Obama moratorium shifts oil production jobs from U.S. to Africa

Murphy Oil Corp. and Diamond Offshore Drilling Inc. announced a decision late Monday to suspend their drilling operations in the Gulf of Mexico and relocate to central Africa.

In a news release after the close of market Monday (July 12), Diamond Offshore said it reached an agreement with Murphy to suspend a Gulf of Mexico contract, and has entered into a new multi-well international commitment to relocate the deepwater drilling rig Ocean Confidence to the Republic of Congo.

“As the uncertainty about continued deepwater drilling in the GOM (Gulf of Mexico) persists, we must consider alternatives that allow our deepwater assets to remain employed,” Diamond Offshore President and CEO Larry Dickerson said in a news release. “The contract we suspended with Murphy has been restructured into a one-year commitment in the GOM that is expected to recommence when our customer is satisfied that it can obtain the necessary permits and can meet any new regulatory requirements.”

The City Wire
7/13/10