Teekay In $820 Million Storage Unit Deal

October 22, 2011

Bermuda-based Teekay Corp. said this week that it plans to buy offshore storage equipment from Sevan Marine ASA as part of a deal worth up to $823 million.

Teekay, an oil and gas service company headquartered in Hamilton, will buy three floating production storage and offloading units — the “Piranema”, the “Hummingbird” and the “Voyageur” — for $668 million. It also will pay the remaining cost, estimated at between $100 million and $130 million, to upgrade the “Voyageur.”

Teekay also will buy a $25 million stake in Sevan, equivalent to a 40 percent ownership interest.

Teekay also has the right to buy future floating storage and offloading projects that were developed by Sevan.

The deal is expected to close in the fourth quarter, except for the purchase of “Voyageur”, which will be completed in the third quarter of 2012.

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