Teekay to acquire Logitel, signs FSO extension

May 16, 2014

Bermuda-headquartered Teekay Offshore filed a letter of intent to acquire Norway-based Logitel Offshore Holdings Ltd., the company announced in its first quarter results released on 15 May 2014.

The acquisition, Teekay said, should close in 3Q 2014. Logitel owns two floating accommodation units (FAUs), which are based on the Sevan Marine cylindrical hull design, currently under construction at the COSCO (Nantong) Shipyard in China; the company also has options with COSCO to order up to an additional six FAUs.

The first committed FAU has secured a three-year, fixed-rate charter contract, plus extension options, with Brazil's Petrobras. The unit is scheduled for delivery in early 2015. Teekay said it expects to secure a charter contract for the second FAU prior to its scheduled delivery in late 2015.

Teekay also announced that Apache Energy granted the company a 10-year contract extension for its Dampier Spirit FSO.

Teekay Offshore said the Dampier Spirit FSO will enter into drydock during 2Q 2014 for capital upgrades, which is expected to cost $11 million.

The Dampier Spirit serves the Stag oilfield located 65km off Dampier, Western Australia, inside Carnarvon Basin permit WA-15-L. The field sits in 47m of water and produces approximately 8800 bo/d.

Crude oil from Stag is transported through an 8in. pipeline 1.9 kilometers away to a buoy that moors the Dampier Spirit. From the FSO, oil is exported to shuttle tankers. The Dampier Spirit has an oil storage capacity of 700,000 bbl. In the event of cyclones, the FSO can disconnect from its moorings and sail away. The vessel had to do just that in February 2013, prior to landfall of Tropical Cyclone Rusty. The field returned to produciton days later.

Image: Dampier Spirit/Teekay Offshore



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