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.