Murphy Oil Corporation 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.”
Khaleesi / Mormont and Samurai Field Partners
| Partner | Khaleesi / Mormont | Samurai |
|---|---|---|
| Murphy Oil Corporation* | 34.00% | 50.00% |
| Ridgewood* | 17.00% | 50.00% |
| Red Willow Offshore, LLC | 22.50% | - |
| ILX Prospect* | 11.33% | - |
| Ridgewood Rialto Holdings LLC | 5.67% | - |
| HEDV KLM, LLC | 5.50% | - |
| Total | 100.00% | 100.00% |
| * Parent entity of legal subsidiary |
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.
Further detail on the King’s Quay FPS and Khaleesi, Mormont, Samurai field development project can be found in the presentation here.
1 Assumes $85 WTI oil price in FY 2022, $75 WTI oil price in FY 2023 and current production guidance
