Teekay Offshore Partners Signs New FSO Contract With Statoil
May 22 2013 - 9:28AM
Marketwired
Teekay Offshore Partners L.P. (Teekay Offshore or the Partnership)
(NYSE:TOO) today announced that it has entered into an agreement
with Statoil Petroleum AS (Statoil), on behalf of the field license
partners, to provide a floating storage and offtake (FSO) unit for
the Gina Krog oil and gas field located in North Sea.
The contract will be serviced by a new FSO unit converted from
the 1995-built shuttle tanker, Randgrid, which is currently 67
percent owned by Teekay Offshore. The Partnership's portion of the
FSO conversion project is expected to be completed for a total net
capital cost of approximately $220 million, including the cost of
acquiring the remaining 33 percent ownership interest in the
Randgrid shuttle tanker. Following completion in the first quarter
of 2017, the newly converted FSO unit will commence operations
under a 3-year firm period time-charter contract to Statoil, which
includes 12 additional one-year extension options.
"This strategically important conversion project represents
another milestone in Teekay Offshore's expanding FSO franchise,"
commented Ingvild Saether, President, Teekay Shuttle and Offshore
Services. "The Gina Krog FSO project highlights how Teekay Offshore
can combine its growing offshore project development capability and
financial resources to provide an FSO solution to Statoil while
repurposing an existing shuttle tanker asset to generate
distributable cash flow accretion."
About Teekay Offshore Partners L.P.
Teekay Offshore Partners L.P. is an international provider of
marine transportation, oil production and storage services to the
offshore oil industry focusing on the fast-growing, deepwater
offshore oil regions of the North Sea and Brazil. Teekay Offshore
is structured as a publicly-traded master limited partnership and
owns interests in 35 shuttle tankers (including four chartered-in
vessels and three committed newbuildings), four floating
production, storage and offloading (FPSO) units, seven floating
storage and offtake (FSO) units (including two committed FSO
conversions) and six conventional oil tankers. The majority of
Teekay Offshore's fleet is employed on long-term, stable contracts.
In addition, Teekay Offshore has rights to participate in certain
other FPSO and shuttle tanker opportunities provided by Teekay
Corporation (NYSE:TK) and Sevan Marine ASA (Oslo Bors:SEVAN).
Teekay Offshore's 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
timing of commencement of the FSO service contract between the
Partnership and Statoil and the effect of this contract on the
Partnership's future distributable cash flow; the estimated total
capital cost to convert the 1995-built shuttle tanker Randgrid into
an FSO unit; and the cost and certainty of the Partnership's
acquisition of the remaining 33 percent ownership interest in the
Randgrid. 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: variances in
expected capital costs of converting the Randgrid shuttle tanker
into an FSO unit; failure by the Partnership to acquire the
remaining 33 percent interest in the Randgrid shuttle tanker;
shipyard delays resulting in delayed delivery and contract
commencement of the newly converted FSO unit to the Gina Krog oil
and gas field; greater than expected levels of operating expenses;
potential early termination of the contract between the Partnership
and Statoil and inability to replace this contract; the
Partnership's ability to finance the completion of the conversion
of the Randgrid shuttle tanker into an FSO; 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, 2012. 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 Partners L.P. Kent Alekson Investor
Relations +1 (604) 609-6442 www.teekayoffshore.com
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