Murphy gets approval for deepwater Malaysia development

Petroliam Nasional Berhad (Petronas) has approved the Kikeh Area field development plan (FDP) submitted by Murphy Oil Corp. subsidiary, Murphy Sabah Oil Co. Ltd., and partner, Petronas Carigali Sdn. Bhd.

Sep 14th, 2004

Petroliam Nasional Berhad (Petronas) has approved the Kikeh Area field development plan (FDP) submitted by Murphy Oil Corp. subsidiary, Murphy Sabah Oil Co. Ltd., and partner, Petronas Carigali Sdn. Bhd. Block K lies in deepwater offshore Sabah, Malaysia.

"We are extremely pleased to receive the FDP approval by Petronas," said Claiborne P. Deming, Murphy's president and CEO. "It is an outstanding accomplishment for all stakeholders to have FDP approval within two years of initial discovery. Our target is for first oil in 2007, which is within five years from the initial discovery."

A production plateau of 120,000 b/d of oil is targeted within two years of first oil and is expected to continue at that level for six years. The FDP assumes a recoverable reserve base of over 400 MMbbl and includes field architecture that will accommodate expansion.

Murphy operates the four-million-acre block K with 80% working interest in block K. Carigali, a wholly owned exploration and production arm of Petronas, holds the remaining 20%.

9/13/04

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