Oil and gas company Murphy Oil Corporation (MUR) expanded its footprint in Southeastern Asia through a production sharing agreement in Brunei Darussalam. Murphy’s wholly owned subsidiary, Canam Brunei Oil Ltd., has entered into an agreement with Brunei National Petroleum Company Sendirian Berhad (PetroleumBRUNEI) for interests in offshore Block CA-2.
Through this production sharing agreement Murphy will have 30% working interest in Block CA-2 offshore Brunei. The company already has a 5% working interest in Block CA-1.
Murphy is working to expand its acreage position worldwide. The company expanded its acreage in Canada through an agreement with Kainaiwa Resources Inc., a corporation wholly owned by the Blood Tribe First Nation, receiving drilling rights on 129,280 acres.
The company also bolstered its acreage in Kurdistan through an agreement with the Kurdistan Regional Government-Iraq to acquire a 50% interest in the Central Dohuk block.
The total production of the company during the third quarter 2010 of 119,899 barrels of oil equivalents per day (Boe/d) declined 9% year over year due to lower gross production in 2010 at the Kikeh field, offshore Sabah, Malaysia. The company expects to produce 198,000 Boe/d in fourth-quarter 2010.
While Murphy Oil Corporation is expanding its acreage, one of its peers BP plc (BP) decided to sell most of its exploration and production assets in Pakistan for $775 million in cash. This divesture is a part of BP plc’s plan to divest $30 billion assets by the end of next year to pay for the Gulf of Mexico oil spill.
Murphy Oil Corporation currently retains a Zacks #3 Rank (short-term Hold rating). We also maintain a longer–term Neutral rating on the stock.
Based in El Dorado, Arkansas, Murphy Oil Corporation engages in the exploration and production of oil and gas properties worldwide. The company is also involved in refining and marketing crude oil and other feed stocks into petroleum products such as gasoline and distillates.
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