Altera Infrastructure L.P. announces Petrojarl Knarr contract extension
April 08 2020 - 06:00PM
Altera Infrastructure L.P. (the “Partnership”) today announced that
its subsidiary Teekay Knarr AS has entered into a contract
amendment with AS Norske Shell, as operator for and on behalf of
the Knarr field licence partners (the “Operator”), that extends the
contract for the lease and operation of the Petrojarl Knarr FPSO
(the “Vessel”) until at least March 2022.
The vessel has been operating on the Knarr field
since 2015 under a firm duration until March 2021, which included a
further fee payable by the Operator if the contract was not
extended through to 2025 and with additional extension options
thereafter. The contract amendment includes a reduction in day rate
from March 2021 to March 2022 and the removal of the fee payable by
the Operator if the contract was not extended, in return for the
introduction of an additional production volume and oil price
related tariff. The amendment also terminates the Operator’s
purchase option for the vessel and provides for a mutual right to
terminate the contract on 6 months’ notice without payment of
penalty, such termination not to be effective before March
2022.
“We are pleased to announce this important FPSO
contract extension for the Petrojarl Knarr, and we are committed to
work together with the licence partners to continue to operate
safely and maximize production on the field. 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", says Chris Brett, President Altera
Infrastructure FPSO. Altera Infrastructure, previously Teekay
Offshore, owns and has been operating the FPSO since it achieved
first oil on 16th March 2015.
Forward Looking Statements
This press release includes statements that may
constitute forward-looking statements made pursuant to the safe
harbor provision of the Private Securities Litigation Reform Act of
1995, including statements related to the Partnership’s strategies
and plans for creating stakeholder value. Such statements are
subject to risks and uncertainties that could cause actual results
to differ materially from those projected. Important factors that
could cause actual results to differ materially from the
Partnership’s expectations and may adversely affect the
Partnership’s business and results of operations may include
unanticipated market volatility (such as volatility resulting from
the recent COVID-19 outbreak), as well as those risk factors
disclosed in Item 3 of the Partnership’s Annual Report on Form 20-F
for the year ended December 31, 2019, filed with the U.S.
Securities and Exchange Commission (the “SEC”) on February 28,
2020, as updated and supplemented by subsequent filings with the
SEC. The forward-looking statements speak only as of the date made,
and, other than as may be required by law, the Partnership
undertakes no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise.
About Altera
Infrastructure
Altera Infrastructure is a leading global energy
infrastructure services provider primarily focused on the ownership
and operation of critical infrastructure assets in offshore oil
regions of the North Sea, Brazil and the East Coast of Canada.
Altera Infrastructure has consolidated assets of
approximately $5.2 billion, comprised of 56 offshore assets,
including floating production, storage and offloading (FPSO) units,
shuttle tankers (including five new builds), floating storage and
offtake (FSO) units, long-distance towing and offshore installation
vessels and a unit for maintenance and safety (UMS). The majority
of Altera Infrastructure’s fleet is employed on medium-term, stable
contracts. Affiliates of global asset manager Brookfield Business
Partners L.P. (NYSE: BBU) (TSX: BBU.UN) own 100 percent of Altera
Infrastructure’s general partner.
Altera Infrastructure L.P.’s preferred equity
units trade on the New York Stock Exchange under the symbols “ALIN
PR A”, “ALIN PR B” and “ALIN PR E”, respectively.
For Investor Relations
enquires contact: Jan Rune Steinsland, Chief Financial
Officer Tel: +47 97 05 25 33 E-mail:
janrune.steinsland@alterainfra.com |
For Media enquires
contact: Maria Sjöstrand Blücher Manager Communications
Tel: +47 90 71 48 84 E-mail: media@alterainfra.com |
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