Murphy Oil to Form Venture with Petrobras for Gulf of Mexico Oil Production
October 10 2018 - 6:40PM
Dow Jones News
By Bowdeya Tweh
Murphy Oil Corp. (MUR) and Petroleo Brasileiro SA (PBR) plan to
team up to conduct deepwater oil exploration in the Gulf of
Mexico.
Murphy Exploration & Production Co. - USA and Petrobras
subsidiary Petrobras America Inc. will contribute their current
Gulf of Mexico assets to the joint venture, Murphy Oil said
Wednesday in a statement.
Murphy will own about 80% of the venture while Petrobras America
will own about 20%, with Murphy overseeing the venture. Murphy said
it will pay $900 million in cash to Petrobras America in connection
with the venture. Murphy said Petrobras can earn up to $150 million
if certain price and production thresholds are exceeded between
2019 and 2025.
The deal excludes exploration blocks from both companies, with
the exception of Petrobras America's blocks that hold deep
exploration rights.
Write to Bowdeya Tweh at bowdeya.tweh@wsj.com
(END) Dow Jones Newswires
October 10, 2018 18:25 ET (22:25 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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