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SINGAPORE (Nov. 28): Murphy Oil Corporation is in talks to sell its oil and gas assets in Malaysia after unsolicited bid that could cost between US $ 2 billion and US $ 3 billion, according to sources close to the M & A deal energy the Southeast Asian nation.
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 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 declined to comment on any potential transaction or discussion. There was no response to a request sent by Reuters owned by the Malaysian state Petronas, Murphy's partner in Malaysia.
"It's a good, balanced portfolio that offers a smart solution for those who want to grow quickly in the region, or it will take a decade to start from scratch," said Alex Siow, an upstream oil and gas analyst. an energy research company. Wood Mackenzie.
"The buyer will acquire 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 reported that the offshore US natural gas assets of Hess Corp in Southeast Asia had attracted interest from PTTEP's competitors PCL and OMV 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.
Murphy produced nearly 46,700 barrels of oil equivalent per day during the quarter ending September 30 in Malaysia, the company said in response to a request by Reuters. In Southeast Asia, it has also concluded production sharing agreements in Brunei and assets in Vietnam.
"The potential exit appears to be a strategic decision based on a higher growth potential for Murphy.This is high quality and good size assets for companies looking for a strong footprint in the region", said a banker aware of Murphy's activities, 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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