Teekay Offshore Signs Brazil Shuttle Tanker Contract to Be Serviced by Four Newbuildings
June 23 2011 - 8:38PM
Marketwired
Teekay Offshore GP L.L.C., the general partner of Teekay Offshore
Partners L.P. (Teekay Offshore or the Partnership) (NYSE: TOO),
announced today that it has entered into a new long-term contract
with a subsidiary of BG Group plc (BG) to provide shuttle tanker
services in Brazil.
The contract with BG will be serviced by four Suezmax-size DP2
shuttle tanker newbuildings to be constructed by Samsung Heavy
Industries in South Korea. Upon delivery in mid- to late-2013, the
vessels will commence operations under 10-year time-charters. The
contract with BG also includes certain extension options and vessel
purchase options.
"These strategic new long-term shuttle tanker time-charters with
BG further strengthen the Partnership's position in the
fast-growing Brazilian offshore market," commented Peter Evensen,
Chief Executive Officer of Teekay Offshore GP L.L.C. "In addition
to increasing our Brazil based shuttle tanker fleet size by
approximately 30 percent, this transaction is expected to be
accretive upon delivery of the vessels and will provide Teekay
Offshore with additional customer diversification and cash flow
stability."
About Teekay Offshore
Teekay Offshore Partners L.P., a publicly-traded master limited
partnership formed by Teekay Corporation (NYSE: TK), is an
international provider of marine transportation, oil production and
storage services to the offshore oil industry. Teekay Offshore owns
40 shuttle tankers (including five chartered-in vessels and five
committed newbuildings), five Floating Storage and Offtake (FSO)
units, 11 conventional oil tankers, and two Floating Production
Storage and Offloading (FPSO) units. Teekay Offshore also has
rights to participate in certain other FPSO and shuttle tanker
opportunities provided by its sponsor, Teekay Corporation.
Teekay Offshore Partners' common units trade on the New York
Stock Exchange under the symbol "TOO".
FORWARD LOOKING STATEMENTS
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 regarding: the
expecting timing for delivery of the four newbuilding shuttle
tankers from the shipyard and commencement of their respective
long-term time-charter contracts; the expected accretion to the
Partnership's distributable cash flow per unit resulting from the
new time-charter contracts with BG and impact on the Partnership's
overall cash flow stability; and the outlook for growth in the
Brazil offshore market. 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:
greater than expected vessel construction costs; changes to vessel
delivery dates as a result of shipyard delays; greater than
expected increases in operating expenses; potential early
termination of contracts; potential extension of contracts;
potential exercise by BG of certain vessel purchase options;
various factors affecting the growth of the Brazil offshore oil
market; and other factors discussed in Teekay Offshore's filings
from time to time with the SEC, including its Report on Form 20-F
for the fiscal year ended December 31, 2010. The Partnership
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 the Partnership's
expectations with respect thereto or any change in events,
conditions or circumstances on which any such statement is
based.
Contacts: Teekay Offshore GP L.L.C. Kent Alekson Investor
Relations + 1 (604) 609-6442 www.teekayoffshore.com
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