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Posts Tagged ‘Murphy Oil’

The 2025 Gulf of America Safety Compliance Leaders are ranked below according to the number of incidents of non-compliance (INCs) per facility inspection. To be ranked, a company must:

  • operate at least 2 production platforms
  • have drilled at least 2 wells during the year
  • average <1 INC for every 5 facility inspections (0.20 INCs/facility inspection). This is a higher standard (fewer INCs) than in previous years.
  • average <1 INC for every 10 inspections (0.1 INCs/inspection). Note that each facility inspection may include multiple types of inspections (e.g. production, pipeline, pollution, Coast Guard, site security, etc). In 2025, there were on average 3.2 inspections for every facility inspection.
operatorWCSIFSItotal INCsfacility inspINCs/
fac insp
inspINCs/
insp
Shell381122310.055570.02
Chevron1080182600.077720.02
Oxy26191330.073250.03
BP820101220.083040.03
Murphy6208700.111770.05
Cantium574161210.134880.03
Gulf-wide 202581544584134431790.42102180.13
Gulf-wide 2024957398109146431330.47106640.14
Notes: Numbers are from published BSEE data; INC=incident of non-compliance; W=warning INC; CSI=component shut-in INC; FSI=facility shut-in INC; INCs/fac insp= INCs issued per facility inspection; each facility-inspection may include multiple types of inspections (e.g. production, pipeline, pollution, Coast Guard, site security, etc), in 2025, there were on average 3.2 inspections for every facility inspection

Criteria: This ranking is based solely on BSEE’s published compliance data. The absence of timely public information on safety incidents (e.g. injuries, fires, pollution, gas releases, property damage) precludes inclusion of these data. Although Panel Investigations are conducted for fatalities, serious injuries, and significant pollution events, the last panel report was for an incident on 3/25/2022, and no information is available for any ongoing investigations. BSEE District offices investigate the more significant incidents that don’t qualify for panel investigations. These District Investigation reports are more timely, but some are not issued within 90 days of the incident. The District reports will be reviewed later in the year. Note that there were no occupational fatalities in 2025.

Observations:

  • The overall inspection and INC results for 2025 were similar to those for 2024.
  • The top companies performed better in 2025 than in 2024. In 2024, only 2 companies had INC/facility inspection ratios of <0.10 and only 3 had ratios <0.15. In 2025, all 6 of the performance leaders had ratios <0.15.
  • All 6 of these top companies were also on the 2024 top performers list.
  • Shell’s total INCs and INCs/facility inspection decreased by 73% and 78% respectively vs. 2024
  • Cantium, which operates 85 shallow water platforms, has demonstrated that a shelf operator can be an outstanding safety performer. Cantium’s total INCs and INCs/facility inspection decreased by 50% vs. 2024
  • Should fewer inspections be conducted at facilities that have such low INC rates? On the one hand, fewer inspections would reduce regulatory costs and transportation risks. On the other hand, there are benefits from BSEE inspection visits besides compliance enforcement. These include direct communication with offshore workers (including contractors) regarding regulatory policies and safety practices, witnessing safety tests, evaluating new technology, and assessing management system implementation and corporate culture at the facility level.
  • Absent specific details on the violations, no attempt was made to weight the INCs. Although shut-in INCs are generally considered to be more significant than warnings, that is not always the case. For example, a component shut-in INC for a safety device that is marginally out of tolerance and is corrected on the spot may be less serious than a warning that is indicative of structural deterioration, poor maintenance, or organizational shortcomings.

Not meeting one of the activity level requirements, but nonetheless noteworthy, were the compliance records of LLOG and BOE Exploration & Production (younger than and unrelated to the BOE blog 😀). See their impressive results below:

operatorWCSIFSItotal INCsfacility inspINCs/
fac insp
inspINCs/
insp
BOE0011330.03780.01
LLOG1113290.10780.04

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Shell topped the list followed by Chevron, Oxy/Anadarko, bp, Murphy, and Cantium.

Details and observations will be posted tomorrow.

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Diamond Ocean Blackhawk is drilling MC 40 well for Anadarko

Following up on last year’s deepwater diligence post, 4 recent deepwater exploratory wells (table below) were spudded within 4.5 years of the effective date of their leases.

Particularly noteworthy is Anadarko’s well on newly acquired Mississippi Canyon Block 40, which was spudded only 18 months after the lease was acquired. Everything has to be in place for such an outcome: corporate priority, data gathering and analysis, well plan, permitting, and rig contract/availability.

The well was apparently a high priority not just for Anadarko, but also for Chevron and Murphy. MC 40 was acquired by Chevron (bidding alone) at Sale 257 for $4,409,990, the third highest bid at the sale. Murphy had submitted a losing bid of $3 million, but was assigned a 33% share of the lease by Chevron on 12/15/2023. One month earlier, Anadarko had been assigned a 33% interest and became lease operator.

Interestingly, BOEM’s Mean Range of Value (MROV) estimate for the block was only $576,000, so the three companies are seeing something that BOEM doesn’t. We’ll see how this plays out.

According to rig tracker data the Ocean Blackhawk is still on location at MC 40. Per BSEE permitting data, the well was approved to be bypassed in mid-May.

Lease No.BlockOperatorWater Depth
(feet)
lease date
spud date
elapsed time
(months)
EP received
EP approved
G37199MC 40Anadarko470410/1/2022
4/9/2024
1810/20/20233/7/2024
G36924AT 453Chevron56987/1/2020
1/23/2024
429/25/2023
11/21/2023
G36676AT 138Murphy34447/1/2019
11/14/2023
5210/3/2023
11/7/2023
G36558MC 801Shell33031/27/2024
7/1/2019
548/6/2021
1/19/2023
EP= Exploration Plan

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The Honor Roll companies for 2022 (listed alphabetically) are Anadarko (Oxy), bp, Cantium, Chevron, Contango, Hess, LLOG, Murphy, and Shell.

Our criteria:

  • Must average <0.3 incidents of noncompliance (INCs) per facility-inspection.
  • Must average <0.1 INCs per inspection-type. (Note that each facility-inspection may include multiple types of inspections (e.g. production, pipeline, pollution, Coast Guard, site security, etc). On average, each facility-inspection included 3.25 types of inspections in 2022. Here is a list of the types of inspections that may be performed.)
  • Must operate at least 3 production platforms and have drilled at least one well (i.e. you need operational activity to demonstrate compliance and safety achievement).
  • May not have a disqualifying event (e.g. fatal or life-threatening incident, significant fire, major oil spill). Due to the extreme lag in updates to BSEE’s incident tables, investigation and news reports are used to make this determination.
  • Pacific and Alaska operations will be considered separately.
oil (million bbls)gas (BCF)
Shell145.8163.5
bp82.457.1
Chevron79.445.2
Anadarko59.650.8
Murphy28.145.5
LLOG19.634.3
Hess17.939
Cantium3.95.3
Contango0.023.5
2022 production through Oct.

Mid-Year 2022 review

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Murphy has announced first oil from the King’s Quay floating production unit in the Gulf of Mexico. The initial production rate has not been released, but the facility is expected to process up to 80,000 BOPD and 100 million cu ft of gas per day from subsea wells.

Murphy’s six partners all appear to be investment companies. This type of support is essential given the reduced Gulf of Mexico participation by some of the major oil companies. Ridgewood Energy has the largest stake among the Murphy partners. In the “old days,” the partners were typically other exploration and production companies.

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BSEE.gov
  1. Pictured above are BSEE inspectors from the famed Houma District conducting one of their (always) thorough pre-production inspections at Murphy’s King’s Quay semisubmersible production platform in the Gulf of Mexico. [Trivia question: Who was the first Houma District Supervisor?]
  2. King’s Quay is one of six deepwater platforms expected to begin production in the Gulf over the next several years. Others include Shell’s Vito and Whale, BP’s Argos, Chevron’s Anchor, and Beacon’s Shenadoah. All are semisubmersible platforms, the current design of choice for the deepwater Gulf. Production semis have become smaller and more efficient, greatly improving the economics of deepwater projects.
  3. These platforms feature efficient gas turbines and compression systems that should increase the GHG intensity advantage of deepwater Gulf production.
  4. These are the first deepwater production structures to be installed in the Gulf since Shell’s Appomattox in 2018. Per our previous post on this topic, current GoM production rates are not sustainable without regular, predictable lease sales and increased exploration.
King’s Quay under tow

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