Teekay Offshore Partners Announces First Oil and Contract Start-up for the Libra FPSO

HAMILTON, Bermuda, Nov. 30, 2017 -- Teekay Offshore Partners L.P. (NYSE:TOO) (Teekay Offshore or the Partnership) announced today that its jointly owned floating production storage and offloading (FPSO) unit, the FPSO Pioneiro de Libra (Libra), has successfully achieved first oil and commenced its 12-year charter contract with a group of international oil companies, including Petrobras, Total, Shell, CNPC and CNOOC Limited, on the Libra oil field where it will perform early well tests. The Libra FPSO unit is the first unit to produce oil on the giant Libra block, which covers more than 1,500 square kilometers in the Santos Basin.

Teekay Offshore's Libra FPSO Achieves First Oil and Commences 12-Year Charter Contract

The Libra FPSO is owned and operated by Teekay Offshore and Odebrecht Oil and Gas (OOG) through a 50/50 joint venture. The FPSO unit, which was converted from one of the Partnership’s shuttle tankers at Sembcorp Marine’s Jurong shipyard in Singapore, is designed to operate at water depths of up to 2,400 meters, with a production capacity of 50,000 barrels of oil per day and daily compression capacity of four million cubic meters of gas.

“Today marks another significant milestone for Teekay Offshore and its growing presence in the Brazilian market,” commented Ingvild Sæther, President and CEO of Teekay Offshore Group Ltd. “This successful Libra FPSO conversion project demonstrates that we can confidently deliver highly complex FPSO solutions for Brazil’s massive pre-salt play and is expected to provide significant future cash flow growth to the Partnership.” 

A photo and video accompanying this announcement are available at:

http://www.globenewswire.com/NewsRoom/AttachmentNg/e067cf7e-ec1a-4d05-a159-3b41e0486f54

http://www.globenewswire.com/NewsRoom/AttachmentNg/0eeef828-276f-4bed-8d80-5d2a536c475a

About Teekay Offshore

Teekay Offshore Partners L.P. is an international provider of marine transportation, oil production, storage, long-distance towing and offshore installation and maintenance and safety services to the oil industry, primarily focusing on oil production-related activities of its customers and operating in offshore oil regions of the North Sea, Brazil and the East Coast of Canada. Teekay Offshore is structured as a publicly-traded master limited partnership (MLP) with consolidated assets of approximately $5.6 billion, comprised of 63 offshore assets, including floating production, storage and offloading (FPSO) units, shuttle tankers, floating storage and offtake (FSO) units, a unit for maintenance and safety (UMS), long-distance towing and offshore installation vessels and conventional tankers. The majority of Teekay Offshore's fleet is employed on medium-term, stable contracts.

Teekay Offshore's common units and Series A and B preferred units trade on the New York Stock Exchange under the symbols "TOO", "TOO PR A" and "TOO PR B", respectively.

For Investor Relations
enquiries contact:

Ryan Hamilton
Tel: +1 (604) 609-2963
Website: www.teekay.com

For Media enquiries contact:
Axel Wiedenmann
Tel: +47 9516 3022
Website: www.teekay.com

Forward Looking Statements

This release contains forward-looking statements (as defined in Section 21E of the U.S. Securities Exchange Act of 1934, as amended) which reflect management's current views with respect to certain future events and performance, including statements regarding: the size of the Libra field; and the impact of the Libra FPSO on the Partnership’s future cash flows. The following factors are among those that could cause actual results to differ materially from the forward-looking statements, which involve risks and uncertainties, and that should be considered in evaluating any such statement: the operational performance of the Libra FPSO unit; variations in operating expenses; different-than-expected levels of oil production on the Libra field; potential early termination of the charter contract; and other factors discussed in Teekay Offshore’s filings from time to time with the SEC, including its Report on Form 20-F for the fiscal year ended December 31, 2016. The Partnership expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Partnership’s expectations with respect thereto or any change in events, conditions or circumstances on which any such statement is based.