Murphy Oil To Buy LLOG Deepwater Gulf Of Mexico Assets For Up To $1.6 Billion

[Editor's note: This story was updated at 1:49 p.m. CDT April 23.]

After its recent exit from Malaysia in an all-cash transaction valued at over $2 billion, Murphy Oil Corp. continues to transform with an April 23 acquisition of deepwater Gulf of Mexico (GoM) assets from LLOG Exploration Offshore LLC and its affiliates.

Murphy Oil, based in El Dorado, Ark., said it agreed to acquire the LLOG assets for roughly $1.4 billion in cash plus up to $250 million in contingency payments between 2019 and 2022. The company will fund its acquisition through a combination of cash on hand and borrowing from its $1.6 billion revolver.

LLOG Exploration is one of the largest privately-owned E&P companies in the U.S. Founded in 1977, the company is based in Covington, La., with additional offices in Scott, La., and Houston.