Effective from 1 January 2014, the transaction is subject to the approval of Malaysia’s state-owned oil and gas firm Petroliam Nasional Berhad (Petronas) and is expected to be completed in the first quarter of 2015.
Murphy Oil president and chief executive officer Roger Jenkins commented, "This transaction marks the value of the high-margin, long-term assets in our Malaysian business. We are excited to strengthen our partnership with Pertamina and look forward to working with them and our other partners in Malaysia.
"We will continue to evaluate all aspects of our portfolio. This transaction allows us to re-deploy the proceeds through an individual or combination of strategic and financial initiatives such as increased drilling capital in the Eagle Ford Shale, acquisition opportunities, debt reduction and share repurchases."
Murphy Oil holds majority stakes in seven separate production sharing contracts which include Block K, Block H, Block P, SK 309, SK 311 and SK 314A, and three gas holding agreements in PM 311.
The company intends to establish a long-term partnership with Pertamina.
