Offshore staff
VANCOUVER – Teekay Corp. has entered into a new bareboat charter contract with Britoil Ltd., a BP subsidiary, for the FPSO Petrojarl Foinaven for up to about 10 years.
The FPSO has operated at the Foinaven field west of Shetland since 1997.
Under the terms of the contract, Teekay is expected to receive an upfront payment of about $67 million in cash, a nominal per day rate over the life of the contract, and a lump-sum payment at the end of the contract period, which is expected to cover the costs of recycling the FPSO unit in accordance with the EU Ship Recycling Regulations.
As part of the transaction, Teekay Offshore Partners L.P., now known as Altera Infrastructure L.P. has entered into agreements with BP directly to provide the operations and shuttle tanker services for the FPSO.
Kenneth Hvid, Teekay’s president and CEO, said: “We are pleased to announce this new contract for the Foinaven FPSO, which allows our customer to continue to maximize the value of the Foinaven field whilst eliminating Teekay’s operational exposure to the FPSO unit. The new contract further reduces our exposure to the offshore business, which is a strategic priority, improves our profitability, and allows us to further delever and strengthen our balance sheet.”
BP North Sea Regional President, Ariel Flores, said: “This new arrangement will enable BP and its joint venture partner RockRose Energy to introduce an innovative contractual framework for the FPSO’s operating services and shuttle tanker provision, giving BP greater influence over the strategic direction of operations... It will also help ensure safe, reliable, and efficient operations out to at least 2025 and give us space to set the Foinaven area up for future success.”
04/01/2020
