Teekay Corporation is set to acquire three FPSO units from Sevan Marine ASA for $668 million, alongside a significant equity investment, positioning itself for enhanced operational capabilities in the offshore oil sector.

Target Overview

Teekay Corporation has announced its acquisition of three Floating Production, Storage and Offloading (FPSO) units from Sevan Marine ASA, which includes the Sevan Piranema, Sevan Hummingbird, and Sevan Voyageur. The aggregate purchase price for the transaction is set at $668 million in addition to an estimated $110-$130 million required for the completion of the Voyageur's upgrade. Alongside the FPSO units, Teekay will also invest $25 million in a new issuance of Sevan equity, which will result in a 40% ownership stake in a recapitalized Sevan Marine.

Industry Overview

The floating production and storage (FPSO) sector has become integral to offshore oil and gas extraction, particularly in nations with substantial offshore reserves. This industry enables companies to streamline operations and minimize downtime, maximizing the efficiency of extraction processes. The FPSO market has seen steady growth due to a surge in demand for offshore oil production, as producers seek to exploit resources located in remote areas where traditional methods are not viable.

In regions like Brazil and the North Sea, FPSOs have been particularly successful due to the complex nature of the oil fields and the technical challenges of installation and operation. Brazil has be