Murphy Oil Announces Field Development Plan Approval for Kikeh Area in Deepwater Malaysia

abarrelfullabarrelfull wrote on 18 Jul 2012 07:34
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September 13, 2004

Murphy Oil Corporation (NYSE:MUR) announced that its subsidiary Murphy Sabah Oil Co., Ltd. and its partner, Petronas Carigali Sdn. Bhd. (Carigali), have received approval of the Kikeh Area Field Development Plan (FDP) from Petroliam Nasional Berhad (PETRONAS).

“We are extremely pleased to receive the FDP approval by PETRONAS,” said Claiborne P. Deming, Murphy Oil Corporation President and Chief Executive Officer. “It is an outstanding accomplishment for all stakeholders to have FDP approval within two years of initial discovery. This timely approval illustrates the commitment and strong relationships between Murphy, our partner PETRONAS Carigali Sdn. Bhd. and PETRONAS. Our target is for first oil in 2007, which is within five years from the initial discovery.”

A production plateau of 120,000 gross barrels of oil per day 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 million barrels and includes field architecture which will accommodate expansion. Project capital expenditures are projected to cost approximately US$1.4 billion.

Murphy, as operator, has an 80% working interest in Block K, which covers over four million acres. Carigali, a wholly owned exploration and production arm of PETRONAS, holds the remaining 20%.

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