Murphy Oil Corporation announces strategic acquisition of FPSO vessel in Gulf of Mexico

The gross purchase price is US$125 million, subject to customary closing adjustments, and includes an initial approximate US$100 million payment upon delivery by the end of 1Q25. The remaining balance will be due when certain contractual obligations are met, which is expected by the end of 2Q25. In addition, Murphy is reaffirming its 2025 CAPEX guidance range of US$1135 million to US$1285 million, with first quarter CAPEX reaffirmed at US$425 million.

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

“I am pleased to announce this value-creating transaction with BW Offshore, a top FPSO operator with a strong safety culture, 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 US$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 boe. It is also important to note that the purchase price was included in our 2025 capital expenditure guidance range of US$1135 million to US$1285 million,” said Eric M. Hambly, President and Chief Executive Officer. “Further, 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.”

The first FPSO approved for operations in the Gulf of Mexico, 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 bpd of oil.

 

 

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