August 10, 2022

Murphy Oil sells stake in King’s Quay floating production system

Murphy Oil has sold its entire 50% stake in the King’s Quay Floating Production System (FPS), currently under construction, to a fund managed by ArcLight Capital Partners.

Scheduled to be commissioned in mid-2022, the King’s Quay FPS will be moored in Green Canyon Block 433 in the deep waters of the Gulf of Mexico, USA.

The sale of the interest in the King’s Quay FPS and associated lateral export pipelines was completed by a subsidiary of Murphy Oil, Murphy Exploration & Production Company USA.

The King’s Quay FPS project and export lateral pipelines will be jointly owned in a joint venture with entities managed by Ridgewood Energy, including ILX Holdings III.

The King’s Quay FPS will have the capacity to process 80,000 barrels of oil per day and 100 million cubic feet of natural gas per day.

He should manage production from the Khaleesi/Mormont and Samurai fields.

Murphy Oil Chairman and CEO Roger W Jenkins said: “In addition to receiving the necessary regulatory permits for our entire drilling campaign to begin on April 1, 2021, we remain on target for first oil. in mid-2022 in the fields of Khaleesi / Mormont and Samurai. .

“By using the proceeds from the King’s Quay FPS transaction to repay our revolver loans, as well as our recent bond issue to extend our debt maturity profile, Murphy has a well-positioned balance sheet with ample liquidity as we are entering the execution phase of this key project. ”

Proceeds from the sale will be used by Murphy to repay borrowings under the $1.6 billion senior unsecured credit facility and for general corporate purposes.

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