Malaysia: deep-water promise

Murphy Oil opened up new prospects for deep-water exploration in Malaysia in 2002, with its large Kikeh oil discovery. Although a border dispute with Brunei continues to delay exploration work in some deep-water areas, prospects remain encouraging in Malaysia and elsewhere in the region. Writes Tom Piperson

ALMOST TWO years ago, Malaysia's first deep-water oil discovery—containing an estimated 400m-0.7bn barrels of recoverable reserves—opened up prospects for deep-water exploration and production (E&P) in Malaysia and nearby countries. Exploration is continuing and prospects remain good, although further major discoveries have yet to materialise. "The discovery of Kikeh changed the general perception that this was a gas-prone area," says Helen Munro, an analyst at Wood Mackenzie. "It gave Malaysia's deep water a new lease of life. Murphy Oil is continuing to explore and it is hopeful further discoveries will be made." Having announced dry holes at the Bagang and Bliais prospects, Murphy str