Teekay Corporation Announces 3.5-Year Contract for the Hummingbird Spirit FPSO
October 11 2019 - 6:55AM
Teekay Corporation (Teekay or the Company) (NYSE:TK) announced that
it has entered into an agreement with the Chestnut Joint Venture, a
joint venture between Spirit Energy Ltd. and Dana Petroleum Ltd.,
to extend the employment of the Hummingbird Spirit FPSO unit
(Hummingbird) on the Chestnut field in the North Sea until March
2023. This contract extension was done in conjunction with the
Chestnut Joint Venture’s plan to drill a new well at the Chestnut
field. The new Hummingbird contract took effect on October 1, 2019
and is based on a fixed charter rate instead of the previous fixed
charter rate plus oil production/price tariff.
“We are pleased to announce this important
multi-year FPSO contract extension for the Hummingbird in
connection with our customer’s new drilling program, further
extending the production of the field in the North Sea which
originally commenced in 2008 and follows several contract
extensions with the Chestnut Joint Venture. In addition, the
new terms of the contract extension are expected to provide more
cash flow visibility and stability to the Company,” commented
Kenneth Hvid, Teekay’s President and Chief Executive Officer.
About Teekay
Teekay is a leading provider of international
crude oil and gas marine transportation services and also provides
offshore production. Teekay provides these services primarily
through its directly-owned fleet and its controlling ownership
interests in Teekay LNG Partners L.P. (NYSE:TGP), the world’s third
largest independent owner and operator of LNG carriers, and Teekay
Tankers Ltd. (NYSE:TNK), one of the world’s largest owners and
operators of mid-sized crude tankers. The consolidated Teekay
entities manage and operate total assets under management of
approximately $12 billion, comprised of approximately 150 liquefied
gas, offshore, and conventional tanker assets. With 12 operating
offices around the world and approximately 5,700 seagoing and
shore-based employees, Teekay provides a comprehensive set of
marine services to the world’s leading oil and gas companies.
Teekay’s common stock trades on the New York
Stock Exchange under the symbol “TK”.
For Investor Relations enquiries
contact:
Ryan HamiltonTel: +1 (604) 609-2963Website:
www.teekay.com
Forward Looking Statement
This release contains forward-looking statements
(as defined in Section 21E of the Securities Exchange Act of 1934,
as amended) which reflect management’s current views with respect
to certain future events and performance, including: the stability
of future cash flows from the Hummingbird; the expected production
life of the Chestnut field; and the expected duration of the
Hummingbird contract. The following factors are among those that
could cause actual results to differ materially from the
forward-looking statements, which involve risks and uncertainties,
and that should be considered in evaluating any such statement:
less than expected revenue generated by, or higher than expected
expenses and costs incurred relating to, the Hummingbird; changes
in oil prices; changes in oil production on the Chestnut field;
potential early termination of the Hummingbird charter contract;
and other factors discussed in Teekay’s filings from time to time
with the SEC, including its Annual Report on Form 20-F for the
fiscal year ended December 31, 2018. Teekay expressly disclaims any
obligation or undertaking to release publicly any updates or
revisions to any forward-looking statements contained herein to
reflect any change in Teekay’s expectations with respect thereto or
any change in events, conditions or circumstances on which any such
statement is based.
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