Petrobras defers charter payments for Arendal Spirit pending investigation

Following a pair of incidents that occurred on the Arendal Spirit maintenance and safety unit, Petrobras has suspended charter payments to Teekay Offshore Partners while it conducts an operational review.

Offshore staff

HAMILTON, Bermuda– Following a pair of incidents that occurred on the Arendal Spirit maintenance and safety unit, Petrobras has suspended charter payments to Teekay Offshore Partners while it conducts an operational review.

Teekay revealed the news in its most recent financial report. The review was initiated after the second incident, which occurred in November 2016 and was related toArendal Spirit’sdynamic positioning system.

The first event occurred in April 2016, when the UMS’ gangway, then connected to an FPSO, suffered extensive damage. The system was declared off-hire under its charter contract.

“The partnership has completed an investigation to identify the cause of the incidents and has implemented corrective measures,” Teekay said, noting that it “had been in dialogue with Petrobras to address its concerns to bring the unit back into operations as soon as possible.”

The newbuild flotel, which features Sevan Marine’s cylindrical hull design, was delivered to Teekay from the Cosco Nantong yard in 2015. It began working for Petrobras under a three-year charter that same year. The DP-3 unit can accommodate 500 people and has a deck area of more than 2,000 sq m (21,528 sq ft).

Income and cash flow from vessel operations for 4Q 2016 were impacted by the suspension of these payments, which Petrobras began in early November 2016, Teekay said.

02/24/2017

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