Murphy Oil Corporation said that it has entered into a $2.0 billion agreement with Pertamina to sell 30% of its Malaysian oil and gas assets.
Murphy will remain operator and continue to execute its development plans as well as grow through future exploration in both deep-water and shallow-water Malaysia, the company said in a statement.
Roger W. Jenkins, President and Chief Executive Officer, 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.” Jenkins added, “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.”
Press Release, October 1, 2014; Image: Murphy Oil Corp