Murphy Oil Expanding Meraux Louisiana Complex to Keep Up with Wal-Mart Growth

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Murphy Oil Corporation (NYSE: MUR) (El Dorado, Arkansas) and wholly owned subsidiary Murphy Oil USA Incorporated (Meraux, Louisiana) are underway on a major $180 million expansion effort at their 60-year old refining complex in Meraux, Louisiana.

In the course of Murphy's marketing collaboration with Wal-Mart to provide gasoline for some 480 parking lot gas stations, Wal-Mart has continued to grow and plans another 100 locations in the Southeast and Upper Midwest regions and new stores in Canada, prompting the refinery's 25 percent increase in production.

The company is scheduled to have the project completed by May of 2003 in a multi-phase, multi-contractor expansion effort at the site that will add a new 32,000 barrel per day hydrocracker, a 12,000 barrel per day hydrotreater, and a sulfur recovery unit. The project will help the refiner meet clean fuels compliances.

ABB Lummus (Houston, Texas) has been selected as the prime design-build firm and smaller contractors like MMR Constructors Inc (Baton Rouge, Louisiana) and Deep South Crane & Rigging are on site as well to help in the execution of the project that has presented the company and contractors many challenges due to the compact job site.

Many of the equipment components and materials had to be stored off-site until they were ready to be installed. Three reactor vessels weighing 900 tons, 450 tons, and 350 tons have been delivered via ocean liner to the Port of Chalmette and then wheel transported to the site about two miles away.

Once completed and started-up in September of 2003, the refinery's capacity will increase from 100,000 barrels per day to 125,000 barrels per day.

Murphy's refining and marketing operations are conducted through wholly owned subsidiaries including Murphy Oil USA Incorporated (El Dorado, Arkansas) and Murco Petroleum Limited, (United Kingdom). Its downstream operations include the refinery in Meraux, which produces refined petroleum products for distribution in the Gulf Coast, and a refinery in Superior, Wisconsin.