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FPSO Petrojarl Varg back on the market
Teekay Offshore Partners has terminated an agreement with Alpha Petroleum Resources to deploy the FPSO PETROJARL VARG for a redevelopment of the Cheviot oil field in the UK northern North Sea. The parties had negotiated a seven-year fixed term from first oil, scheduled for 2Q 2021, after completion of life extension and upgrade works on the vessel at Sembcorp Marine’s shipyard in Singapore. However, Alpha Petroleum could not provide initial funding to cover the costs of this program, and as a result of this and other conditions not being satisfied, Teekay called a halt to the arrangement.The company will now seek alternative deployment opportunities for the vessel, which formerly produced oil at the Varg field in the southern Norwegian North Sea. Chris Brett, president of Teekay Offshore Production, said: “We have been very impressed with the creativity, competence, and determination of the Alpha Petroleum team to develop the Cheviot field which remains, in our opinion, a well-developed opportunity and we wish the Alpha team all the best in their continued efforts to bring the field into production. “From a Teekay Offshore perspective, we look forward to advancing the next project for the PETROJARL VARG, which could still include the Cheviot development under a revised financing model. “The Varg FPSO has had a long history of reliable production on the Norwegian continental ahelf and provides a flexible production solution for a wide range of future developments in the North Sea and beyond.” Source : offshore Mag
Norwegian Offshore Workers Threaten Strike
(Reuters) – Some 574 Norwegian rig workers could go on strike from next Thursday, potentially reducing oil production, unless a wage settlement is reached during talks with a state appointed mediator, three labour unions said on Thursday. Some 101 workers on the Petrojarl Varg oil production vessel, which operates on behalf of Repsol, and 88 people on the Petrojarl Knarr, producing oil for BG, will go on strike if the talks fail, the Safe union said in a statement. Both vessels are owned by Teekay Corporation’s Norwegian unit Teekay Petrojarl. Varg produced 6,000 barrels of oil per day in March, while the newly started Knarr is expected to gradually ramp up to 63,000 barrels per day.
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