Bw Offshore Ltd.

M&A Activity • Mar 12, 2025

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

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