Murphy Oil To Divest Montney Midstream Assets

(RTTNews) - Murphy Oil Corp. (MUR) said that its Canadian subsidiary, Murphy Oil Company Ltd. or "MOCL", has signed a definitive agreement with Enbridge G&P Limited Partnership, a subsidiary of Enbridge Inc., (ENB.TO, ENB) to divest natural gas processing and sales pipeline assets that support Murphy's Montney natural gas fields in the Tupper and Tupper West areas of northeastern British Columbia. The transaction includes the sale of existing infrastructure capable of processing up to 320 million cubic feet per day. Total cash consideration to Murphy upon closing of the transaction will be C$538 million.

Enbridge will own and operate the natural gas processing plants and sales pipeline assets which include a twenty-year arrangement, customary fee structure and an opportunity for plant expansion ensuring flexibility for both parties.

The transaction is subject to typical closing conditions and is anticipated to close promptly upon receipt of regulatory approval early in the second quarter 2016.

In a separate transaction, MOCL has signed a definitive agreement with affiliates of Athabasca Oil Corporation to acquire a 70 percent operated working interest (WI) of Athabasca's production, acreage, infrastructure and facilities in the Kaybob Duvernay lands, and a 30 percent non-operated WI of Athabasca's production, acreage, infrastructure and facilities in the liquids rich Montney lands in Alberta. Under the terms of the joint venture the total consideration amounts to C$475 million, of which Murphy will pay approximately C$250 million in cash at closing and the remaining C$225 million in the form of a carry for a period of up to five years.

The transaction is subject to regulatory approval and normal closing conditions, and is anticipated to close late in the first quarter 2016, with an effective date of January 1, 2016.