Teekay Offshore Partners signs new FSO contract with Statoil
Teekay Offshore Partners L.P. 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, said in the company's press release.
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 Sæther, 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).
