Teekay Looks to Brazil for Expansion of Shuttle-Tanker Fleet, Moller Says

Teekay Corp., a Hamilton, Bermuda- based owner of oil tankers, will expand its fleet serving in Brazil to take advantage of the country’s rising offshore oil production, Chief Executive Officer Bjorn Moller said.

The company has 11 shuttle tankers in Brazil, Moller said in a telephone interview. It operates 35 of the tankers globally through its subsidiary Teekay Offshore Partners LP. Shuttle tankers move oil from offshore fields to terminals onshore.

“We can move our tankers to where they can earn maximum revenue, and we are planning to build our business in Brazil further,” Moller said. “Brazil is clearly the biggest growth market in the near future” in offshore oil production.

Oil production in Brazil will rise 7.2 percent this year to 2.67 million barrels a day, according to the Paris-based International Energy Agency. Production in Norway, which also produces oil from offshore fields, will fall 7.6 percent to 2.2 million barrels a day, the agency said in a monthly report on April 13.

Teekay’s offshore fleet last year resisted the worst economic recession since World War II. While revenue from the tanker segment slumped 40 percent to $229.2 million in the fourth quarter, revenue from the offshore segment fell 5.5 percent to $178.8 million.

Two new shuttle tankers are scheduled to be delivered to Teekay in the second half of this year and two more in the first half of next year.

“Brazil is currently looking for additional tankers, and Teekay has the option of offering existing vessels or new vessels,” Moller said. Teekay may also “order other newbuildings for Brazil.”

To contact the reporter on this story: Moming Zhou in New York at mzhou29@bloomberg.net

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