Teekay Corporation (Teekay) (NYSE:TK) announces the completion of the remaining conditions precedent relating to the previously announced Decommissioning Services Agreement (DSA) with CNR International (UK) Limited (CNRI), on behalf of the Banff joint venture, whereby Teekay has engaged CNRI to decommission the Company’s remaining subsea infrastructure located within the CNRI-operated Banff Field.
As part of the DSA, which is now in full effect, CNRI has assumed full responsibility for Teekay’s remaining asset retirement obligations (Phase II) for the above-mentioned facilities, which should enable CNRI to complete Teekay’s Phase II work in conjunction with their other decommissioning work at the Banff Field in a more efficient manner.
As part of the transaction, Teekay has now been deemed to have completed all of its prior decommissioning obligations associated with the Banff Field and as a result, the Company expects to reduce its accrued asset retirement obligations by approximately $30 million in the second quarter of 2021.
“This agreement is a major milestone towards achieving our strategic goal of winding down our FPSO segment,” commented Kenneth Hvid, Teekay’s President and CEO. “This transaction also reflects the strong collaboration with our customer and represents the conclusion of our involvement on the Banff Field after over 20 years of successful operations.”