Teekay Enters 3.5-Year Contract For Hummingbird Spirit FPSO
Teekay Corporation enters into a contract till March 2023 with the Chestnut Joint Venture that is a joint venture between Spirit Energy Ltd. and Dana Petroleum Ltd. This is done in order to increase the employment of the Hummingbird Spirit FPSO unit that is on the Chestnut Field in the North Sea
The contract has been extended keeping in view the plan of Chestnut Joint Venture to drill a new well at the Chestnut field.
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The new Hummingbird contract that is based on a fixed charter came into effect on the 1st of October, 2019. Earlier it was based on a fixed charter rate plus oil production/price tariff.
“We are pleased to announce this important multi-year FPSO contract extension for the Hummingbird in connection with our customer’s new drilling program, further extending the production of the field in the North Sea which originally commenced in 2008 and follows several contract extensions with the Chestnut Joint Venture.
In addition, the new terms of the contract extension are expected to provide more cash flow visibility and stability to the Company,” commented Kenneth Hvid, Teekay’s President and Chief Executive Officer.