April 14, 2010
HAMILTON, BERMUDA–(Marketwire – April 14, 2010) – Teekay Corporation (Teekay or the Company) (NYSE:TK) today announced that it has signed an agreement with the Foinaven operator (Britoil plc) and the Foinaven Co-venturers (Britoil plc and certain of its affiliates and Marathon Petroleum) to amend the operating contract for Teekay’s Foinaven Floating Production Storage and Offloading (FPSO) unit, which also includes transportation services provided by two shuttle tankers. The Foinaven FPSO unit operates under an evergreen contract on the Foinaven oil field, West of Shetland on the UK Continental Shelf, where it has been stationed since 1997. The amended contract provides a commercial agreement which secures the provision of operating services for the Foinaven field until at least 2021 and includes operating performance incentives which increase the revenue generated by the Foinaven FPSO unit. The amended contract, which applied from January 1, 2010, is comprised of the following components:
- a daily rate, part of which is earned based on agreed operating performance incentives (adjusted annually based on industry indices);
- a production tariff based on the volume of oil produced; and
- a supplemental tariff based on both the volume of oil produced and the annual average Brent Crude Oil price.