Murphy Oil Signs Four Cameroon Offshore Contracts

Murphy Oil signed four production-sharing contracts with Cameroon’s state oil company, SNH, for the offshore Etinde Exploration, Tilapia, Elombo and Ntem blocks, which cover about 10,578 square kilometers. Murphy will initially own a 100% working interest and operate the blocks, while SNH can take up to a 20% interest in any future development. The exploration program is estimated at roughly $200 million over as many as seven years, but most of the spending—and up to eight exploration wells—depends on optional license extensions. During the initial three-year period, work is limited to seismic-data reprocessing and geological and geophysical studies; no oil production is underway.