(NYSE: TK) announced today that it has agreed to sell its remaining 49 percent interest in Teekay Offshore Operating L.P. (OPCO) to Teekay Offshore Partners L.P. (Teekay Offshore) for a total price of $390 million. OPCO currently operates a fleet of 33 shuttle tankers (including five chartered-in vessels), four Floating Storage and Offtake (FSO) units, nine double-hull conventional oil tankers and two lightering vessels. Upon the completion of this transaction, Teekay Offshore will own 100 percent of OPCO. As consideration, Teekay will receive $175 million in cash and approximately 7.6 million new common units of Teekay Offshore plus the 2 percent general partner interest associated with the new common units to be issued. The number of Teekay Offshore common units issued to Teekay was determined based on the 10-day volume-weighted average price, or $27.86 per unit, preceding the date of Teekay’s offer to sell its remaining 49 percent interest in OPCO to Teekay Offshore. Upon the completion of this transaction, Teekay’s ownership interest in Teekay Offshore will increase from 28.3 percent to 36.9 percent (both figures include the sole two percent general partner interest). The Company expects this transaction to be completed during the week of March 7, 2011.