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Property, Plant and Equipment
 9 Months Ended
Sep. 30, 2025
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment Note D – Property, Plant and Equipment
Exploratory Wells
Under FASB guidance, exploratory well costs should continue to be capitalized when the well has found a sufficient quantity of reserves to justify its completion as a producing well and the Company is making sufficient progress assessing the reserves and the economic and operating viability of the project.
As of September 30, 2025, the Company had total capitalized drilling costs pending the determination of proved reserves of $115.1 million. The following table reflects the net changes in capitalized exploratory well costs during the nine-month periods ended September 30, 2025 and 2024.
(Thousands of dollars)20252024
Beginning balance at January 1$72,055 $49,118 
  Additions pending the determination of proved reserves43,091 28,452 
  Capitalized exploratory well costs charged to expense— (26,471)
Balance at September 30$115,146 $51,099 
Capital additions of $43.1 million, for the nine months ended September 30, 2025, were mainly for the Hai Su Vang-1X (Golden Sea Lion), Block 15-2/17; and Lac Da Hong-1X (Pink Camel), Block 15-1/05 exploration wells in Vietnam. The Lac Da Hong-1X (Pink Camel), Block 15-1/05 exploration well in Vietnam encountered 106 feet of net oil pay from one reservoir and continues to progress post-drill evaluations. Capital additions also included long-lead equipment for the Cello #1 (Mississippi Canyon 385) and Banjo #1 (Mississippi Canyon 385)
exploration wells in the Gulf of America and long-lead equipment for Bubale-1X (Block CI-709), Civette-1X (Block CI-502), and Caracal-1X (Block CI-102) exploration wells in Côte d’Ivoire. Capital additions of $28.5 million, for the nine months ended September 30, 2024, were mainly for the non-operated Ocotillo #1 (Mississippi Canyon 40) exploration well in the Gulf of America and Hai Su Vang-1X (Golden Sea Lion), Block 15-2/17; and Lac Da Hong-1X (Pink Camel), Block 15-1/05 exploration wells in Vietnam.
There were no capitalized well costs charged to dry hole expense for the nine months ended September 30, 2025. Capitalized well costs charged to dry hole expense of $26.5 million for the nine months ended September 30, 2024 were primarily related to the Hoffe Park #1 (Mississippi Canyon 166) exploration well in the Gulf of America.
The preceding table excludes well costs of $43.0 million incurred and expensed directly to dry hole for the nine months ended September 30, 2024. These costs primarily included $25.8 million for the non-operated Orange #1 (Mississippi Canyon 216) and $11.8 million for the Sebastian #1 (Mississippi Canyon 387) exploration wells in the Gulf of America.
The following table provides an aging of capitalized exploration well costs based on the date the drilling was completed for each individual well.
September 30,
20252024
(Thousands of dollars)AmountNo. of WellsAmountNo. of Wells
Aging of capitalized well costs:
Zero to one year$17,562 5 $28,552 3 
One to two years75,171 3 — — 
Two to three years— — — — 
Three years or more22,413 3 22,547 3 
$115,146 11 $51,099 6 
Of the $97.6 million of exploration well costs capitalized and classified as more than one year at September 30, 2025, $68.2 million was in Vietnam, $22.1 million was in the Gulf of America, $4.6 million was in Canada, and $2.7 million was in Brunei. In all geographical areas, either further appraisal or development drilling is planned and/or development studies/plans are in various stages of completion.
Property Additions
On July 1, 2025, the Company purchased additional working interests in Eagle Ford Shale, in acreages primarily operated by Murphy, for $23.0 million.
During the first quarter of 2025, Murphy purchased a floating production storage and offloading vessel (FPSO) from BW Offshore (UK) Limited for a gross purchase price of $125.0 million. An initial payment of $100.0 million was made in the first quarter of 2025, with the remaining balance paid during the second quarter of 2025, after certain contractual obligations were met. The FPSO will remain at its current location, supporting operations at the Cascade field (Walker Ridge 206 and 250) and Chinook field (Walker Ridge 469 and 425) in the Gulf of America. BW Offshore (UK) Limited will continue to provide operations and maintenance services under a new five-year contract.
Impairments
There were pretax impairments of $115.0 million ($92.0 million excluding NCI) in the three and nine months ended September 30, 2025. The impairment related to the partial write-down of the Dalmatian field in the Gulf of America due to reserve reductions, as certain projects in the field were less competitive for capital allocation. There were no impairments in the three months ended September 30, 2024. There were pretax impairments of $34.5 million in the nine months ended September 30, 2024, related to the Calliope field in Mississippi Canyon in the Gulf of America, in which operational issues led to a reserve reduction.