The first of the approved projects is the King’s Quay floating production system facility
Murphy Oil intends to boost its business with the development approval of three Gulf of Mexico projects (Credit: C Morrison - Pixabay)
US-based petroleum and natural gas exploration company Murphy Oil has approved three additional projects in the Gulf of Mexico.
The first of the approved projects is the King’s Quay floating production system (FPS) facility.
Anchored by the Khaleesi/Mormont and Samurai developments, it will be equipped to receive and process up to 80 thousand barrels per day of crude oil .
The company also approved the Khaleesi/Mormont field development, with seven subsea wells, of which four were previously drilled, and infrastructure tie-back to King’s Quay FPS.
Murphy Oil also decides to ahead with Samurai Field Development
Murphy Oil said it has also decided to move ahead with the Samurai Field Development, with four subsea wells and tie-back to King’s Quay FPS. It is located in Green Canyon Block 432 in the Gulf of Mexico.
Murphy Oil president and chief executive officer Roger Jenkins said: “Our planned execution on our new Gulf of Mexico revitalised asset base continues. These projects have outstanding returns offering high-margin production and a free cash flow runway going forward.
“We and a partner have sanctioned a new midstream FPS asset, King’s Quay, to anchor our two developments. This new FPS asset could be easily monetised, and we are currently evaluating all our options.
“We forecast first production from the FPS along with our two new fields in mid-2022. Initial production from these assets is expected to exceed 30,000 BOEPD net at first oil.”
The latest approval follows the firm’s acquisition of deepwater assets in the Gulf of Mexico from LLOG Exploration Offshore and LLOG Bluewater Holdings (LLOG) completed in June 2019.
As per the deal signed in April 2019, Murphy Oil through its wholly owned subsidiary Murphy Exploration & Production Company USA acquired the oil fields to strengthen its offshore footprint.
Murphy Oil said that the acquired assets will boost its deep water offshore presence through the addition of 26 blocks contained in the Mississippi Canyon and Green Canyon areas.