Teekay Offshore and Petrobras settle dispute over terminated contracts

Teekay Offshore and Petrobras settle dispute over terminated contracts

Teekay Offshore Partners has entered into settlement agreement with Petrobras, ending disputes relating to previously-terminated charter contracts of the HiLoad DP and Arendal Spirit floating accomodation unit.

Petrobras has agreed to pay a total amount of $96m to Teekay Offshore, with $55m payable unconditionally within 30 days. The remaining amount will be paid in two separate instalments, with an agreement to reduce the amount by 40% of revenue against new contracts signed.

Teekay Offshore has also entered into a further settlement agreement with Petrobras relating to a dispute over the charter of the Piranema Spirit FPSO. Teekay has agreed to a reduction in charter rate worth around $11m.

Ingvild Sæther, president and CEO of Teekay Offshore Group, commented: “Over the past decade, we have built a strong partnership with Petrobras. Petrobras has grown to become one of our largest customers, and we look forward to further strengthening this long-term partnership in the future.

“We settled the contractual disagreements in a very constructive manner and we can now turn our full attention to working together to deliver offshore production and logistics solutions for the fast-growing Brazilian offshore market.”

Grant Rowles

Grant spent nine years at Informa Group based in London, Sydney, Hong Kong and Singapore. He gained strong management experience in publishing, conferences and awards schemes in the shipping and legal areas, working on a number of titles including Lloyd's List. In 2009 Grant joined Seatrade responsible for the commercial development of Seatrade’s Asia products. In 2012, with Sam Chambers, he co-founded Asia Shipping Media.

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