Murphy to exit Malaysia to focus on Western Hemisphere assets
A subsidiary of PTT Exploration & Production PCL (PTTEP) will pay $2.127 billion to a subsidiary of Murphy Oil Corp. for Murphy’s two primary Malaysian subsidiaries, Murphy Sabah Oil Co. Ltd. and Murphy Sarawak Oil Co. Ltd. A bonus payment of up to $100 million is contingent upon certain future exploratory drilling results prior to October 2020.
Yearend 2018 proved reserves (1P) net to Murphy were 816 million boe of which 129 million boe were attributable to Malaysia. Of the 129 million boe of proved reserves, 70 million boe are characterized as proved undeveloped. The proved reserves are comprised of 468 bcf of natural gas and 51 million bbl of liquids. Total production net to Murphy in 2018 for the properties to be divested was over 48,000 boe/d, comprised of 62% liquids.
The deal allows Murphy to simplify its business and focus on its core assets in the Western Hemisphere—especially the Eagle Ford shale and the Gulf of Mexico, said Roger W. Jenkins, Murphy president and chief executive officer.
Sale of the Malaysian assets is expected to close by the end of this year’s second quarter, subject to customary conditions and necessary regulatory approvals.