Teekay Offshore Partners Increases Cash Distribution
by 2.5 Percent

Hamilton, Bermuda - 15 January 2014

Teekay Offshore GP LLC, the general partner of Teekay Offshore Partners L.P. (Teekay Offshore or the Partnership) (NYSE:TOO), has declared a cash distribution of $0.5384 per unit for the quarter ended December 31, 2013, an increase of 2.5 percent over the cash distribution of $0.5253 per unit for the quarter ended September 30, 2013. The cash distribution for the quarter ended December 31, 2013 is payable on February 14, 2014 to all unitholders of record on January 31, 2014.

This 2.5 percent distribution increase and the 2.5 percent distribution increase in the first quarter of 2013 are both based on the increased distributable cash flow resulting from the Partnership's acquisitions and newbuilding deliveries completed in 2013.

About Teekay Offshore Partners L.P.
Teekay Offshore Partners L.P. is an international provider of marine transportation, oil production and storage services to the offshore oil industry focusing on the fast-growing, deepwater offshore oil regions of the North Sea and Brazil. Teekay Offshore is structured as a publicly-traded master limited partnership (MLP) and owns interests in 34 shuttle tankers (including two chartered-in vessels), five floating production, storage and offloading (FPSO) units, six floating storage and offtake (FSO) units (including one committed FSO conversion unit), four conventional oil tankers and one HiLoad Dynamic Positioning (DP) unit. The majority of Teekay Offshore's fleet is employed on long-term, stable contracts. In addition, Teekay Offshore also has rights to participate in certain other FPSO, shuttle tanker and HiLoad DP opportunities provided by Teekay Corporation (NYSE:TK), Sevan Marine ASA (Oslo Bors:SEVAN) and Remora AS.

Teekay Offshore Partners' common units trade on the New York Stock Exchange under the symbol "TOO".

Teekay Offshore Partners L.P. press release