Marine Log

December 4, 2006

Teekay offshore unit files IPO registration

Teekay Shipping Corporation (NYSE: TK) announced today that its wholly owned subsidiary, Teekay Offshore Partners L.P., has filed a registration statement with the U.S. Securities and Exchange Commission for an initial public offering of its common units.

The offering currently is scheduled to include 7,000,000 common units, representing a 35.0% limited partner interest, and to increase to 8,050,000 common units if the underwriters exercise in full their over-allotment option. The common units have been approved for listing on the New York Stock Exchange, subject to official notice of issuance, under the symbol "TOO."

Teekay Offshore Partners L.P., a Marshall Islands partnership recently formed by Teekay, will be an international provider of marine transportation and storage services to the offshore oil industry. Immediately following the closing of the offering, Teekay Offshore Partners will own a 26.0% interest in and control Teekay Offshore Operating L.P., a Marshall Islands limited partnership that will have a fleet of 36 shuttle tankers, four floating storage and offtake units and nine conventional crude oil Aframax tankers.

Teekay Offshore Partners L.P. will also have rights to participate in certain floating production, storage and offloading opportunities involving Teekay Petrojarl ASA.

Citigroup Corporate and Investment Banking and Merrill Lynch & Co. will act as joint book-running managers and as representatives of the underwriters, who will include Morgan Stanley, A.G. Edwards, Deutsche Bank Securities, Raymond James, Simmons & Company International, DnB NOR Markets and Fortis Securities