Murphy Oil Corp. (NYSE: MUR) on Dec. 3 raised its fourth-quarter and full-year production forecast, following the closing of a deal to form a Gulf of Mexico (GoM) joint venture (JV) with Brazil's state-run Petroleo Brasileiro SA.
The E&P based in El Dorado, Ark., now expects to produce about 176,000 barrels of oil equivalent per day (boe/d) in the fourth quarter, up from the previously expected range of 167,000 to 169,000 boe/d.
Murphy also raised its full-year capex outlook by about 4% to $1.23 billion and said it expects to use some of the cash flow from the new assets to accelerate activity in the oil-rich Eagle Ford region.
Petrobras, as the Brazilian company is known, received $795 million for its deal with Murphy, and will have a 20% stake in the venture.
The JV agreement was previously announced in October, which included both companies producing assets in the GoM. The assets are expected to generate about 75,000 boe/d of production during the fourth quarter, according to a securities filing by Petrobras.
The deal is one of the few Petrobras has been able to pull off since Supreme Court justice Ricardo Lewandowski decided in June that all sales of subsidiaries should go through the Congress. The company is far from reaching its goal of selling $21 billion in assets in 2017 and 2018.
Tudor, Pickering, Holt & Co. and Gibson, Dunn & Crutcher LLP are advisers to Murphy on the JV.
Editor's note: This story is a compilation of Reuters reports.
Recommended Reading
TotalEnergies to Invest $400MM in LPG
2024-05-14 - TotalEnergies is investing more than $400 million into LPG to provide more than 100 million people in Africa and Asia access to clean cooking methods by 2030.
Petrobras CEO Prates to Step Down
2024-05-15 - Brazil’s President Luiz Inácio Lula da Silva has requested that Petrobras CEO Jean Paul Prates resign following a dispute over dividend payments.
China Not Continuing Mega Oil-backed Loans to Latin America
2024-06-18 - China, which lent around US$120 billion to Latin America and the Caribbean between 2005-2023, isn’t expected to resume the mega oil-backing loans of yesteryear as the focus turns to debt negotiations.
PrairieSky Adds $6.4MM in Mannville Royalty Interests, Reduces Debt
2024-04-23 - PrairieSky Royalty said the acquisition was funded with excess earnings from the CA$83 million (US$60.75 million) generated from operations.
Golden Pass LNG Likely Delayed After Engineering Firm Lays Off 4,400
2024-06-06 - An analyst estimated Golden Pass LNG’s in-service date could be set back six months and that the export terminal’s owners, Exxon Mobil and Qatar Energy, might try to retain workers formerly employed by Zachry Engineering.