Murphy Oil cuts production forecasts

Murphy Oil Corp., a U.S. oil producer and refiner that operates filling stations at more than 850 Wal-Mart Stores Inc. locations, cut its first-quarter and 2006 production forecasts to about 110,000 barrels of oil equivalent a day. The cut is mostly because of the Terra Nova field, located offshore Newfoundland, which has "experienced equipment issues" and an unscheduled field shutdown combined with an "extended turnaround" in the third quarter, the company said yesterday in a statement. The producer expects Terra Nova, in which it holds a 12-per-cent stake, will be shut down owing to equipment problems for three months in the latter half of 2006, according to Murphy's annual report filed yesterday. Murphy also expects lower production in the Gulf of Mexico after last year's hurricanes shut output from offshore facilities. MUR (NYSE) rose 30 cents (U.S.) to $47.79. Bloomberg