THE WOODLANDS, Texas (AP) -- Newfield Exploration Co. said Tuesday that it will sell its stake in a Malaysian subsidiary for $898 million to SapuraKencana Petroleum Berhad in an all-cash deal.
Shares of Newfield rose $1.53, or 5 percent, to $32.39 in morning trading.
The sale is expected to close early next year, subject to approval by Malaysia's state oil company, Petronas. The sale followed bidding that Newfield said involved more than 40 companies.
Newfield announced in February that it would consider selling its operations in Malaysia and China to focus on U.S. oil and gas. In the second quarter, revenue from Malaysia and China fell 32 percent from a year earlier due to lower production and prices. The company began reporting those results as discontinued operations on June 30.
The Texas company said that it would use proceeds of the Malaysian sale to pay down debt and for other purposes.