Murphy and Petrobras team up offshore USA

HOUSTON, October 11, 2018 – US independent Murphy Oil and Brazilian NOC Petrobras have entered into an 80-20 joint venture involving all their production assets in the deepwater US Gulf of Mexico, international media reported Wednesday.

The partnership aims to reach a production target 75,000 boepd by Q4, with output coming from 17 fields.

“The addition of high-quality, oil-weighted assets such as the St Malo field complements our existing Gulf of Mexico portfolio,” Murphy CEO Roger Jenkins said. “We expect the production from this joint venture to generate meaningful, incremental, free cashflow that provides us with options for future capital allocation.”

Under the terms of the deal, Petrobras could receive a total of USD 1.1 billion in cash and carry from Murphy. The payment will go towards reducing the Brazilian company’s massive debt.

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