Marine Log

September 1, 2006

Teekay to launch bid for Petrojarl

Teekay Shipping Corporation (Teekay) (NYSE:TK) says that it has acquired, through its wholly owned subsidiary TPO Investments AS, over 40% of the shares of Petrojarl ASA (Petrojarl), which is listed on the Oslo Stock Exchange (OSE:PETRO).

In accordance with Norwegian law, Teekay intends to launch a mandatory bid for the remaining shares of Petrojarl within the next four weeks.

The Teekay announcement comes hard on the heels of an August 25 announcement that Prosafe ASA had proposed a merger following its acquisition of 29.7% of Petrojarl's shares.

Petrojarl is a leading operator of Floating Production Storage and Offloading (FPSO) units in the North Sea. It owns and operates four FPSO units in addition to operating two shuttle tankers and one storage tanker. It was spun-off from PGS ASA in March this year.

In February of this year, Teekay entered into a joint venture with Petrojarl to pursue FPSO projects.

"We are excited about the opportunity to expand our existing relationship with Petrojarl," commented Bjorn Moller, Teekay's President and Chief Executive Officer. "Petrojarl's offshore engineering expertise and reputation as a quality operator of FPSOs is a great fit with Teekay's existing offshore operations and will allow us to better serve our customers in the growing offshore oil exploration and production market."