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SINGAPORE: Murphy Oil Corporation is in talks to sell its Malaysian oil and gas assets after an unsolicited bid that could yield between $ 2 billion and $ 3 billion, announced the country's latest merger and acquisition agreement. ;South East Asia.
The US independent oil and gas exploration and production company has appealed to banks for the potential sale of its controlling interests in eight offshore production sharing contracts in Malaysia, said the population, which has not been identified because his file is confidential.
"Murphy was not considering a sale, but a party that has submitted a very convincing offer has been approached.They are in negotiations," said one of the officials.
Murphy, who has been in Malaysia since 1999, could agree on an agreement in a few weeks, the official said.
Other people familiar with the matter suggest the major Spanish oil group Repsol, whose presence in Malaysia is focused on its upstream activities, or other major global groups could be potential buyers of Murphy's assets.
The deal is feasible as mergers and acquisitions multiply in the Malaysian oil and gas sector, where international companies pursuing their expansion plans are discovering opportunities.
Repsol and Murphy Oil declined to comment on any sales or potential discussions. Reuters did not immediately respond to a request to Petronas, a Malaysian public company, Murphy's partner in Malaysia.
In September, the Austrian oil and gas company OMV decided to create a joint venture with Sapura Energy Bhd 
, paying $ 540 million for a 50% stake in the exploration assets of the Malaysian company.
In August, citing sources, Reuters reported that offshore natural gas assets of US-based Hess Corp in Southeast Asia had attracted interest from PTTEP PCL and OMV offerings in Thailand. Hess then stated that he did not plan to sell his assets in Southeast Asia.
People familiar with Murphy's business said the company could use the proceeds of the sale to fund its plans for global expansion. Last month, Petrobras, a Brazilian-controlled oil company, and Murphy announced the creation of a joint venture for the exploration of oil and gas deposits in the Gulf of Mexico.
In September 2014, Murphy announced the sale of a 30% stake in its Malaysian assets to the Indonesian state oil company Pertamina for $ 2 billion while it was reducing its holdings at the company. 39; abroad.
Murphy produced nearly 46,700 barrels of oil equivalent per day in the quarter ending September 30 in Malaysia, the company said in response to a request from Reuters.
"The potential exit appears to be a strategic decision based on Murphy's higher growth potential, which is a high-quality, good-sized asset for companies seeking a strong footprint in the region," said a banker familiar with Murphy's business.
Murphy's deal with Pertamina was announced as oil prices hovered around $ 90 a barrel. On Wednesday, the price of American oil was trading at nearly $ 52 a barrel, after losing nearly one third of its value since early October. – Reuters
* According to Murphy's website, the company entered Malaysia in 1999 and holds a controlling interest in eight separate production sharing agreements (PSCs): Block K, Block H, SK 309, SK 311, SK 314A, SK 2A , SK 2C and SK 405B. In 2017, our net production was approximately 34,000 BOPD and 113 MMCFD. Total proved reserves at the end of 2017 were 52 MMBO and 491 BCF.
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