Norwegian FPSO Operator BW Offshore Finalizes Sale of FPSO Unit to Murphy Oil Corporation

Norwegian FPSO operator BW Offshore has concluded the sale of its floating production, storage, and offloading (FPSO) unit to a subsidiary of Houston-based oil and gas player Murphy Oil Corporation.

The sale of BW Pioneer to Murphy Oil’s affiliate was completed two weeks after the $125 million deal was initially announced. Following an extension agreement, the transaction was finalized within a week.

Upon confirmation of the sale, BW Offshore received an initial payment of $100 million. The remaining amount is expected to be paid before the end of Q2 2025, subject to fulfilling certain contractual obligations.

Under a new five-year reimbursable contract, BW Offshore will continue to provide operations and maintenance (O&M) services for the FPSO BW Pioneer.

The FPSO will remain stationed at its current location, supporting operations at the Cascade field in Walker Ridge 206 and 250, as well as the Chinook field in Walker Ridge 469 and 425 within the Gulf of America.

With a storage capacity of approximately 600,000 barrels of oil and a processing capacity of around 80,000 barrels of oil per day, the FPSO BW Pioneer has been operational since its conversion at Keppel Shipyard in 2009.