Teekay Offshore awarded new contract in Brazil, will acquire floating unit fromTeekay Teekay Offshore (TOO) has entered into an agreement with a consortium led by Queiroz Galvao Exploracao e Producao SA to provide a floating production, storage and offloading - or FPSO - unit for the Atlanta field located in the Santos Basin offshore Brazil. In connection with the contract with QGEP, Teekay Offshore has agreed to acquire the Petrojarl I FPSO from Teekay (TK) for $57M. Subsequent to the acquisition, the FPSO will undergo upgrades for a fully built-up cost of approximately $240M, including the cost of acquiring the Petrojarl I. The FPSO is scheduled to commence operations in 1H16 under a five-year charter contract with QGEP. The charter contract is expected to generate annual cash flow from vessel operations of $55M-$60M. The Petrojarl I FPSO will be used on the Atlanta field located 185 km offshore from the Brazil coast. The acquisition of the Petrojarl I is expected to close by the end of January 2015.