South Korean shipbuilder Samsung Heavy Industries (SHI) has clinched three DP2 shuttle tanker orders from Teekay Offshore Partners.
SHI announced in a Korea Exchange filing on 4 June that the three Suezmax-sized tankers are worth KRW370.2 billion (USD332.86 million), working out to USD110.95 million per ship.
The contract comes with an option for another ship. All the tankers would be delivered from the fourth quarter of 2017 through the first half of 2018.
In a separate statement, Teekay Offshore said the tankers would serve new 15-year contracts with counterparties that include Chevron Canada, Husky Energy, Mosbacher Operating, Murphy Oil, Nalcor Energy, Statoil, and Suncor Energy.
The tankers would transport oil from these companies‘ projects in the east coast of Canada.
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Prior to the delivery of the tankers, one of Teekay Offshore’s existing shuttle tankers, the Navion Hispania, and two to three chartered-in shuttle tankers currently operating in the east coast of Canada, will service the contracts.
Teekay Offshore intends to initially finance the instalment payments for the shuttle tanker newbuildings with a portion of its existing liquidity and it expects to secure long-term debt financing for the vessels prior to their scheduled deliveries.
Teekay Offshore CEO Peter Evensen said, “These new, strategic long-term shuttle tanker contracts mark Teekay Offshore’s entrance into the growing Eastern Canada offshore oil production market, which is a focal point for Canadian oil and gas development.”
Teekay Offshore now has a substantial market position in all three DP shuttle tanker basins, including the North Sea, Brazil and the east coast of Canada.