Offshore staff
EL DORADO, Arkansas – Murphy Exploration & Production Co. - USA has closed the strategic deepwater Gulf of Mexico joint venture with Petrobras America Inc., for net cash consideration of about $795 million.
The transaction has an effective date of Oct. 1, 2018.
Murphy’s net cash consideration, after adjustments provided for in the contract, of approximately $795 million is funded by $470 million of cash-on-hand with the remaining $325 million being drawn on the company’s new senior credit facility.
Under the terms of the transaction, both companies contributed all their current producing Gulf of Mexico assets to the joint venture company, MP Gulf of Mexico, LLC (MPGOM).
MPGOM will be owned 80% by Murphy and 20% by PAI, with Murphy overseeing the operations. The company expects to account for the PAI share of this transaction as a noncontrolling interest.
Roger W. Jenkins, Murphy Oil president and CEO, said: “We are excited to close this transformational joint venture and form a strategic partnership with Petrobras. Our newly expanded Gulf of Mexico portfolio is consistent with Murphy’s long-term vision of increasing profitable oil-weighted production in an area where we have a long history of success. We plan to allocate a portion of the cash flow generated by the joint venture to accelerate further high-value oil-weighted activity in our Eagle Ford Shale asset.”
01/14/2019
