PART I Item 1. BUSINESS Summary Murphy Oil Corporation is a worldwide oil and gas exploration and production company. As used in this report, the terms Murphy, Murphy Oil, we, our, its and Company may refer to Murphy Oil Corporation or any one or more of its consolidated subsidiaries. The Company was originally incorporated in Louisiana in 1950 as Murphy Corporation. It was reincorporated in Delaware in 1964, at which time it adopted the name Murphy Oil Corporation, and was reorganized in 1983 to operate primarily as a holding company of its various businesses. For reporting purposes, Murphy’s exploration and production activities are subdivided into four geographic segments, including the United States, Canada, Malaysia and all other countries. Additionally, “Corporate” activities include interest income, interest expense, foreign exchange effects and administrative costs not allocated to the segments. The Company’s corporate headquarters are located in El Dorado, Arkansas. The Company has transitioned from an integrated oil company to an enterprise entirely focused on oil and gas exploration and production activities. The Company completed the sale of the remaining downstream assets in the United Kingdom (U.K.) during 2015 after selling its U.K. retail marketing assets during 2014. At December 31, 2016, Murphy had 1,294 employees. In addition to the following information about each business activity, data about Murphy’s operations, properties and business segments, including revenues by class of products and financial information by geographic area, are provided on pages 22 through 40, 70 thru 72, 103 through 114 and 116 of this Form 10-K report. Interested parties may obtain the Company’s public disclosures filed with the Securities and Exchange Commission (SEC), including Form 10-K, Form 10-Q, Form 8-K and other documents, by accessing the Investor Relations section of Murphy Oil Corporation’s Web site at www.murphyoilcorp.com. Exploration and Production The Company explores for and produces crude oil, natural gas and natural gas liquids worldwide. The Company’s exploration and production management team directs the Company’s worldwide exploration and production activities. This business maintains upstream operating offices in several locations around the world, with the most significant of these including Houston, Texas, Calgary, Alberta, and Kuala Lumpur, Malaysia. During 2016, Murphy’s principal exploration and production activities were conducted in the United States by wholly owned Murphy Exploration & Production Company – USA (Murphy Expro USA), in Malaysia, Australia, Brunei, and Vietnam by wholly owned Murphy Exploration & Production Company – International (Murphy Expro International) and its subsidiaries, and in Western Canada and offshore Eastern Canada by wholly-owned Murphy Oil Company Ltd. (MOCL) and its subsidiaries. Murphy’s hydrocarbon production in 2016 was in the United States, Canada and Malaysia. In May 2016, MOCL acquired a 70% operated working interest in certain Kaybob Duvernay assets and a 30% non- operated working interest in certain liquids rich Placid Montney assets in Alberta. In a separate transaction in April 2016, MOCL completed its divestiture of natural gas processing and sales pipeline assets that support Murphy’s Montney natural gas fields in the Tupper area in northeastern British Columbia. In June 2016, MOCL completed the sale of its 5% undivided interest in Syncrude Canada Ltd. (“Syncrude”), and in January 2017, the Company completed the sale of its Seal heavy oil field in Western Canada. In December 2014, the Company sold 20% of its interests in Malaysia; a further sale of an additional 10% of its interests in Malaysia was completed in January 2015. Unless otherwise indicated, all references to the Company’s oil, natural gas liquids and natural gas production volumes and proved crude oil, natural gas liquids and natural gas reserves are net to the Company’s working interest excluding applicable royalties. Also, unless otherwise indicated, references to oil throughout this document could include crude oil, condensate and natural gas liquids where applicable volumes include a combination of these products. 1 .