New JV targets FPSO market

Teekay Shipping Corp. and PGS Production AS plan to form a joint venture company that will target the growing global market for FPSOs.

Offshore staff

(International) - Teekay Shipping Corp. and PGS Production AS, a subsidiary of Petroleum Geo-Services ASA (PGS), plan to form a joint venture (JV) company called Teekay Petrojarl Offshore that will target opportunities in the growing global market for mobile production solutions with emphasis on developing solutions through FPSO units.

"Offshore oil exploration and production is expected to grow significantly," says Bjorn Moller, Teekay's president and CEO.

"This joint venture creates a strong platform to pursue the growing market for FPSOs that will result from this increased offshore oil production.

"The combination of PGS' offshore engineering expertise and reputation as a quality operator of FPSOs, and Teekay's global marine operations and extensive customer network strategically positions this joint venture to competitively pursue FPSO projects anywhere in the world."

"This is a further important move in our announced international expansion strategy," says PGS Production's President, Espen Klitzing.

"Teekay's global marketing organization, customer and shipyard relationships are a perfect match with our engineering expertise and experience as a quality operator of FPSOs in the harsh North Sea environment."

The JV will only encompass new projects; existing assets of both companies are excluded.

Teekay Petrojarl Offshore will start pursuing opportunities immediately and all details regarding the JV are to be finalized during 2Q 2006.

02/22/06

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