BW Offshore: Sale of FPSO BW Pioneer with five-year O&M contract with the buyer

Sale of FPSO BW Pioneer with five-year O&M contract with the buyer

BW Offshore has signed an agreement for the sale of the FPSO BW Pioneer for USD 125 million to a subsidiary of Murphy Oil Corporation (NYSE:MUR), the operator of the Cascade & Chinook field. The transaction includes an initial payment of USD 100 million upon delivery of the FPSO at the end of the current contract period, 18 March 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 ahead of 18 March, under which BW Offshore will continue to provide operations and maintenance services for a period of five years.

“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.”

BW Pioneer's journey began in 2009 when BW Offshore completed conversion at Keppel Shipyard. With a storage capacity of about 600,000 barrels of oil and a processing capacity of 80,000 barrels per day, it has proven to be a cornerstone of efficient offshore production. The BW Pioneer's stellar performance and reliability were recognised on March 18, 2020, when BW Offshore secured a five-year contract extension for the unit. Over the years, BW Pioneer has consistently demonstrated its advanced capabilities. 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.

For further information, please contact:
Ståle Andreassen, CFO, +47 91 71 86 55

IR@bwoffshore.com or www.bwoffshore.com

About BW Offshore:
BW Offshore engineers innovative floating production solutions. The Company has a fleet of 3 FPSOs with potential and ambition to grow. By leveraging four decades of offshore operations and project execution, the Company creates tailored offshore energy solutions for evolving markets world-wide. BW Offshore has around 1,100 employees and is publicly listed on the Oslo stock exchange.

This information is considered to be inside information pursuant to the EU Market Abuse Regulation and subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act. This stock exchange release was published by Erland Østensen, Corporate Finance Analyst, on 12 March 2025 at 21:30 CET.

This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act