Teekay Corporation (Teekay or the Company) (NYSE:TK) announced that it has entered into an agreement with the Chestnut Joint Venture, a joint venture between Spirit Energy Ltd. and Dana Petroleum Ltd., to extend the employment of the Hummingbird Spirit FPSO unit (Hummingbird) on the Chestnut field in the North Sea until March 2023. This contract extension was done in conjunction with the Chestnut Joint Venture’s plan to drill a new well at the Chestnut field. The new Hummingbird contract took effect on October 1, 2019 and is based on a fixed charter rate instead of the previous fixed charter rate plus oil production/price tariff.
“We are pleased to announce this important multi-year FPSO contract extension for the Hummingbird in connection with our customer’s new drilling program, further extending the production of the field in the North Sea which originally commenced in 2008 and follows several contract extensions with the Chestnut Joint Venture. In addition, the new terms of the contract extension are expected to provide more cash flow visibility and stability to the Company,” commented Kenneth Hvid, Teekay’s President and Chief Executive Officer.
Teekay is a leading provider of international crude oil and gas marine transportation services and also provides offshore production. Teekay provides these services primarily through its directly-owned fleet and its controlling ownership interests in Teekay LNG Partners L.P. (NYSE:TGP), the world’s third largest independent owner and operator of LNG carriers, and Teekay Tankers Ltd. (NYSE:TNK), one of the world’s largest owners and operators of mid-sized crude tankers. The consolidated Teekay entities manage and operate total assets under management of approximately $12 billion, comprised of approximately 150 liquefied gas, offshore, and conventional tanker assets. With 12 operating offices around the world and approximately 5,700 seagoing and shore-based employees, Teekay provides a comprehensive set of marine services to the world’s leading oil and gas companies.
Teekay’s common stock trades on the New York Stock Exchange under the symbol “TK”.