Murphy Oil closes Malaysian $2 billion assets sale to PTTEP

Murphy Oil Corporation has completed the sale of its two Malaysian units, Murphy Sabah Oil and Murphy Sarawak Oil, to PTTEP.

The transaction was previously announced on March 21, 2019, with an effective economic valuation date of January 1, 2019.

Murphy said that PTTEP would pay the company a $2.035 billion consideration in cash, and expects to report a gain on the sale of approximately $1.0 billion. As a result, Murphy exited the country of Malaysia.

According to the announcement from March, Murphy could also receive up to $100 million, contingent upon certain future exploratory drilling results before October 2020.

The year-end 2018 proved reserves (1P) net to Murphy were 816 million barrels of oil equivalent (Mmboe), of which 16 percent or 129 Mmboe were attributable to Malaysia. Of the 129 Mmboe of proved reserves, 70 Mmboe are characterized as undeveloped.

The proved reserves are comprised of 468 billion cubic feet (Bcf) of natural gas and 51 million barrels (Mmbbl) of liquids, the company said in a statement.

Total production net to Murphy in 2018 for the properties to be divested was over 48,000 barrel of oil equivalent per day (Boepd), comprised of 62 percent liquids.