Murphy Oil To Book $370 Million 4Q Write-Down On Weak Congo Output

   DOW JONES NEWSWIRES 
 

Murphy Oil Corp. (MUR) said it would book a $370 million write-down in the fourth quarter of last year because output rates and ultimate oil recovery at a field off the shore of the Republic of the Congo were lower than expected.

By comparison, the integrated oil company reported $174.1 million in earnings in the fourth quarter of 2010. In the third quarter, Murphy reported a profit of $406.1 million.

Murphy's exploration program had a slow start last year, according to its chief executive in June. In 2011 and 2012, the company had plans to drill 30 wells to evaluate prospects in Brunei, Iraq and Indonesia, as well as off the coast of the Congo.

A year ago, the company disappointed investors with fruitless exploration results at three holes in Congo.

Recently, Murphy's earnings have surged thanks to climbing oil prices, as well as the company's improvements in its refining and marketing segment.

Shares were down 1.4% at $60.15 after hours.

-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291; [e-mail]