Teekay Offshore gets $414M loan to pay for four shuttle tankers

Teekay Offshore Partners has secured a new $414 million long-term loan that will be used to finance four LNG-fueled Suezmax DP2 shuttle tanker newbuildings.

Illustration only - Image source: Teekay Offshore
Illustration only – Image source: Teekay Offshore

Two of the vessels, being built by Samsung Heavy Industries in South Korea and scheduled for delivery in 2019 and 2020, will begin working for the Norwegian oil and gas company Equinor, under the agreement signed in 2017.

The remaining two vessels will join the Partnership’s contract of affreightment (CoA) shuttle tanker portfolio in the North Sea.

A shuttle tanker is a vessel used for offloading of oil from offshore installations, as an alternative to constructing oil pipelines.

The new debt facility is funded and guaranteed by both Canadian and Norwegian export credit agencies, and commercial banks and bears interest at LIBOR + 225 basis points with a tenor for up to 12 years from the delivery date of each vessel and a blended profile of 18 years, Teekay said on Thursday.

“We are grateful for the continued strong support we receive from our growing bank group, as represented by our new $414 million debt facility,” commented Ingvild Sæther, President and CEO of Teekay Offshore Group Ltd.

Teekay’s shuttle tankers being built by Samsung incorporate technologies to increase fuel efficiency and reduce emissions, including LNG propulsion technology.

Also worth remind, apart from the four shuttle tankers mentioned, Teekay last year ordered two Aframax DP2 shuttle tankers from Samsung Heavy Industries.

Offshore Energy Today Staff


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