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Lucas Herbert has surged past Cameron Smith to grab a two-shot lead over his superstar LIV Golf teammate after the second round of the NSW Open at Murray Downs.

Lucas Herbert has upstaged his superstar LIV Golf teammate Cameron Smith to take the clubhouse lead halfway through the NSW Open on the Murray River.

As Smith wobbled down the stretch on Friday, Herbert cashed in with a brilliant back-nine blitz to seize a two-shot lead at Murray Downs Golf and Country Club.

With three birdies and a miracle eagle after ambling to the turn with eight straight pars, Herbert fired a second-round six-under-par 64 to surge ahead of his celebrated playing partner.

Feeling right at home on the Victorian border, Ballarat-born Herbert is 12 under through 36 holes in pursuit of his first big win in Australia.

Smith is his closest pursuer at 10 under but the first-round leader will rue three painful lip-outs and two other near-misses on the greens in his 67.

The 2022 British Open champion still enjoyed the outright lead before making a mess of the par-5 16th hole as Herbert turned the tournament on its head in a three-shot swing.

As Smith chalked up a bogey, Herbert produced a spectacular blind second shot over the trees, then rattled in the long putt for eagle to send the gallery into a frenzy.

He had the chance to go further in front, only to miss a two-foot birdie putt at the last.

Two months after combining to help Ripper GC to team glory in the Saudi-backed LIV Golf league, Smith and Herbert seem likely to play together again on Saturday's moving day.

New Zealander Josh Geary was safely in the clubhouse in third spot, three shots behind Herbert and one behind Smith, following a second-round 65.