HAMILTON, Bermuda – Teekay Offshore has signed a three-year contract extension for the FPSO Piranema Spirit.
However, the terms include customer termination rights with 10 months of advanced notice.
Last October Teekay Offshore entered a further settlement agreement with Petrobras concerning a dispute related to the charter of the vessel.
Around the same time the two parties also reached a settlement on various disputes concerning the previously-terminated charter contracts of the HiLoad DP unit and theArendal Spirit for maintenance and safety (UMS).
Petrobras agreed to pay $96 million to Teekay Offshore in three instalments by the end of 2021.
Teekay has a seven-year contract for theFPSOPetrojarl Varg to operate on Alpha Petroleum Resources’ Cheviot field development in the UK northern North Sea.
The fixed term begins from first oil, which was originally targeted for 2Q 2021, but start-up looks likely to be delayed to allow for completion of a life extension and upgrade program for the vessel at Sembcorp Marine’s shipyard in Singapore.
The agreement remains subject to Alpha finalizing its project financing and approval by relevant governmental authorities for the final Cheviot development plan.