Teekay Offshore Partners L.P. (NYSE:TOO) (Teekay Offshore) announced today that its jointly owned floating production storage and offloading (FPSO) unit, the FPSO Pioneiro de Libra (Libra), has successfully achieved first oil and commenced its 12-year charter contract with a group of international oil companies, including Petrobras, Total, Shell, CNPC and CNOOC Limited, on the Libra oil field where it will perform early well tests.

Teekay Offshore Partners Announces First Oil and Contract Start-up for the Libra FPSO (Video)
Caption: Teekay Offshore's Libra FPSO Achieves First Oil and Commences 12-Year Charter Contract

The Libra FPSO unit is the first unit to produce oil on the giant Libra block, which covers more than 1,500 square kilometers in the Santos Basin.

The Libra FPSO is owned and operated by Teekay Offshore and Odebrecht Oil and Gas (OOG) through a 50/50 joint venture. The FPSO unit, which was converted from one of the Partnership’s shuttle tankers at Sembcorp Marine’s Jurong shipyard in Singapore, is designed to operate at water depths of up to 2,400 meters, with a production capacity of 50,000 barrels of oil per day and daily compression capacity of four million cubic meters of gas.

“Today marks another significant milestone for Teekay Offshore and its growing presence in the Brazilian market,” commented Ingvild Sæther, President and CEO of Teekay Offshore Group Ltd. “This successful Libra FPSO conversion project demonstrates that we can confidently deliver highly complex FPSO solutions for Brazil’s massive pre-salt play and is expected to provide significant future cash flow growth to the Partnership.”

Source: Teekay Offshore