Floater specialist BW Offshore has sold the FPSO BW Pioneer to a subsidiary of US oil and gas player Murphy Oil.
The FPSO was sold for $125m which includes an initial payment of $100m upon delivery of the FPSO at the end of the current contract period which ends on March 18, 2025.
This will be followed by the remaining balance upon receipt of the full-term class certificate for the period 2025-2030, expected before the end of the second quarter.
The two companies will also sign a five-year reimbursable O&M contract ahead of March 18, under which BW Offshore will continue to provide operations and maintenance services for a period of five years.
“The divestment is in line with our strategy of capturing value from the existing FPSO fleet. The transaction strengthens our financial position and supports the execution of our long-term growth strategy of developing floating production infrastructure projects and energy transition solutions,” said Marco Beenen, the CEO of BW Offshore.
The FPSO completed conversion at Keppel Shipyard in 2009. It has a storage capacity of about 600,000 barrels of oil and a processing capacity of 80,000 barrels per day. The unit’s current deal with Murphy Oil is a five-year extension signed in March 2020.
