Teekay Offshore Partners Announces Termination of Cheviot Field Opportunity and Availability Of Petrojarl Varg FPSO
June 21 2019 - 4:15PM
In October 2018, certain subsidiaries of Teekay Offshore Partners
L.P. (Teekay Offshore or the Partnership) entered into an agreement
with Alpha Petroleum Resources Limited (Alpha Petroleum) to use
Teekay Offshore’s Petrojarl Varg floating production, storage and
offloading (FPSO) unit to operate on the Cheviot oil field on the
UK continental shelf.
The FPSO contract was for a seven-year fixed
term from first oil, which was targeted for the second quarter of
2021, after a life extension and upgrade phase for the Petrojarl
Varg taking place at Sembcorp Marine’s shipyard in Singapore.
The effectiveness of the agreement remained
subject to a number of conditions precedent being satisfied,
including that Alpha Petroleum provide initial funding to
cover life extension and upgrade costs. As a result of this
condition precedent not having been satisfied by the prescribed
contractual deadline, this agreement and all commitments related
thereto, have now been terminated and as such the Partnership and
its subsidiaries will be immediately pursuing a range of
alternative deployment opportunities for the Petrojarl Varg.
Chris Brett, President Teekay Offshore
Production, commented “We have been very impressed with the
creativity, competence and determination of the Alpha Petroleum
team to develop the Cheviot field which remains, in our opinion, a
well-developed opportunity and we wish the Alpha team all the best
in their continued efforts to bring the field into production. From
a Teekay Offshore perspective, we look forward to advancing the
next project for the Petrojarl Varg, which could still include the
Cheviot development under a revised financing model. The Varg FPSO
has had a long history of reliable production on the Norwegian
Continental Shelf and provides a flexible production solution for a
wide range of future developments in the North Sea and beyond”.
About Teekay Offshore
Teekay Offshore Partners L.P. is a leading
international midstream services provider to the offshore oil
production industry, primarily focused on the ownership and
operation of critical infrastructure assets in offshore oil regions
of the North Sea, Brazil and the East Coast of Canada. Teekay
Offshore has consolidated assets of approximately $5.3 billion,
comprised of 60 offshore assets, including floating production,
storage and offloading (FPSO) units, shuttle tankers (including six
newbuildings), floating storage and offtake (FSO) units,
long-distance towing and offshore installation vessels, and a unit
for maintenance and safety (UMS). 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:
Jan Rune SteinslandTel: +47 5144
2826Website: www.teekayoffshore.com
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