A joint venture (JV) between Teekay Offshore and Brazil’s Odebrecht Oil & Gas (OOG) has been confirmed as the lead commercial bidder to provide an FPSO unit for the giant deepwater Libra field offshore Brazil.

The 50/50 JV has been nominated by field operator Petrobras as the lead commercial bidder, said Teekay in its second quarter results material. The JV has been invited by the operator to conclude contract negotiations for the FPSO, which is expected to be owned and operated by the JV.

It will service the giant pre-salt field in the Santos Basin, and is expected to start operations early in 2017, says Teekay. The final contract negotiations are expected to be completed during the third quarter of this year.

Teekay also said repairs to its Petrojarl Foinaven FPSO’s gas compressors have also been completed and the unit is gradually increasing its oil production throughput on the field west of Shetland.

  • This month also saw Teekay Offshore formally acquire Logitel Offshore Holdings Ltd., the Norway-based company focused on the high-end floating accommodation market. Logitel is currently constructing two newbuilding floating accommodation units based on Sevan Marine’s cylindrical hull design at the COSCO (Nantong) Shipyard in China. Teekay intends to immediately exercise one of its existing six options with COSCO to construct a third FAU, subject to final documentation. Prior to the acquisition, Logitel secured a 3-year fixed-rate charter contract, plus extension options, with Petrobras in Brazil for the first FAU, which is scheduled to be delivered in the first quarter of 2015.

Teekay expects to secure charter contracts for the remaining two newbuilding FAUs prior to their respective scheduled deliveries in the fourth quarter of 2015 and the third quarter of 2016.