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Murphy sheds Malaysia assets in Pertamina farm-in deal

01st October 2014

Murphy Oil has announced that its wholly owned subsidiaries, Murphy Sabah Oil and Murphy Sarawak Oil, have entered into an agreement with PT Pertamina Malaysia Eksplorasi Produksi (Pertamina) to sell 30 per cent of Murphy's Malaysian oil and gas assets for an aggregate sales price of USD 2bn in an all cash transaction

Murphy sheds Malaysia assets in Pertamina farm-in deal
Murphy will remain operator and continue to execute its development plans as well as grow through future exploration in both deepwater and shallow-water Malaysia

"This transaction marks the value of the high-margin, long-term assets in our Malaysian business,” said Roger W. Jenkins, Murphy president and chief executive officer.

“We are excited to strengthen our partnership with Pertamina and look forward to working with them and our other partners in Malaysia.”

The effective date of the transaction will be January 1, 2014 with closing expected to take place in two phases. The first phase is expected to be completed in the fourth quarter of 2014 and the second phase is expected to be completed by the first quarter of 2015. The transaction is subject to, among other things, the approval of Petroliam Nasional Berhad (Petronas).

Murphy intends to establish a long-term partnership with Pertamina. Murphy will remain operator and continue to execute its development plans as well as grow through future exploration in both deepwater and shallow-water Malaysia.

 “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."

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