Teekay Offshore Partners L.P. : Teekay Offshore Partners Signs New FSO
Contract With Statoil
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
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.
Teekay Offshore Partners L.P.
+1 (604) 609-6442
This announcement is distributed by Thomson Reuters on behalf of Thomson
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
information contained therein.
Source: Teekay Offshore Partners L.P. via Thomson Reuters ONE
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