Petrovietnam targets Murphy’s fields in Malaysia

Vietnamese national oil company Petrovietnam is looking to make the country’s largest overseas acquisition.

According to Reuters, Petrovietnam has set its sights on the Malaysian assets owned by the US oil player Murphy Oil.

Quoting sources with knowledge of the matter, Reuters has reported that PetroVietnam has submitted a bid larger than the one offered by a joint venture comprised of two Indian companies ONGC and Oil India.

To remind, Reuters last month informed that ONGC and Oil India had offered $1.5 billion for a 30 pct share in Murphy’s Malaysian assets. According to the news agency, if the PetroVietnam bid is successful, the transaction will be the biggest ever corporate acquisition in Vietnam’s history.

The Vietnamese state-run oil company has a vision to become a leading petroleum group in the region by 2025, according to information found on its website.

Malaysia is Murphy Oil’s main asset base producing more than 40% of the company’s total 2013 net production.

Murphy holds majority interests in seven separate production sharing contracts (PSCs): Block K, Block H, Block P, SK 309, SK 311 and SK 314A, and three gas holding agreements in PM 311.

In 2013, Murphy’s Malaysia net production was about 86,000 boepd, and the company booked total proved reserves 125 MMBO and 406 BCF.

Among other suitors interested for the Murphy-owned Malaysian assets, Reuters, citing unnamed sources, lined up Japan’s Mitsubishi, Mitsui and Kuwait Petroleum Corporation.