Murphy Updates on Malaysian Ops, Makes Gas Find at Permai Well Off Sabah

Murphy Oil Corp. completed a five-well drilling campaign at the Belum gas field in shallow water offshore Sarawak, east Malaysia in the second quarter of 2015, the company said in its quarterly results Wednesday.

The U.S. independent oil company indicated that the "Belum field has lower nitrogen content that will blend into our current gas production fields and allow us to de-risk our 250 million cubic feet per day (MMcf/d) contractual volume on demand."

Murphy, currently drilling oil wells at the Permas shallow water development, added that Sarawak gas production for the second quarter was 111 MMcf/d and liquids production was around 14,700 barrels of oil per day (bopd.)  Meantime, the firm successfully finalized the planned outage in early second quarter at its Sarawak facilities to complete regulator-required inspections and major maintenance.  

Offshore production in neighboring Sabah state averaged around 30,900 barrels of oil equivalent per day (boepd) in the second quarter, with liquids comprising 85 percent. Elsewhere in offshore Sabah, Murphy said planned maintenace activities at the Gumusut-Kakap main facility to install gas handling and injection systems commenced June 9 and were recently completed ahead of schedule. 

The firm also revealed that gas was found at the Permai exploration well in deepwater Block H offshore Sabah where it is the operateor with a 42 percent working interest. The Permai discovery was Murphy's eighth consecutive success in the area around the Rotan field floating liquefied natural gas (LNG) project.

"Our recent gas discovery at Permai in Block H Malaysia will reduce complexity and development costs in our floating LNG project," Roger W. Jenkins, president and CEO, commented in the press release.

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