Murphy Oil is set to announce results from its Bubale-1X exploration well offshore Ivory Coast in mid-April. A successful discovery could potentially be jointly developed with the company's earlier, gas-rich Paon find to the north.

Ivory Coast Exploration Campaign and Development Prospects

The Bubale-1X well is the third in a consecutive campaign, following the Caracal-1X and Civette-1X wells, which encountered hydrocarbons but not in commercial volumes. Bubale-1X is targeting a different geological play—an Upper Cretaceous basin floor turbidite fan. If this well also fails, Murphy will pause operations to reassess data over 12-18 months before deciding on future drilling or an exit from the country.

Paon Discovery and Gas Development Hurdles

The Paon discovery has a thin oil column and a large gas cap comprising about two-thirds of its resources. Murphy submitted a development plan last year but discussions with the government stalled over establishing an economic gas sales structure. The government is now interested in seeing if additional gas resources are found through exploration, such as at Bubale-1X, to justify the significant cost of pipelines from Paon to shore. A discovery at Bubale, whether an oil field with associated gas or a significant gas field, could provide the needed resource boost to make the Paon project economically viable.

Analysis of Previous Well Results

The Civette well tested a shallow interval equivalent to Eni's Calao discovery and found oil in multiple reservoirs, but not enough for a commercial development. The Caracal well targeted an Albian-age carbonate structure equivalent to Eni's Baleine field and encountered a well-developed carbonate but insufficient hydrocarbons. Murphy notes that finding commercial levels of hydrocarbons is challenging, citing Eni's experience of drilling seven dry holes over 15 years before its Baleine discovery.

Entry into Morocco's Gharb Deep Offshore Block

Murphy recently entered the frontier Gharb Deep Offshore block in Morocco, a region with no commercial discoveries to date. The company's regional study identified prospectivity on a large, undrilled four-way structure that others may have discounted. Over the next few years, Murphy will reprocess seismic data to validate its preliminary view. The prospect could be oil-prone, though gas would also have a ready market in Morocco. A decision on drilling is not imminent, with activity likely to occur after 2027.