Teekay Offshore Partners Announces First Oil and Contract Start-up for the Petrojarl I FPSO
May 10 2018 - 4:07PM
Teekay Offshore Partners L.P. (NYSE:TOO) (Teekay Offshore or the
Partnership) announced today that the Petrojarl I floating
production, storage and offloading (FPSO) unit has successfully
achieved first oil and commenced its five-year charter contract
with a consortium led by Queiroz Galvão Exploração e Produção SA
(QGEP) on the Atlanta oil field, which is the Petrojarl I FPSO’s
tenth field over its lifetime. The Petrojarl I FPSO is
expected to generate annualized cash flow from vessel operations(1)
of approximately $25 million(2) for the first 18 months, increasing
to annualized cash flow from vessel operations(1) of approximately
$55 million(2), plus additional upside from oil price tariffs,
during the remaining 42 months of the charter contract.
The Atlanta field, which is located in Block BS4
in the Santos Basin offshore Brazil, is a post-salt oil field
situated 185 kilometers from the city of Rio de Janeiro, in water
depths of approximately 1,500 meters and contains an estimated 260
million recoverable barrels of oil equivalent.
The upgraded Petrojarl I FPSO is designed to
operate at water depths of up to 1,550 meters, with a production
capacity of 30,000 barrels of oil per day and daily compression
capacity of 225,500 cubic meters of gas.
“Today is an important day for Teekay Offshore
as it marks the completion of all our near-term growth projects
that are expected to generate annual cash flow from vessel
operations(1) of approximately $200 million, which is also expected
to further strengthen our balance sheet as we naturally delever
over time,” commented Ingvild Sæther, President and CEO of Teekay
Offshore Group Ltd. “In addition, the Petrojarl I FPSO
project expands our presence in the fast-growing Brazilian offshore
market where we now own and operate a total of five FPSO units and
nine shuttle tankers.”
(1) |
Cash flow from vessel
operations, a non-GAAP measure, represents income from vessel
operations before depreciation and amortization expense,
amortization of in-process revenue contracts, vessel write-downs,
gains or losses on the sale of vessels and equipment and
adjustments for direct financing leases to a cash basis, but
includes realized gains or losses on the settlement of foreign
currency forward contracts and a derivative charter contract. |
(2) |
Excludes the impact of
any potential liquidated damages relating to project delays. |
About Teekay Offshore
Teekay Offshore Partners L.P. is an
international provider of marine transportation, oil production,
storage, long-distance towing and offshore installation and
maintenance and safety services to the oil industry, primarily
focusing on oil production-related activities of its customers and
operating in offshore oil regions of the North Sea, Brazil and the
East Coast of Canada. Teekay Offshore is structured as a
publicly-traded master limited partnership (MLP) with consolidated
assets of approximately $5.7 billion, comprised of 63 offshore
assets, including floating production, storage and offloading
(FPSO) units, shuttle tankers, floating storage and offtake (FSO)
units, a unit for maintenance and safety (UMS), long-distance
towing and offshore installation vessels and conventional tankers.
The majority of Teekay Offshore's fleet is employed on medium-term,
stable contracts.
Teekay Offshore's common units and preferred
units trade on the New York Stock Exchange under the symbols "TOO",
"TOO PR A", "TOO PR B" and “TOO PR E”, respectively.
For Investor Relations enquiries
contact:
Ryan HamiltonTel: +1 (604) 609-2963Website: www.teekay.com
For Media enquiries contact:Axel WiedenmannTel:
+47 9516 3022Website: www.teekay.com
Forward Looking Statements
This release contains forward-looking statements
(as defined in Section 21E of the U.S. 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 estimated reserves on the Atlanta field;
the operational capabilities of the Petrojarl I FPSO; the estimated
annualized cash flow from vessel operations from the Petrojarl I
FPSO charter contract; the amount and timing liquidated damages
relating to project delays; and the total annualized cash flows
from operations from the Partnership’s near-term growth projects
and the expected impact of such projects on the Partnership’s
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: the operational
performance of the Petrojarl I FPSO; variations in operating
expenses; different-than-expected levels of oil production on the
Atlanta field; changes in oil prices; potential early termination
of the charter contract; 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, 2017.
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.
Teekay Offshore Partners (NYSE:TOO)
Historical Stock Chart
From May 2024 to Jun 2024
Teekay Offshore Partners (NYSE:TOO)
Historical Stock Chart
From Jun 2023 to Jun 2024