Skip to content

Number: 04/01

BHP Billiton Limited (BHP Billiton) and Teekay Shipping Corporation (Teekay) today announced the signing of an Implementation Agreement to form a joint venture company encompassing ship management, crewing and marine technical services.

The joint venture, called Teekay Marine Pty Ltd (Teekay Marine), will provide improved operating costs via economies of scale and ongoing surety over service quality and risk. It will also deliver significantly increased resources and capabilities to BHP Billiton through Teekay's global network.

Teekay Marine will contract services to BHP Billiton for its existing shipping fleet. Equity ownership will be split 70:30 between Teekay and BHP Billiton respectively.

BHP Billiton President Transport and Logistics Bruce McGowan said the joint venture would create a world-class ship management business with a strong position in Australia and a significant global footprint.

"Teekay Marine will deliver a total shipping capability and build on both partners' excellent track record serving major customers and complementary global experience with different types of vessels and cargo," he said.

"In addition, being a key customer and part owner of Teekay Marine will ensure BHP Billiton increases its range of options to best meet the needs of its global customer base."

The signing of the Implementation Agreement follows several months of negotiations and is separate to BHP Billiton's strategic review of its Transport and Logistics requirements. There will be no change to the Company's existing ship ownership arrangements as a result of the joint venture being formed.

Teekay President and CEO Bjorn Moller said: "BHP Billiton is a long-standing customer of our oil transportation services. We are delighted with this opportunity to strengthen our relationship further by joining them in this marine services venture."

It is intended to transfer all of BHP Billiton's 600 sea-going personnel to Teekay Shipping (Australia) Pty Ltd (a 100 per cent-owned subsidiary of Teekay Shipping Corporation). The joint venture will create a broad range of career opportunities as part of a growing, marine services-focussed organisation.

It is expected that the joint venture will be implemented by October 2001 following completion of all negotiations.

As previously advised, BHP Billiton will retain its Sea Freight Management function as part of the Company's Marketing group. A Melbourne-based team will also provide support, focussing on Marine Services, Handysize Chartering and Logistics Solutions.


Teekay Background:
Teekay Shipping Corporation is a leading provider of international crude oil and petroleum product transportation services through the world's largest fleet of medium sized oil tankers.

Headquartered in Nassau, Bahamas, with offices in 11 other countries, Teekay employs 300 onshore and more than 2700 sea-going staff around the world. The company's modern fleet has earned a reputation for safety and excellence in providing transportation services to major oil companies, oil traders and government agencies world wide (http://www.teekay.com).


Contact
Australia

Dr. Robert Porter
Vice President Investor & Media Relations
Phone: +61 3 9609 3540
Mobile: +61 419 587456
e-mail: Robert Porter

Mandy Frostick
Manager Media Relations
Phone: +61 3 9609 4157
Mobile: +61 419 546 245
e-mail: Mandy Frostick


United Kingdom
Marc Gonsalves
Vice President Investor Relations & Communication
Phone: +44 20 7747 3956
Mobile: +44 7768 264 950
Fax: +44 20 7747 3914
e-mail: Marc Gonsalves


South Africa
Michael Campbell
Vice President Investor & Media Relations
Phone: +27 11 376 3360
Mobile: +27 82 458 2587
Fax: +27 11 376 3362
e-mail: Mike Campbell


United States
Francis McAllister
Manager Investor Relations
Phone: +1 713 961 8625
Mobile: +1 713 480 3699
e-mail: Francis McAllister

Subscribe to news alerts

No keyword(s) entered

Please ensure you enter a keyword and try searching again

Invalid email

Sorry, we are unable to subscribe you. Please ensure you have entered a valid email address and try again.

Subscription received

Thank you for subscribing to BHP Billiton news alerts. Please check your email for confirmation of your subscription.

Subscription confirmed

You have already signed up to our newsletter.

Loading the player...