Murphy Oil reducing Duvernay spend in in 2019

Image: Athabasca Oil Corporation

Arkansas-based Murphy Oil has increased its overall budget but is reducing spending in Canada this year.

The company announced it has allocated $280 million of its $1.25 billion to $1.45 billion 2019 capital budget to the Kaybob Duvernay, Tupper Montney and Placid Montney.

This is down from last year, when the company allocated $300 million to these plays, out of a $1.056 billion total capital program.

Murphy will spend 20 percent of its budget onshore in Canada this year, down from 29 percent in 2018.

The majority of the investment will be in the Kaybob Duvernay, where Murphy is allocating $200 million in its operated joint venture with Athabasca Oil Corporation. This is 25 percent lower than in 2018, the company noted.

The Kaybob Duvernay capital allocation will focus only on lease retention across the play, Murphy said.

The Kaybob Duvernay, Tupper Montney and Placid Montney will deliver 12, 8, and 7 wells online respectively.

These areas are expected to have annual production over 12,000 boe/d an 8 percent increase from 2018.

In the Tupper Montney, production is expected to be approximately 235 MMCFD, in line with 2018 volumes.