Teekay Offshore Partners has entered into agreements with the Foinaven Operator directly to provide the operations and shuttle tanker services for the Foinaven FPSO.
The new bareboat charter contract with the Foinaven Operator for the Petrojarl Foinaven floating production, storage and offloading (FPSO) unit is for up to approximately ten years.
Under the terms of the Contract, Teekay is expected to receive an upfront payment of approximately U$67 million in cash, a nominal per day rate over the life of the Contract, and a lump sum payment at the end of the Contract period, which is expected to cover the costs of recycling the FPSO unit in accordance with the EU Ship Recycling Regulations.