Teekay said it has entered into an agreement with Canadian Natural Resources (CNR) to extend the employment of the Petrojarl Banff FPSO unit on the Banff field in the UK North Sea for a period of one year to the end of August 2020.

According to Teekay, the extension terms are substantially similar to the current contract, which includes an upside component linked to oil prices and oil and gas production.

Kenneth Hvid, Teekay’s President and Chief Executive Officer, said, “We are pleased to announce this important FPSO contract extension for the Petrojarl Banff, which extends the production of the fields in the North Sea, and we are committed to work together with CNR to maximize production in the future.”

The Petrojarl Banff FPSO produces oil and natural gas from the Banff field as well as the Kyle field via tieback, approximately 200 miles east of Aberdeen in the Central North Sea, in blocks 22/27a and 29/21.

Crude oil is subsequently stored on the nearby permanently moored shuttle tanker, Apollo Spirit.

Petrojarl Banff FPSO has 88,000 bbls storage capacity and 90,000 bopd oil production capacity.