Murphy Oil Corporation Announces Strategic Entry Into Deep Water Brazil

Source Press Release
Company Murphy Oil CorporationQueiroz Galvao 
Tags Asset Deals, Deals, Exploration, Upstream Activities
Date September 27, 2017

Murphy Oil Corporation (NYSE: MUR) today announced that its wholly owned Brazilian subsidiary, Murphy Brazil Exploração E Produção De Petróleo E Gás Ltda. (“Murphy”), has entered into a farm-in agreement with  Queiroz Galvão Exploração e Produção S.A. (“QGEP”) to acquire a 20 percent working interest (“WI”) in Blocks SEAL-M-351 and SEAL-M-428, located in the deep water Sergipe-Alagoas Basin, offshore Brazil. QGEP will retain a 30 percent WI in the blocks, and in a related but separate transaction,  ExxonMobil Exploração Brasil Ltda. (an affiliate of  ExxonMobil Corporation) has farmed into the remaining 50 percent WI as the operator. The blocks are located 80 to 100 kilometers (50 to 60 miles) off the coast of Brazil and cover a total area of approximately 1,500 square kilometers (580 square miles).

In addition, Murphy and its partners are the high bidder in Brazil’s Round 14 lease sale for Blocks SEAL-M-501 and SEAL-M-503, which are adjacent to SEAL-M-351 and SEAL-M-428. ExxonMobil will operate and the partners will maintain the same WI in each of these blocks. These new acreage positions are near several major Petrobras discoveries.

“The entry into these four blocks is consistent with Murphy’s long-term strategy of adding to our focused offshore exploration portfolio at the bottom of the cycle. We look forward to working with an experienced Brazilian exploration and production company like QGEP, as well as a world-class operator in ExxonMobil,” stated Roger W. Jenkins, President and Chief Executive Officer.

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