Murphy Oil subsidiary Murphy Exploration & Production Company and Petrobras America have closed a deal to form a Gulf of Mexico joint venture.
Both companies have contributed all their current producing Gulf of Mexico assets to the joint venture company, MP Gulf of Mexico, which will be owned 80% by Murphy and 20% by Petrobras.
Murphy will be overseeing the operations, which will increasing its total Gulf of Mexico production to around 60,000 net barrels of oil equivalent per day.
“We are excited to close this transformational joint venture and form a strategic partnership with Petrobras. Our newly expanded Gulf of Mexico portfolio is consistent with Murphy’s long-term vision of increasing profitable oil-weighted production in an area where we have a long history of success. We plan to allocate a portion of the cash flow generated by the joint venture to accelerate further high-value oil-weighted activity in our Eagle Ford Shale asset,” stated Roger Jenkins, president and CEO of Murphy Oil.