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Image courtesy of Murphy Oil.

Arkansas-based Murphy Oil sold a third of its Malaysian oil and gas assets to Indonesia’s state owned company Pertamina for $2 billion in cash.

The transaction will be effective as of January 1, 2014.

Closing will take place in two phases.

Murphy expects the first phase of closing to be complete by the fourth quarter of 2014. The second phase is projected to be complete by the first quarter of 2015.

Murphy received bids from multiple companies including bids from Vietnam’s state owned Petrovietnam, Japan’s Mitsubishi Corporation and Indian state oil companies, Reuters said.

The transaction is subject to, among other things, the approval of Petronas.

Murphy will remain the operator of the assets and continue to execute its development plans as well as undertake further exploration in both deepwater and shallowwater Malaysian sites.

Houston-based Tudor, Pickering, Holt & Co advised Murphy on the deal. California-based Gibson, Dunn & Crutcher served as legal counsel.

Murphy holds a majority interests in seven separate production sharing contracts in Malaysia: Block K, Block H, Block P, SK 309, SK 311 and SK 314A, and three gas holding agreements in PM 311.

Murphy’s net production from its Malaysian assets is about 86,000 boepd with total proved reserves of 125 million barrels of oil and 460 billion cubic feet of gas.