Teekay Shipping Corporation announced an agreement with PGS Production AS, a wholly owned subsidiary of Petroleum Geo-Services ASA (PGS), to form a joint venture company called Teekay Petrojarl Offshore that will focus on pursuing opportunities in the rapidly growing global market for Mobile Production Solutions with emphasis on developing solutions through Floating
Production Storage and Offloading (FPSO) units.
“Offshore oil exploration and production is expected to grow significantly,” said Bjorn Moller, Teekay’s President
and Chief Executive Officer. “This joint venture creates a strong platform to pursue the growing market for FPSOs
that will result from this increased
offshore oil production. The combination of PGS’ offshore engineering expertise
and reputation as a quality operator of FPSOs, and Teekay’s global marine operations and extensive customer
network strategically positions this joint venture to competitively pursue FPSO projects anywhere in the world.”
Mr. Moller continued, “From Teekay’s perspective, this joint venture broadens our offshore service offering to our
customers and should increase our investment in this area. Furthermore, we are excited to partner with PGS, an
FPSO industry leader, in this attractive growth market.”
“This is a further important move in our announced international expansion strategy,” said President of PGS
Production Espen Klitzing. “Teekay’s global marketing organization, customer and shipyard relationships are a
perfect match with our engineering expertise and experience as a quality operator of FPSOs in the harsh North Sea
environment.”
The joint venture will only encompass new projects. Existing assets of both companies are excluded from the joint
venture. Teekay Petrojarl Offshore will start pursuing opportunities immediately and all details regarding the joint
venture are to be finalized during the second quarter of 2006.