The sale included five projects located in shallow and deep water off the coasts of Sarawak and Sabah
Image: Murphy Oil wraps up Malaysian assets transaction with PTTEP. Photo: courtesy of QR9iudjz0/Freeimages.com.
US-based Murphy Oil said that one of its subsidiaries has wrapped up a previously announced $2.035bn (£1.62bn) sale of its Malaysian assets to PTTEP HK Offshore, a subsidiary of PTT Exploration and Production (PTTEP).
As per the deal signed in March 2019, Murphy Oil has offloaded 100% of its two main Malaysian subsidiaries – Murphy Sabah Oil and Murphy Sarawak Oil to the Thai state-owned oil and gas company.
The US oil and gas company, which expects to report a gain of around $1.0bn (£800m) on the sale, will also be paid $100m (£79.78m) in bonus based on certain future exploratory drilling results before October 2020.
Assets involved in the deal between Murphy Oil and PTTEP
Following the closing of the transaction, PTTEP has acquired stakes across five exploration and production projects – the Sabah K project, the SK309 & SK311 project, the Sabah H project, the SK405B project, and the SK314A project.
Currently, the Sabah K project and the SK309 & SK311 project are in the production phase in which PTTEP has now become the operator.
The Sabah H project is in the development stage with a target to produce the first gas in the second half of 2020, while the SK314A and the SK405B projects are in the exploration phase.
All the five projects divested by Murphy Oil are located in shallow and deep water off the coasts of Sarawak and Sabah.
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.”
In April 2019, the US company, through its subsidiary Murphy Exploration & Production Company – USA, agreed to buy certain deep water assets in the Gulf of Mexico from LLOG Exploration Offshore and LLOG Bluewater (LLOG) for $1.375bn (£1.096bn).
The assets to be acquired include seven producing fields and four development projects, which are expected to add around 66 million barrels of oil equivalent net (Mmboe) of proven (1P) reserves and 122 Mmboe of proven and probable (2P) reserves to Murphy Oil’s portfolio.