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.”