Newfield Exploration Co., based in The Woodlands, Texas, today announced the signing of a share purchase agreement to sell all of its equity interests in Newfield Malaysia Holdings to SapuraKencana Petroleum Berhad for a total cash consideration of US$898 million, which is expected to close in early 2014.
The agreement is subject to the approval of Petroliam Nasional Berhad (Petronas) under the applicable production sharing contracts, the purchaser's shareholder approval, and customary closing conditions. Newfield intends to offer preferential rights to its partners under the joint operating agreements. The agreement was executed after Newfield undertook a thorough and rigorous bidding exercise involving over 40 companies.
"We have enjoyed significant success in Malaysia and had a great business partnership with Petronas in the region. In early 2013, however, we announced our intent to exit our international businesses and focus our investments on domestic resource plays," said Lee K. Boothby, Newfield Chairman, President and CEO. "Our year-to-date results build positive momentum and confidence in our ability to deliver on our three-year plan."
Newfield plans to use the proceeds from the sale of its Malaysian assets to pay down existing debt and general corporate purposes. Goldman, Sachs & Co. is acting as financial advisor on the sale of Newfield's international businesses.
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