Norwegian FPSO operator BW Offshore has finalized the sale of its floating production, storage, and offloading (FPSO) unit to a subsidiary of Houston-based oil and gas player Murphy Oil Corporation.
The Norwegian player completed the sale of its FPSO BW Pioneer to Murphy Oil’s affiliate two weeks after the $125 million deal was announced and one week after an extension agreement was inked.
The FPSO operator confirmed the receipt of an initial $100 million payment, with the rest expected to follow before the end of Q2 2025 when certain contractual obligations are met.
The Norwegian firm is set to stay on to provide operations and maintenance (O&M) services under a new five-year reimbursable contract.
As previously disclosed, the FPSO BW Pioneer is slated to remain at its current location, supporting operations at the Cascade field in Walker Ridge 206 and 250 and Chinook field in Walker Ridge 469 and 425 within the Gulf of America.
With a storage capacity of approximately 600,000 barrels of oil and a processing capacity of around 80,000 barrels of oil per day, the FPSO BW Pioneer has been in service since its conversion at Keppel Shipyard in 2009.