HAMILTON, Bermuda, Nov. 28, 2017 (GLOBE NEWSWIRE) -- Teekay Offshore Partners L.P. (NYSE:TOO) ( Teekay Offshore or the Partnership) announced today that it has declared options with Samsung Heavy Industries Co., Ltd. for the construction of two, Suezmax-sized, DP2 shuttle tanker newbuildings for a total fully-built-up cost of approximately $265 million. These newbuildings will be constructed based on the Partnership's new Shuttle Spirit design which incorporates proven technologies to increase fuel efficiency and reduce emissions, including LNG propulsion technology. Upon delivery in 2020, these vessels will join Teekay Offshore's Contract of Affreightment ( CoA) fleet in the North Sea.

"This is another important milestone for Teekay Offshore's shuttle tanker franchise since it further strengthens our position as the leading provider of CoA shuttle tanker services in the North Sea," commented Ingvild Sæther, President and CEO of Teekay Offshore Group Ltd.  "Our customers require a reliable, long-term solution for securing offtake services from over 15 oil fields in the North Sea and therefore, these state-of-the-art newbuildings demonstrate our ongoing commitment to our customers," Ms. Sæther continued, "What makes me particularly proud is that these newbuildings, as well as the two shuttle tankers ordered in July 2017 to service Statoil's needs in the North Sea, will set new standards for both fuel consumption and CO 2 emissions."

About Teekay Offshore

Teekay Offshore Partners L.P. is an international provider of marine transportation, oil production, storage, long-distance towing and offshore installation and maintenance and safety services to the oil industry, primarily focusing on oil production-related activities of its customers and operating in offshore oil regions of the North Sea, Brazil and the East Coast of Canada. Teekay Offshore is structured as a publicly-traded master limited partnership ( MLP) with consolidated assets of approximately $5.6 billion, comprised of 63 offshore assets, including floating production, storage and offloading ( FPSO) units, shuttle tankers, floating storage and offtake ( FSO) units, a unit for maintenance and safety ( UMS), long-distance towing and offshore installation vessels and conventional tankers. The majority of Teekay Offshore's fleet is employed on medium-term, stable contracts.

Teekay Offshore's common units and Series A and B preferred units trade on the New York Stock Exchange under the symbols "TOO", "TOO PR A" and "TOO PR B", respectively.

For Investor Relations enquiries contact:

Ryan HamiltonTel: +1 (604) 609-2963Website: www.teekay.com

For Media enquiries contact:Axel WiedenmannTel: +47 9516 3022Website: www.teekay.com

Forward Looking Statements

This release contains forward-looking statements (as defined in Section 21E of the U.S. Securities Exchange Act of 1934, as amended) which reflect management's current views with respect to certain future events and performance, including statements regarding: the cost, delivery timing and the expected employment of the Partnership's shuttle tanker newbuildings; long-term shuttle tanker requirements in the North Sea; the impact of the Partnership's newbuilding order on its position in the North Sea CoA shuttle tanker market; and fuel consumption and emissions for the shuttle tanker newbuildings. The following factors are among those that could cause actual results to differ materially from the forward-looking statements, which involve risks and uncertainties, and that should be considered in evaluating any such statement: newbuilding delays and cost overruns; changes in exploration, production and storage of offshore oil and gas, either generally or in particular regions that would impact expected future growth; potential early termination of charter contracts; and other factors discussed in Teekay Offshore's filings from time to time with the SEC, including its Report on Form 20-F for the fiscal year ended December 31, 2016. The Partnership expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Partnership's expectations with respect thereto or any change in events, conditions or circumstances on which any such statement is based.

Primary Logo