Murphy Oil drills second oil discovery offshore Vietnam

The U.S.-based Murphy Oil has made an oil discovery at the Lac Da Hong-1X (Pink Camel) well in the Cuu Long Basin offshore Vietnam, which is the second discovery in the company's current Vietnam exploration program.

"This discovery enhances the value of Murphy's growing Vietnam business when coupled with our nearby Lac Da Vang (Golden Camel) development and our recent Hai Su Vang (Golden Sea Lion) discovery," stated Eric Hambly, president and CEO of Murphy Oil, in a corporate release on May 7.

During Q1, Murphy drilled an oil discovery at the Lac Da Hong-1X (Pink Camel) exploration well in Block 15-1/05 in the Cuu Long Basin, located 34 miles offshore Vietnam and three miles southwest of Murphy’s Lac Da Vang (Golden Camel) development.

The well was drilled to total depth of 13,616 feet in 151 feet of water. Lac Da Hong-1X (Pink Camel) encountered 106 feet of net oil pay from one reservoir.

Murphy achieved a maximum flow rate of 2,500 BOPD. Additional testing showed high-quality oil with an API gravity of 38 degrees.

Murphy’s subsidiary, Murphy Cuu Long Bac Oil Co., Ltd., is the operator of Block 15-1/05 with 40% working interest. PetroVietnam Exploration Production Corporation Ltd. (PVEP), a subsidiary of state-owned giant Petrovietnam, holds 35% working interest and SK Earthon Co., Ltd. holds the remaining 25%.

Hambly added that the Lac Da Hong (Pink Camel) discovery, combined with the recently announced Hai Su Vang (Golden Sea Lion) discovery, deepens the company's understanding of the resource potential in its Cuu Long Basin blocks.

"Each of these discoveries validates our exploration strategy and helps optimize future development plans in the Cuu Long Basin. We look forward to working with our partners to evaluate the results from this latest discovery and the future development of our Vietnam business," he noted.

During Q1, Murphy initiated construction of the floating storage and offloading vessel for the Lac Da Vang (Golden Camel) field development project.

Additionally, early in Q2, the company achieved the significant milestone of 1 million work hours with zero Lost Time Injuries on the platform construction for the Lac Da Vang (Golden Camel) field development project.

“Looking forward, we remain focused on progressing our onshore, Gulf of America and Vietnam development plans, creating additional value to generate excess cash flow for further shareholder returns,” Hambly added.

In late January 2025, Murphy Oil Corporation said it is set to allocate $110 million of capital expenditure (CAPEX) for offshore operations in Vietnam in 2025.

In its Q4/2024 performance review, Murphy Oil noted the figure includes $20 million for Lac Da Vang development drilling and $90 million designated for Lac Da Vang field development activities.

Murphy Oil Corporation is an independent oil and natural gas company with a multi-basin onshore and offshore portfolio and significant exploration opportunities.

The company’s current operations include extensive inventory located onshore in the Eagle Ford Shale, Tupper Montney and Kaybob Duvernay, as well as offshore in the Gulf of America and Canada.

Murphy said it also "strives to create long-term shareholder value through offshore exploration and development in the Gulf of America, Vietnam and Côte d’Ivoire".

According to the U.S. firm’s Q1/2025 Earnings Results, Murphy had approximately $1.5 billion of liquidity on March 31, 2025, comprised of $1.15 billion undrawn under the $1.35 billion senior unsecured credit facility and $393 million of cash and cash equivalents, inclusive of NCI.

As of March 31, 2025, Murphy’s total debt of $1.48 billion was comprised of long-term, fixed-rate notes and $200 million drawn under the senior unsecured credit facility. The fixed-rate notes had a weighted average maturity of 9.1 years and a weighted average coupon of 6.1 percent.