Murphy sub closes GoM joint venture

Murphy Oil Corp.’s wholly-owned subsidiary, Murphy Exploration & Production Company-USA, has closed a previously announced deal to form a strategic deep water Gulf of Mexico (GoM) joint venture with Petrobras America for net cash consideration of approximately $795M. The transaction has an effective date of Oct. 1, 2018. Murphy’s net cash consideration is funded by $470M of cash-on-hand with the remaining $325M being drawn on the company’s new senior credit facility. Under the deal, both companies contributed all of their current producing GoM assets to the joint venture company, MP Gulf of Mexico, LLC (MPGOM). Eighty percent of MPGOM will be owned by Murphy; and 20 percent by PAI. Murphy will oversee operations. The company expects to account for the PAI share of the transaction as a non-controlling interest. (Source: Marine Technology News 12/04/18) ME&P-USA, a subsidiary of integrated oil giant Murphy Oil, is engaged in oil and gas exploration and production, primarily in the Eagle Ford shale play in South Texas, as well as in oil and gas fields located in the Gulf of Mexico and onshore in Louisiana. HQ is located in Houston with offices in Amelia and Gueydan, La.