Murphy's deepwater Sabah licenses updated
Eric Watkins
Senior Correspondent
LOS ANGELES, Jan. 26 -- Petronas has awarded Murphy Sabah Oil Co. Ltd. a deepwater license for Block P off Sabah, Malaysia, and an extension to the exploration term of a portion of Block K.
Murphy, operator, has a 60% working interest in Blocks K and P, while Petronas E&P subsidiary Petronas Carigali Sdn. Bhd. holds 40%.
The Block K extension and the new Block P were created from part of the acreage known as Block K originally awarded to Murphy and partner Petronas Carigali in 1999, which had come to the end of its 7-year exploration period.
Blocks K and P comprise about 4,111 sq km and 4,246 sq km, respectively, and lie in water 3,000-9,000 ft deep. The Block K extension was granted for 5 years, while Block P carries a 7-year exploration term.
Under the agreement, the partners will acquire and process 500 sq km of 3D seismic data and drill four wildcat wells on Block P.
Claiborne P. Deming, Murphy Oil Corp. president and chief executive, said Block P lies on trend 110 km to the northeast of Block K. He said the extension of part of Block K centers on the company's Kikeh complex on the block's southern corner, where production is to begin in the second half of 2007 (OGJ July 11, 2005, Newsletter).
Contact Eric Watkins at [email protected].