Canada’s Teekay Corporation has sealed an extension with the Chestnut joint venture, between Spirit Energy and Dana Petroleum, to extend the contract of 2008-built FPSO Hummingbird Spirit.
The FPSO unit is now contracted to operate on the Chestnut field, in the North Sea, until March 2023. The extension is based on a fixed charter rate, and comes after it was decided to extend the life of the field three more years.
Kenneth Hvid, president and CEO of Teekay, commented: “We are pleased to announce this important multi-year FPSO contract extension for the Hummingbird in connection with our customer’s new drilling program, further extending the production of the field in the North Sea which originally commenced in 2008 and follows several contract extensions with the Chestnut Joint Venture. In addition, the new terms of the contract extension are expected to provide more cash flow visibility and stability to the company.”