Teekay Offshore Partners Signs New FSO Contract With Statoil
May 22 2013 - 10:19AM
HAMILTON, BERMUDA--(Marketwired - May 22, 2013) -
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
This
announcement is distributed by Thomson Reuters on behalf of Thomson
Reuters clients.
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the
information contained therein.
Source: Teekay Offshore Partners L.P. via Thomson Reuters
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