Teekay Offshore Partners introduced today that it has actually been granted brand-new three-year shuttle bus vessel agreements in the North Sea.

The agreements of affreightment (CoA) were authorized with BP, Royal Dutch Shell and also OMV Group for the transportation of oil generated from the brand-new Glen Lyon FPSO, situated west of Shetland in the North Sea as component the Quad204 redevelopment task.

Teekay claims the CoAs are anticipated to start in the initial fifty percent of 2017 with the need for about 2 shuttle bus vessels. The Partnership anticipates to service these brand-new CoAs with its existing shuttle bus vessel fleet.

“We are pleased to announce these new strategic shuttle tanker contracts, which further builds on the Partnership’s leading market position in the North Sea,” stated Peter Evensen, Teekay Offshore’sChief Executive Officer “These contracts further enhance our CoA contract portfolio and are expected to add future cash flow through higher shuttle tanker fleet utilization without the need for incremental capital expenditures.”

Teekay Offshore’s shuttle bus vessel fleet presently contains 28 possessed, 3 chartered-in, and also 3 newbuild shuttle bus vessels on order.

“Looking ahead, the shuttle tanker market in the North Sea is expected to remain tight supported by a combination of more lifting points from new fields coming on-line and limited fleet growth with no uncommitted shuttle tanker newbuildings on order,” included Evensen.