January 6, 2015In the second quarter of 2015, the shuttle tanker, Randgrid, will sail to Singapore. Here, the shuttle tanker will be converted into a floating, storage and offloading unit (FSO). Many oil companies’ internal regulations prescribe that shuttle tankers cannot exceed 20 years in age and still operate under their contracts. This year, Randgrid will have 20 years of shuttle tanker operations under her belt. The Gina Krog field, originally a minor gas discovery, was discovered in 1974. During the period 2008 to 2011, it was determined that the field, which is situated 250 kilometres west of Stavanger, contained significant volumes of oil. The Gina Krog field is considered to be one of Statoil’s major new focuses as the area is estimated to comprise 225 million barrels of oil and gas. Several companies battled for the tender, but in May 2013, Teekay succeeded in winning the contract. Various aspects gave Teekay the upper hand in securing the three-year contract with a twelve-year extension option. One important aspect in securing Teekay the contract was the company’s ability to deliver an FSO unit. Besides providing the vessel, Teekay will also install, operate, maintain and decommission the FSO unit, including an internal turret mooring system and flexible oil riser. The conversion project will amount to approximately $220 million, including the cost of purchasing the remaining 33 per cent ownership interest in the Randgrid shuttle tanker. Planning, conversion, installation and testing are expected to continue until the first quarter of 2017.