Brazil’s state-owned Petrobras and El Dorado, Arkansas-based Murphy Oil have agreed to combine most of their US Gulf of Mexico assets to form a joint venture (JV) that will average 75,000 BOE/D in production during the fourth quarter. Murphy Exploration & Production will serve as the JV’s operator with an 80% stake, while Petrobras America will hold 20%. The deal excludes exploration blocks from both companies, with the exception of Petrobras’ blocks that hold deep exploration rights. As part of the deal, Petrobras could receive more than $1 billion, including $900 million in cash and $150 million if price and production benchmarks are surpassed during 2019–2025. Murphy will also cover $50 million of Petrobras' costs at the Chevron-operated St. Malo Field if enhanced oil recovery projects are greenlit.