King's Quay Floating Production Unit In Texas Waters
China's Cosco Shipping has delivered the King’s Quay floating production unit to Ingleside, Texas, after a long journey from South Korea.
Cosco said via its social media channels that the King’s Quay FPU was delivered aboard its M/V Xiang An Kou semi-submersible heavy transportation vessel and that the transport of the FPU was more than 14,000 miles.
The platform, which weighs 21,498 metric tons and was built by Hyundai Heavy Industries, will be used for Murphy Oil's offshore oil field development around 175 miles south of New Orleans in the U.S. Gulf of Mexico.
The project was sanctioned in August 2019 and upon the arrival of the FPU, Murphy Oil said that the project would be continuing as planned and that the company was eagerly awaiting first oil expected in the first half of 2022.
The King’s Quay platform will be located in Green Canyon Block 433. It is designed to process up to 80 thousand barrels of oil per day and up to 100 million cubic feet of natural gas per day from the Khaleesi/Mormont and Samurai fields. According to the schedule previously announced by Murphy Oil, Khaleesi/Mormont are planned to go online in the first half of 2022 while Samurai will start production in the second half.
It is worth reminding that Murphy Oil closed the transaction with a fund managed by ArcLight Capital Partners for the sale of Murphy’s entire 50 percent interest in the King’s Quay floating production system and associated export lateral pipelines back in March 2021.
At the time, Murphy said the King’s Quay FPS and associated laterals would be co-owned in a joint venture with entities managed by Ridgewood Energy Corporation, including ILX Holdings III.
The transaction reimbursed Murphy’s previous capital expenditures related to the King’s Quay FPS and associated laterals, and Murphy then claimed that it would use the proceeds to repay borrowings under the $1.6 billion senior unsecured credit facility, with the remainder to be held for general corporate purposes.
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