Murphy Oil begins oil production from SNP field offshore Malaysia

Murphy Oil Corporation announced today that first oil production from the Siakap North-Petai (SNP) development offshore Malaysia started on February 27, 2014.

The SNP field, operated by Murphy with a 32 percent working interest, is located offshore Malaysia in a water depth of approximately 4,400 feet. The overall field development plan consists of eight producing wells and five water injection wells developed as a subsea tie-back to the Kikeh Floating Production Storage and Offloading (FPSO) vessel. Initial operations started with production from four oil wells.

Peak gross production from the field is expected to reach 35,000 barrels of oil per day in mid-2014. The unitized field combines the discoveries at Siakap North in Block K with Petai in the adjacent Block G. Murphy’s partners in the development are PETRONAS Carigali, Shell, and ConocoPhillips with the latter two partners each holding a 21 percent working interest.

In the Gulf of Mexico, progress on the Murphy operated Dalmatian subsea development is moving forward to plan with the flowline for the first completion installed along with the control umbilical for the entire field. First production is scheduled late this month from the natural gas/condensate producer with the second well to follow later in the third quarter which is consistent with the Company’s production guidance stated at the last earnings call.

Roger Jenkins, President and Chief Executive Officer, commented, “We are pleased to achieve first oil at the Siakap North-Petai development. This field, along with our other oil developments offshore Malaysia and Dalmatian in the Gulf of Mexico, are all key components of our 2014 production growth profile.”

Press Release, March 04, 2014

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