Business
Murphy Oil Corporation Announces Strategic Acquisition of Floating Production Storage and Offloading Vessel in Gulf of America
HOUSTON, March 12, 2025--Murphy Oil Corporation (NYSE: MUR) today announced that a subsidiary has signed a Purchase and Sale Agreement to acquire the BW Pioneer floating production storage and offloading vessel (FPSO) from BW Offshore.
About this update from Murphy Oil Corporation
[{"type":"image","alt":"","displaySize":"","headline":null,"caption":"","credit":null,"className":"","disableSlideshowImg":false,"size":{"original":{"width":480,"height":247,"url":"https://media.zenfs.com/en/business-wire.com/5972d20cdcc1362b93b07f3b5172a6d9"},"resized":{"url":"https://s.yimg.com/ny/api/res/1.2/1m7rGYLcl1J_Wo0mqijluQ--/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MDtoPTQ5NDtjZj13ZWJw/https://media.zenfs.com/en/business-wire.com/5972d20cdcc1362b93b07f3b5172a6d9","width":480,"height":247}},"lazy":false},{"type":"text","content":"Reduces Annual Operating Costs by Approximately $60 Million, Reaffirms 2025 Capital Expenditure Guidance","length":104,"tagName":"p","attribs":{}},{"type":"text","content":"HOUSTON, March 12, 2025--(BUSINESS WIRE)--Murphy Oil Corporation (NYSE: MUR) today announced that a subsidiary has signed a Purchase and Sale Agreement to acquire the BW Pioneer floating production storage and offloading vessel (FPSO) from BW Offshore.","length":252,"tagName":"p"},{"type":"text","content":"The gross purchase price is $125 million, subject to customary closing adjustments, and includes an initial approximate $100 million payment upon delivery by the end of first quarter 2025. The remaining balance will be due when certain contractual obligations are met, which is expected by the end of second quarter 2025. In addition, Murphy is reaffirming its 2025 capital expenditure (CAPEX) guidance range of $1,135 million to $1,285 million, with first quarter CAPEX reaffirmed at $425 million.","length":498,"tagName":"p"},{"type":"text","content":"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 America. BW Offshore will continue to provide operations and maintenance services under a new five-year reimbursable contract.","length":302,"tagName":"p"},{"type":"text","content":""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 $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...