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

This press release includes statements that may constitute forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995, including statements related to the Partnership’s strategies and plans for creating stakeholder value. Such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Important factors that could cause actual results to differ materially from the Partnership’s expectations and may adversely affect the Partnership’s business and results of operations may include unanticipated market volatility (such as volatility resulting from the recent COVID-19 outbreak), as well as those risk factors disclosed in Item 3 of the Partnership’s Annual Report on Form 20-F for the year ended December 31, 2019, filed with the U.S. Securities and Exchange Commission (the “SEC”) on February 28, 2020, as updated and supplemented by subsequent filings with the SEC. The forward-looking statements speak only as of the date made, and, other than as may be required by law, the Partnership undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

About Altera Infrastructure

Altera Infrastructure is a leading global energy infrastructure services provider primarily focused on the ownership and operation of critical infrastructure assets in offshore oil regions of the North Sea, Brazil and the East Coast of Canada.

Altera Infrastructure has consolidated assets of approximately $5.2 billion, comprised of 56 offshore assets, including floating production, storage and offloading (FPSO) units, shuttle tankers (including five new builds), floating storage and offtake (FSO) units, long-distance towing and offshore installation vessels and a unit for maintenance and safety (UMS). The majority of Altera Infrastructure’s fleet is employed on medium-term, stable contracts. Affiliates of global asset manager Brookfield Business Partners L.P. (NYSE: BBU) (TSX: BBU.UN) own 100 percent of Altera Infrastructure’s general partner.

Altera Infrastructure L.P.’s preferred equity units trade on the New York Stock Exchange under the symbols “ALIN PR A”, “ALIN PR B” and “ALIN PR E”, respectively.