Teekay Offshore has been awarded new three-year shuttle tanker contracts of affreightment (CoA) with BP, Shell and OMV Group for the Glen Lyon FPSO.
The company will transport the oil produced from the vessel when it is part of the Quad204 development located west of Shetland in the North Sea.
The work is expected to commence in the first half of next year with the requirement for two shuttle tankers.
Peter Evensen, Teekay Offshore’s chief executive, said:“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 “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.
“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.”