Teekay to build third flotel

Flotel order: for Cosco Nantong Shipyard

Teekay Offshore Partners has exercised an option to build a third floating accommodation unit based on Sevan Marine’s trademark cylindrical design at a Chinese yard.

It follows the Canadian floating production player’s takeover earlier this year of a pair of newbuild cylindrical hulls already being built as flotels at Cosco Nantong Shipyard, marking Teekay’s entry into this market segment.

The latest newbuild is due for delivery from the yard in the third quarter of 2016, with an employment contract apparently yet to be lined up.

It is the first to be exercised of six newbuild options available to Teekay, having taken on the debt obligations of Logitel Offshore that acquired the hull pair from Sevan last year under a seller’s credit arrangement.

Brazil’s state-owned Petrobras has taken the first newbuild on a long-term charter due to start after scheduled delivery in December but the second unit is still looking for work.

Sevan chief executive Carl Lieungh told Upstream earlier this year the Canadian player intended to order further flotel newbuilds and “means serious business” in this segment.

Oslo-listed floating technology player Sevan, in which Teekay holds a majority stake, is set to gain from additional newbuild orders as it earns technology licensing fees from the use of its cylindrical concept.

Lieungh said Teekay’s exercise of the first newbuild option “will have a positive effect on our earnings”.

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