Teekay Increases Stake in Petrojarl to Almost 38%

Teekay Shipping announced on Wednesday that it had increased its ownership stake in Petrojarl to 37.7% from 22.8%. The additional 7.5 million shares places Teekay in an enviable position in what is seen by analysts as a likely bidding war between the shipping tanker group and rival Prosafe. Prosafe currently holds a 29.6% stake in Petrojarl, but Teekay’s now larger stake and (perceived) better relationship with Petrojarl's board positions Teekay as the favorite to gain a controlling interest over Petrojarl.

Petrojarl, a Norwegian offshore oil services firm, has seen its share price rise by 65% since mid-August. Petrojarl operates a total of four ship-based oil-production ships known as floating production storage and offloading vessels (FPSO). Both Teekay and Prosafe are both seen as anxious to get their hands on Ptrojarl’s fleet, seeking to increase their fleets of rigs and oil-production vessels as high oil prices spur producers to spend more on exploration and production.

Petrojarl has said that they are keeping an open mind with regard to both suitors. For its part, Teekay has not yet openly declared that they want to take over the oil services firm.