Sapura Energy's books.