New York-listed oil and natural gas exploration and production Murphy Oil Corporation announced that its subsidiary has sealed a purchase and sale agreement to acquire the BW Pioneer floating production storage and offloading vessel (FPSO) from BW Offshore for $125m, subject to customary closing adjustments.
The deal includes an initial approximate $100m payment, Murphy Oil said, upon delivery by the end of the first quarter of 2025.
The remaining balance will be due when certain contractual obligations are met, which is expected by the end of the second quarter of 2025.
To remind, Murphy Oil Corporation is an independent oil and natural gas exploration and production company with a focused portfolio of onshore and offshore assets.
The BW Pioneer FPSO will remain at its current location, supporting operations at the Cascade field (Walker Ridge 206 and 250) and Chinook field (Walker Ridge 469 and 425) in the Gulf of America.
BW Offshore will continue to provide operations and maintenance services under a new five-year reimbursable contract.
According to Murphy, the BW Pioneer was the first FPSO vessel approved for operations in the Gulf of America and has been in service since its conversion in 2009.
The vessel has a storage capacity of approximately 600,000 barrels of oil and processing capacity of approximately 80,000 barrels of oil per day.
Murphy Oil Corporation Eric M. Hambly, president and CEO, said: “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.”
“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,” Hambly added.
