Teekay agrees terms for FPSO trio

Offshore staff

ARENDAL, Norway – Sevan Marine has agreed in principle to sell three FPSOs to marine services provider Teekay Corp.

Teekay will take on the Hummingbird, Piranema, and Voyageur (upon completion of a current upgrade for the Huntington field in the UK North Sea), and the floaters’ existing charter contracts

It will also finance completion of the FPSO Sevan Voyageur upgrade, take an equity position in a recapitalized Sevan Marine, and enter a cooperation agreement to acquire future FPSO projects developed by Sevan.

Financial difficulties largely brought on by cost overruns on the Voyageur program, obliged Sevan to seek assistance.

“We believe the proposed transaction with Teekay represents a good solution for all stakeholders of Sevan Marine… and also supports the further growth of the company,” said Carl Lieungh, CEO of Sevan Marine.

“We will also preserve our leading engineering and design capabilities and intellectual property. Together with Teekay as a strong industrial partner, we will be well positioned to benefit from opportunities in a growing FPSO market.”

“Our investment reflects our confidence in Sevan’s strong offshore project development expertise while providing Teekay with an enhanced pipeline of future on-the-water FPSO growth opportunities,” said Peter Evensen, Teekay’s president and CEO.

09/30/2011



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