In Too Deep? GoM Operators Weigh Sky-high Day Rates

Offshore may be on the rebound, but Gulf of Mexico rigs are hard to find.

(Source: Hart Energy; Fantasyform, iconim/Shutterstock.com)

In early April, crude began flowing through the Murphy Oil Corp.-operated King’s Quay floating production system in the Gulf of Mexico. And there is, as they say, a lot more where that came from. Given the tightness in the rig market, though, it might be increasingly more costly to get it.

King’s Quay, built in South Korea, was delivered in 2021 and moored in January. The 22,000-ton structure is 295 high, or 70 feet taller than Murphy’s 14-story headquarters in Houston’s Energy Corridor. Capacity is 85,000 bbl/d from fields in three Green Canyon blocks: Khaleesi in Block 389, Samurai in Block 432, and Mormont East and Mormont in Block 478. The area is about 130 miles south of Houma, La.

Green Canyon’s production trails its neighbor, the prolific Mississippi Canyon, but it delivered about 101 MMbbl in the last 12 months, compared to Mississippi’s 142.6 MMbbl.

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Joseph Markman

Joseph Markman, senior editor for Hart Energy, covers markets and provides data analysis for all Hart Energy editorial products.