Offshore staff
EL DORADO, Arkansas -- Two Murphy Oil Corp. subsidiaries have signed gas sales agreements (GSAs) in Malaysia. One will supply the existing Petronas Bintulu LNG facility, and the other will supply a Petronas-owned methanol plant onshore Labuan Island.
Murphy and Petronas Carigali will initially supply the Bintulu LNG facility 250 MMcf/d for a firm period of five years, with a provision to supply up to 350 MMcf/d for another 10 years. The gas will come from multiple fields in blocks SK 309 and SK 311 in shallow water offshore Sarawak. The first sales under this agreement are expected to take place in the first half of 2009.
"We have had a long and sustained exploration program offshore Sarawak that has resulted in a number of gas discoveries. Today, with the signing of this important GSA, we can move forward with our partner Petronas Carigali and start to bring these reserves to market," says Claiborne P. Deming, Murphy president and CFO. "We also see a continued active program of both appraisal and exploration alongside this development program that we believe will add even further resources in the future."
Murphy operates the SK 309 and SK 311 fields with 85% interest. Petronas Carigali Sdn. Bhd. holds the remaining interest.
The methanol plant in Labuan will be supplied directly from the deepwater Kikeh field in block K offshore Sabah. A new natural gas pipeline will be installed connecting the field to the plant.
"The Kikeh field remains on track for first oil in the second half of 2007," Deming says. "By working closely with our partner Petronas Carigali and with Petronas, we are pleased to secure an important market to monetize the Kikeh field's associated gas. We expect first gas sales in early 2008."
Murphy operates the Kikeh field with 80% interest. Petronas Carigali Sdn. Bhd. holds the remaining interest.
2/26/2007
