Offshore staff
EL DORADO, Arkansas – Murphy Oil Corp.’s Gulf of Mexico production averaged 82,000 boe/d in 4Q 2019, the company revealed in its latest results statement.
During 4Q, the Nearly Headless Nick well in Mississippi Canyon block 387 came online with a peak rate of about 6,900 boe/d. The Chinook #5 well workover in Walker Ridge block 425 was completed with a peak rate of nearly 13,000 boe/d. The Medusa A6 well in Mississippi Canyon block 582 came online at a peak rate of more than 1,600 boe/d.
A subsea equipment malfunction at the three-well Neidermeyer field in Mississippi Canyon block 209 caused a five-day impact. One well remains down during equipment repairs, which are expected to be completed by 2Q 2020.
As for the Khaleesi / Mormont and Samurai field development projects, the company recently awarded subsea engineering and construction contracts.
Also, Murphy has entered into a memorandum of understanding (MOU) with ArcLight Capital Partners, LLC, a Boston-based energy infrastructure investment manager, regarding its 50% interest in the King’s Quay FPS in the Gulf of Mexico.
Under the terms of the MOU, Murphy and an affiliate of ArcLight will negotiate definitive agreements detailing the assumption of certain future capital requirements with respect to the King’s Quay FPS and associated export pipelines construction, ownership and operation, as well as the reimbursement of Murphy’s previous capital outlay, including about $125 million spent in 2019.
Closing of the transaction is anticipated in late 1Q to early 2Q 2020.
The remaining 50% of the King’s Quay FPS will continue to be owned by Ridgewood King’s Quay, LLC and ILX Prospect King’s Quay, LLC, both of which are managed by Ridgewood Energy Corp.
The King’s Quay FPS is scheduled to go into service in mid-2022, with Murphy serving as operator. Designed to process up to 80,000 b/d of oil and up to 100 MMcf/d of gas from the Khaleesi / Mormont and Samurai fields, the facility will be in Green Canyon block 433.
In addition, Murphy has allocated about $480 million, or 33%, of its 2020 capex to its offshore assets, with 30% planned for the Gulf of Mexico and the remaining 3% for Canada.
The company said its Gulf of Mexico capital will be used for both development drilling and field development projects, including the three-well rig program at Front Runner, activities related to the Khaleesi / Mormont and Samurai developments, St. Malo waterflood, planned well workovers, and various non-operated projects.
The Cascade #4 well workover in Walker Ridge block 250 is scheduled to be completed and placed online in the first half of 2020, as well as the Dalmatian 134 #2 well in Desoto Canyon block 134.
Offshore Canada spending is budgeted for development drilling.
01/31/2020
