18th March 2020
BW OFFSHORE: SIGNED FIVE-YEAR CONTRACT FOR BW PIONEER WITH FIVE-YEAR OPTION
BW Offshore has signed a five-year contract for the lease and operation of the BW Pioneer on the Cascade and Chinook fields on behalf of MP Gulf of Mexico, LLC (MP GOM) with a five-year option to extend. The firm period commences in direct continuation of the current contract and lasts until March 2025.
"We are very pleased to have reached a long-term agreement with MP GOM for the BW Pioneer, confirming our strong relationship with MP GOM on the Cascade and Chinook fields", said Marco Beenen, the CEO of BW Offshore.
MP GOM is a partnership between Murphy Exploration & Production Company – USA (Murphy EXPRO) and Petrobras America Inc. With 80% ownership in MP GOM, Murphy EXPRO is the designated operator of the assets, which include the Cascade and Chinook fields.
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BW Pioneer
First FPSO in the US Gulf of Mexico
BW Pioneer Ltd, an affiliate of BW Offshore, has awarded Keppel Shipyard a contract to convert the first FPSO for the Cascade and Chinook fields in the US Gulf of Mexico (GoM).
When completed in the third quarter of 2009, the FPSO will be turret moored at a water depth of around 2600 metres – the deepest waters ever for an FPSO. It is designed to disconnect and move by its own propulsion to safe waters from an approaching storm.
Mr Svein Moxnes Harfjeld, CEO of BW Offshore commented: "We have great confidence in Keppel Shipyard and in their abilities and experience, based on our former collaboration. Being the first FPSO for the US GoM waters, the Cascade and Chinook project represents a great challenge in many ways. Keppel Shipyard's solid competence is therefore of strong value".
Executive Director of Keppel Shipyard, Mr Nelson Yeo said, "This is the second FPSO conversion awarded to Keppel Shipyard by BW Offshore since the conversion of FPSO Berge Helene in 2005. We thank BW Offshore for this trust and are delighted to carry out work on the first FPSO to be deployedin the US GoM."
To be named BW Pioneer, the FPSO will have a storage capacity of about 600,000 barrels of oil, a process capacity of 80,000 bopd and gas export facilities of 16 mmscfd. This FPSO unit will be leased by Petrobras America Inc., and production on the Cascade and Chinook fields is expected in the first quarter of 2010.
Listed on the Oslo Stock Exchange, BW Offshore is one of the world's leading FPSO contractors and a market leader in advanced offshore loading and production systems in the oil and gas industry with 25 years' experience and a solid track record.
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Sale of FPSO BW Pioneer with five-year O&M contract with the buyer
12 March 2025
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.
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