BW Offshore has signed an agreement to sell subsidiary Advanced Production & Loading (APL) to National Oilwell Varco for $500m.

APL, acquired by BW Offshore in 2007, designs and makes turret mooring systems and other products for floating production, storage and offloading vessels, as well as other offshore vessels and terminals.

As part of the deal, National Oilwell Varco and BW Offshore will enter into product supply and non-competition agreements.

The acquisition process is expected to be completed before the end of the fourth quarter of 2010.