Five-Year Contract Win for FPSO BW Pioneer
March 13, 2025
BW Offshore has signed an agreement for the sale of the FPSO BW Pioneer for $125 million to a subsidiary of Murphy Oil Corporation, the operator of the Cascade & Chinook field.
The transaction includes an initial payment of $100 million upon delivery of the FPSO at the end of the current contract period, March 18, 2025, followed by the remaining balance upon receipt of the full-term class certificate for the period 2025-2030, expected before end of Q2.
The two parties plan to sign a five-year reimbursable O&M contract under which BW Offshore will continue to provide operations and maintenance services for a period of five years.
BW Pioneer was converted in 2009 at Keppel Shipyard. It has a storage capacity of about 600,000 barrels of oil and a processing capacity of 80,000 barrels per day.
In August 2020, BW Pioneer successfully executed its first-ever disconnect operation to evade an oncoming hurricane, showcasing its advanced safety features and adaptability to extreme weather conditions.
“The divestment is in line with our strategy of capturing value from the existing FPSO fleet. We are pleased to ensure continuity for BW Pioneer and our experienced team, while also meeting our client’s need for a more flexible operating model,” said Marco Beenen, the CEO of BW Offshore. “The transaction strengthens our financial position and supports execution of our long-term growth strategy of developing floating production infrastructure projects and energy transition solutions.”
