Murphy Oil calls it quits in Malaysia
US petroleum and natural gas exploration company Murphy Oil Corp is exiting Malaysia with a $2.13 billion sale of its oil and gas assets there to Thailand’s PTT Exploration and Production (PTTEP) and said it will use the proceeds to pay off debt, buy back shares and fund potential deals in the US.
PTTEP, a unit of Thailand’s state-owned oil and gas company PTT, will additionally pay Murphy Oil up to $100 million as a bonus if certain exploration projects show results before October 2020, the companies said on March 21.
The transaction has an effective economic valuation date of January 1, 2019, with the closing expected for the end of the second quarter 2019. It is the biggest oil and gas deal in Southeast Asia for over five years and indicates that there is consolidation underway among maturing portfolios.
Murphy had proven reserves of 816 million barrels of oil equivalent (boe) in 2018, of which 129 million boe were from Malaysia. Those assets produced over 48,000 boe per day for Murphy last year.
Murphy, which also has operations in Canada, Brazil and other regions, said it will focus on the Western Hemisphere – mostly on the Eagle Ford basin in Texas and the US Gulf of Mexico – for future exploration and production deals.
“After 20 years of successful operations in Malaysia, I am pleased to announce this all-cash transaction benefiting our shareholders by fully monetising our proved and probable reserves,” said Murphy Oil’s president and CEO Roger W. Jenkins.
“The tactical repositioning of Murphy Oil allows us to simplify our business and focus on our core assets in the Western Hemisphere.,” he added.
US petroleum and natural gas exploration company Murphy Oil Corp is exiting Malaysia with a $2.13 billion sale of its oil and gas assets there to Thailand’s PTT Exploration and Production (PTTEP) and said it will use the proceeds to pay off debt, buy back shares and fund potential deals in the US. PTTEP, a unit of Thailand's state-owned oil and gas company PTT, will additionally pay Murphy Oil up to $100 million as a bonus if certain exploration projects show results before October 2020, the companies said on March 21. The transaction has an effective economic valuation date of...
US petroleum and natural gas exploration company Murphy Oil Corp is exiting Malaysia with a $2.13 billion sale of its oil and gas assets there to Thailand’s PTT Exploration and Production (PTTEP) and said it will use the proceeds to pay off debt, buy back shares and fund potential deals in the US.
PTTEP, a unit of Thailand’s state-owned oil and gas company PTT, will additionally pay Murphy Oil up to $100 million as a bonus if certain exploration projects show results before October 2020, the companies said on March 21.
The transaction has an effective economic valuation date of January 1, 2019, with the closing expected for the end of the second quarter 2019. It is the biggest oil and gas deal in Southeast Asia for over five years and indicates that there is consolidation underway among maturing portfolios.
Murphy had proven reserves of 816 million barrels of oil equivalent (boe) in 2018, of which 129 million boe were from Malaysia. Those assets produced over 48,000 boe per day for Murphy last year.
Murphy, which also has operations in Canada, Brazil and other regions, said it will focus on the Western Hemisphere – mostly on the Eagle Ford basin in Texas and the US Gulf of Mexico – for future exploration and production deals.
“After 20 years of successful operations in Malaysia, I am pleased to announce this all-cash transaction benefiting our shareholders by fully monetising our proved and probable reserves,” said Murphy Oil’s president and CEO Roger W. Jenkins.
“The tactical repositioning of Murphy Oil allows us to simplify our business and focus on our core assets in the Western Hemisphere.,” he added.
