Petronas Says Murphy Selling Local Assets

Source Press
Company PetronasMurphy Oil Corporation 
Tags Deal Rumours, Upstream Activities
Date August 22, 2014

(New Straits Times Online) Petroliam Nasional Bhd (Petronas) has confirmed that United States-based Murphy Oil Corp is planning to sell its hydrocarbon assets in Malaysia.

Stressing that the process is in progress, Petronas has remained tight-lipped over the proposed plan to prevent speculation that may jeopardise the deal.

“On Murphy Oil’s Malaysian asset farm-out, it is still in progress and in such a process, there is a lot of confidentiality. It is a Murphy process and it is best to leave to them to complete the process.

“There may be speculation that would not help Murphy’s process,” said Petronas executive vice-president and chief executive officer for upstream Datuk Wee Yiaw Hin.

He said this in response to Business Times’ query of whether the proposed sale is subject to Murphy Oil’s decision or Petronas’.

Two weeks ago, a news wire reported that Petrovietnam had bid for a stake in Murphy Oil’s Malaysian oil and gas assets, challenging other suitors, including Mitsubishi Corp and Indian state oil companies.

According to earlier reports, the Arkansasbased Murphy Oil is seeking buyers for a 30 per cent interest in its Malaysian assets.

In February, another news wire report said Murphy Oil is considering selling some of its Asian oil and gas assets in deal that could fetch up to US$3 billion (RM9.5 billion) as it looks to scale down its operations in the region.

The company’s planned sale comes after Newfield Exploration Co and Hess Corp sold their Southeast Asian operations, partly to address share price underperformance. 

Murphy Oil has interests in oil and gas 
fields in Malaysia, Vietnam, Indonesia, Brunei and Australia. Malaysia is the biggest of Mur-
phy’s Asian portfolios, and accounted for more than 45 per cent of its total 2012 net production.

As on December 31 2012, the company has majority interests in six separate production contracts in Malaysia covering about 2.79 million gross acres and held interests in four exploration licences in Indonesia over a total of 3.381 million gross acres.

According to its website, the company started operating in Malaysia in 1999 and today, it produces more than 40 per cent of its total 2013 net production here.

Murphy Oil holds majority interests in seven separate production sharing contracts, namely Block K, Block H, Block P, SK 309, SK 311 and SK 314A; and three gas holding agreements in Block PM311.

In 2013, its Malaysia net production was about 86,000 barrels of oil equivalent per day, and the company booked total proved reserves of 125 million barrels of oil and 406 billion cubic feet of gas

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