Teekay Offshore Partners Places Order
for Two Additional Shuttle Tankers

Hamilton, Bermuda - Nov. 28, 2017

Teekay Offshore Partners L.P. (NYSE:TOO) (Teekay Offshore or the Partnership) announced today that it has declared options with Samsung Heavy Industries Co., Ltd. for the construction of two, Suezmax-sized, DP2 shuttle tanker newbuildings for a total fully-built-up cost of approximately $265 million. These newbuildings will be constructed based on the Partnership’s new Shuttle Spirit design which incorporates proven technologies to increase fuel efficiency and reduce emissions, including LNG propulsion technology. Upon delivery in 2020, these vessels will join Teekay Offshore’s Contract of Affreightment (CoA) fleet in the North Sea.

“This is another important milestone for Teekay Offshore’s shuttle tanker franchise since it further strengthens our position as the leading provider of CoA shuttle tanker services in the North Sea,” commented Ingvild Sæther, President and CEO of Teekay Offshore Group Ltd. “Our customers require a reliable, long-term solution for securing offtake services from over 15 oil fields in the North Sea and therefore, these state-of-the-art newbuildings demonstrate our ongoing commitment to our customers,” Ms. Sæther continued, “What makes me particularly proud is that these newbuildings, as well as the two shuttle tankers ordered in July 2017 to service Statoil’s needs in the North Sea, will set new standards for both fuel consumption and CO2 emissions.”

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.

Teekay Offshore Partners L.P. press release