Steel Cutting Milestone for East Coast Canada Contracts
December 21, 2015
Steel Cutting Milestone Achieved for East Coast Canada Contracts
December 1, 2015 marked yet another achievement for Teekay as steel cutting milestones were achieved for three shuttle tankers intended to service the East Coast Canada Contracts.
As announced in the summer of 2015, the 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, which will be chartered-in to Teekay Offshore’s Canadian affiliate located in St. John’s, Newfoundland, prior to the delivery of up to four shuttle tanker newbuildings. Navion Hisapnia is the first Teekay vessel to service the contract as well as our first Canadian flagged vessel in 10 years.
We’re happy to report that steel cutting for hull No. 2184, 2185 and 2186 began at Samsung Heavy Industries as planned on December 1, 2015. The event marks the start of a busy construction stage which will see Teekay Offshore 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 vessels are expected to be delivered to be delivered in the fourth quarter of 2017 through the first half of 2018.
