Murphy Oil has completed the previously announced divestment of its deepwater oil and gas assets in Malaysia to a subsidiary of PTT Exploration and Production Public Company (PTTEP) in a $2.035bn deal.
Announced in March, the acquisition will include the sale of Murphy Oil’s fully issued share capital of its two primary Malaysian subsidiaries, Murphy Sabah Oil and Murphy Sarawak Oil.
The deal is expected to add PTTEP’s sales volumes and operating cash flow once it concludes.
After closing adjustments, Murphy Oil expects to report a $1bn gain from its plan to exit Malaysia and does not anticipate tax liabilities with regard to the transaction.
Murphy Oil president and CEO Roger Jenkins said: “We would like to congratulate PTTEP on the purchase of their new asset. As our talented and committed Malaysia team transitions to their new owner, I am confident they will diligently work to ensure continued success in the country.
“Also, I would like to thank our long-term partners Petronas, Petronas Carigali and Pertamina. They too have diligently worked to ensure our long-term success in the region.”
The proceeds will be used by Murphy Oil to reduce debt, buy back shares and fund potential deals in the US.
At the time of agreement signing, the company said it plans to continue its current oil-weighted strategy in both the Eagle Ford Shale and the Gulf of Mexico while maintaining its focussed exploration plan.
Simultaneously, the company completed $300m in share repurchases as of the end of the second quarter, which is part of a previously authorised $500m programme.
Based in the US, Murphy Oil is an independent oil and natural gas exploration and production company.
