Teekay to convert FSO for Gina Krog in North Sea

Teekay Offshore Partners (NYSE:TOO) has entered into an agreement with Statoil to provide a floating storage and offtake (FSO) vessel for the Gina Krog oil and gas field development in the Norwegian North Sea.

Offshorestaff

HAMILTON, Bermuda – Teekay Offshore Partners (NYSE:TOO) has entered into an agreement with Statoil to provide a floating storage and offtake (FSO) vessel for the Gina Krog oil and gas field development in the Norwegian North Sea.

The vessel will be a conversion of the 1995-built shuttle tankerRandgrid, which is 67% owned by Teekay Offshore. Costs of the conversion will likely reach $220 million, including acquisition of the remaining 33% ownership interest.

Following delivery in 1Q 2017, the new FSO unit will start operations under a three-year firm period time-charter contract to Statoil, with 12 one-year extension options.

5/23/2013

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