TEEKAY SHIPPING SECURES CHARTER CONTRACTS FOR SHUTTLE TANKERS

TEEKAY SHIPPING SECURES CHARTER CONTRACTS FOR SHUTTLE TANKERS

   Teekay Shipping Corp. said its shuttle tanker subsidiary, Ugland Nordic Shipping AS, has secured agreements for the long-term charter of two Suezmax shuttle tankers to Petrobras Transporte S.A., a subsidiary of Petroleo Brasileiro S.A.

   The 15-year, fixed-rate U.S. dollar contracts commence in the first quarter of 2003.

   In connection with the contracts, Teekay has entered into an agreement to purchase a 2001-built Suezmax tanker, to be delivered this month. The vessel, along with the company's recently acquired 2001-built Suezmax tanker 'Nordic Spirit,' will be converted to shuttle tankers and delivered to Transpetro under bareboat charter contracts.

   Teekay's share of the capital investment in the vessels is about $90 million and the estimated cash flow from the contracts is $11 million.

      The Nassau, Bahamas-based company provides international crude oil and petroleum product transport services, through its fleet of medium-sized oil tankers.