Teekay Offshore Partners Signs New FSO Contract With Statoil

Teekay Offshore Partners Signs New FSO Contract With Statoil 
HAMILTON, BERMUDA -- (Marketwired) -- 05/22/13 -- 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
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
Teekay Offshore's common units trade on the New York Stock Exchange
under the symbol "TOO". 
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
Teekay Offshore Partners L.P.
Kent Alekson
Investor Relations
+1 (604) 609-6442
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