U.S. oil company Murphy Oil Corp said it would sell 30 percent of its oil and gas assets in Malaysia for $2 billion in cash to Indonesian state-oil company Pertamina as it cuts overseas holdings to focus on an improving home market. The transaction is subject to the approval of Malaysia’s state-owned oil and gas company, Petronas, Murphy Oil said in a statement.
“This transaction allows us to re-deploy the proceeds through … initiatives such as increased drilling capital in the Eagle Ford Shale, acquisition opportunities, debt reduction and share repurchases,” Chief Executive Roger Jenkins said in a statement. Reuters reported earlier this year that Arkansas-based Murphy Oil, which has interests in Malaysia, Vietnam, Indonesia, Brunei and Australia, was seeking buyers for its Malaysian assets.
Several companies, including Vietnam’s state-owned Petrovietnam, Mitsubishi Corp and Indian state oil companies, had bid for Murphy’s Malaysian assets, Reuters reported earlier this year, citing sources. Tudor, Pickering, Holt & Co advised Murphy on the deal. Gibson, Dunn & Crutcher LLP acted as its legal counsel.
Murphy Oil shares were up nearly 2.1 percent at $58.21 on the New York Stock Exchange on Tuesday. Up to Monday’s close, the stock fell more than 12 percent this year.