RSS   Newsletter   Contact   Advertise with us
Post Online Media
Post Online Media Magazine

Murphy Oil closes $795 million Gulf of Mexico joint venture

Share on Twitter Share on LinkedIn
Staff Writer | December 3, 2018
Murphy Oil Corporation
America   MPGOM will be owned 80 percent by Murphy

Murphy Oil Corporation announced that its wholly owned subsidiary, Murphy Exploration & Production Company - USA, has closed the previously announced strategic deep water Gulf of Mexico joint venture with Petrobras America (PAI), a subsidiary of Petrobras for net cash consideration of approximately $795 million.

The transaction has an effective date of October 1, 2018.

Murphy’s net cash consideration, after adjustments provided for in the contract, of approximately $795 million is funded by $470 million of cash-on-hand with the remaining $325 million being drawn on the company’s new senior credit facility.

Under the terms of the transaction, both companies contributed all their current producing Gulf of Mexico assets to the joint venture company, MP Gulf of Mexico (MPGOM). MPGOM will be owned 80 percent by Murphy and 20 percent by PAI, with Murphy overseeing the operations. The company expects to account for the PAI share of this transaction as a noncontrolling interest.

As a result of the transaction and other operational events, Murphy is providing updated fourth quarter and full year production guidance. The company expects fourth quarter production to be approximately 176,000 barrels of oil equivalent per day (BOEPD) and full year production to be approximately 171,000 BOEPD, net to Murphy’s interest.

Murphy also announced today the closing of its new $1.6 billion five-year senior unsecured revolving credit facility. Effective November 28, 2018, the new revolving credit facility replaces the previous $1.1 billion unsecured facility.


What to read next
POST Online Media Contact