Murphy Oil Corp. (NYSE: MUR) on Dec. 3 raised its fourth-quarter and full-year production forecast, following the closing of a deal to form a Gulf of Mexico (GoM) joint venture (JV) with Brazil's state-run Petroleo Brasileiro SA.
The E&P based in El Dorado, Ark., now expects to produce about 176,000 barrels of oil equivalent per day (boe/d) in the fourth quarter, up from the previously expected range of 167,000 to 169,000 boe/d.
Murphy also raised its full-year capex outlook by about 4% to $1.23 billion and said it expects to use some of the cash flow from the new assets to accelerate activity in the oil-rich Eagle Ford region.
Petrobras, as the Brazilian company is known, received $795 million for its deal with Murphy, and will have a 20% stake in the venture.
The JV agreement was previously announced in October, which included both companies producing assets in the GoM. The assets are expected to generate about 75,000 boe/d of production during the fourth quarter, according to a securities filing by Petrobras.
The deal is one of the few Petrobras has been able to pull off since Supreme Court justice Ricardo Lewandowski decided in June that all sales of subsidiaries should go through the Congress. The company is far from reaching its goal of selling $21 billion in assets in 2017 and 2018.
Tudor, Pickering, Holt & Co. and Gibson, Dunn & Crutcher LLP are advisers to Murphy on the JV.
Editor's note: This story is a compilation of Reuters reports.