Murphy puts brakes on downstream spin-off and refinery expansion

摘要

Murphy Oil has decided not to progress to detailed design engineering for an expansion of its 35,000 b/d Superior, Wis., refinery until it can find a partner for the $6 billion project who could provide Canadian oil sands crude oil in exchange for a stake in the plant. Murphy has been actively looking for a partner for the project, which would expand capacity to 235,000 b/d, but to no avail. Murphy CEO Claiborne Deming says the company also will put on hold any consideration of a spin-off of downstream assets, noting that the firm is not immune to forces that have already prompted others to shelve similar spin-off plans. "With dropping crude prices - if demand stays up - it may look more favorable for Canadian producers to invest in," said one refinery executive this week.