JAKARTA (RambuEnergy) – PTT Exploration and Production Public Company Limited (PTTEP) of Thailand has acquired Murphy Oil Corporation’s business in Malaysia for US$2.127 billion, which is expected to promptly add sales volumes by 15% and operating cash flow right after the deal is completed.
Phongsthorn Thavisin, PTTEP President and Chief Executive Officer, said PTTEP HK Offshore Limited (PTTEP HKO), a wholly-owned subsidiary of PTTEP, has signed a Share Sale and Purchase Agreement (SSPA) to acquire the 100% of Murphy Oil Corporation’s business in Malaysia through the equity in two subsidiaries – Murphy Sarawak Oil Company Limited and Murphy Sabah Oil Company Limited.
The acquisition includes five petroleum exploration and production projects – the Sabah K project, the SK309 & SK311 project, the Sabah H project, the SK314A project and the SK405B project. The acquisition will be funded by PTTEP’s available cash on hand and is expected to complete by the end of second quarter of 2019.
“The acquisition is highly significant to PTTEP’s growth in both the short and long term, strengthening our business in alignment with the strategic plan,” said Phongsthorn.
“We expect that it will boost up net sales volume around 48,000 barrels of oil equivalent per day (BOED) immediately,” he added.
Those five oil and gas projects are located in shallow and deep water off Sarawak and Sabah. Projects in the producing phase include the Sabah K project and the SK309 & SK311 project, in which PTTEP will become the operator.
Both is considered one of the major projects with the gross production volume of approximately 100,000 BOED.
The Sabah H project is in the development phase with a plan to commence the first gas production in the second half of 2020, supplying 270 million cubic feet per day (MMSCFD) to PETRONAS’ Floating Liquefied Natural Gas 2 project.
Combining these three projects, gross production volumes under PTTEP’s operation will become 140,000 BOED in the next four years.
Meanwhile, the SK314A project and the SK405B project are under the exploration campaigns.
PTTEP said it will fully cooperate with Murphy Oil Corporation to ensure the smooth transition of operatorship and maintain the best practice of these strategic business. About 600 Murphy staff are warmly welcomed to join us and we will carry on our duties in promoting national energy security and delivering long term benefits to Malaysia” he said. (*)