Murphy Makes Shallow-Water Discovery Offshore Malaysia

The Congkak #1 exploration well discovered a new oil field in Block SK 309 offshore Sarawak Malaysia. The Congkak discovery is located in 136 feet of water and is the second Murphy-operated oil discovery to be made in SK 309. The Congkak field lies three kilometers from the West Patricia field production platform, which is currently being developed with first production expected early in the second quarter of 2003.

"We are very pleased with this new discovery which further supports our belief that there are many small field development opportunities on our Sarawak acreage," says Claiborne P. Deming, Murphy Oil Corporation President and Chief Executive Officer. "We are very encouraged with our West Patricia field and view Congkak as a natural add-on to that production hub. In shallow-water Malaysia, our focus is to create additional value by exploring around this area and tying back discoveries in a timely and efficient manner," he adds.

A second exploration well drilled on the Gasing prospect as part of this program found excellent reservoir sands but was plugged and abandoned. The jackup, Ron Tappmeyer, will now move to the West Patricia field and commence development activities.

Murphy as operator has an 85% interest in Blocks SK 309 and SK 311 which combined cover over 2.2 million acres. Petronas Carigali Sdn Bhd holds the remaining 15%.