Teekay Orders Newbuilding Aframax Tankers

January 15, 2004

Teekay Shipping Corporation (Teekay) announced that it has entered into two separate agreements to construct a total of six 105,000 deadweight tonne high specification Aframax tanker newbuildings. Four conventional Aframax tankers and two purpose-built lightering ships have been ordered from Hyundai Heavy Industries and Tsuneishi Corporation, respectively. The aggregate cost of these vessels is approximately US$260 million, including construction supervision costs and capitalized interest. Paul Wogan, President of Teekay Tanker Services, Teekay's conventional tanker business unit said, "We are pleased to add four high quality vessels from Hyundai Heavy Industries to our existing fleet renewal program. Including the newbuilding order announced today, we have 12 new vessels delivering into our spot tanker fleet over the next three years." The ships ordered from Tsuneishi Corporation will commence on fixed-rate charters to Teekay's 50 percent-owned joint venture company, Skaugen PetroTrans (SPT), for a period of 10 years upon delivery in 2007 and 2008. "The charter of two specialized lightering ships to our joint venture company SPT enhances our co-operation with our partner in that venture and supports SPT's strategic development plans," commented Mr. Wogan. Purpose-built lightering tankers are Aframax tankers specially designed to be used in ship-to-ship oil transfer operations.

Teekay Orders Newbuilding Aframax Tankers

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