Shell retains North Sea Knarr FPSO for two more years
April 9, 2020
Altera Infrastructure subsidiary Teekay Knarr has agreed to a contract amendment with AS Norske Shell concerning the Knarr field in the Norwegian North Sea.
(Courtesy Altera Infrastructure)
The FPSO Petrojarl Knarr will operate at the Knarr field in the Norwegian North Sea until at least March 2022.
Offshore staff
PEMBROKE, Bermuda – Altera Infrastructure subsidiary Teekay Knarr has agreed to a contract amendment with AS Norske Shell concerning the Knarr field in the Norwegian North Sea.
The contract for lease and operation of the FPSO Petrojarl Knarr, which has operated on the field since 2015, will now run until at least March 2022.
Original duration of the firm contract period had been until March 2021. Under the amendment, there will be a reduction in the day rate from March 2021 to March 2022 and the fee payable by the operator if the contract were not extended has been waived.
In return, Shell has agreed to the introduction of an additional production volume and oil price-related tariff. The amendment also provides for a mutual right to terminate the contract on six months’ notice without payment of penalty, the termination not being effective before March 2022.
“The contract amendment provides important visibility for the next period of operations and it also enables us to position the vessel for the next re-deployment,” said Chris Brett, president Altera Infrastructure FPSO.
