Murphy Oil Boosts 2026 CAPEX by $300M After Côte d'Ivoire Discovery
Event summary
- Murphy Oil raised its 2026 CAPEX guidance to $1.55B from $1.25B after the Bubale-1X discovery in Côte d'Ivoire.
- The company encountered 100 feet of net oil pay across two reservoirs, launching an appraisal program with up to five wells.
- Production reached 169,000 BOEPD in Q2 2026, at the high end of guidance, driven by strong Eagle Ford and Gulf of America performance.
- Lac Da Vang development in Vietnam is on track for first oil in Q4 2026 after completing key milestones.
The big picture
Murphy Oil’s strategic shift toward accelerated CAPEX reflects confidence in its exploration pipeline, particularly in underexplored offshore basins like Côte d'Ivoire. The company is leveraging strong Eagle Ford returns to fund higher-risk, high-reward international projects, a move that aligns with the industry trend of balancing near-term cash flow with long-term reserve growth. With $1.55B in planned spending for 2026, Murphy is positioning itself to capitalize on rising oil prices while maintaining capital discipline.
What we're watching
- Exploration Success
- Whether the Bubale-1X discovery can deliver on its high-quality light oil potential through appraisal.
- Capital Discipline
- How Murphy balances accelerated spending in Eagle Ford with offshore growth without compromising returns.
- Development Timing
- The pace at which Lac Da Vang and Chinook #8 come online to meet Q4 2026 production targets.