Teekay Offshore Partners is closing on a long-term contract of affreightment (COA) that will help it boost utilization of its shuttle tankers.
The imminent deal would follow the company’s three-year COA signed with BP in September.
Ingvild Saether, president of Teekay Offshore, said: “We anticipate signing this new, five-year COA contract, plus extension options, in the North Sea, which is expected to add future cash flow through higher shuttle tanker utilization without the need for incremental capital expenditures.
“We continue to see strong demand for further shuttle services, particularly in the North Sea.”
Teekay Offshore said it is in the final stages of striking the deal with a consortium of oil companies to service a development located in the UK central North Sea.
It did not identify the tanker to serve the contract but said it would commence in the first quarter of 2018.
Smaller adjusted income and vessel sale
Teekay Offshore revealed the new COA as it reported net adjusted income of $8.5m for the fourth quarter, compared to $53.7m in the corresponding quarter of 2015.
For the full year 2016, net adjusted income was $86m, against $165.7m a year earlier.
Teekay Offshore also disclosed the sale of one vessel late last year.
The company sold the 130,319-dwt Navion Europa (built 1995) for $14.4m in November 2016.
According to Clarskons, the vessel has now been renamed to Ifrikia III and is operated by small Tunisian owner SEREPT.
