MURPHY OIL AWARDS KIKEH AREA DEVELOPMENT CONTRACT

EXHIBIT 10.5

Immediately

MURPHY OIL AWARDS KIKEH AREA DEVELOPMENT CONTRACT

El Dorado, Arkansas, January 31, 2005 – Murphy Oil Corporation announced that its wholly owned subsidiary, Murphy Sabah Oil Co., Ltd. has awarded a major contract for the Kikeh Area Field Development.

The contract for the floating, production, storage and offloading (FPSO) vessel was awarded to Malaysia International Shipping Corporation Berhad (MISC). Single Buoy Moorings Inc., a fully owned subsidiary of IHC Caland N.V., is the technical partner in the venture to MISC. The contract will include both the charter of the vessel as well as the operation and maintenance work. The contract has a firm duration of eight years and includes options for five subsequent three-year extension periods. The FPSO will have the facilities to process 120,000 barrels of oil per day, and will be fitted with high capacity water and gas treatment facilities with associated reinjection plants. The FPSO will have an oil storage capability in excess of 1.5 million barrels of oil. The unit will be designed to remain in the field for 20 years. The FPSO is scheduled to be delivered to the Kikeh f