[StBernard] MURPHY OIL ANNOUNCES AGREEMENT IN PRINCIPLE TO SETTLE HURRICANE KATRINA OIL SPILL CLASS ACTION LITIGATION

[Westley Annis]

MURPHY OIL ANNOUNCES AGREEMENT IN PRINCIPLE TO SETTLE HURRICANE KATRINA OIL
SPILL CLASS ACTION LITIGATION
September 25, 2006
EL DORADO, Arkansas, September 25, 2006 - Murphy Oil Corporation (NYSE:MUR)
announced today that its wholly owned subsidiary, Murphy Oil USA, Inc.
(Company), has entered into a Memorandum of Understanding with the
Plaintiffs' Steering Committee (PSC) to settle the consolidated class action
litigation pending in U.S. District Court for the Eastern District of
Louisiana. The litigation involves an oil spill from a crude oil storage
tank at the Company's Meraux (St. Bernard Parish), Louisiana refinery that
occurred in the wake of Hurricane Katrina. 

Under the terms of the Memorandum, all residential and commercial properties
in the Class Area will receive a cash payment pursuant to a fair and
equitable allocation subject to Court approval following recommendations by
a Court-appointed Special Master. The Company believes these payments will
be covered by insurance.

The entire Class Area will have the benefit of a comprehensive remediation
program as approved by the Court and regulatory bodies and to be overseen by
regulatory authorities.

Additionally, the company has agreed to make bona fide offers to purchase,
at fair market value, all residential and business properties located on the
first four streets west of the refinery and north of St. Bernard Highway up
to the Twenty Arpent Canal.


The proposed settlement is subject to approval of the U.S. District Court
for the Eastern District of Louisiana, which has scheduled a hearing for the
matter on October 10, 2006.

The forward-looking statements reflected in this release are made in
reliance upon the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. No assurance can be given that the results
discussed herein will be attained, and certain important factors that may
cause actual results to differ materially are contained in Murphy's January
15, 1997 Form 8-K report on file with the U.S. Securities and Exchange
Commission.