Kirkland & Ellis advised LLOG Bluewater Holdings, LLC, (LLOG) on its decision with LLOG Exploration Offshore, LLC to sell its deep water Gulf of Mexico assets to Murphy Oil Corp.’s (NYSE: MUR) wholly owned subsidiary, Murphy Exploration & Production Company – USA.
The accretive, cash flow providing Gulf of Mexico assets currently produce approximately 38,000 barrels of oil equivalent per day net (Boepd) and are expected to add approximately 66 million barrels of oil equivalent net (Mmboe) of Proven (1P) reserves and 122 Mmboe of Proven and Probable (2P) reserves1.
Murphy will pay a cash consideration of $1.375 billion. Additional contingent consideration payments are based on the following: up to $200 million in the event that revenue from certain properties exceeds certain contractual thresholds between 2019 and 2022; and $50 million following first oil from certain development projects.
Barclays is serving as exclusive financial advisor and Jones Walker LLP, Gieger, Laborde, & Laperouse, LLC and Kirkland & Ellis LLP are serving as legal advisors to LLOG on the transaction.
The Kirkland team was led by transactional partners Rhett Van Syoc (Picture) and Rahul Vashi and associates David Thompson, Tom Hillebrand, Michael Cline and Patrick Lingwall; and tax partner David Wheat and associate Joe Tobias.
Involved fees earner: Michael Cline – Kirkland & Ellis; Thomas Hillebrand – Kirkland & Ellis; Patrick Lingwall – Kirkland & Ellis; David Thompson – Kirkland & Ellis; Joe Tobias – Kirkland & Ellis; Rhett Van Syoc – Kirkland & Ellis; Rahul Vashi – Kirkland & Ellis; David Wheat – Kirkland & Ellis;
Law Firms: Kirkland & Ellis;
Clients: LLOG Bluewater Holdings;