Jenkins: Process finished with non-zero exit value 137 during dexing

I have Jenkins CI setup to run and build Android project. Lately I have been getting the following error:

16:32:02.767 [ERROR] [org.gradle.BuildExceptionReporter] * What went wrong:
16:32:02.767 [ERROR] [org.gradle.BuildExceptionReporter] Execution failed for task ':app:dexStaging'.
16:32:02.768 [ERROR] [org.gradle.BuildExceptionReporter] > com.android.ide.common.process.ProcessException: org.gradle.process.internal.ExecException: Process 'command '/usr/lib/jvm/java-7-oracle/bin/java'' finished with non-zero exit value 137

A lot of the posts I have read been talking about enabling dexing, which I already have:

defaultConfig {
     ...
     multiDexEnabled true
     ...
}
dexOptions {
    incremental true
    javaMaxHeapSize "4g"
}

My Application extends MultiDexApplication. Using com.android.support:multidex:1.0.1.

Using Gradle plugin: com.android.tools.build:gradle:1.3.1

I am not sure what I am doing wrong here. Am I missing anything? I believe I have exhausted all options here.

Here is the stacktrace:

:app:dexStaging FAILED
:app:dexStaging (Thread[main,5,main]) completed. Took 22.511 secs.

FAILURE: Build failed with an exception.

* What went wrong:
Execution failed for task ':app:dexStaging'.
> com.android.ide.common.process.ProcessException: org.gradle.process.internal.ExecException: Process 'command '/usr/lib/jvm/java-7-oracle/bin/java'' finished with non-zero exit value 137

* Try:
Run with --debug option to get more log output.

* Exception is:
org.gradle.api.tasks.TaskExecutionException: Execution failed for task ':app:dexStaging'.
	at org.gradle.api.internal.tasks.execution.ExecuteActionsTaskExecuter.executeActions(ExecuteActionsTaskExecuter.java:69)
	at org.gradle.api.internal.tasks.execution.ExecuteActionsTaskExecuter.execute(ExecuteActionsTaskExecuter.java:46)
	at org.gradle.api.internal.tasks.execution.PostExecutionAnalysisTaskExecuter.execute(PostExecutionAnalysisTaskExecuter.java:35)
	at org.gradle.api.internal.tasks.execution.SkipUpToDateTaskExecuter.execute(SkipUpToDateTaskExecuter.java:64)
	at org.gradle.api.internal.tasks.execution.ValidatingTaskExecuter.execute(ValidatingTaskExecuter.java:58)
	at org.gradle.api.internal.tasks.execution.SkipEmptySourceFilesTaskExecuter.execute(SkipEmptySourceFilesTaskExecuter.java:42)
	at org.gradle.api.internal.tasks.execution.SkipTaskWithNoActionsExecuter.execute(SkipTaskWithNoActionsExecuter.java:52)
	at org.gradle.api.internal.tasks.execution.SkipOnlyIfTaskExecuter.execute(SkipOnlyIfTaskExecuter.java:53)
	at org.gradle.api.internal.tasks.execution.ExecuteAtMostOnceTaskExecuter.execute(ExecuteAtMostOnceTaskExecuter.java:43)
	at org.gradle.api.internal.AbstractTask.executeWithoutThrowingTaskFailure(AbstractTask.java:310)
	at org.gradle.execution.taskgraph.AbstractTaskPlanExecutor$TaskExecutorWorker.executeTask(AbstractTaskPlanExecutor.java:79)
	at org.gradle.execution.taskgraph.AbstractTaskPlanExecutor$TaskExecutorWorker.processTask(AbstractTaskPlanExecutor.java:63)
	at org.gradle.execution.taskgraph.AbstractTaskPlanExecutor$TaskExecutorWorker.run(AbstractTaskPlanExecutor.java:51)
	at org.gradle.execution.taskgraph.DefaultTaskPlanExecutor.process(DefaultTaskPlanExecutor.java:23)
	at org.gradle.execution.taskgraph.DefaultTaskGraphExecuter.execute(DefaultTaskGraphExecuter.java:88)
	at org.gradle.execution.SelectedTaskExecutionAction.execute(SelectedTaskExecutionAction.java:37)
	at org.gradle.execution.DefaultBuildExecuter.execute(DefaultBuildExecuter.java:62)
	at org.gradle.execution.DefaultBuildExecuter.access$200(DefaultBuildExecuter.java:23)
	at org.gradle.execution.DefaultBuildExecuter$2.proceed(DefaultBuildExecuter.java:68)
	at org.gradle.execution.DryRunBuildExecutionAction.execute(DryRunBuildExecutionAction.java:32)
	at org.gradle.execution.DefaultBuildExecuter.execute(DefaultBuildExecuter.java:62)
	at org.gradle.execution.DefaultBuildExecuter.execute(DefaultBuildExecuter.java:55)
	at org.gradle.initialization.DefaultGradleLauncher.doBuildStages(DefaultGradleLauncher.java:149)
	at org.gradle.initialization.DefaultGradleLauncher.doBuild(DefaultGradleLauncher.java:106)
	at org.gradle.initialization.DefaultGradleLauncher.run(DefaultGradleLauncher.java:86)
	at org.gradle.launcher.exec.InProcessBuildActionExecuter$DefaultBuildController.run(InProcessBuildActionExecuter.java:90)
	at org.gradle.tooling.internal.provider.ExecuteBuildActionRunner.run(ExecuteBuildActionRunner.java:28)
	at org.gradle.launcher.exec.ChainingBuildActionRunner.run(ChainingBuildActionRunner.java:35)
	at org.gradle.launcher.exec.InProcessBuildActionExecuter.execute(InProcessBuildActionExecuter.java:41)
	at org.gradle.launcher.exec.InProcessBuildActionExecuter.execute(InProcessBuildActionExecuter.java:28)
	at org.gradle.launcher.exec.DaemonUsageSuggestingBuildActionExecuter.execute(DaemonUsageSuggestingBuildActionExecuter.java:50)
	at org.gradle.launcher.exec.DaemonUsageSuggestingBuildActionExecuter.execute(DaemonUsageSuggestingBuildActionExecuter.java:27)
	at org.gradle.launcher.cli.RunBuildAction.run(RunBuildAction.java:40)
	at org.gradle.internal.Actions$RunnableActionAdapter.execute(Actions.java:169)
	at org.gradle.launcher.cli.CommandLineActionFactory$ParseAndBuildAction.execute(CommandLineActionFactory.java:237)
	at org.gradle.launcher.cli.CommandLineActionFactory$ParseAndBuildAction.execute(CommandLineActionFactory.java:210)
	at org.gradle.launcher.cli.JavaRuntimeValidationAction.execute(JavaRuntimeValidationAction.java:35)
	at org.gradle.launcher.cli.JavaRuntimeValidationAction.execute(JavaRuntimeValidationAction.java:24)
	at org.gradle.launcher.cli.CommandLineActionFactory$WithLogging.execute(CommandLineActionFactory.java:206)
	at org.gradle.launcher.cli.CommandLineActionFactory$WithLogging.execute(CommandLineActionFactory.java:169)
	at org.gradle.launcher.cli.ExceptionReportingAction.execute(ExceptionReportingAction.java:33)
	at org.gradle.launcher.cli.ExceptionReportingAction.execute(ExceptionReportingAction.java:22)
	at org.gradle.launcher.Main.doAction(Main.java:33)
	at org.gradle.launcher.bootstrap.EntryPoint.run(EntryPoint.java:45)
	at org.gradle.launcher.bootstrap.ProcessBootstrap.runNoExit(ProcessBootstrap.java:54)
	at org.gradle.launcher.bootstrap.ProcessBootstrap.run(ProcessBootstrap.java:35)
	at org.gradle.launcher.GradleMain.main(GradleMain.java:23)
	at org.gradle.wrapper.BootstrapMainStarter.start(BootstrapMainStarter.java:33)
	at org.gradle.wrapper.WrapperExecutor.execute(WrapperExecutor.java:130)
	at org.gradle.wrapper.GradleWrapperMain.main(GradleWrapperMain.java:48)
Caused by: org.gradle.internal.UncheckedException: com.android.ide.common.process.ProcessException: org.gradle.process.internal.ExecException: Process 'command '/usr/lib/jvm/java-7-oracle/bin/java'' finished with non-zero exit value 137
	at org.gradle.internal.UncheckedException.throwAsUncheckedException(UncheckedException.java:45)
	at org.gradle.internal.reflect.JavaMethod.invoke(JavaMethod.java:78)
	at org.gradle.api.internal.project.taskfactory.AnnotationProcessingTaskFactory$IncrementalTaskAction.doExecute(AnnotationProcessingTaskFactory.java:243)
	at org.gradle.api.internal.project.taskfactory.AnnotationProcessingTaskFactory$StandardTaskAction.execute(AnnotationProcessingTaskFactory.java:219)
	at org.gradle.api.internal.project.taskfactory.AnnotationProcessingTaskFactory$IncrementalTaskAction.execute(AnnotationProcessingTaskFactory.java:230)
	at org.gradle.api.internal.project.taskfactory.AnnotationProcessingTaskFactory$StandardTaskAction.execute(AnnotationProcessingTaskFactory.java:208)
	at org.gradle.api.internal.tasks.execution.ExecuteActionsTaskExecuter.executeAction(ExecuteActionsTaskExecuter.java:80)
	at org.gradle.api.internal.tasks.execution.ExecuteActionsTaskExecuter.executeActions(ExecuteActionsTaskExecuter.java:61)
	... 49 more
Caused by: com.android.ide.common.process.ProcessException: org.gradle.process.internal.ExecException: Process 'command '/usr/lib/jvm/java-7-oracle/bin/java'' finished with non-zero exit value 137
	at com.android.build.gradle.internal.process.GradleProcessResult.assertNormalExitValue(GradleProcessResult.java:42)
	at com.android.builder.core.AndroidBuilder.convertByteCode(AndroidBuilder.java:1276)
	at com.android.builder.core.AndroidBuilder$convertByteCode$8.call(Unknown Source)
	at com.android.build.gradle.tasks.Dex.doTaskAction(Dex.groovy:165)
	at com.android.build.gradle.tasks.Dex.this$6$doTaskAction(Dex.groovy)
	at com.android.build.gradle.tasks.Dex$this$6$doTaskAction.callCurrent(Unknown Source)
	at com.android.build.gradle.tasks.Dex.taskAction(Dex.groovy:105)
	at org.gradle.internal.reflect.JavaMethod.invoke(JavaMethod.java:75)
	... 55 more
Caused by: org.gradle.process.internal.ExecException: Process 'command '/usr/lib/jvm/java-7-oracle/bin/java'' finished with non-zero exit value 137
	at org.gradle.process.internal.DefaultExecHandle$ExecResultImpl.assertNormalExitValue(DefaultExecHandle.java:365)
	at com.android.build.gradle.internal.process.GradleProcessResult.assertNormalExitValue(GradleProcessResult.java:40)
	... 62 more