Teekay offsets floater delays with new shuttle tanker contracts

Teekay Offshore Group has issued an update on its offshore vessel operations.

Offshore staff

HAMILTON, Bermuda – Teekay Offshore Group has issued an update on its offshore vessel operations.

President and CEO Ingvild Sæther said: “OurEast Coast Canada shuttle tanker project and our largest project, the Libra FPSO conversion, are on track and on budget to commence operations from mid-2017 through to the first half of 2018.”

However, the company says there has been a delay on the FSO forStatoil’s Gina Krog project in the North Sea, which is now expected to begin operations by mid-2017.

Teekay has also run into delays and additional costs on its upgrade of thePetrojarl IFPSO upgrade, she added. The vessel is now scheduled to start operations in 4Q, and Teekay remains in negotiations with the charterer, shipyard and its lenders.

Sæther added: “We continue to focus on securing contract extensions for our three FPSO charters that are coming up for renewal in 2018 and 2019 as well as optimizing our asset portfolio to continue reducing our overall financial leverage and increasing our liquidity.”

Currently Teekay is negotiating another shuttle tanker contract of affreightment (CoA) contract after having secured a three-year CoA contract for theGlen LyonFPSO for BP’s Quad204 project west of Shetland last September.

Sæther continued: “We continue to see strong demand for further shuttle services, particularly in the North Sea.”

In January, Teekay received a letter of award for a new, five-year shuttle tanker CoA, plus extension options, with a consortium of oil companies to service an unnamed development in the UK central North Sea. The CoA will likely take effect during 1Q 2018 and will be serviced by the company’s existing CoA shuttle tanker fleet.

02/24/2017

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