Profile: Murphy Oil Corp (MUR.N)
26 May 2017
Murphy Oil Corporation (Murphy), incorporated on June 29, 1964, is an oil and gas exploration and production company. The Company's exploration and production business explores for and produces crude oil, natural gas and natural gas liquids across the world. The Company's exploration and production activities are subdivided into four geographic segments: the United States, Canada, Malaysia and all other countries. The Company explores for and produces crude oil, natural gas and natural gas liquids around the world. This business maintains upstream operating offices in several locations around the world, including Houston, Texas, Calgary, Alberta, and Kuala Lumpur, Malaysia.
As of fiscal year ended December 31, 2016 (during Fiscal 2016), Murphy's principal exploration and production activities were conducted in the United States by Murphy Exploration & Production Company-USA (Murphy Expro USA), in Malaysia, Australia, Brunei, and Vietnam by Murphy Exploration & Production Company-International (Murphy Expro International) and its subsidiaries, and in Western Canada and offshore Eastern Canada by Murphy Oil Company Ltd. (MOCL) and its subsidiaries. Murphy's hydrocarbon production in Fiscal 2016 was in the United States, Canada and Malaysia. Murphy's crude oil and condensate production around the world in Fiscal 2016 averaged 103,400 barrels per day. Its Natural gas liquids produced in Fiscal 2016 averaged 9,200 barrels per day. Total Fiscal 2016 production around the world on a barrel of oil equivalent basis (six thousand cubic feet of natural gas equals one barrel of oil) was approximately 175,600 barrels per day.
In the United States, Murphy primarily has production of crude oil, natural gas liquids and natural gas from fields in the Eagle Ford Shale area of South Texas and in the deepwater Gulf of Mexico. The Company produced approximately 56,500 barrels of crude oil and gas liquids per day and approximately 53 million cubic feet (MMCF) of natural gas per day in the United States during Fiscal 2016. The Company holds rights to approximately 151 thousand gross acres in South Texas in the Eagle Ford Shale unconventional oil and gas play. Total liquids and natural gas production during Fiscal 2016 in the Eagle Ford area was 42,800 barrels of oil and liquids per day and approximately 36 MMCF per day of natural gas, respectively. As of December 31, 2016, the Company's proved reserves in the Eagle Ford Shale area totaled 181.7 million barrels of crude oil, 33.5 million barrels of natural gas liquids and 164 billion cubic feet of natural gas.
The Company holds an operated working interest in Dalmatian in DeSoto Canyon Blocks 4, 48 and 134, an operated interest in Medusa in Mississippi Canyon Blocks 538/582, a non-operated interest in Kodiak in Mississippi Canyon Blocks 727/771, and operated working interests in the Front Runner field in Green Canyon Blocks 338/339 and the Thunder Hawk field in Mississippi Canyon Block 734. Total daily production in the Gulf of Mexico in the Fiscal 2016 was 13,700 barrels of liquids and approximately 17 MMCF of natural gas. As of December 31, 2016, Murphy had total proved reserves for Gulf of Mexico fields of 35.7 million barrels of oil and gas liquids and 55 billion cubic feet of natural gas. The total United States proved reserves, as of December 31, 2016, were 214.4 million barrels of crude oil, 36.5 million barrels of natural gas liquids and 219 billion cubic feet of natural gas.
In Canada, the Company holds one natural gas area (Tupper) in the Western Canadian Sedimentary Basin (WCSB) together with working interests in the Kaybob Duvernay and Placid Montney lands. During Fiscal 2016, the Company had 107 thousand net acres of Tupper Montney mineral rights located in northeast British Columbia. During 2016, the Company acquired an operated working interest in Kaybob Duvernay lands and a non-operated working interest in Placid Montney lands in Alberta. In addition, the Company owns interests in two non-operated assets - the Hibernia and Terra Nova fields offshore Newfoundland in the Jeanne d'Arc Basin. Daily production in the WCSB in Fiscal 2016 averaged 4,000 barrels of heavy oil and approximately 209 MMCF of natural gas. Total WCSB proved liquids and natural gas reserves as of December 31, 2016, were approximately 33.0 million barrels and 1.1 trillion cubic feet, respectively. Murphy has a working interest in Hibernia. Oil production in Fiscal 2016 was 8,700 barrels of oil per day for the two offshore Canada fields. Total proved oil reserves as of December 31, 2016 for the two fields were approximately 21.5 million barrels.
As of December 31, 2016, in Malaysia, the Company had interests in eight separate production sharing contracts (PSCs). The Company serves as the operator of all these areas other than the unitized Kakap-Gumusut field. As of December 31, 2016, the production sharing contracts covered approximately 2.14 million gross acres. Murphy has an interest in oil and natural gas discoveries in two shallow-water blocks, SK 309 and SK 311, offshore Sarawak. As of December 31, 2016, approximately 14,100 barrels of oil and gas liquids per day were produced in Fiscal 2016 at Blocks SK 309/311. The Company has a gas sales contract for the Sarawak area with PETRONAS, the Malaysian state-owned oil company, and has an ongoing multi-phase development plan for several natural gas discoveries on these blocks. Total net natural gas sales volume offshore Sarawak was about 106 MMCF per day during Fiscal 2016 (gross 248 MMCF per day. Total proved reserves of liquids and natural gas as of December 31, 2016 for Blocks SK 309/311 were 13.8 million barrels and approximately 164 billion cubic feet, respectively.
As of December 31, 2016, the Company had an interest in the Kakap field in Block K Malaysia. The Kakap field in Block K is unitized with the Gumusut field in an adjacent block. The Siakap oil discovery was developed as a unitized area with the Petai field owned by others, and the combined development is operated by Murphy, with a tie-back to the Kikeh field. Oil production at Block K averaged approximately 24,600 barrels per day during Fiscal 2016. Natural gas production in Block K in Fiscal 2016 totaled 10 MMCF per day. Total proved reserves booked in Block K as of December 31, 2016, were 52.3 million barrels of crude oil and approximately 26 billion cubic feet of natural gas. The Company also has an interest in deepwater Block H offshore Sabah. As of December 31, 2016, total natural gas proved reserves for Block H were approximately 349 billion cubic feet. As of December 31, 2016, the Company had an interest in a gas holding area covering approximately 1,854 gross acres in Block P. Murphy has an interest in gas holding agreements for Kenarong and Pertang discoveries made in Block PM 311 located offshore peninsular Malaysia.
In Australia, the Company holds offshore exploration permits and serves as operator of them. The first permit was with an interest in Block AC/P36 in the Browse Basin. As of December 31, 2016, the Company held working interest in the permit WA-476-P in the Carnarvon Basin, which covered 177 thousand gross acres. The Company was awarded permit EPP43 in the Ceduna Basin, offshore South Australia. As of December 31, 2016, the Company operated the concession and holds working interest in the permit covering approximately 4.08 million gross acres. Murphy has AC/P57 and AC/P58 licenses in the Vulcan Sub Basin, offshore Western Australia. As of December 31, 2016, the respective blocks covered approximately 82 thousand and 692 thousand gross acres, respectively. Murphy was awarded the AC/P59 license, another acreage position in the Vulcan Sub Basin, offshore Western Australia. As of December 31, 2016, the block covered approximately 288 thousand gross acres.
The Company had a working interest in Block CA-1 and a working interest in Block CA-2. As of December 31, 2016, the CA-1 and CA-2 blocks covered 1.44 million and 1.49 million gross acres, respectively. The Company acquired interest and operatorship of Blocks 144 and 145. As of December 31, 2016, the blocks covered approximately 6.56 million gross acres and were located in the outer Phu Khanh Basin. The Company acquired a working interest and operatorship of Block 11-2/11 under a PSC. As of December 31, 2016, the block covered 677 thousand gross acres. As of December 31, 2016, the Company had interests in two exploration licenses in Indonesia and served as operator of these concessions. The Company acquired a working interest and operatorship of Blocks 2613 A/B.
Murphy Oil Corp
300 Peach St
PO Box 7000
EL DORADO AR 71731-7000
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