SECURITIES AND EXCHANGE COMMISSION

                     Washington, D.C.  20549



                            FORM 8-K

                         CURRENT REPORT

             Pursuant to Section 13 or 15(d) of the

                 Securities Exchange Act of 1934

 Date of Report (Date of earliest event reported): February 26, 2001



                     McMoRan Exploration Co.


    Delaware                 001-07791                72-1424200
(State or other            (Commission               (IRS Employer
jurisdiction of            File Number)              Identification
incorporation or                                        Number)
 organization)

                       1615 Poydras Street
                  New Orleans, Louisiana  70112

 Registrant's telephone number, including area code:  (504) 582-4000

Item 5. Other Events and Regulation FD Disclosures

McMoRan Exploration Co. today announced the following information
regarding its intention to form a joint venture with Savage
Industries Inc. to market and transport sulphur:

NEW ORLEANS, LA. February 26, 2001 -- McMoRan Exploration Co. and
Savage Industries Inc. (Savage) announced today that they entered
into  a  letter  of  intent to form a joint venture  to  own  and
operate  the  sulphur  business of Freeport-McMoRan  Sulphur  LLC
(FSC).   FSC  would contribute the assets currently used  in  its
sulphur transportation, marketing and terminaling business to the
new  joint venture.  The joint venture would operate the  largest
sulphur  transportation and storage system in the  United  States
and  would  continue  to serve both producers  and  consumers  of
sulphur.  It is expected that the joint venture would enter  into
new  long-term  service agreements with major U.S.  oil  and  gas
refiners  and processors to provide off-take security and  market
access for their sulphur by-product.

     Savage has agreed to contribute cash to the joint venture
and would become its operator.  The joint venture would use the
existing assets and commercial contracts of FSC's transportation
and marketing business as well as new contracts to be completed
with sulphur producers to secure financing.  It is expected that
the joint venture would distribute at least $55 million in cash
to McMoRan at closing of the contemplated transactions. Savage
and McMoRan would each own a 50 percent interest in the joint
venture.

     Richard C. Adkerson, Co-Chairman and CEO of McMoRan, said,
"Entering into this transaction with Savage would allow McMoRan
to dedicate all of our efforts to our oil and gas exploration and
development program.  We will work closely with Savage to
complete the formation of our joint venture and to develop
contracts with sulphur producers. Savage's existing service
relationships with major companies in the petroleum industry
combined with the critical strategic importance of FSC's sulphur
transportation and marketing assets to the petroleum and
fertilizer industries provide a solid operating platform for the
new joint venture."

     Allen Alexander, President and CEO of Savage, said, "We look
forward to building on our existing customer relationships by
adding sulphur services to The Savage System.  FSC's assets are
essential to several of our key customers and we are pleased to
be involved in delivering the flexibility of FSC's transportation
and logistics system to the marketplace.  Savage's "Best Value-No
Worry" service will be a hallmark of the new joint venture."

     McMoRan will use the proceeds from the transaction to repay
borrowings under its sulphur business credit facility which had
$50.0 million outstanding as of February 23, 2001.  The
transaction completion is subject to securing joint venture
financing arrangements, completion of definitive agreements,
board approvals and certain other approvals.

     Savage is a leader in providing creative solutions to
materials management and transportation systems and facilities to
a wide range of customers and industries in the United States.
Savage is a national leader in providing services to coal
producers, electric utilities, railroads and petroleum refiners.

     McMoRan is an independent public company engaged in the
exploration, development and production of oil and natural gas
offshore in the Gulf of Mexico and onshore in the Gulf Coast
area; and the purchasing, transporting, terminaling, and
marketing of sulphur.

                            SIGNATURE
                       ------------------

     Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.

                              McMoRan Exploration Co.


                              By:  /s/ C. Donald Whitmire Jr.
                                   ------------------------------
                                       C. Donald Whitmire, Jr.
                                   Vice President & Controller -
                                         Financial Reporting
                                     (authorized signatory and
                                    Principal Accounting Officer)


Date:  February 26, 2001
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SECURITIES AND EXCHANGE COMMISSION

                     Washington, D.C.  20549

                            FORM 8-K

                         CURRENT REPORT

             Pursuant to Section 13 or 15(d) of the

                 Securities Exchange Act of 1934

 Date of Report (Date of earliest event reported): February 26, 2001

                     McMoRan Exploration Co.

    Delaware                 001-07791                72-1424200
(State or other            (Commission               (IRS Employer
jurisdiction of            File Number)              Identification
incorporation or                                        Number)
 organization)

                       1615 Poydras Street
                  New Orleans, Louisiana  70112

 Registrant's telephone number, including area code:  (504) 582-4000

Item 5. Other Events and Regulation FD Disclosures

McMoRan Exploration Co. today announced the following information
regarding its intention to form a joint venture with Savage
Industries Inc. to market and transport sulphur:

NEW ORLEANS, LA. February 26, 2001 -- McMoRan Exploration Co. and
Savage Industries Inc. (Savage) announced today that they entered
into  a  letter  of  intent to form a joint venture  to  own  and
operate  the  sulphur  business of Freeport-McMoRan  Sulphur  LLC
(FSC).   FSC  would contribute the assets currently used  in  its
sulphur transportation, marketing and terminaling business to the
new  joint venture.  The joint venture would operate the  largest
sulphur  transportation and storage system in the  United  States
and  would  continue  to serve both producers  and  consumers  of
sulphur.  It is expected that the joint venture would enter  into
new  long-term  service agreements with major U.S.  oil  and  gas
refiners  and processors to provide off-take security and  market
access for their sulphur by-product.

     Savage has agreed to contribute cash to the joint venture
and would become its operator.  The joint venture would use the
existing assets and commercial contracts of FSC's transportation
and marketing business as well as new contracts to be completed
with sulphur producers to secure financing.  It is expected that
the joint venture would distribute at least $55 million in cash
to McMoRan at closing of the contemplated transactions. Savage
and McMoRan would each own a 50 percent interest in the joint
venture.

     Richard C. Adkerson, Co-Chairman and CEO of McMoRan, said,
"Entering into this transaction with Savage would allow McMoRan
to dedicate all of our efforts to our oil and gas exploration and
development program.  We will work closely with Savage to
complete the formation of our joint venture and to develop
contracts with sulphur producers. Savage's existing service
relationships with major companies in the petroleum industry
combined with the critical strategic importance of FSC's sulphur
transportation and marketing assets to the petroleum and
fertilizer industries provide a solid operating platform for the
new joint venture."

     Allen Alexander, President and CEO of Savage, said, "We look
forward to building on our existing customer relationships by
adding sulphur services to The Savage System.  FSC's assets are
essential to several of our key customers and we are pleased to
be involved in delivering the flexibility of FSC's transportation
and logistics system to the marketplace.  Savage's "Best Value-No
Worry" service will be a hallmark of the new joint venture."

     McMoRan will use the proceeds from the transaction to repay
borrowings under its sulphur business credit facility which had
$50.0 million outstanding as of February 23, 2001.  The
transaction completion is subject to securing joint venture
financing arrangements, completion of definitive agreements,
board approvals and certain other approvals.

     Savage is a leader in providing creative solutions to
materials management and transportation systems and facilities to
a wide range of customers and industries in the United States.
Savage is a national leader in providing services to coal
producers, electric utilities, railroads and petroleum refiners.

     McMoRan is an independent public company engaged in the
exploration, development and production of oil and natural gas
offshore in the Gulf of Mexico and onshore in the Gulf Coast
area; and the purchasing, transporting, terminaling, and
marketing of sulphur.

                            SIGNATURE
                       ------------------

     Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.

                              McMoRan Exploration Co.

                              By:  /s/ C. Donald Whitmire Jr.
                                   ------------------------------
                                       C. Donald Whitmire, Jr.
                                   Vice President & Controller -
                                         Financial Reporting
                                     (authorized signatory and
                                    Principal Accounting Officer)

Date:  February 26, 2001