EL DORADO, Ark.--(BUSINESS WIRE)--Sept. 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%.
The forward-looking statements reflected in this release are made
in reliance upon the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. No assurance can be given that the
results discussed herein will be attained, and certain important
factors that may cause actual results to differ materially are
contained in Murphy's January 15, 1997 Form 8-K report on file with
the U.S. Securities and Exchange Commission.
Cautionary Note to U.S. Investors - The U.S. Securities and
Exchange Commission permits oil and gas companies, in their filings
with the SEC, to disclose only proved reserves that a company has
demonstrated by actual production or conclusive formation tests to be
economically and legally producible under existing economic and
operating conditions. We use certain terms in this news release, such
as recoverable reserve base, that the SEC's rules strictly prohibit us
from including in filings with the SEC. U.S. investors are urged to
consider closely the disclosure in our Form 10-K, which can be
obtained by calling the SEC at 1-800-SEC-0330.
CONTACT: Murphy Oil Corporation
Investor/Media Relations:
Mindy West, 870-864-6315
SOURCE: Murphy Oil Corporation