U.S. oil firm Murphy Oil Corporation has started oil production from the Khaleesi, Mormont, and Samurai field development project in the deepwater section of the U.S. Gulf of Mexico.
Production has started flowing this month from the Murphy-operated King’s Quay floating production system, designed to process up to 80 thousand barrels of oil per day and up to 100 million cubic feet of natural gas per day.
The project, sanctioned in August 2019, consists 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, Murphy Oil said Tuesday.
King's Quay location in the U.S Gulf of Mexico - Credit: Murphy Oil Corporation
Roger W. Jenkins, President and Chief Executive Officer said: “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,”
"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 2023, 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.”
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