Using an Existing Unit to Provide a Faster and More Cost Effective Solution to Our Customers
Petrojarl I at the Damen Shipyard, Netherlands
Petrojarl I is one of Teekay’s long standing floating production storage and offloading (FPSO) units since 1986. After being deployed in ten different fields in the North Sea over the course of 29 years, Petrojarl I is preparing for a new venture on the Atlanta field in the Santos Basin offshore Brazil. The field is located 185 kilometers off the coast of Rio de Janeiro at a water depth of 1550 meters and has estimated reserves of 260 million barrels of oil equivalent.
Petrojarl I will become an integral part of what is expected to be a much larger development over time. The FPSO is undergoing upgrades at the Damen Shipyard in the Netherlands and is expected to achieve first oil in mid-2016, which will be its 12th field deployment. As announced during Teekay Offshore’s third quarter earnings presentation, the conversion of Petrojarl I achieved 50% of physical progress, and hull reinforcements during the third quarter of 2015. Steel renewal work is expected to be completed during the fourth quarter.
Petrojarl I’s upgrade solution is a great example of how Teekay can use an existing unit to provide a faster and more cost effective solution to our customers compared to a newbuilding alternative. This is especially attractive given the current lower oil price environment. In addition, as we will be operating in a benign environment, we have also been able to extend the life of the FPSO for an additional 10 years after the initial 5-year contract term which provides opportunities for contract extensions with Queiroz Galvão Exploração e Produção SA (QGEP) and/or redeployment after the initial term.