Teekay Announces Foinaven FPSO Contract Amendment

HAMILTON, BERMUDA–(Marketwire – April 14, 2010) – Teekay Corporation (Teekay or the Company) (NYSE:TK) today announced that it has signed an agreement with the Foinaven operator (Britoil plc) and the Foinaven Co-venturers (Britoil plc and certain of its affiliates and Marathon Petroleum) to amend the operating contract for Teekay’s Foinaven Floating Production Storage and Offloading (FPSO) unit, which also includes transportation services provided by two shuttle tankers. The Foinaven FPSO unit operates under an evergreen contract on the Foinaven oil field, West of Shetland on the UK Continental Shelf, where it has been stationed since 1997. The amended contract provides a commercial agreement which secures the provision of operating services for the Foinaven field until at least 2021 and includes operating performance incentives which increase the revenue generated by the Foinaven FPSO unit. The amended contract, which applied from January 1, 2010, is comprised of the following components:

• a daily rate, part of which is earned based on agreed operating performance incentives (adjusted annually based on industry indices);
• a production tariff based on the volume of oil produced; and
• a supplemental tariff based on both the volume of oil produced and the annual average Brent Crude Oil price.

As a result, the Foinaven FPSO unit is expected to generate incremental operating cash flow and net income of approximately $30 million to $40 million per annum over the anticipated life of the contract period. Under the amended contract, Teekay will also receive payments of approximately $60 million, relating to the Foinaven FPSO unit’s operations in previous years. The first installment of approximately $30 million is payable by the end of April 2010 and the balance is expected to be payable in the third quarter of 2010. “The amended Foinaven FPSO contract reflects the desire of both Teekay and the Foinaven Co-Venturers to continue working together to maximize the value of the important Foinaven field,” commented Bjorn Moller, Teekay Corporation’s President and Chief Executive Officer. “The Foinaven FPSO unit has been operating successfully on this field since 1997 and plays a critical role in the future development of the Foinaven oil field. The updated contract structure, with operating incentives and a supplemental tariff rate that adjusts with the price of oil, provides an effective alignment of incentives between us and the Foinaven Co-Venturers.” Mr. Moller added, “We are pleased to take this major step towards our stated objective of improving the profitability of our existing assets. The Foinaven FPSO unit is the second of the four FPSO units associated with our Petrojarl transaction that has now been amended or renewed. We are currently engaged in negotiations to extend the contract on another FPSO unit and hope to announce further progress later in 2010.” 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. (NYSE: TGP), is further growing its operations in the offshore oil production, storage and transportation sector through its publicly-listed subsidiary Teekay Offshore Partners L.P. (NYSE: TOO), and continues to expand its conventional tanker business through its publicly-listed subsidiary Teekay Tankers Ltd. (NYSE: TNK). With a fleet of over 150 vessels, offices in 16 countries and approximately 6,300 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. Teekay’s common stock is listed on the New York Stock Exchange where it trades under the symbol “TK”. FORWARD LOOKING STATEMENTS This release contains forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934, as amended) which reflect management’s current views with respect to certain future events and performance, including statements regarding: expected benefits to Teekay of the amended contract for the Foinaven unit; potential payments under the contract; continued production at the Foinaven field; and the potential extension of any contracts for other FPSO units. 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: changes in the level of offshore production on the Foinaven oil field; changes in oil prices; the potential for early termination of the Foinaven FPSO unit contract; changes in the budgeted operating, maintenance and administrative expenses relating to the Foinaven FPSO unit; and other factors discussed in Teekay’s filings from time to time with the SEC, including its Report on Form 20-F for the fiscal year ended December 31, 2008. The Company 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 Company’s expectations with respect thereto or any change in events, conditions or circumstances on which any such statement is based.