Teekay Corporation, a provider of crude oil and gas marine transportation services, has entered into an agreement with the Chestnut Joint Venture to extend the employment of the Hummingbird Spirit FPSO unit (Hummingbird) on the Chestnut field in the North Sea until March 2023.

Chestnut is  a joint venture between Spirit Energy Ltd. and Dana Petroleum Ltd.

The contract extension was done in conjunction with the Chestnut Joint Venture’s plan to drill a new well at the Chestnut field.

The new Hummingbird contract took effect on October 1, 2019 and is based on a fixed charter rate instead of the previous 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,” commented Kenneth Hvid, Teekay’s President and Chief Executive Officer.

"In addition, the new terms of the contract extension are expected to provide more cash flow visibility and stability to the Company,” he added.