September 3, 2003

Teekay wins Brazil shuttle tanker contract
Teekay Shipping Corporation says its shuttle tanker subsidiary, Ugland Nordic Shipping AS (UNS), has secured contracts for the long-term charter of two additional sophisticated Suezmax shuttle tankers to Petrobras Transporte S.A. (Transpetro), a wholly-owned subsidiary of Petroleo Brasileiro S.A. (Petrobras). These U.S.Dollar-denominated contracts are at fixed rates for 13 years each, commencing in the third quarter of 2004.

Concurrently Teekay has entered into an agreement to purchase two Suezmax tanker newbuildings, due for delivery during the first half of 2004. These vessels will undergo extensive conversion before commencing service in Brazil under bareboat charter contracts. These contracts, together with a recently announced contract to provide a Floating Storage Offtake tanker to Unocal Thailand, will provide an additional estimated annual cash flow from operating activities of approximately $20 million to Teekay's long-term fixed-rate business segment.

"We are pleased to have secured these long-term contracts with Transpetro. Our growing relationship with Petrobras and our expanding presence in Brazil demonstrate the franchise value of Teekay's shuttle tanker operations," said Bjorn Moller, President and Chief Executive Officer of Teekay. "With the addition of these two vessels to our fleet in Brazil, Teekay will be the leading provider of shuttle tankers in one of the world's most active areas of offshore oil development."

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