Murphy Oil to Acquire BW Pioneer’s FPSO for $125 Million
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Murphy Oil Corporation has signed a purchase and sale agreement to acquire the BW Pioneer floating production storage and offloading vessel (FPSO) from BW Offshore.
The gross purchase price is $125 million, subject to customary closing adjustments.
“I am pleased to announce this value-creating transaction with BW Offshore 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,” said Eric Hambly, Murphy’s president and chief executive officer.
“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,” added Hambly.
The 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.
The first FPSO approved for operations in the Gulf of America, the BW Pioneer 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.
As an independent oil and natural gas exploration and production company, Murphy Oil Corporation believes in providing energy that empowers people by doing right always, staying with it and thinking beyond possible. Murphy challenges the norm, taps into its strong legacy and uses its foresight and financial discipline to deliver inspired energy solutions. Murphy sees a future where it is an industry leader who is positively impacting lives for the next 100 years and beyond.
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