BW Offshore has entered into an agreement to sell the FPSO BW Pioneer to a subsidiary of Murphy Oil Corporation, the operator of the Cascade & Chinook field, for USD 125 million, according to the company's release.
The transaction includes an initial payment of USD 100 million upon delivery of the FPSO on March 18, 2025, at the end of its current contract period, with the remaining balance due upon issuance of the full-term class certificate for 2025-2030, expected by the end of Q2 2025.
The parties intend to sign a five-year reimbursable operations and maintenance (O&M) contract before March 18, 2025, under which BW Offshore will provide services for an additional five years.
The FPSO BW Pioneer, converted in 2009 at Keppel Shipyard, has a storage capacity of 600,000 barrels of oil and a processing capacity of 80,000 barrels per day.
On March 18, 2020, BW Offshore secured a five-year contract extension for the unit, which previously demonstrated its capabilities by executing a disconnect operation in August 2020 to avoid a hurricane. BW Offshore, with a fleet of 3 FPSOs, focuses on engineering floating production solutions and employs approximately 1,100 people.
BW Offshore, headquartered in Oslo, Norway, is a global provider of floating production services, managing a fleet of FPSOs and employing over 1,100 staff, with roots tracing back to its founding in 1982 as part of the BW Group.
Murphy Oil Corporation. based in Houston, Texas, is an independent oil and gas exploration and production company, operating offshore assets like the Cascade & Chinook field in the Gulf of Mexico, founded in 1950.
Keppel Shipyard is a subsidiary of Singapore-based Keppel Corporation, established in 1968, specializes in ship repair, conversion, and construction.