Teekay Scores Oil Transport Contracts from Oil Majors

Published at 03:00PM - 23/09/16

Teekay Offshore Partners announced today it has been awarded a series of new contracts by BP, Royal Dutch Shell and OMV Group to transport oil produced oil produced from the new Glen Lyon floating production storage offloading (FPSO) vessel.

The agreements have a duration of three years and consist on contracts of affreightment (CoA) with extension options.

“We are pleased to announced these new strategic shuttle tanker contracts, which further builds on the Partnership’s leading market position in the North Sea,” Teekay Offshore’s Chief Executive Officer, Peter Evensen, said.

Teekay Scores Oil Transport Contract from Oil Majors

The agreements are expected to start in the first half of 2017 with the requirement for approximately two shuttle tankers, the company informed.

Additionally, Teekay expects to service these new contracts with its existing CoA shuttle tanker fleet.

“These contracts further enhance our CoA contract portfolio and are expected to add future cash flow through higher shuttle tanker fleet utilisation without the need for incremental capital expenditures,” the CEO added.

“Looking ahead, the shuttle tanker market in the North Sea is expected to remain tight, supported by a combination of more lifting points from new fields coming online and limited fleet growth with no uncommitted shuttle tanker newbuildings on order,” he stated further.

Glen Lyon FPSO to Serve as Hub for Quad2014

Teekay Offshore owns 63 offshore assets, including shuttle tankers, floating production, storage and offloading (FPSO) units, floating storage and offtake (FSO) units, units for maintenance and safety (UMS), long-distance towing and offshore installation vessels and conventional tankers.

The Glen Lyon FPSO is part of the Quad204 development, located west of Shetland in the North Sea.

The FPSO started its journey towards the West of Shetland earlier this year, where it will serve as a hub for the Quad204.

The project aims to access approximately 450 million barrels of resources still available and is able to process and export up to 130,000 barrels of oil per day (bpd) and store up to 800,000 barrels.