State-run hydrocarbon exploration companies ONGC Videsh Limited (OVL) and Oil India Limited (OIL) have lost a bid to buy US-based Murphy Oil Corporation’s oil and gas assets in Malaysia.

The Indian PSU firms reportedly bid $1.5 billion to together pick up 30% stake in the hydrocarbon producing assets.

In a recent statement, Murphy said it has sold its Malaysian oil and gas assets for $2 billion in an all cash transaction to PT Pertamina Malaysia Eksplorasi Produksi, a subsidiary of Indonesia’s state-run company PT Pertamina.

It said the deal would be sealed in two phases, with the first phase expected to completed in the fourth quarter of 2014.

An agency report on July 31 had said that if the bid

by Indian companies turn out to be successful, OVL will own 20% stake, while OIL would take up the remaining 10% stake.

The two companies have joined hands for multiple acquisitions in the past.

For instance, in June 2013, OVL and OIL jointly acquired 10% stake in deepwater gas fields in Mozambique’s Rovuma basin for $2.5 billion, Later, OVL picked up another 10% stake in the same field from Anadarko Petroleum.

Murphy Oil’s Malaysia assets draw interests from several global players. Japan’s Mitsubishi Corporation also understood to had submitted non-binding bid worth $2.5 billion, while Kuwait Petroleum and Mitsui were also keen to buy the assets.

Malaysia is the biggest market in Murphy’s Asian portfolio, accounting for more than 45% of its total 2012 net production. It drilled 86,000 barrels of oil equivalent per day in 2013, with total proved reserves of 125 million barrels of oil and 11 billion cubic metres of gas, according to its website.

ONGC Videsh Limited (OVL), which has presence in 16 countries, is targeting to acquire more producing assets to achieve the milestone of 20 million tonnes of oil and equivalent by 2018.

The government-owned explorer’s several projects have hit a hurdle because of local unrest in the countries where it was running its projects, which impacted the production.

In FY14, OVL’s output was around 8.5 mtpa. In FY15, it is confident of achieving production more than last year.

However, it may have to wait a while to touch the double digit production figure.

In case the situation improves in South Sudan, then OVL could touch double digit production.