NEW YORK – Energy exploration and production company Murphy Oil said Tuesday it will sell some of its oil and gas assets in Malaysia for $2 billion.
The company said PT Pertamina Malaysia Eksplorasi Produksi is buying 30 percent of those assets. Murphy Oil said the deal should close in the first quarter of 2015, but it will have an effective date of Jan. 1, 2014.
The El Dorado company said it wants to establish a long-term partnership with Pertamina.
“This transaction marks the value of the high-margin, long-term assets in our Malaysian business. We are excited to strengthen our partnership with Pertamina and look forward to working with them and our other partners in Malaysia,” Roger W. Jenkins, president and CEO, said in a news release.
“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,” he said.
Shares of Murphy Oil Corp. (NYSE: MUR) rose 53 cents to $57.53 in midday trading.
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