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Teekay Inks Hummingbird FPSO Employment Extension

Teekay Inks Hummingbird FPSO Employment Extension
Bermuda-based shipping group Teekay Corporation has entered into an agreement with the Chestnut Joint Venture to extend the employment of the Hummingbird Spirit FPSO unit for three and a half years.

Under the contract with the joint venture between Spirit Energy Ltd. and Dana Petroleum Ltd, Teekay’s Hummingbird would continue working on the Chestnut field in the North Sea until March 2023.

This contract extension was undertaken in conjunction with the Chestnut Joint Venture’s plan to drill a new well at the field. The new Hummingbird contract took effect on October 1, 2019 and is based on a fixed charter rate instead of the previous fixed charter rate plus oil production/price tariff.

“The new terms of the contract extension are expected to provide more cash flow visibility and stability to the company,” Kenneth Hvid, Teekay’s President and Chief Executive Officer, said.

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