Murphy Buys BW Pioneer FPSO for $125 Million

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Murphy Buys BW Pioneer FPSO for $125 Million

Murphy Oil Corporation has signed an agreement to acquire the BW Pioneer floating production storage and offloading vessel (FPSO). The company said in a media release that it has agreed to pay $125 million to BW Offshore for the unit, with an initial payment of $100 million due upon delivery by the end of the […]

The remaining balance is payable once specific contractual obligations are fulfilled, anticipated by the end of the second quarter of 2025.

Murphy also said the FPSO BW Pioneer will stay where it is, aiding operations at the Cascade field (Walker Ridge 206 and 250) and the Chinook field (Walker Ridge 469 and 425) in the Gulf of Mexico. BW Offshore will keep offering operations and maintenance services through a new five-year reimbursable contract.

“I am pleased to announce this value-creating transaction with BW Offshore, a top FPSO operator with a strong safety culture, and I look forward to continuing our partnership. By acquiring the FPSO and restructuring our contract, we will achieve a material reduction in operating costs of nearly $60 million annually with a payback of about two years independent of oil price, while enhancing returns for future infield development and exploration and increasing net proved developed reserves by approximately 8 million barrels of oil equivalent”, Eric M. Hambly, President and Chief Executive Officer of Murphy Oil, said.

“It is also important to note that the purchase price was included in our 2025 capital expenditure guidance range of $1,135 million to $1,285 million.

“Further, the FPSO is located in the prolific Wilcox trend, allowing for operated and non-operated exploration prospects to tie back to a cost-advantaged facility”.

BW Pioneer, the first FPSO approved in the Gulf of Mexico, has been in service since 2009. It has a storage capacity of about 600,000 barrels of oil and a processing capacity of 80,000 barrels per day.

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