More than a month after selling its assets in Malaysia, Murphy Oil of El Dorado, Arkansas announced a more than $1 billion acquisition of assets in the deep water of Gulf of Mexico.
When Murphy announced its $2.127 billion sale of assets in Malaysia, the company indicated it intended to focus on the Eagle Ford shale play and its operations in the Gulf.
This week, the company said it paid $1.375 billion of that cash for assets from LLOG Exploration Offshore, L.L.C. and LLOG Bluewater Holdings, L.L.C. Those assets produce nearly 38,000 barrels of oil equivalent a day net.
Here’s what it means for Murphy. Its total Gulf of Mexico full year annualized 2019 production could be 85,000 net Boepd. It will increase its deep water offshore footprint with the addition of 26 Gulf of Mexico blocks containing seven producing fields.