Brazil: Teekay Announces FPSO Contract Extension with Petrobras

Teekay Corporation  today announced that it has signed an agreement with Petroleo Brasileiro SA (Petrobras) to extend the operating contract for Teekay’s Cidade de Rio das Ostras Floating Production Storage and Offloading (Rio das Ostras FPSO) unit through 2018.

The Rio das Ostras FPSO, which has operated at the Siri reservoir on the Badejo field in Brazil’s Campos Basin since 2008, will be re-deployed to the Aruana field in the Campos Basin following upgrades to prepare the unit for its new field. The upgrades are expected to be completed during the fourth quarter of 2010.

During the operation on the Badejo field, the Rio das Ostras FPSO served as a test facility for the production of heavy crude oil, specific to the region. The unit has a total crude oil storage capacity of approximately 214,000 barrels (bbls) and is capable of producing up to 15,000 bbls per day of heavy crude oil.

“The extension of the Rio das Ostras FPSO contract is a reflection of the unit’s successful operation during its two-year deployment on the Badejo field, where it has performed with a high degree of reliability in the complex production of heavy oil with a record-low API gravity,” said Bjorn Moller, Teekay Corporation’s President and Chief Executive Officer. “We are pleased with this significant contract extension in the strategic Brazilian offshore sector, where Teekay also has a growing presence in the shuttle tanker trade.” Mr. Moller added, “This contract extension marks our third FPSO contract renewal during the past year and highlights the progress we have made towards our goal of further improving the profitability of Teekay’s existing assets.”

About Teekay

Teekay Corporation transports approximately 10% of the world’s seaborne oil, has built a significant presence in the liquefied natural gas shipping sector through its publicly-listed subsidiary Teekay LNG Partners L.P. , is further growing its operations in the offshore oil production, storage and transportation sector through its publicly-listed subsidiary Teekay Offshore Partners L.P. , and continues to expand its conventional tanker business through its publicly-listed subsidiary Teekay Tankers Ltd. . With a fleet of over 150 vessels, offices in 16 countries and approximately 6,100 seagoing and shore-based employees, Teekay provides a comprehensive set of marine services to the world’s leading oil and gas companies, helping them link their upstream energy production to their downstream processing operations.

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Source: Teekay, June 23, 2010: