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October 20, 2011updated 10 Mar 2022 1:44pm

Teekay to acquire three FPSOs from Sevan Marine

Teekay has entered into an agreement with Sevan Marine (Sevan) to acquire three floating production storage and offloading (FPSO) units and make an equity investment in a recapitalizsed Sevan.

Teekay has entered into an agreement with Sevan Marine (Sevan) to acquire three floating production storage and offloading (FPSO) units and make an equity investment in a recapitalised Sevan.

The company said it will spend $668m on the three FPSO units of Sevan – Piranema, Hummingbird and Voyageur – and $110-130m on upgrading the Voyageur, as well as investing $25m in new Sevan stock.

The company will take a 40% stake in the recapitalised Sevan, which is expected to continue as a publicly listed company.

The transaction is expected to close in the fourth quarter of 2011.

Teekay will acquire the Piranema and Hummingbird. The third unit, Voyageur, will be acquired when it is deployed on its new charter contract on the Huntington field in the third quarter of 2012.

The 2007-built Piranema FPSO is currently operating under a long-term charter to Petrobras, while the 2008-built Hummingbird FPSO is currently operating under a charter to Centrica Energy Upstream.

Teekay plans to finance the purchase by assuming Sevan’s existing $230m bank debt facility secured by the Voyageur, new debt facilities and existing cash.

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