Petrojarl I Changes Hands, Petrojarl Knarr Next

Petrojarl I Changes Hands, Petrojarl Knarr Next

Teekay Offshore Partners L.P. has entered into an agreement with a consortium led by Queiroz Galvão Exploração e Produção SA (QGEP) to provide a floating production, storage and offloading (FPSO) unit for the Atlanta field located in the Santos Basin offshore Brazil.

In connection with the contract with QGEP, Teekay Offshore Partners has agreed to acquire the Petrojarl I FPSO from Teekay Corporation for USD 57 million. Subsequent to the acquisition, the FPSO will undergo upgrades at the Damen Shipyard Group’s DSR Schiedam Shipyard in the Netherlands for a fully built-up cost of approximately USD 240 million, which includes the cost of acquiring the Petrojarl I.

The FPSO is scheduled to commence operations in the first half of 2016 under a five-year charter contract with QGEP. The charter contract is expected to generate annual cash flow of approximately USD 55 to 60 million.

The Petrojarl I FPSO will be used as an early production system (EPS) unit on the Atlanta field which is located 185 kilometers offshore from the Brazil coast at a water depth of approximately 1,550 meters and contains an estimated 260 million recoverable barrels of oil equivalent.

The acquisition of the Petrojarl I is expected to close by the end of January 2015.

Apart from Petrojarl I, Teekay Offshore also has plans to buy the Petrojarl Knarr FPSO from Teekay, subject to the unit getting  first oil and commencing its charter contract.

“The purchase price for the FPSO, which is based on a fully built-up cost of approximately USD 1.2 billion, is expected to be financed through the assumption of an existing USD 815 million long-term debt facility and up to USD 400 million of short-term credit financing from Teekay. Depending on weather conditions, Teekay Offshore Partner currently expects to complete the acquisition of the Petrojarl Knarr and commence its charter with BG Group during the first quarter of 2015,” said Peter Evensen, Chief Executive Officer of Teekay Offshore GP LLC.

Share this article

Follow World Maritime News

In Depth>

Events>

<< Jul 2019 >>
MTWTFSS
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 31 1 2 3 4

World Gas Series: Morocco Summit

Bringing together key players in the gas value chain in Morocco, the World Gas Series:

read more >

GreenTech in Shipping USA Forum 2019

GreenTech in Shipping USA Forum is an event for Maritime leaders who want to unlock successful business formula of the industry!

read more >

Shipping Transformation Asia

Shipping Transformation Asia will provide a platform for future-focused discussion in the shipping,…

read more >

Global Sustainable Shipping Forum 2019

The event will provide valuable insights from conference sessions, great networking opportunities and will offer…

read more >