Teekay Awarded Contract for Knarr FPSO Project

HAMILTON, BERMUDA--(Marketwire - June 30, 2011) - Teekay Corporation (Teekay or the Company) (NYSE:TK) -

Editor's Note: There is a photo and a video associated with this Press Release.

Teekay Corporation today announced that it has entered into an agreement with BG Norge Limited (BG) to provide a floating production, storage and offloading (FPSO) unit for the Knarr oil and gas field located in the North Sea.

The contract will be serviced by a newly-built FPSO unit to be constructed by Samsung Heavy Industries (Samsung) in South Korea, as previously announced by the Company, for a fully built-up project cost of approximately $1 billion. The FPSO unit, which will have a maximum design production capacity of 63,000 barrels per day (bbls/d), is scheduled to deliver during the first quarter of 2014, at which time it will commence operations under its charter contract with BG for a firm period of either six or ten years plus extension options for a total period of up to 20 years. Under the terms of the agreement, BG has until the end of 2012 to decide on the firm period of the charter contract.

The Knarr field (previously known as Jordbaer) is located in the Tampen area in the northern North Sea and is estimated to contain recoverable reserves of some 70 million barrels of oil equivalents, which could increase if drilling results from nearby prospects in the region prove to be successful.

"The Knarr FPSO is an exciting project for Teekay as it represents our largest offshore project to date and is in one of our core offshore regions," commented Peter Evensen, Teekay's President and Chief Executive Officer. "As the largest independent operator of FPSOs in the North Sea, we are very pleased to further grow our franchise in this important offshore region and to be chosen by BG to be their trusted FPSO operator for this particular project," Mr. Evensen added. "This project plays to one of our core competencies, which is our strong track record of operating FPSOs in harsh weather environments. The Knarr FPSO design, which makes use of Samsung's previous experience in delivering turnkey FPSO units, incorporates top-side configuration designed for high uptime and the turret mooring system is a proprietary technology we jointly developed with Framo. Over the past several months, we have been working together with Samsung and other key suppliers on the detailed engineering specifications for the FPSO, prior to finalizing the contracts with both Samsung and BG."

Mr. Evensen continued, "Offshore oil fields in the northern North Sea are well suited to FPSO solutions due to the deepwater geography and the lack of existing infrastructure. Given the current high level of offshore activity in the North Sea, this bodes well for further FPSO opportunities for Teekay."

BG is the operator of the Knarr field and its partners are Idemitsu Petroleum Norge AS, Wintershall Norge ASA, and RWE Dea Norge AS.

About Teekay

Teekay Corporation transports more than 10 percent of the world's seaborne oil, has built a significant presence in the liquefied natural gas shipping sector through its publicly-listed subsidiary, Teekay LNG Partners L.P. (NYSE:TGP), is further growing its operations in the offshore oil production, storage and transportation sector through its publicly-listed subsidiary, Teekay Offshore Partners L.P. (NYSE:TOO), and continues to expand its conventional tanker business through its publicly-listed subsidiary, Teekay Tankers Ltd. (NYSE:TNK). With a fleet of approximately 150 vessels, offices in 16 countries and over 6,400 seagoing and shore-based employees, Teekay provides a comprehensive set of marine services to the world's leading oil and gas companies, helping them seamlessly link their upstream energy production to their downstream processing operations. Teekay's reputation for safety, quality and innovation has earned it a position with its customers as The Marine Midstream Company.

Teekay's common stock is listed on the New York Stock Exchange where it trades under the symbol "TK".

FORWARD LOOKING STATEMENTS

This release contains forward-looking statements (as defined in Section 21E of the 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 estimated total cost to construct and deliver the Knarr FPSO newbuilding; the ability to meet BG's project specifications and timelines; expected production volumes of the Knarr FPSO; the expected timing for delivery of the Knarr FPSO newbuilding from the shipyard and the commencement of its time-charter contract; and future FPSO opportunities for Teekay in the North Sea. 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: variances in expected shipyard construction costs for the Knarr FPSO newbuilding and the Company's ability to finance these costs; potential delays in the delivery of the Knarr FPSO newbuilding from the shipyard; variances in projected levels of production and operating costs relating to the Knarr FPSO newbuilding; and other factors discussed in Teekay Corporation's filings from time to time with the United States Securities and Exchange Commission, including its report on Form 20-F for the fiscal year ended December 31, 2010. The Company expressly disclaims any obligation of undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change to the Company's expectation with respect thereto or any change in events, conditions or circumstances on which any such statement is based.

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