Thai PTTEP completes $2.1B purchase of Murphy’s Malaysian assets

Thai oil and gas firm PTTEP has completed the previously agreed $2.1 billion acquisition of Murphy Oil’s Malaysian offshore oil fields.

As announced in March, U.S.-based Murphy Oil agreed to sell all of its Malaysian assets to PTTEP for $2.127 billion, plus $100 million which are subject to certain future exploratory drilling results prior to October 2020.

PTTEP has previously said that the acquisition includes five petroleum exploration and production projects – the Sabah K project, the SK309 & SK311 project, the Sabah H project, the SK314A project, and the SK405B project.

The sale marks Murphy’s exit from Malaysia after 20 years of operations there.

PTTEP said on Wednesday all the conditions with regards to the Murphy sale and purchase deal had been met.

“As a result, starting from the completion date, the incremental petroleum sales volume to PTTEP is approximately 48,000 barrels of oil equivalent per day (BOED) and ramping up to 60,000-70,000 BOED in 2022,” PTTEP said.

Murphy’s assets in Malaysia had 129 Mmboe in proved reserves (1P) at the year-end 2018, of which 70 Mmboe are characterized as proved undeveloped.

The proved reserves are comprised of 468 billion cubic feet (Bcf) of natural gas and 51 million barrels (Mmbbl) of liquids. Total production net to Murphy in 2018 for the properties now sold to PTTEP was over 48,000 barrel of oil equivalent per day (Boepd), comprised of 62 percent liquids, Murphy said in March.

Murphy has previously said it would use the proceeds from the Malaysia sale to return cash to shareholders through share repurchases and to boost the company’s balance sheet by reducing debt.

Operationally, the company said it planned to continue its current oil-weighted strategy in both the Eagle Ford Shale and the Gulf of Mexico, while maintaining its focused exploration plan.

The U.S. company has previously said it has earmarked $750 million for U.S. oil-weighted opportunities through potential acquisitions and/or the funding of both deepwater projects and U.S. onshore opportunities.

Offshore Energy Today Staff

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