Teekay Launches Mandatory Bid for All Shares in Petrojarl

Teekay Shipping

Teekay Shipping Corporation's (NYSE:TK) wholly-owned subsidiary, TPO Investments AS (TPO Investments), has launched a mandatory bid for all of the shares in Petrojarl ASA (Petrojarl) at a price of Norwegian Kroner 70 per share, payable in cash. TPO Investments currently owns in excess of 40% of the outstanding shares in Petrojarl. Petrojarl's Board of Directors has recommended its shareholders to accept Teekay's offer. Petrojarl is listed on the Oslo Stock Exchange where it trades under the symbol "PETRO".

The acceptance period for the offer runs from September 19, 2006 to October 18, 2006, both days inclusive. Settlement will take place no later than November 1, 2006. The offer document, which has been approved by the Oslo Stock Exchange, will be made available to all known Petrojarl shareholders and employees as in accordance with Norwegian law.

Petrojarl is a leading operator of Floating Production Storage and Offloading (FPSO) units in the North Sea. It owns and operates four FPSO units in addition to operating two shuttle tankers and one storage tanker. In February of this year, Teekay entered into a joint venture with Petrojarl to pursue FPSO projects.

Petrojarl American Depositary Shares trade over-the-counter in the United States under the symbol "PTJRY". In the United States, any offer to purchase Ordinary Shares or American Depositary Receipts will only be made pursuant to the offering materials that are being distributed to shareholders in the United States and are available by contacting Georgeson Shareholder Communications at (866) 628-6024. This news release does not constitute an offer to purchase, or the solicitation of an offer to sell, any Ordinary Shares or American Depositary Receipts of Petrojarl ASA, nor will there be any purchase of these securities in any state or jurisdiction in which such offer, solicitation or purchase would be unlawful.

DnB NOR Markets and Bugge, Arentz-Hansen & Rasmussen (BA-HR) have assisted TPO Investments in preparing the offer.