Teekay Signs FPSO Renewal Deal

27 June 2010 (Last Updated June 27th, 2010 18:30)

Teekay Corporation has signed a contract with Brazilian state-owned oil giant Petrobras to extend an operating contract for Teekay's Rio das Ostras FPSO unit through to 2018. The oil tanker operator said the FPSO unit will be re-deployed to the Aruana field in the Campos Basin after comp

Teekay Corporation has signed a contract with Brazilian state-owned oil giant Petrobras to extend an operating contract for Teekay’s Rio das Ostras FPSO unit through to 2018.

The oil tanker operator said the FPSO unit will be re-deployed to the Aruana field in the Campos Basin after completing upgrades for its new field, which are expected to be complete by the end of 2010.

The Rio das Ostras FPSO has successfully completed a two-year deployment on the Badejo field producing heavy oil with a record-low API gravity, it said.

Since 2008, the Rio das Ostras FPSO has served as a test facility for the production of heavy crude oil from the Badejo field, the company said.

The unit has around 214,000 barrels of crude oil storage capacity and can produce up to 15,000 barrels of heavy crude oil a day, Teekay said.

Teekay said the extension contract is the company’s third FPSO renewal during the past year.