Teekay has cost cuts and extension options in the crosshairs

With most of its 10 floating production, storage and offloading vessels on medium to long-term contracts, Teekay Offshore’s main focus during the market downturn is to ensure extension options are exercised and to look for potential cost reductions to boost earnings.

20 November 2015 1:00 GMT Updated 20 November 2015 1:00 GMT

Six of the company’s FPSOs are currently in the North Sea and three are off Brazil.

The Petrojarl 1 is being upgraded before heading for Brazil next year, while an 11th unit is being converted at Sembcorp Marine’s Jurong yard in Singapore before deployment at the Brazilian Libra field for Petrobras in 2017.

The company also owns seven floating storage and offloading units, 36 shuttle tankers, as well as conventional tankers, towage vessels and flotels.

“We

Upstream is part of DN Media Group. To read more about DN Media Group, click here

Weekly

Teekay has cost cuts and extension options in the crosshairs