Murphy Oil has first production in Malaysia

Murphy Oil Corp.'s subsidiary, Murphy Sarawak Oil Co. Ltd., has started first oil production from its West Patricia field in block SK 309, offshore Sarawak, Malaysia. Murphy Sarawak is the operator of the block and holds an 85% interest and Petronas Carigali Sdn. Bhd., the production arm of state-owned Petronas, holds the remaining interest.

May 21st, 2003

Murphy Oil Corp.'s subsidiary, Murphy Sarawak Oil Co. Ltd., has started first oil production from its West Patricia field in block SK 309, offshore Sarawak, Malaysia. Murphy Sarawak is the operator of the block and holds an 85% interest and Petronas Carigali Sdn. Bhd., the production arm of state-owned Petronas, holds the remaining interest.

The West Patricia field is 40 km offshore Bintulu, Sarawak, in 130 ft of water. The initial development phase includes a single production platform and a floating storage and off-loading facility. Later phases will include the installation of additional production platforms and the drilling of more development wells. Initial gross production will quickly ramp up to 15,000 b/d. All crude oil produced from the West Patricia field will be marketed under the name Kidurong crude oil.

Coming onstream according to schedule and within budget 16 months following project sanction, West Patricia's development has set a new benchmark in Malaysia for both timing and costs. Design and fabrication of key facilities took place at Malaysian sites with 82% of total field contracts being placed with Malaysian companies.

"West Patricia is just a beginning; we see these production facilities providing a centralized hub to which other small fields on surrounding acreage can be developed and where we can further demonstrate our team's expertise, said Claiborne P. Deming, Murphy Oil president and CEO."

05/21/03

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