TEEKAY SHIPPING SECURES CHARTER CONTRACTS FOR SHUTTLE TANKERS
Teekay Shipping Corp. said its shuttle tanker subsidiary, Ugland Nordic Shipping AS, has secured agreements for the long-term charter of two Suezmax shuttle tankers to Petrobras Transporte S.A., a subsidiary of Petroleo Brasileiro S.A.
The 15-year, fixed-rate U.S. dollar contracts commence in the first quarter of 2003.
In connection with the contracts, Teekay has entered into an agreement to purchase a 2001-built Suezmax tanker, to be delivered this month. The vessel, along with the company's recently acquired 2001-built Suezmax tanker 'Nordic Spirit,' will be converted to shuttle tankers and delivered to Transpetro under bareboat charter contracts.
Teekay's share of the capital investment in the vessels is about $90 million and the estimated cash flow from the contracts is $11 million.
The Nassau, Bahamas-based company provides international crude oil and petroleum product transport services, through its fleet of medium-sized oil tankers.