Jan 04 - 2004 Capital Program Announced

Source Press Release
Company Murphy Oil Corporation 
Tags Strategy - Corporate
Date January 12, 2004

Murphy Oil Corporation announces a capital program of $843 million for 2004, a decrease of approximately 15% from 2003.  

 After the effect of the expected sale of a large portion of Murphy’s western Canada exploration and production business that was announced in December, 77% of the 2004 capital budget will be allocated to upstream operations. Murphy’s exploration expenditures are expected to be $225 million and include continued funding of its deepwater Gulf of Mexico drilling program, an extensive drilling program continuing in deepwater Malaysia on Blocks K and H off the coast of Sabah, two wells in Block 311 in Peninsular Malaysia, an exploratory well off the east coast of Canada on the Annapolis block and an exploratory well off the coast of Congo. Murphy’s development expenditures are expected to be $426 million and represent a decrease of 23% over 2003 levels due to the completion of deepwater developments at Medusa (Mississippi Canyon Blocks 538/582) and Habanero (Garden Banks Block 341), both of which were placed onstream during the fourth quarter of 2003. The budget for 2004 reflects expenditures for the completion of the Front Runner development (Green Canyon Blocks 338/339), Phase II development at West Patricia in shallow water Malaysia and continued Phase III expansion of  Syncrude. Production will increase in 2004 reflecting the ramp up of production volumes at Medusa and Habanero and first production at Front Runner which is expected during the third quarter. 

 Capital expenditures for refining and marketing operations are budgeted to be $184 million in 2004, a decrease of about 17% from 2003 levels. Expenditures for 2004 reflect a sharp decrease in refinery expenditures following completion of the clean fuels project at the Company’s refinery in Meraux, Louisiana, but an increase in marketing expenditures due to an accelerated build out of the Murphy USA program at Wal-Mart stores with approximately 160 sites expected to be constructed in 2004.

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