Murphy Oil completes sale of Gulf of Mexico FPS
Murphy Oil Corp. announced on March 17 that its downstream subsidiary had closed on the sale of its share in a floating production platform that can process oil and natural gas from the Gulf of Mexico.
Murphy Exploration & Production Co has received around $270mn for its 50% stake in the King’s Quay floating production system.
“The King’s Quay FPS and associated laterals will be co-owned in a joint venture with entities managed by Ridgewood Energy Corp, including ILX Holdings III, LLC,” Murphy stated
The FPS will draw on anticipated production from the Khaleesi/Mormont and Samurai fields in the US Gulf of Mexico. It has a design capacity of 80,000 b/d of oil and 100mn ft3/day of natural gas.
Murphy’s assets in the deep waters of the Gulf of Mexico feed onshore facilities that produce gasoline, diesel and other refined products. In January, the company sanctioned its Tupper Montney development in the Gulf of Mexico, which will add more than 750bn ft3 of natural gas reserves to its portfolio.
The federal government estimates US territorial waters in the Gulf of Mexico hold about 24.6bn barrels of oil and 195.2 trillion ft3 of natural gas.