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US-based exploration and production company Murphy Oil is reportedly holding talks with regards to the sale of its oil and gas assets in Malaysia.

Reuters quoted people familiar with the matter as saying that the move is expected to earn between $2bn and $3bn.

Murphy Oil is said to have approached banks for the potential sale, which will involve a majority of its interests in eight separate offshore production sharing contracts in the country.

An unnamed source said that the company could agree on a deal in two weeks. The sale proceeds are expected to fund its global expansion plans.

“The potential exit seems like a strategic decision based on where Murphy sees greater growth potential.”

As suggested by others familiar with the matter, Spain-based Repsol or other major global companies are potential buyers of Murphy’s assets.

The possible sale comes as M&A activities are increasing in the Malaysian oil and gas sector.

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By GlobalData

In response to a query from Reuters, the company said that it produced nearly 46,700 barrels of oil equivalent a day in Malaysia in the quarter ended 30 September.

Murphy Oil also has production sharing agreements in Brunei and assets in Vietnam.

In September 2014, the company announced the sale of a 30% interest in its assets in Malaysia to Indonesia’s Pertain in a $2bn deal.

A banker familiar with Murphy’s business was quoted by Reuters as saying: “The potential exit seems like a strategic decision based on where Murphy sees greater growth potential. These are high-quality assets and of a good size for companies looking for a strong footprint in the region.”