Teekay Corporation says that its jointly owned floating production storage and offloading (FPSO) unit, the FPSO Cidade de Itajai (Cidade de Itajai), achieved first oil at the Baúna and Piracaba fields in the Santos Basin offshore Brazil.

The Cidade de Itajai is owned and operated by Teekay and Odebrecht Oil & Gas through a 50/50 joint venture. The FPSO unit, which was recently converted from an Aframax hull at Sembcorp Marine's Jurong Shipyard in Singapore, is designed to process 80,000 barrels of oil per day and compress two million cubic meters of natural gas per day. The FPSO unit is contracted to Petroleo Brasileiro SA (Petrobras) at fixed-rates for an initial firm period of nine years, with extension options.

"Today marks another significant milestone for Teekay's offshore business and its growing presence in the Brazilian market," commented Peter Evensen, Teekay's Chief Executive Officer. "The Cidade de Itajai FPSO conversion project, Teekay's first project working with our partner Odebrecht, provides Petrobras with a cost-competitive offshore production solution, while further expanding Teekay's FPSO franchise in the attractive Brazil offshore market."

Tags: Teekay Corporation