TEEKAY ANNOUNCES NEW BAREBOAT CONTRACT FOR THE FOINAVEN FPSO
March 27 2020 - 6:59AM
Teekay Corporation (Teekay) (NYSE:TK) today announced that it has
entered into a new bareboat charter contract with the Foinaven
Operator (Britoil Limited, a subsidiary of BP p.l.c.), for the
Petrojarl Foinaven (Foinaven) floating production, storage and
offloading (FPSO) unit for up to approximately ten years (the
Contract). Under the terms of the Contract, Teekay is
expected to receive an upfront payment of approximately $67 million
in cash, a nominal per day rate over the life of the Contract, and
a lump sum payment at the end of the Contract period, which is
expected to cover the costs of recycling the FPSO unit in
accordance with the EU Ship Recycling Regulations.
As part of the transaction, Teekay Offshore
Partners L.P., now known as Altera Infrastructure L.P. (Altera
Infrastructure) has entered into agreements with the Foinaven
Operator directly to provide the operations and shuttle tanker
services for the Foinaven FPSO.
“We are pleased to announce this new contract
for the Foinaven FPSO, which allows our customer to continue to
maximize the value of the Foinaven field whilst eliminating
Teekay’s operational exposure to the FPSO unit,” commented Kenneth
Hvid, Teekay’s President and CEO. “The new contract further reduces
our exposure to the offshore business, which is a strategic
priority, improves our profitability, and allows us to further
delever and strengthen our balance sheet.”
BP North Sea Regional President, Ariel Flores,
said, “This new arrangement will enable BP and its joint venture
partner RockRose Energy to introduce an innovative contractual
framework for the FPSO’s operating services and shuttle tanker
provision, giving BP greater influence over the strategic direction
of operations, while allowing us to build on our existing strong
relationship with Altera Infrastructure. It will also help
ensure safe, reliable and efficient operations out to at least 2025
and give us space to set the Foinaven area up for future
success.”
Altera Infrastructure FPSO President, Chris
Brett, commented, “We are proud of our 24 years of continuous
operations on the Foinaven field in the harsh West of Shetlands
environment. This innovative new contractual model allows us to
keep providing our unique competency to BP and their partners as we
work together to extend the Foinaven field safely into the
future.”
About Teekay
Teekay is a leading provider of international
crude oil and gas marine transportation services and also provides
offshore production and logistics. Teekay provides these services
primarily through its directly-owned fleet and its controlling
ownership interests in Teekay LNG Partners L.P. (NYSE:TGP), one of
the world’s largest independent owners and operators 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 $11 billion, comprised of approximately
140 liquefied gas, conventional tanker, and offshore assets. With
offices in 12 countries 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 is listed on the New York
Stock Exchange where it trades 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 statements,
among other things, regarding: the terms of the Contract,
including the upfront payment, day rate and lump sum
payment expected at the end of the Contract term; the
anticipated timing of receipt of payments due under the Contract;
the certainty of the lump sum payment expected
at the end of the Contract term covering the
recycling costs of the Foinaven FPSO at such time;
the impact of the Contract on the customer’s utilization of the
Foinaven field; and the expected impact of the Contract on Teekay’s
operational exposure, profitability and balance sheet. 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: market or counterparty reaction to
changes in exploration, production and storage of offshore oil and
gas, either generally or in particular regions that would impact
expected future growth; changes in the demand for
oil and refined products; changes in global oil
prices; the impact of geopolitical tensions and changes in global
economic conditions; the duration and extent of the COVID-19
coronavirus pandemic; changes in EU Ship Recycling Regulations and
associated costs; 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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