Murphy Oil will curtail about 40,000 barrels of oil equivalent per day, mostly from offshore wells in the month of May, due to low commodity prices, and has further slashed its capital spending budget amid difficult market conditions tied to Covid-19.

Despite the cutbacks, the US independent did say that the King's Quay project in the deep-water Gulf of Mexico had continued to progress, with construction ongoing and 2020 spending set to continue as planned.

Transaction documentation with ArcLight and other partners on financing for the floater is moving forward, Murphy said, with that deal expected to close in the second quarter.