Altera Infrastructure L.P. announces Petrojarl Knarr contract extension

PEMBROKE, Bermuda, April 08, 2020 (GLOBE NEWSWIRE) — Altera Infrastructure L.P. (the “Partnership”) today announced that its subsidiary Teekay Knarr AS has entered into a contract amendment with AS Norske Shell, as operator for and on behalf of the Knarr field licence partners (the “Operator”), that extends the contract for the lease and operation of the Petrojarl Knarr FPSO (the “Vessel”) until at least March 2022.
The vessel has been operating on the Knarr field since 2015 under a firm duration until March 2021, which included a further fee payable by the Operator if the contract was not extended through to 2025 and with additional extension options thereafter. The contract amendment includes a reduction in day rate from March 2021 to March 2022 and the removal of the fee payable by the Operator if the contract was not extended, in return for the introduction of an additional production volume and oil price related tariff. The amendment also terminates the Operator’s purchase option for the vessel and provides for a mutual right to terminate the contract on 6 months’ notice without payment of penalty, such termination not to be effective before March 2022.“We are pleased to announce this important FPSO contract extension for the Petrojarl Knarr, and we are committed to work together with the licence partners to continue to operate safely and maximize production on the field. The contract amendment provides important visibility for the next period of operations and it also enables us to position the vessel for the next re-deployment”, says Chris Brett, President Altera Infrastructure FPSO. Altera Infrastructure, previously Teekay Offshore, owns and has been operating the FPSO since it achieved first oil on 16^th March 2015.Forward Looking Statements