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Murphy Oil Draws Crude From Floating Gulf Platform

2 min read

Murphy Oil Corp., the longtime Arkansas petroleum exploration and drilling company now based in Houston, has drawn its first oil from a floating production platform in the deep waters of the Gulf of Mexico, King’s Quay.

The company made the announcement in a news release early Tuesday, saying it had reached the milestone on time and within its budget.

Oil from the production system, in the deep Gulf oilfields known as Khaleesi, Mormont and Samurai, began flowing in the Murphy-operated system, known as King’s Quay FPS. Two wells are operational and the company is completing five others in a seven-well group.

“This has been a strategic project of ours since we acquired the Khaleesi / Mormont assets in mid-2019 and integrated our Samurai discovery into the overall development,” Murphy President and Chief Executive Officer Roger Jenkins said in a company statement.

“Achieving first oil on schedule and within budget, while managing the challenges of the COVID-19 pandemic, illustrates the competitive advantage of our industry-leading offshore execution ability.”

Jenkins expressed pride in the three-year accomplishment and described the road he sees ahead as the war on Ukraine stokes a global energy pricing crisis.

Surging revenue from the production coming online “is forecast to generate significant free cash flow” to facilitate plans to for a targeted debt reduction of $600 million to $650 million this year, and up to $1 billion more the next year, Jenkins said. Simultaneously, the company will be “reviewing our dividend,” he said. “I look forward to the ongoing production growth from the Gulf of Mexico as the remainder of the wells come online throughout 2022.”

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