Murphy Oil Corporation (NYSE: MUR) announces that a joint venture ("JV") led by its Mexican subsidiary, Murphy Sur, S. de R.L. de C.V., was the high bidder and is expected to be awarded Block 5 during Mexico's fourth phase, round one deepwater auction. Under the terms of the JV, Murphy will be the operator with a 30 percent working interest ("WI"), together with PC CARIGALI MEXICO OPERATIONS, S.A. DE C.V., a wholly-owned subsidiary of PETRONAS (23.34 percent WI), Ophir Energy (23.33 percent WI) and Sierra Offshore Exploration (23.33 percent WI).

Block 5 is located in the deepwater Salinas basin covering approximately 2,600 square kilometers (1,000 square miles), and water depths in this block range from 700 to 1,100 meters (2,300 to 3,600 feet). The initial exploration period for the license is four years and includes a work program commitment of one well.