HAMILTON, Bermuda, Dec. 18, 2017 (GLOBE NEWSWIRE) — Teekay Offshore Partners L.P. (Teekay Offshore or the Partnership) (NYSE:TOO) announced today that it has completed the upgrade of the Petrojarl I floating production, storage and offloading (FPSO) unit, which has now sailed-away from the Aibel AS shipyard in Norway. The FPSO unit is now en route to the Atlanta Field, which is located 185 kilometers offshore from the coast of Brazil at a water depth of approximately 1,550 meters and contains an estimated 260 million recoverable barrels of oil equivalent. Once the FPSO unit arrives at the Atlanta field, it will undergo field installation and testing prior to commencing its five-year charter contract with a consortium led by Queiroz Galvão Exploração e Produção SA (QGEP), which is expected to occur in the latter part of the first quarter of 2018.
“This has been a challenging project for Teekay Offshore and today therefore marks a significant milestone for the Petrojarl I FPSO upgrade project,” commented Ingvild Sæther, President and CEO of Teekay Offshore Group Ltd. “We now look forward to achieving first oil on the Atlanta field which will allow our customer to begin generating a return on their investment while also adding cash flow growth to Teekay Offshore.”
About Teekay Offshore
Teekay Offshore Partners L.P. is an international provider of marine transportation, oil production, storage, long-distance towing and offshore installation and maintenance and safety services to the oil industry, primarily focusing on oil production-related activities of its customers and operating in offshore oil regions of the North Sea, Brazil and the East Coast of Canada. Teekay Offshore is structured as a publicly-traded master limited partnership (MLP) with consolidated assets of approximately $5.6 billion, comprised of 63 offshore assets, including floating production, storage and offloading (FPSO) units, shuttle tankers, floating storage and offtake (FSO) units, a unit for maintenance and safety (UMS), long-distance towing and offshore installation vessels and conventional tankers. The majority of Teekay Offshore’s fleet is employed on medium-term, stable contracts.
Teekay Offshore’s common units and Series A and B preferred units trade on the New York Stock Exchange under the symbols “TOO”, “TOO PR A” and “TOO PR B”, respectively.
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Forward Looking Statements
This release contains forward-looking statements (as defined in Section 21E of the U.S. Securities Exchange Act of 1934, as amended) which reflect management’s current views with respect to certain future events and performance, including statements regarding: the expected timing for the commencement of operations under the Petrojarl I FPSO charter contract; the estimated reserves on the Atlanta field; and the impact of the Petrojarl I FPSO on the Partnership’s future cash flows. The following factors are among those that could cause actual results to differ materially from the forward-looking statements, which involve risks and uncertainties, and that should be considered in evaluating any such statement: potential delays in the contract start-up of the Petrojarl I FPSO; the operational performance of the Petrojarl I FPSO; variations in operating expenses; different-than-expected levels of oil production on the Atlanta field; potential early termination of the charter contract; and other factors discussed in Teekay Offshore’s filings from time to time with the SEC, including its Report on Form 20-F for the fiscal year ended December 31, 2016. The Partnership expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Partnership’s expectations with respect thereto or any change in events, conditions or circumstances on which any such statement is based.