Skrine represents Murphy Oil in disposal of Malaysian Oil & Gas business
22 March 2019
Murphy Oil Corporation entered into an agreement to dispose of its entire shareholding in two wholly owned subsidiaries, Murphy Sarawak Oil, Ltd. and Murphy Sabah Oil, Ltd., to PTTEP HK Offshore, a wholly owned subsidiary of Thailand’s PTT Exploration and Production Plc (‘PTTEP’), for a cash consideration of USD2.127 billion. The consideration is payable upon closing and subject to customary closing adjustments, plus up to a USD100 million bonus payment contingent upon certain future exploratory drilling results prior to October 2020.
The transaction adds working interest in six blocks to PTTEP’s existing portfolio in Malaysia which has recently seen growth with the addition of two new exploration blocks following the 2018 PSC licensing round.
Skrine acted as Malaysian legal counsel to Murphy Oil Corporation for the transaction. The team was led by Oil & Gas Partner, Fariz Abdul Aziz together with Partners Sheba Gumis (Corporate), Selvamalar Alagaratnam (Employment) and Khong Siong Sie (Tax), and supported by Senior Associate Nimalan Devaraja and Associates Karyn Khor and Chin Wen-Ly.