Floater specialist BW Offshore has signed a short-term extension agreement for the FPSO BW Pioneer with Murphy Oil.
The contract will extend the contract period from March 18 to March 25, 2025, and will maintain current conditions.
According to BW, the extension will facilitate the completion of administrative processes necessary for finalising the sale of the unit to Murphy Oil.
The US oil and gas player agreed to buy the FPSO last week for $125m. At the end of the contract period, which has now been extended for a week, the firm will make an initial payment of $100m.
This rest will be paid upon receipt of the full-term class certificate for the period 2025-2030, expected before the end of the second quarter. BW Offshore will continue to provide operations and maintenance services for a period of five years.
The FPSO 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.
