Teekay Offshore to construct shuttle tankers for East Coast Canada

Offshore staff

HOUSTON – Teekay Offshore has entered into new long-term contracts with several operators to provide shuttle tanker services for their East Coast Canada oil production. These 15-year contracts, plus extension options, will initially be serviced by one of Teekay Offshore’s existing shuttle tankers, the Navion Hispania, and two to three third-party-owned shuttle tankers currently operating in that area. These third-party vessels will be chartered-in to Teekay Offshore’s Canadian affiliate prior to the delivery of up to four shuttle tanker newbuilds.

Teekay Offshore will enter into shipbuilding contracts to construct three Suezmax-size, DP-2 shuttle tanker newbuildings with a South Korean shipyard for a fully built-up cost of about $365 million, with an option to order one additional vessel should a fourth vessel be required. The three firm vessels are expected for delivery in 4Q 2017 through the first half of 2018.

The partnership intends to initially finance the installment payments for the shuttle tanker newbuildings with a portion of its existing liquidity and it expects to secure long-term debt financing for the vessels prior to their scheduled deliveries.

Teekay Offshore CEO Peter Evensen said in a statement that, with these contracts, Teekay Offshore now has a leading market position in all three DP shuttle tanker basins, the North Sea, Brazil and now the East Coast of Canada. 

6/1/2015

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