Brazil’s state-controlled oil company Petrobras is forming a joint venture (JV) with Murphy Oil Corp. (NYSE: MUR) to explore oil and gas fields in the Gulf of Mexico (GoM), the Brazilian company said Oct. 10 in a securities filing.

According to the filing, Petrobras, as the Brazilian company is known, will have a 20% stake in the JV, and Murphy will have 80%. Petrobras will receive $1.1 billion in the transaction, the filing added.

Both companies will contribute with all their producing assets in the GoM for the JV. The JV will have a production of 75,000 barrels of oil equivalent per day during the fourth quarter, according to the filing.

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.

Petrobras-Murphy Gulf Of Mexico JV (Source: Murphy Oil Corp.)

Tudor, Pickering, Holt & Co. and Gibson, Dunn & Crutcher LLP are advisers to Murphy on the JV.

Offshore