Mormont West (GC389) - Murphy

Location

The Mormont West field is located in the Green Canyon block 478 of the deepwater Gulf of Mexico, off the coast of Louisiana.

Project Composition

The project includes the Khaleesi and Mormont fields in Green Canyon blocks 389 and 478, respectively, and the Samurai field in Green Canyon block 432. The Mormont West field is a component of this multi-field development.

Production System

The production from the Mormont West field, along with the other fields in the project, is facilitated through the Murphy-operated King’s Quay floating production system (FPS). This FPS is designed to process up to 85,000 barrels of oil per day and 100 million cubic feet of natural gas per day.

Ownership and Operation

Murphy Oil Corporation operates the King’s Quay FPS and the associated export lateral pipelines. The FPS and pipelines are owned 50% by an affiliate of Third Coast Infrastructure, LLC and 50% by entities managed by Ridgewood Energy Corporation, including ILX Holdings III, LLC.

Production Status

Production from the first two wells in the Khaleesi, Mormont, and Samurai fields began in April 2022, ahead of schedule. The project involves a total of seven wells, with completions operations ongoing for the remaining five wells as of the initial production start. The project was expected to be fully operational by the end of 2022.

Production Capacity

Once fully operational, the project, including the Mormont West field, is expected to produce up to 85,000 barrels of oil and 100 million cubic feet of natural gas per day.

Recent Activities

In 2024, repairs to subsea equipment in the Mormont #2 well were completed, returning the well to production. This was part of Murphy Oil's ongoing activities in the Gulf of Mexico, which also included drilling new wells and maintaining existing infrastructure.

Financial Impact

The production from this project is forecast to generate significant free cash flow, enabling Murphy Oil to target debt reduction of $600 to $650 million in 2022 and up to $1 billion in 2023, while also reviewing its dividend policy.

Operational Challenges

The project faced challenges, including those related to the COVID-19 pandemic, but Murphy Oil managed to achieve first oil on schedule and within budget, highlighting the company's offshore execution capabilities.