Teekay Corporation
NYSE : TK

Teekay Corporation

June 22, 2010 16:05 ET

Teekay Announces Cidade de Rio das Ostras FPSO Contract Extension

HAMILTON, BERMUDA--(Marketwire - June 22, 2010) - Teekay Corporation (Teekay or the Company) (NYSE:TK) today announced that it has signed an agreement with Petroleo Brasileiro SA (Petrobras) to extend the operating contract for Teekay's Cidade de Rio das Ostras Floating Production Storage and Offloading (Rio das Ostras FPSO) unit through 2018.

The Rio das Ostras FPSO, which has operated at the Siri reservoir on the Badejo field in Brazil's Campos Basin since 2008, will be re-deployed to the Aruana field in the Campos Basin following upgrades to prepare the unit for its new field. The upgrades are expected to be completed during the fourth quarter of 2010.

During the operation on the Badejo field, the Rio das Ostras FPSO served as a test facility for the production of heavy crude oil, specific to the region. The unit has a total crude oil storage capacity of approximately 214,000 barrels (bbls) and is capable of producing up to 15,000 bbls per day of heavy crude oil.

"The extension of the Rio das Ostras FPSO contract is a reflection of the unit's successful operation during its two-year deployment on the Badejo field, where it has performed with a high degree of reliability in the complex production of heavy oil with a record-low API gravity," said Bjorn Moller, Teekay Corporation's President and Chief Executive Officer. "We are pleased with this significant contract extension in the strategic Brazilian offshore sector, where Teekay also has a growing presence in the shuttle tanker trade." Mr. Moller added, "This contract extension marks our third FPSO contract renewal during the past year and highlights the progress we have made towards our goal of further improving the profitability of Teekay's existing assets."

About Teekay
Teekay Corporation transports approximately 10% of the world's seaborne oil, has built a significant presence in the liquefied natural gas shipping sector through its publicly-listed subsidiary Teekay LNG Partners L.P. (NYSE:TGP), is further growing its operations in the offshore oil production, storage and transportation sector through its publicly-listed subsidiary Teekay Offshore Partners L.P. (NYSE:TOO), and continues to expand its conventional tanker business through its publicly-listed subsidiary Teekay Tankers Ltd. (NYSE:TNK). With a fleet of over 150 vessels, offices in 16 countries and approximately 6,100 seagoing and shore-based employees, Teekay provides a comprehensive set of marine services to the world's leading oil and gas companies, helping them link their upstream energy production to their downstream processing operations.

Teekay's common stock is listed on the New York Stock Exchange where it trades under the symbol "TK".

FORWARD LOOKING STATEMENTS

This release contains forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934, as amended) which reflect management's current views with respect to certain future events and performance, including statements regarding: expected benefits to Teekay of the extended contract for the Rio das Ostras FPSO unit; potential payments under the contract, both while undergoing upgrades and once on station in the Aruana field; production capacity of the Rio das Ostras FPSO; and the timing of when the upgrades will occur on the Rio das Ostras FPSO. The following factors are among those that could cause actual results to differ materially from the forward-looking statements, which involve risks and uncertainties, and that should be considered in evaluating any such statement: changes in the level of offshore production on the oil field; changes in oil prices; the potential for early termination of the Rio das Ostras FPSO unit contract; the operational performance of the Rio das Ostras FPSO; changes in the budgeted operating, maintenance and administrative expenses relating to the Rio das Ostras FPSO unit; and other factors discussed in Teekay's filings from time to time with the SEC, including its Report on Form 20-F for the fiscal year ended December 31, 2009. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions or circumstances on which any such statement is based.

Contact Information

  • Teekay Corporation
    Kent Alekson
    Investor Relations Enquiries Contact
    +1 (604) 844-6654
    or
    Teekay Corporation
    Alana Duffy
    Media Enquiries Contact
    +1 (604) 844-6631
    www.teekay.com