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SINGAPORE: Murphy Oil Corporation is in talks to sell its oil and gas assets in Malaysia after an unsolicited bid that could cost between US $ 2 billion and US $ 3 billion, sources close to the deal said in the latest merger deal. acquisition in the country of Southeast Asia.
The US-based independent oil and gas exploration and production company has used banks for the potential sale of its controlling interests in eight separate offshore production sharing contracts in Malaysia, said the population, which has refused to be identified because of the confidentiality of the record.
"Murphy was not planning a sale, but a party who made a very convincing offer approached him. They are in negotiations, "said one of the people.
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 large Spanish oil group Repsol, whose presence in Malaysia is focused on its upstream activities, or other large global companies 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 finding opportunities.
Repsol and Murphy declined to comment on any potential transaction or discussion. Reuters did not answer a question to Petronas, a Malaysian state, Murphy's partner in Malaysia.
"It's a good balanced portfolio that offers a smart way for those looking to grow quickly in the region. Otherwise, it will take a decade to start from scratch, "said Alex Siow, an upstream oil and gas analyst with Wood Mackenzie, an energy research firm.
"The buyer will engage in an operator position with Murphy's involvement, so it's important to have the know-how and the willingness to be an operator," Siow said.
In September, the Austrian oil and gas company OMV decided to create a joint venture with Sapura Energy Bhd, which paid $ 540 million for a 50% stake in the exploration assets of the Malaysian company.
In August, citing sources, Reuters announced that the offshore natural gas assets of US-based Hess Corp (South-East Asia) had attracted interest from PTTEP's PCL and OMV offerings. Hess then stated that he did not plan to sell his assets in Southeast Asia.
People familiar with Murphy's activities said the company could use the proceeds of the sale to fund its plans for global expansion. Last month, Brazilian-controlled oil company Petrobras and Murphy announced the formation of a joint venture to explore oil and gas deposits in the Gulf of Mexico.
Murphy produced nearly 46,700 barrels of oil equivalent per day during the quarter ended September 30 in Malaysia, the company said in response to a request from Reuters. In Southeast Asia, it has also concluded production sharing agreements in Brunei and assets in Vietnam.
"The potential exit seems to be a strategic decision based on the fact that Murphy sees greater growth potential. These are high quality, good-sized assets for companies looking for a strong footprint in the region, "said a banker familiar with Murphy's business, referring to assets in Malaysia.
In September 2014, Murphy announced the sale of a 30% stake in its Malaysian assets to the Indonesian state oil company Pertamina for US $ 2 billion, as a result of the reduction in its holdings in l & # 39; abroad.
Oil prices, which hovered around $ 91 a barrel at the time, fell to almost $ 52 a barrel. Prices have lost nearly a third of their value since the beginning of last month.
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