Murphy Oil (NYSE:MUR) stock was skyrocketing on Thursday following the news that the company had inked a deal with Petrobras (NYSE:PBR) in the form of a joint venture that will see the companies search for fuel sources in the Gulf of Mexico.
Petrobras unveiled the news in a securities filing, which will see the two companies seek out oil and gas fields in the Gulf. The filing notes that Petrobras will have a 20% stake in the joint venture, while Murphy Oil will have the other 80%.
The deal will net Petrobras roughly $1.1 billion in the transaction, while both companies will contribute to using all their producing assets in the Gulf of Mexico for the joint venture. The deal will result in a production of roughly 75,000 barrels of oil equivalent per day during the fourth quarter, the Petrobras filing added.
The move marks one of the few that the Brazilian oil giant has been able to solidify since the Supreme Court justice Ricardo Lewandowski decided back in June that all sales of subsidiaries should go through the Congress. The company is still far behind from reaching its goal of selling $21 billion worth of assets in 2017 and 2018.
MUR shares were skyrocketing about 12.6% on the day following the news. Meanwhile PBR stock was declining about 0.6% on Thursday.