Murphy Oil Corp. to Acquire FSPO from BW Offshore for $125M


   
Dawn Gallagher
DTN Energy Reporter

    

   OAKHURST, N.J. (DTN) --- Murphy Oil Corp. announced that a subsidiary has 
signed a purchase and sale agreement to acquire the BW Pioneer floating 
production and storage offloading vessel from BW Offshore.

   The gross purchase price is $125 million, of which nearly $100 million 
payment is due upon delivery by the end of the current quarter with the 
remaining balance due by the end of the second quarter.

   The BW Pioneer FPSO will remain at its current location, supporting 
operations in the Cascade field and Chinook field in the Gulf of America. 

   The FPSO is in the prolific Wilcox trend, with a storage capacity of nearly 
600,000 bbl of oil and the ability to process approximately 80,000 bpd of oil. 
The first FPSO approved for operations in the Gulf of America, the BW Pioneer 
has been in service since its conversion in 2009.

   BW Offshore will continue to provide operations and maintenance services 
under a new five-year reimbursable contract.

   With this acquisition, Murphy Oil Corp. anticipates a material reduction in 
operating costs of nearly $60 million annually with a payback period of about 
two years independent of oil price.

   Additionally, this transaction is expected to enhance returns for future 
infield development and exploration and increase 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," 
said Eric M. Hambly, president and CEO of Murphy Oil Corp.




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