(Asia-Pacific) - Murphy Oil Corp. has been granted an extension in the exploration term of a portion of block K and an award of a new deepwater block P.
Murphy will have a 60% interest in both blocks. The remaining interest will be held by Petronas Carigali.
The block K extension and the new block P have been created from part of the acreage originally awarded to Murphy and partner Petronas Carigali in 1999 and known as block K, which had come to the end of its seven-year exploration period. All oil fields discovered during the first exploration term will remain at the originalbBlock K working interest.
"We are very pleased to continue our pioneering position offshore deepwater Sabah and to be granted this acreage along with our longstanding partner Carigali," says Claiborne P. Deming, Murphy Oil Corp.'s president and CEO.
"The extension of part of block K centers around our Kikeh complex, including all our other oil discoveries, allowing us to continue our active program in exploring, appraising and developing this important area," he adds.
"Block P lies on trend 110 km to the northeast and is another area we have been targeting for existing, as well as new plays. We are excited about these new opportunities and continuing our long-term commitment to Malaysia."
Murphy as operator has a 60% working interest in blocks K and P. Petronas Carigali,holds the remaining 40%.
Blocks K and P comprise approximately 4,111 and 4,246 sq km, respectively, and lie in water depths of 3,000 to 9,000 ft.
The block K extension is granted for five years and block P carries a seven-year year exploration term.