There is a flurry of activity at the Samsung shipyard in Geoje, Korea as the Petrojarl Knarr floating production, storage and offloading (FPSO) unit begins to take shape.

In mid-2011, Teekay Corporation announced an agreement to provide BG Norge Limited with a FPSO unit for the Knarr field.

In October 2011, the project’s first milestone was met when steel was cut for the hull of the approximately USD 1 billion unit.

On May 21, a keel-laying ceremony marked the successful completion of the project’s second milestone.

On June 2, President & CEO of Teekay Petrojarl, Peter Lytzen, visited the shipyard. Early that morning, Peter underwent a safety introduction course before entering the yard. He then spent 3.5 hours touring the yard and getting a first-hand update on the project.

Above is a picture of the lifting of the Knarr gigablock at the Samsung Yard. The lift was a spectacular 5500 tons!

The unit is due to deliver during the first quarter of 2014. Upon delivery, it will commence operations on the Knarr field, offshore Floro, Norway’s westernmost town.

Located in the Tampen area of the North Sea, the Knarr field is estimated to contain recoverable reserves of some 60 million barrels of oil equivalents.

For more information on Teekay’s offshore business, see Teekay’s Investor Day presentation about our FPSO activities and visit www.teekayoffshore.com.