Marine Log

September 18, 2006

Teekay makes offer for Petrojarl shares

Teekay Shipping Corporation (Teekay) (NYSE: TK) today announced that its wholly-owned subsidiary, TPO Investments AS (TPO Investments), has launched a mandatory bid for all of the shares in Petrojarl ASA (Petrojarl) at a price of NOK 70 per share, payable in cash. TPO Investments currently owns in excess of 40% of the outstanding shares in Petrojarl. Petrojarl's Board of Directors has recommended its shareholders to accept Teekay's offer. Petrojarl is listed on the Oslo Stock Exchange where it trades under the symbol "PETRO".

The acceptance period for the offer runs from September 19, 2006 to October 18, 2006, both days inclusive. Settlement will take place no later than November 1, 2006. The offer document, which has been approved by the Oslo Stock Exchange, will be made available to all known Petrojarl shareholders and employees as in accordance with Norwegian law.

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

Petrojarl American Depositary Shares trade over-the-counter in the United States under the symbol "PTJRY". In the United States, any offer to purchase Ordinary Shares or American Depositary Receipts will only be made pursuant to the offering materials that are being distributed to shareholders in the United States and are available by contacting Georgeson Shareholder Communications at (866) 628-6024.

The Petrojarl board says the offer price represents a premium of 64% compared to the closing price of the Petrojarl share on the August 18, 2006 (the day prior to Prosafe ASA announcing its acquisition of 29.57% of the shares in Petrojarl). The offer also represents a premium of 75% and 72% to the volume weighted average price on the Oslo Stock Exchange during the previous one month period, and during the period from the date of listing of the Petrojarl share on June 30, until August 18, respectively.

The Petrojarl board notes that Teekay intends to actively pursue opportunities in the rapidly growing global market for Mobile Production Solutions and will continue to focus its development of new FPSO projects worldwide through Petrojarl