Murphy Oil to not sell Malaysian asset; advances operations in GoM

Murphy Oil

Murphy Oil, the Arkansas-based upstream company, announced that it would not sell its Malaysian asset Block CA-1 off Brunei; operated by Shell in ultra-deep waters, the company has approximately an 8% working interest in the block, for $2,8 million.

Firstly, the company announced this Thursday in its second quarter financial results that the classification of the Brunei oilfield was no longer “on sale”; while Block CA-2 retains that classification. The field was discovered by Murphy and partners during 2Q with the Jagus SubThrust-1X exploration well.

Secondly, no further details have been divulged about the discovery, such as its reserves or whether it was tested. Also, the reasons behind the change of mind of the company remain unclear. However, the cost of the discover, at around $2,8 million, as said above, translates into capex of around $35 million for the company.

Thirdly, for its offshore production in the Gulf of Mexico, the company reported that, during the 2Q, it averaged 74 thousand barrels of equivalent oil per day (Mboepd), consisting of 79 percent oil. Consequently, the company’s major projects in the region continue to advance on schedule.

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Murphy Oil with a possitive balance of 2Q 2021

Moreover, company reports that also drilled Samurai #3 and Khaleesi #3 during the 2Q; on the other hand, reports that it completed the fabrication of the King’s Quay floating production system; which sailed away to shore base in the Gulf of Mexico at the end of the quarter.

In addition, the final well of the non-operated St. Malo waterflood was drilled on schedule; and will come online in late 2021.

On the other hand, about the company’s performance Roger W. Jenkins, President and Chief Executive Officer, said. “We had a very positive quarter as we continued to progress on our strategy to deliver, execute and also, explore. I am especially proud of our enhanced operational efficiencies; allowing us to significantly exceed production guidance while maintaining our annual capital spending budget.”

The executive also remarked. “Combined with higher realized crude oil prices, we are able to accelerate our delivering plan with the announced partial redemption of our 2024 senior notes; while also and increasing our debt reduction target for 2021. Further, we are pleased with our progress on exploration prospects this year, as well as the recent discovery in Brunei.”

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