Teekay Offshore Awarded East Canada Shuttle Tanker Contract
June 1, 2015
Permanent Offices for Ship Operations Will Be Located in St. John’s, Newfoundland & Labrador.
Teekay Offshore Partners L.P. has announced that it has entered into a new long-term shuttle contract with Canada Hibernia Holding Corporation (CHHS), Chevron Canada, ExxonMobil Canada, Husky Energy, Mosbacher Operating Ltd, Murphy Oil, Nalcor Energy, Statoil, and Suncor Energy. Teekay Offshore will provide shuttle tankers services for loading crude at Hibernia, Terra Nova, White Rose and Hebron offshore oil fields located in St. John’s, Newfoundland & Labrador.
These 15-year contracts, plus extension options, will initially be serviced by one of Teekay Offshore’s existing shuttle tankers, the Navion Hispania, and two to three third party-owned shuttle tankers currently operating in East Coast Canada. Teekay Offshore will enter into shipbuilding contracts to construct three Suezmax-size, DP2 shuttle tanker newbuildings with a South Korean shipyard for a fully built-up cost of approximately $365 million, with an option to order one additional vessel should a fourth vessel be required. The three firm vessels are expected to be delivered in the fourth quarter of 2017 through the first half of 2018.
Hibernia, Terra Nova, White Rose and Hebron oil fields
Contract signing for East Coast Canada project
Teekay Arrives in Eastern Canada
From coast to coast, Teekay’s arrival to Eastern Canada is of special significance as Teekay has had a long-standing presence on the West Coast in Vancouver, British Columbia. “These new, strategic long-term shuttle tanker contracts mark Teekay Offshore’s entrance into the growing Eastern Canada offshore oil production market, which is a focal point for Canadian oil and gas development,” commented Peter Evensen, President and Chief Executive Officer of Teekay Corporation.
With the help of local partners, Teekay Offshore is in the process of establishing permanent offices and ship operations in St. John’s Newfoundland & Labrador.
Securing Local Expertise
The vessels operating out of St. John’s will be running Canadian flags as well as Canadian workers.
Competitive Solutions and an Even Stronger Reputation
The signing of this long-term contact demonstrates a natural expansion of Teekay Offshore’s service portfolio. It also further reinforces that Teekay Offshore delivered a very competitive solution and that its reputation amongst customers is strong. “We now have a leading market position in all three Dynamic Positioning shuttle tanker basins, which includes the North Sea, Brazil and East Coast Canada” added Peter Evensen shortly after the contract signing.
As always, Teekay’s commitment to safety and sustainability remains a core value. With a commitment to operational leadership, Teekay is thrilled to embark on this new venture on the East Coast of Canada and hopes to become an integral part of St. John’s maritime economy.
A proud Teekay team and top management from all 9 oil companies in St. John’s attending the signing ceremony.