Teekay Offshore Partners LP (TOO) said it entered into a
long-term contract with a subsidiary of U.K.-based energy company
BG Group PLC (BRGYY, BG.LN) to provide shuttle tanker services in
Brazil.
The master limited partnership's contract with BG will be
serviced by four Suezmax-size DP2 shuttle-tanker newbuildings to be
constructed by South Korea's Samsung Heavy Industries Co.
(010140.SE). Upon expected delivery in mid- to late-2013, the
vessels will commence operations under 10-year time charters.
Teekay Offshore Chief Executive Peter Evensen said the new time
charters with BG further strengthened the company's position in the
fast-growing Brazilian offshore market. He said the deal would
increase the company's Brazil-based shuttle-tanker fleet size by
about 30%.
The company, formed by Teekay Corp. (TK), owns 40 shuttle
tankers that allow it to transport oil from offshore fields to
onshore processing facilities.
Teekay Offshore's shares closed up 0.9% to $28.58 and were
inactive after hours.
-By John Kell, Dow Jones Newswires; 212-416-2480;
john.kell@dowjones.com