Murphy Oil gets 30% in Block CA2

MURPHY Oil Corporation yesterday said its wholly owned subsidiary, Canam Brunei Oil Ltd, had entered into a production sharing deal with Brunei National Petroleum Company Sdn Bhd (PetroleumBRUNEI) for interests in offshore Block CA2 (formerly Block K).

Murphy will hold a 30 per cent working interest in Block CA2, Murphy Oil said in a statement posted on its website.

The US oil company also said it holds a five per cent working interest in Block CA1 (formerly Block J).

David M Wood, Murphy's president and chief executive, said, "We are very pleased to expand our Southeast Asia portfolio with entry into Brunei Darussalam and we look forward to an active exploration programme."

PetroleumBRUNEI and its contractors, including Murphy Oil and Petronas signed the production sharing agreement for CA2 at the Istana Nurul Iman yesterday.

According to Brunei's Petroleum Unit, Block K was awarded in 2003 to a consortium made up of Shell Deepwater Borneo, Mitsubishi and ConocoPhilips.

In September, state oil firm PetroleumBRUNEI also signed a deal with Total E&P Borneo BV, allowing Total to resume exploration in Block CA1, also in offshore Brunei.

The signing of the Deed of Amendment (DOA) modified the original production sharing contract for the block signed in 2003 and allowed Petroliam Nasional Berhad (Petronas) Carigali Overseas and Canam Brunei, a wholly-owned subsidiary of Murphy Oil Corporation, to join the existing consortium.

With the DOA in place, Total would have a 54 per cent interest, alongside previous partners BHP Billiton and Hess, along with Petronas and Murphy Oil in Block CA1.

Early this year, PetroleumBRUNEI said it was ramping up exploration activities in a bid to secure oil and gas reserves. So far, there have been promising results from exploration drillings in Blocks L and M as well as existing oilfields operated by Brunei Shell Petroleum.

The Brunei Times