News Releases

Baker Botts Acts for Murphy Oil Corporation in Strategic Deep Water Oil-Weighted Gulf of Mexico Acquisition


HOUSTON, April 23, 2019 – Baker Botts L.L.P., a leading international law firm today announced that firm client Murphy Oil Corporation’s subsidiary, Murphy Exploration & Production Company – USA (“Murphy”), has entered into a definitive agreement to acquire deep water Gulf of Mexico assets from LLOG Exploration Offshore, L.L.C. and LLOG Bluewater Holdings, L.L.C., (“LLOG”).

“We are thrilled to have acted for our client Murphy Oil in this important transaction,” said Erin Hopkins, a Houston based Partner with Baker Botts. “Not only is this significant transaction an important addition for Murphy Oil to its offshore portfolio it also highlights the renewed interest and confidence in Gulf of Mexico exploration of which Baker Botts is proud to once again be an instrumental part,” added Mr. Hopkins. 

The accretive, cash flow providing Gulf of Mexico assets currently produce approximately 38,000 barrels of oil equivalent per day net (Boepd) and are expected to add approximately 66 million barrels of oil equivalent net (Mmboe) of Proven (1P) reserves and 122 Mmboe of Proven and Probable(2P) reserves. The transaction will have an effective date of January 1, 2019 and is expected to close in the second quarter, subject to normal closing adjustments.

Murphy will pay a cash consideration of $1.375 billion. Additional contingent consideration payments are based on the following: up to $200 million in the event that revenue from certain properties exceeds certain contractual thresholds between 2019 and 2022;  and $50 million following first oil from certain development projects. 


The acquired assets will be fully owned by Murphy and not part of MP Gulf of Mexico, LLC (“MP GOM”), the entity which currently owns all of Murphy’s producing Gulf of Mexico assets.

  • Adds approximately 32,000 to 35,000 net Boepd on an annualized basis for full year 2019 to Murphy’s Gulf of Mexico production, comprised of approximately 60 percent oil
  • Total Murphy Gulf of Mexico full year annualized 2019 production is anticipated to be approximately 85,000 net Boepd, excluding non-controlling interest
  • Increases deep water offshore footprint with the addition of 26 Gulf of Mexico blocks containing seven producing fields, four development projects with future start-ups, in the Mississippi Canyon and Green Canyon areas
  • Expands operated production throughout Gulf of Mexico to 66 percent of daily production, an increase from the current 49 percent, excluding non-controlling interest
  • Lease operating expense for acquired assets of approximately $10 to $12 per barrel of oil equivalent
  • Adds approximately 66 Mmboe of Proven (1P) reserves and 122 Mmboe of Proven and Probable (2P) reserves, of which 72 percent is oil

Baker Botts Lawyers/Office Involved:

Global Projects: Erin Hopkins (Partner, Houston) was the lead lawyer; Luke Burns (Senior Associate, Houston); Alia Heintz (Associate, Houston); Marcella Lunn (Associate, Houston); Casey Polivka (Associate, Houston)

Corporate: David Peterman (Partner, Houston)

Litigation: Bill Kroger (Partner, Houston); Scott Janoe (Partner, Houston)

Tax: Derek Green (Partner, Houston); Ron Scharnberg (Partner, Houston); Matt Larsen (Partner, Dallas); Jordan Hahn (Associate, Dallas)

Baker Botts is an international law firm whose lawyers practice throughout a network of offices around the globe. Based on our experience and knowledge of our clients' industries, we are recognized as a leading firm in the energy, technology and life sciences sectors. Since 1840, we have provided creative and effective legal solutions for our clients while demonstrating an unrelenting commitment to excellence. For more information, please visit

Related Professionals