Teekay offloads FPSO and lines up another for scrapping

Teekay Corporation is offloading its floating production storage and offloading (FPSO) unit that is set to come off charter and has also lined up another one for scrapping as it looks to wind down its floaters business by the end of this year.

The New York-listed firm has agreed to sell the 2007-built unit Sevan Hummingbird to an undisclosed third party, which is expected to close in the second quarter of 2022 and to largely offset the remaining decommissioning costs on the unit. Financial details have not been disclosed.

In March 2022, the charterer of the Sevan Hummingbird FPSO unit, Spirit Energy, ceased oil production on the Chestnut oil field, and the FPSO charter contract is expected to be terminated in mid-May 2022 upon completion of the decommissioning activities. 

Meanwhile, BP is expected to redeliver the 1996 FPSO Petrojarl Foinaven in August after it announced its decision last April to suspend production from the Foinaven oil fields and permanently remove the unit from the site. After delivery, Teekay said it intends to green-recycle the unit. The majority of the ‘green recycling’ costs are expected to be covered by a contract lumpsum payment from BP.

Adis Ajdin

Adis is an experienced news reporter with a background in finance, media and education. He has written across the spectrum of offshore energy and ocean industries for many years and is a member of International Federation of Journalists. Previously he had written for Navingo media group titles including Offshore Energy, Subsea World News and Marine Energy.
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