December 16, 2002

Teekay to buy Navion in $800 million deal
Teekay Shipping Corporation (NYSE:TK) and Statoil ASA (NYSE:STO)(OSE:STL) announced that they have entered into an agreement under which Teekay will acquire Statoil's wholly-owned shipping company, Navion ASA, on a debt free basis, for approximately $800 million in cash.

The deal positions Teekay as a strategic logistics provider of shuttle tanker services to Statoil and other oil companies, and increases Teekay's presence in the conventional crude oil and product tanker trades. In 2001, Navion transported a total of 160 million tonnes of crude oil and petroleum products, exceeding the 135 million tonnes carried by Teekay in that year.

Stavanger, Norway, based Navion is a leader in the North Sea offshore loading business. It provides logistics services to Statoil and other oil companies through fixed-rate long-term contracts of affreightment with a fleet of 9 owned and 17 chartered-in shuttle tankers. These inlude four vessels from Ugland Nordic Shipping AS (UNS), Teekay's shuttle tanker unit located in Sandefjord, Norway.

Navion meets the conventional tanker requirements of Statoil and other customers with a chartered-in fleet of 12 crude oil tankers and 9 product tankers, mainly operating in the Atlantic region.

Navion also owns two FSO vessels. currently trading as conventional crude tankers in the Atlantic region, and an gas carrier on long-term charter to Statoil.

Through Navion Chartering, an entity owned jointly with Statoil, Navion has the right of first refusal on Statoil's oil transportation requirements at the prevailing market rate.

"It is an exciting breakthrough for Teekay to be chosen as the global shipping and logistics provider to Statoil," said Bjorn Moller, president and CEO of Teekay. "There is a great fit between Statoil and Teekay, both in terms of operating philosophy and growth ambitions. Navion complements Teekay's existing business and enables us to expand our service offering to our global customer base, for example, through Navion's broader involvement in the product tanker trades."

"We are very pleased to have entered into this sales agreement with Teekay", said Erling 0verland, Executive Vice President of Statoil and Chairman of Navion. "We selected Teekay due to its proven record of safety, service and quality, its global reach and its financial strength. I am confident that Navion will continue to deliver first class service to Statoil and its other customers. Under Teekay, Navion will also be better positioned to provide transportation support for Statoil's growing international oil activity."

Teekay expects the transaction to provide substantial financial benefits. "The Navion transaction will deliver significant earnings per share accretion. It will also add further stability to Teekay's financial performance due to Navion's long-term contracts," said Moller.

The effective date of this transaction will be January 1, 2003 and the closing is expected to occur in the second quarter of 2003. Following the closing, Stavanger will become Teekay's main operating office in Norway. At that time, Peter Antturi, currently Teekay's senior VP and CFO, will assume the role of president of Navion. He will continue as Teekay's CFO until a successor is appointed.

DnB Markets served as financial advisors to Teekay.

Teekay Shipping Corporation is a leading provider of international crude oil and petroleum product transportation services through the world's largest fleet of medium-sized oil tankers. With its main operating office in Vancouver, Canada and offices in 11 other countries, Teekay employs more than 4,100 seagoing and shore-based staff globally.

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