Murphy Successful Offshore Malaysia

Murphy Oil Corporation announced the successful drilling and testing of its first well in Malaysia. The West Patricia No. 2 exploration well, offshore Sarawak, tested 2,900 barrels of oil per day of 37 degree gravity crude with a gas oil ratio of 290, from a single zone at 3,021 feet. The well was drilled by Transocean Sedco Forex’s, jackup, Trident 16.

Murphy's wholly owned subsidiary Murphy Sarawak Oil Company Ltd (85%) operated the well in Block SK309 with partner Petronas Carigali Sdn Bhd (15%).

Drilled in 110 feet of water to a total depth of 7,054 feet, the well encountered hydrocarbons at multiple levels. In addition to the above-mentioned test, two other selected zones flowed gas at commercial rates with minor amounts of oil.

Block SK309 covers an area of approximately 1.1 million acres and along with the adjoining, equally sized SK311, was awarded to Murphy and Petronas Carigali in January 1999. Work commitments on each block include seismic acquisition and the drilling of two wells. In 2000 Murphy acquired a 650 square kilometer 3D seismic survey over the southern portions of both blocks. The West Patricia structure was included in that survey.

"We're obviously delighted with the results of this well," said Claiborne P. Deming, President and CEO of Murphy. "We found what we hoped for when we entered the program. In addition, the short time between contract signature and exploration success is a testament to the good will and cooperation we have received from Petronas and Petronas Carigali."

Murphy plans to drill up to three more exploration wells this year on other prospects contained within the new 3D seismic survey. Deming said, "Due to this success we are now looking for another rig to appraise this structure earlier than our planned program; we are close to established infrastructure here and obviously looking towards early development and production from this field."

In addition to SK309 and SK311, Murphy also holds an 80% interest in deepwater Block K, offshore Sabah.


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