Teekay Offshore to build three shuttle tankers to service Canada charters

The 15-year charters, signed with a group of companies comprising Chevron Canada, Husky Energy, Mosbacher Operating, Murphy Oil, Nalcor Energy, Statoil and Suncor Energy, will be serviced by one of Teekay Offshore's shuttle tankers and two or three chartered-in ships until the new ships are delivered from late 2017. The charters include optional extensions.

The company expects the shipbuilding contracts for the suezmax-size DP2 tankers to have one optional vessel. Initial payments for the ships will come from Teekay Offshore's existing funds, with long-term financing to be sought prior to deliveries.

“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, ceo of Teekay Offshore.

"Teekay Offshore now has a leading market position in all three DP shuttle tanker basins, including the North Sea, Brazil and now the East Coast of Canada. I am pleased that we continue to secure new, accretive growth in our Offshore Logistics business, which increases the partnership’s growth pipeline to $3.7bn of capital projects and extends our growth into late-2017 and 2018.”