Teekay Offshore Lands North Sea Shuttle Tanker Contracts

Photo credit: Teekay Offshore Partners
Photo credit: Teekay Offshore Partners

Teekay Offshore Partners announced today that it has been awarded new three-year shuttle tanker contracts in the North Sea.

The contracts of affreightment (CoA) were signed with BP, Royal Dutch Shell and OMV Group for the transport of oil produced from the new Glen Lyon FPSO, located west of Shetland in the North Sea as part the Quad204 redevelopment project.

Teekay says the CoAs are expected to commence in the first half of 2017 with the requirement for approximately two shuttle tankers. The Partnership expects to service these new CoAs with its existing shuttle tanker fleet.

“We are pleased to announce these new strategic shuttle tanker contracts, which further builds on the Partnership’s leading market position in the North Sea,” said Peter Evensen, Teekay Offshore’s Chief Executive Officer. “These contracts further enhance our CoA contract portfolio and are expected to add future cash flow through higher shuttle tanker fleet utilization without the need for incremental capital expenditures.”

Teekay Offshore’s shuttle tanker fleet currently consists of 28 owned, three chartered-in, and three newbuild shuttle tankers on order.

“Looking ahead, the shuttle tanker market in the North Sea is expected to remain tight supported by a combination of more lifting points from new fields coming on-line and limited fleet growth with no uncommitted shuttle tanker newbuildings on order,” added Evensen.