[US GOM] King’s Quay FPS

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escveritas
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[US GOM] King’s Quay FPS

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Murphy Oil Corporation Announces Transaction Closing for King’s Quay Floating Production System

HOUSTON--(BUSINESS WIRE)-- Murphy Oil Corporation (NYSE: MUR) announced today that its subsidiary, Murphy Exploration & Production Company – USA, has closed the previously announced transaction with a fund managed by ArcLight Capital Partners, LLC for the sale of Murphy’s entire 50 percent interest in the King’s Quay floating production system (King’s Quay FPS) and associated export lateral pipelines (Associated Laterals) to be located in the Gulf of Mexico. The King’s Quay FPS and Associated Laterals will be co-owned in a joint venture with entities managed by Ridgewood Energy Corporation, including ILX Holdings III, LLC.

This transaction reimburses Murphy’s past capital expenditures of approximately $270 million related to the King’s Quay FPS and the Associated Laterals.

Murphy intends to use the proceeds to repay borrowings under the $1.6 billion senior unsecured credit facility, with the remainder to be held for general corporate purposes. With the previously announced pending redemption of its 2022 Notes, Murphy will have no near-term debt maturities prior to the November 2023 expiration of its revolving credit facility.

The King’s Quay FPS is more than 90 percent built and is scheduled to go into service in mid-2022. King’s Quay FPS is designed to process 80 thousand barrels of oil per day and 100 million cubic feet of natural gas per day, and will handle the anticipated production from the Khaleesi / Mormont and Samurai fields.

“We are pleased to announce the completion of this transaction. Coupled with the receipt of 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 Khaleesi / Mormont and Samurai fields,” said Roger W. Jenkins, President and Chief Executive Officer. “By utilizing the King’s Quay FPS transaction proceeds to repay our revolver borrowings, along with our recent bond issuance to extend our debt maturity profile, Murphy has a well-positioned balance sheet with ample liquidity as we enter the execution phase of this key project.”

ABOUT MURPHY OIL CORPORATION

As an independent oil and natural gas exploration and production company, Murphy Oil Corporation believes in providing energy that empowers people by doing right always, staying with it and thinking beyond possible. Murphy challenges the norm, taps into its strong legacy and uses its foresight and financial discipline to deliver inspired energy solutions. The company sees a future where it is an industry leader who is positively impacting lives for the next 100 years and beyond. Additional information can be found on the company’s website at www.murphyoilcorp.com.

ABOUT ARCLIGHT CAPITAL PARTNERS, LLC

ArcLight Capital Partners, LLC (“ArcLight”) is one of the leading energy infrastructure firms. Founded in 2001, the firm helped pioneer an asset-based approach to investing in the energy sector. ArcLight has invested approximately $23 billion in 111 transactions since inception. Based in Boston, the firm's investment team employs a hands-on value creation strategy that utilizes its in-house technical, operational, and commercial specialists, as well as the firm's 1,500-person asset management affiliate. More information about ArcLight, and a complete list of ArcLight's portfolio companies, can be found at www.arclight.com.
escveritas
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Re: [US GOM] King’s Quay FPS

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InterMoor’s facility in Morgan City, Louisiana is currently fabricating 12 suction piles for the King’s Quay project.

InterMoor have been contracted by Subsea 7 for the fabrication works which are to be completed April 2021.

The project is located in the Gulf of Mexico. The 12 piles will be used to anchor the King’s Quay semi-submersible FPS.

Each pile measures 16 ft diameter by 85 ft long and weighs 164 short tons. Close to 2,000 tons of steel were ordered for the project.

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Re: [US GOM] King’s Quay FPS

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Murphy Oil Corporation Achieves First Oil at King’s Quay Floating Production System in Deepwater Gulf of Mexico
April 12, 2022 06:55 AM Eastern Daylight Time



HOUSTON--(BUSINESS WIRE)--Murphy Oil Corporation (NYSE: MUR) announced today that it has achieved first oil from the Khaleesi, Mormont and Samurai field development project in the deepwater Gulf of Mexico, as production has begun flowing through the Murphy-operated King’s Quay floating production system (King’s Quay FPS).

The project is comprised of the Khaleesi / Mormont fields in Green Canyon blocks 389 and 478, respectively, and the Samurai field, located in Green Canyon Block 432. Completions operations are ongoing for the remaining five wells in the seven-well project.

“This has been a strategic project of ours since we acquired the Khaleesi / Mormont assets in mid-2019 and integrated our Samurai discovery into the overall development. Achieving first oil on schedule and within budget, while managing the challenges of the COVID-19 pandemic, illustrates the competitive advantage of our industry-leading offshore execution ability. I am proud of our team’s accomplishments these past three years with the fabrication and installation of the King’s Quay FPS and our subsea flowline systems, as well as drilling and completing the wells,” said Roger W. Jenkins, President and Chief Executive Officer. “The production coming online is forecast to generate significant free cash flow, which will allow us to continue to delever with $600 to $650 million of targeted debt reduction this year and the optionality of up to $1 billion in 20231, while simultaneously reviewing our dividend. I look forward to the ongoing production growth from the Gulf of Mexico as the remainder of the wells come online throughout 2022.”

Murphy’s subsidiary, Murphy Exploration & Production Company – USA, operates the King’s Quay FPS and associated export lateral pipelines, which are owned 50 percent by an affiliate of Third Coast Infrastructure, LLC and 50 percent by entities managed by Ridgewood Energy Corporation, including ILX Holdings III, LLC. The King’s Quay FPS is designed to process 85 thousand barrels of oil per day and 100 million cubic feet of natural gas per day.
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