Teekay launches offshore services partnership

Offshore Staff

(Bahamas) - Teekay Shipping Corp. has approved the launch of a newly formed master limited partnership called, Teekay Offshore Partners L.P., that will focus on providing marine solutions to the offshore energy sector.

According to Teekay, the partnership will initially acquire an interest in Teekay's existing shuttle tanker and FSO businesses, and other assets. The new venture is expected participate in Teekay's FPSO business as well.

Following the company's launch of an IPO, Teekay will own the partnership's general partner and a majority of the partnership's units.

"We have been evaluating strategic initiatives for our offshore services business particularly at a time when offshore oil E&P is expected to grow significantly," says Bjorn Moller, Teekay's president and CEO.

"The creation of Teekay Offshore Partners is part of Teekay's strategy to accelerate its growth in the offshore energy sector and create additional value for Teekay's shareholders."

Teekay plans to file with the US Securities and Exchange Commission a registration statement for an IPO of the common units of Teekay Offshore Partners L.P. during the second half of 2006.

06/12/06