Murphy’s Malaysian plan approved, two offshore discoveries unveiled

Ray Tyson

Malaysian national oil company Petronas has approved Murphy Oil’s development plan for the Kikeh field, the approval coming within two years of the initial discovery, Murphy said Sept. 13.

The Arkansas-based company also announced two new discoveries in Malaysia, including oil find on Block K about nine miles from Kikeh.

“The oil we found is the same quality as that at Kikeh and while contained in thinner reservoirs, could extend over a larger area,” said Claiborne Deming, Murphy’s chief executive officer.

Murphy said it is now looking for a 2007 startup of Kikeh with a production plateau of 120,000 gross barrels of oil per day within two years of first oil, adding that field output is expected to continue at those levels for six years. The projection is based on recoverable reserves of more than 400 million barrels and field expansion down the road. The project is expected to cost about $1.4 billion.

Meanwhile, the Senangin No. 1 exploration well, drilled in 4,695 feet of water to a measured depth of 15,962 feet on Block K, encountered oil in multiple zones on an entirely new trend, Murphy said.

“The oil we found is the same quality as that at Kikeh,” Deming said. “Although it is simply too early to size this discovery, we are keen to return with an appraisal program which we will fit into our ongoing exploration plans.”

He said the company would next drill the Todak prospect farther north in block K.

Murphy, which operates the Kikeh field, has an 80 percent working interest in block K, which covers more than 4 million acres. Petronas Carigali, a wholly owned exploration and production arm of Petronas, holds the remaining 20 percent interest.

Murphy also said its Pertang No. 1 exploration well contains natural gas in multiple zones. The well reached a total depth of 10,500 feet and was drilled in 224 feet of water on block PM 311, offshore Peninsular Malaysia.

Pertang found low CO2 gas in high quality sands, Murphy said, adding that three zones found at the bottom of the well warrant further evaluation to confirm their hydrocarbon content.”

Murphy operates PM blocks 311 and 312 with a 75 percent working interest. Together, the area covers 2.7 million acres. Petronas Carigali holds the remaining 25 percent.