Teekay Offshore Enters Pact With BG Group For Tanker Services

Teekay Offshore Partners LP (TOO) said it entered into a long-term contract with a subsidiary of U.K.-based energy company BG Group PLC (BRGYY, BG.LN) to provide shuttle tanker services in Brazil.

The master limited partnership's contract with BG will be serviced by four Suezmax-size DP2 shuttle-tanker newbuildings to be constructed by South Korea's Samsung Heavy Industries Co. (010140.SE). Upon expected delivery in mid- to late-2013, the vessels will commence operations under 10-year time charters.

Teekay Offshore Chief Executive Peter Evensen said the new time charters with BG further strengthened the company's position in the fast-growing Brazilian offshore market. He said the deal would increase the company's Brazil-based shuttle-tanker fleet size by about 30%.

The company, formed by Teekay Corp. (TK), owns 40 shuttle tankers that allow it to transport oil from offshore fields to onshore processing facilities.

Teekay Offshore's shares closed up 0.9% to $28.58 and were inactive after hours.

   -By John Kell, Dow Jones Newswires; 212-416-2480; 
   [e-mail]