Murphy Oil Divests its Share Capital for US$2.127 Billion

Murphy Oil Corp will be existing from its two primary Malaysian subsidiaries - Murphy Sabah Oil Co. Ltd and Murphy Sarawak Oil Co. Ltd to PTT Exploration and Production Public Co. Ltd (PTTEP) for US$2.127 billion all-cash transactions.

The transaction has an effective economic valuation date of January 1, 2019, with the closing expected to take place by the end of the second quarter of 2019. Reports say that the closing of the transaction is subject to customary conditions precedent including necessary regulatory approvals.

Murphy Oil in an official statement said the year-end 2018 proved reserves (1P) net to the company were 816 million barrels of oil equivalent (Mmboe) of which 16 per cent or 129 Mmboe were attributable to Malaysia. "Of the 129 Mmboe of proved reserves, 70 Mmboe are characterized as proved undeveloped. The proved reserves are comprised of 468 billion cubic feet of natural gas and 51 million barrels (Mmbbl) of liquids." It further stated that the total production net to Murphy in 2018 for the properties to be divested was over 48,000 barrel of oil equivalent per day, comprised of 62 per cent liquids.

The company will be allocating the proceeds from the transaction to advance its strategic priorities, including returning cash to shareholders through share repurchases and strengthening the company's balance sheet by reducing debt.