TEEKAY Corporation has entered into a contract with the Australian Government Department of Defence to provide marine services for five vessels through the Defence Marine Support Services Program (DMSSP).
The contract is for six years with options to extend for up to an additional 10 years.
Under the contract, which is expected to commence in November 2021, Teekay will provide ship management services, including crewing and training, operating, engineering, maintenance, and supply support.
This new contract, DMSSP Service Package 2, will include two of the defence vessels Teekay currently manages (MV Sycamore and ADV Ocean Protector), and three other vessels currently under an existing fleet marine service contract: MV Stoker, MV Besant and MV Seahorse Mercator.
The company said it would continue to employ hundreds of Australian seafarers through the new contract. It said it would prioritise support of Australian industry though engagement of Australian subcontractors and vendors.
Teekay president and CEO Kenneth Hvid said, “This is another example of how we can generate value from the Teekay franchise and allows us to expand our asset-lite services segment”.
“In addition, this contract further builds on our strategic relationship with the Australian Government, where we will now provide services for a total of nine Australian Government vessels, and it provides a solid foundation from which to further grow this business.”
Teekay said it has the required commercial technical and financial capability to achieve the DMSSP objectives because it is an existing strategic partner to the Department of Defence.
“We are already demonstrating our credentials to a high standard through our current in-service support arrangements for both the MV Sycamore and the ADV Ocean Protector – and we are committed to supporting the Department of Defence and other Commonwealth agencies long into the future,” the company said.
Teekay said it has been working with the Department of Defence and the Australian Border force since 2003.
