Acquisition of FPSO Nganhurra Strengthens BW Offshore’s Strategic Position

Floater specialist BW Offshore has recently announced the acquisition of the idle FPSO Nganhurra, marking a strategic move to secure a high-quality production asset in a tightening market. The Oslo-listed company’s purchase of the 2006-built Nganhurra comes at a crucial time when comparable opportunities are scarce in the industry.

The acquisition deal, finalized for an undisclosed sum, involves a modest initial payment with additional compensation contingent upon the successful redeployment of the vessel by June 2027. This acquisition follows BW Offshore’s recent sale of the FPSO BW Pioneer to a subsidiary of US oil and gas player Murphy Oil for $125 million.

With the addition of the Nganhurra FPSO, BW Offshore aims to enhance its ability to deliver competitive and timely redeployment solutions. The company anticipates several visible project opportunities in the coming years and believes that this acquisition reinforces its strategic positioning in the market.

Marco Beenen, Chief Executive of BW Offshore, expressed the significance of the acquisition, stating, “Securing the FPSO Nganhurra represents a strategic decision to capitalize on a compelling market opportunity. With limited availability of suitable FPSOs for redeployment, this acquisition puts BW Offshore in a strong, competitive position.”

The FPSO Nganhurra, built by Samsung Heavy Industries in 2006, boasts a production capacity of 100,000 barrels per day and a storage capacity of 900,000 barrels. Previously operated by Woodside at the Enfield field offshore Western Australia, the vessel was laid up outside Labuan, Malaysia, after its contract ended in 2018.

In July 2022, Yinson Production entered into an agreement with BP to reserve the Nganhurra FPSO for a planned project offshore Angola. The deal granted Yinson an exclusive option to purchase the FPSO until December 31, 2022, with the possibility of an extension by BP. The agreement also included provisions for a potential 10-year lease-and-operate contract.