Malo

Murphy Oil Corp. has formed a pact with a unit of Brazil’s Petróleo Brasileiro SA, aka Petrobras, to build a substantial outpost in the U.S. Gulf of Mexico (GOM).

Unocal Corp. and its partners reported a major discovery on Wednesday in the Gulf of Mexico at the St. Malo prospect. Potential volumes from the well “give us the confidence to call this discovery a significant milestone in our Gulf of Mexico deep-water program,” said Mike Bell, Unocal’s vice president for the Deepwater USA unit. The well was drilled to a depth of 29,066 feet (8,859 meters), and it hit more than 450 feet of oil-bearing rock over a 1,400-foot interval, Unocal said. Unocal and its partners spent about $62 million on drilling. The well is in 6,900 feet of water 250 miles southwest of New Orleans. An evaluation of the discovery is planned in early 2004, which will include drilling at least one well, Unocal said. Unocal is the operator and holds a 29% stake. Other stakeholders include Brazilian energy concern Petrobras; Devon Energy Corp.; ChevronTexaco Corp.; EnCana Corp.; Exxon Mobil Corp.; and Eni SpA. Corridor Resources