Murphy Oil USA Studies $6 Billion Investment for Sour Crude Oil Refinery Conversion

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Researched by Industrial Info Resources (Sugar Land, Texas) -- Murphy Oil USA (El Dorado, Arkansas) is planning to invest $6 Billion to convert an existing 33,000 barrel per day refinery in Wisconsin to handle a new sour crude oil slate. The company has selected ENSR Consulting and Engineering (Minneapolis, Minnesota) to perform an environmental impact study for the proposed conversion of the refinery. Murphy is currently seeking a joint venture partner and expects to finalize by end of 2007.

The front end engineering design work is expected to begin early 2008 to be performed by an engineering company. Murphy expects to select an engineering and construction company to perform engineering, procurement, and construction services in the second half of 2008. The conversion project will include several new units, to include: a 200,000 barrel per day crude and vacuum unit, 80,000 barrel per day coker, 50,000 barrel per day hydrocracker, 50,000 barrel per day gas oil and diesel hydrotreater, 50,000 barrel per day fluid catalytic cracker, 300 ton per day sulfur recovery complex, an alky unit, and hydrogen plant.

The Company, headquartered in El Dorado, Arkansas, was originally incorporated in Louisiana in 1950 as Murphy Corporation. It was reincorporated in Delaware in 1964 and it adopted the name Murphy Oil Corporation. Murphy Oil Corporation is a worldwide oil and gas exploration and production company with refining and marketing operations in the United States and the United Kingdom and crude oil and natural gas exploration and production operations in Canada. Murphy Oil Corporation has a 125,000 barrel per day refinery in Meraux, Louisiana that produces refined petroleum products for the Gulf Coast market. In addition, their 35,000-barrel per day Superior Wisconsin refinery serves the upper Midwest Region.

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