Teekay Offshore Production Sustainability Report 2015

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TeekayOffshoreProduction-2015SustainabilityReport
TEEKAY OFFSHORE
PRODUCTION
Sustainability
Report 2015
Petrojarl Banff

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CONTENT
Editing completed August 2016.
The legal name of the company is Teekay Petrojarl Production AS. Teekay Offshore
Production (TOP) is the name of the business unit.
Photo: Morten Mehli (page 1, 7, 10, 17), Jørgen Westrum Thorsen (page 2, 6, 7), Cecilie
Hettervik (page 4), Ole Kristian Hemnes (page 8), Priscila Rosa (page 12), Roger Buvarp
(page 15), Alf H. Hansen (page 19, 26) and others.
Layout: Elisabeth Hamstad, HSEQ Department, Teekay Offshore Production.
3 PRESIDENT’S INTRODUCTION

4 FACTS AND HISTORY
6 2015 HIGHLIGHTS
8 SUSTAINABILITY IN CONTEXT
Stakeholder Management
Reporting Basis
Scope and Boundaries
10 PEOPLE
Recruitment and Growth
Diversity
Training and Development
Health and Safety
Operational Safety
Case Story
Asset Integrity Management
Barrier Management System
Project HSE Management
Occupational Health
Our Social Footprint
Community Investments
19 PLANET
Environmental Impact
Emission to Air
Discharge to Sea
Waste Management
22 PROFIT
Adapting to the «New Normal»
Operational Excellence
Finance
Supply Chain
Growth
Ethics and Anti-Corruption
25 KEY FIGURES

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PRESIDENT’S INTRODUCTION
O
ur goal for 2015 was to continue to deliver our core competence;
operational excellence and strong Health, Safety and Environmental
(HSE) results. We also aimed to maintain our tradition of safe, timely
and on-budget completions of projects.
The falling oil prices have also affected the FPSO business. We had - and
will continue - to adapt to the “New Normal” - an environment with lower
oil prices. One of the consequences for Teekay Offshore Production is a
required shift from a growth focus to securing our existing business.
Our aim was to ensure an acceptable commercial future for our two
FPSOs, Petrojarl Varg and Hummingbird Spirit, which are nearing the end
of their respective contracts. At the time of publishing of this report, we
know that the contract for Hummingbird Spirit is extended to Q3 2017,
and Petrojarl Varg has gone off field in August 2016 and discussions are
ongoing with several customers to redeploy her.
We did not achieve our HSE goals in 2015. This is naturally of great
concern to us and we have initiated an Operational and Safety Journey
with active engagement on all levels to turn this negative trend around.
This is everyone’s responsibility. We are seeing a positive trend so far in
2016 and need to maintain the sharp focus on HSE culture and perfor-
mance. Our aim is always zero accidents and injuries.
Operationally we had quite a good year with commercial uptime above
target. It was by no means a perfect year, but on average across the fleet,
we must be satisfied with our overall performance.
Commercially a lot of good work has been done in a very challenging
market. We believe we are well positioned in 2016 and are seeing a lot of
interest in our assets. The low oil price also brings opportunities for re-
deployment of our assets compared to new-build projects.
Financially we were significantly helped by the foreign exchange rate, but
even adjusting for that, we were able to meet our operation budgets. That
is a good achievement in today's market.
In 2016 our goal is to improve our HSE performance, and to position our-
selves through the turmoil in the oil and gas industry building an organiza-
tion that is lean, cost effective, sustainable and successful in the long run.
With this being the backdrop, there is no doubt 2016
will be a challenging year for us, but we strongly
believe we will come out of this even more
robust than before.
Welcome to Teekay Offshore Production’s 2015 Sustainability Report. At Teekay Offshore Production
we believe that our long-term operational and commercial success is closely linked to our ability to
effectively manage sustainability challenges, risks and opportunities.
Chris Brett
President
Teekay Offshore
Production

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FACTS AND HISTORY
T
eekay Offshore Production (TOP) is the largest operator of Floating
Production, Storage and Offloading (FPSO) vessels in the North Sea.
With a combined production capability of close to 600,000 barrels of
oil per day and a crude storage capacity of almost 3.5 million barrels, we
have a long, proven track record in safely operating FPSO vessels in one of
the harshest marine environments in the world.
TOP currently operates nine FPSOs – two on the Norwegian Continental
Shelf, four on the UK Continental Shelf and three offshore Brazil of which
one is jointly owned with Odebrecht Oil and Gas. In addition, Petrojarl I
is currently at yard in Rotterdam, Netherlands, and is planned to start
up operations for Atlanta offshore Brazil in the beginning of 2017. FPSO
Pioneiro de Libra is undergoing conversion in Singapore, with planned
start-up of operations for our Odebrecht Oil and Gas/Teekay joint venture
in Brazil in 2017.
All production units were under contracts producing for oil and gas
companies in 2015. The Petrojarl Varg FPSO contract is terminated by
Repsol due to the oilfield being at its end of life, and the FPSO is planned
to lay-up in August 2016 awaiting new contracts.
TOP’s hub for FPSO is in Trondheim, Norway and we have operations
offices in Norway, Scotland and Brazil. Our more than 1100 employees -
offshore and onshore, permanent and temporary - are professionals with
a unique blend of operational and engineering expertise.
TOP is part of Teekay Offshore.
Petrojarl Varg

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FACTS AND HISTORY
T
eekay Offshore is part of Teekay
Corporation. Established in 1973,
Teekay has developed from a re-
gional shipping company into one of the
world’s largest marine energy transporta-
tion, storage and production companies.
Over the last 20 years, Teekay Offshore
have grown tenfold in assets, created
four publicly traded companies, establis-
hed numerous joint ventures and built
an enviable reputation and brand for
operational excellence.
Teekay remains committed to the highest
level of health, safety, environment and
quality (HSEQ), maximizing the return on
invested capital (ROIC) for our share-
holders and delivering innovative tech-
nological and commercial solutions in
new and emerging market segments.
Our vision is to bring energy to the
world with Teekay Spirit.
Our core values of SAFETY and
SUSTAINABILITY, PASSION,
INTEGRITY, RELIABILITY, INNOVATION
and TEAMWORK guide us in all that
we have done and will do.
Our commitment to Safety and Sustainability means we put safety
ﬁrst. No compromises. We look after each other and make sure
everyone gets home safely. We consider people, planet and proﬁt
in all of our decisions and actions. We contribute to a sustainable
business, environment and community.

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2015 HIGHLIGHTS
IN NOVEMBER IT WAS finally con-
firmed that Petrojarl Varg will be
leaving the Varg field in 2016,
meaning this reliable lady will be
open for new possibilities.
Both a de-commissioning team and
a dedicated FEED team were for-
med to ensure we leave the field in
a good manner, and prepare Petro-
jarl Varg for new opportunities.
32.63 MILLION BARRELS of equiva-
lent (boe) produced in 2015, which
is an all-time high for TOP. If we
include the production from our
joint venture operated FPSO Cidade
de Itajai, the production reached
72.15 Mboe.
HUMMINGBIRD SPIRIT achieved
in February six years without Lost
Time Injuries (LTI).
This demonstrates - supportet by
the client Centrica Energy - the
visible commitment to get everyone
home safely, doing the right thing
in line with our core values and
lifesaving rules.
PETROJARL KNARR achieved first oil
and started producing offshore
Norway in March 2015 and is now
on hire with BG Norway on the
Knarr field.

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2015 HIGHLIGHTS
ARNT NILSEN FROM Petrojarl Varg
won the first President’s HSE Award
for Q4 – 2015 for his honest and
invaluable contribution to the safety
film «Why didn’t we stop the job».
The TOP President’s HSE Award’s
objective is to motivate to pro-
active actions, attitude and be-
haviour above and beyond what is
expected, and will be awarded on
quarterly basis.
IN AUGUST, CHRIS BRETT was
appointed as President of TOP.
Chris is a native Australian who held
the position of VP Legal in Teekay
Petrojarl for five years before taking
on the challenge of heading up the
company.
THE 30TH OF SEPTEMBER marked
one year since contract signing for
the Libra project and we’re happy
to report we have achieved this mi-
lestone without injury. Total man-
hours are now in excess of 2.7
million, with the statistics including
four shipyards, over 30 different
sub-contractors and our OOGTK
manpower.
OUR STAFF SPENT a record of
11415 days training in 2015. This
is a reflection of the importance of
competency in our organisation.
The picture is showing TOO, TOP
and BG Management on Major
Accident training at Spadeadams,
UK.

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SUSTAINABILITY IN CONTEXT
T
eekay Offshore Production’s annual sustainability reporting is one
of the means of which we examine and elaborate on our targets,
performance and initiatives within the area of sustainability. We have
since 1998, as a part of our ISO 14001 environmental certification, issued
an annual Environmental Report which in 2006 was extended into a
Sustainability Report. This report describes our impacts on and approach
to sustainability and associated challenges and opportunities.
At TOP, we strive to consider people, planet and profit in all of our decisi-
ons and actions. Sustainability is a core value in Teekay and ensures the
long-term health and success of our people, our business and the sur-
roundings we work in.
This report is meant for you as our stakeholders, whether you are a current
or future employee, existing or potential business partner, shareholder,
regulator, or simply someone with a keen interest in what we do.
We welcome your comments or input and if you would like to share any
thoughts, please get in touch on: trd.reception@teekay.com, marking the
e-mail “Sustainability Report 2015”.
PEOPLE
• Diversity
• Recruitment and Growth
• Health and Safety
• Corporate Social Responsibility
PLANET
• Energy
• Discharge to sea
• Emission to air
• Climate change
PROFIT
• Bussiness and commercial development
• Operational exellence
• Supply chain
• Transparency and Ethics
• Project management
SUSTAINABILITY IN TEEKAY OFFSHORE PRODUCTION
Petrojarl Foinaven

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SUSTAINABILITY IN CONTEXT
Stakeholder Management
In Teekay Offshore Production we acknowledge that our business doesn’t
exist in isolation, and that what we do and how we operate have an influ-
ence on both our own employees and others. We identify our stakeholders
by identifying who is impacted, directly or indirectly by how we perform.
Our sustainability reporting is one of the ways by which we aim to respond
to key topics and concerns raised by our stakeholders.
We consider employees, shareholders and customers as our key stake-
holders, followed by authorities and regulators, local communities and
partners.
TOP strives for internal and external stakeholder engagement. In 2015 we
have reinforced our internal Town Hall sessions where employees can inter-
act and learn about our priorities, objectives and strategy. The Town Hall
sessions are held regularly, and are also filmed and shared internally to
ensure all employees have the opportunity to be kept informed, indepen-
dent of their location. We have daily interactions with our customers, and
also involve them in important sessions such as annual HSE goal settings.
In addition, we engage with customers, shareholders, peers, suppliers and
others through a variety of methods, such as meetings, interviews, confe-
rences, surveys and investor roadshows. We aim to use these interactions
as a way of understanding our stakeholders’ expectations, identifying areas
for improvement and creating long term relationships.
Reporting Basis
This report contains Standard Disclosures from the Global Reporting Initi-
ative, GRI Sustainability Reporting Guidelines. The GRI guidelines are the
most commonly used guidelines for sustainability reporting.
The GRI disclosure table can be found at www.teekay.com/sustainability.
It indicates where you find our response to the various disclosures and
performance indicators requested by the GRI G4 guidelines.
The report is not verified externally.
Scope And Boundaries
Our report covers all of Teekay Offshore Production’s activities in 2015,
both on- and offshore.
Our HSE statistics follow the reporting principle of “Operational control”,
meaning that FPSO Cidade de Itajai (owned by the Odebrecth Oil and Gas/
Teekay Offshore joint venture), Hummingbird Spirit (owned by TOP, but
operated by Wood Group) and yard HSE statistics are not included in this
report.
SUSTAINABILITY IS A CORE VALUE IN TEEKAY AND ENSURES THE LONG-TERM HEALTH
AND SUCCESS FOR OUR PEOPLE, OUR BUSINESS AND THE ENVIRONMENT WE WORK IN.

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PEOPLE
A
t the end of 2015, Teekay Offshore Production (TOP) had 1069 permanent employees
located in different parts of the world, with offices in Norway, Scotland and Brazil as
well as a project office in the Netherlands and Singapore (Joint Venture). In addition
we had 102 contractors, consultants and part-time employees working for us in 2015.
In a knowledge and experience-based industry, good people are the key to our success.
TOP has always given priority to, and is very proud of, the flexibility of its workforce. 2015
was yet another year where the flexibility of the organisation was crucial. The start-up of
Petrojarl Knarr, the preparation for the decommissioning of Petrojarl Varg, and the ongoing
projects Petrojarl I for Atlanta and FPSO Pioneiro de Libra, all contributed to organisational
changes needed to ensure the continued sustainability of the TOP organisation.
The well-being of our personnel is essential to maintain our operational track record. In this section,
we elaborate on the people in our organization; how we work to ensure that we maintain our employe-
es’ health and safety, welfare for employees and on how we give something back to the communities
in which we have set up offices or operate FPSOs.
Petrojarl Banff

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PEOPLE
Diversity
The offshore industry is traditionally male dominated, and this is also the
reality in Teekay Offshore Production. The percentage of female employees
offshore is still low (but increasing), at 4.15 %. In terms of total number of
permanent employees, we see a relatively stable gender composition, with
37 % female and 63 % male workforce. Among our management positi-
ons, the female presence is 7.2 %. All of our female supervisors work in
our onshore organisation, comprising 17.2 % of our onshore workforce.
We have a conscious approach to hiring local employees. At the same
time, we use existing personnel from our fleet and offices in order to
ensure valuable experience transfer. Our workforce still consists mostly of
Norwegians (down from 44 % in 2014 to 42 % in 2015), while UK (26 %)
and Brazil (22 %) comprise a large part of our employee base. Our Polish
employees represent 4 % of the workforce.
Recruitment And Growth
Despite the current market situation, our employee base remained stable
throughout 2015, with a total number of 1,184 employees (incl. temporary
employees), which is a slight increase from 1,171 in 2014. This is mainly
due to the start-up of Petrojarl Knarr and the manning of the Libra and
Atlanta projects. Teekay Offshore Production recruited a total of 31 people
onshore and 44 people offshore in 2015. The majority of these new hires
were in Brazil.
We saw a turnover rate of offshore staff of only 1.83 % in 2015. Onshore
our turnover rate was 5.19 %, which was slightly above target for the year.
TEEKAY OFFSHORE PRODUCTION SUPPORTS EQUAL
OPPORTUNITY FOR EMPLOYEES, REGARDLESS OF
THEIR GENDER OR NATIONALITY.
PetrojarlVarg

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PEOPLE
continuous improvement activities, are in place to support and improve
our safety performance. There are annual activities like safety campaigns,
gathering of safety representatives and HSE seminars for all vessels.
Transparent HSE reporting is also an important part of our culture. People
are encouraged to report not only incidents and hazardous conditions, but
ideas and suggestions for improvements as well.
Health and Safety
Ensuring the health and safety of our people is our licence to operate, and
our core values clearly state that we always put safety first. In Teekay
Offshore Production, HSE management is an integral part of our manage-
ment system and transcends organisational boundaries.
The safety of our people on FPSOs and in offices and sites around the world
is a top priority and our objective is zero harm to personnel, environment
and equipment. Extensive procedures and tools, as well as training and
Training and Development
Continuous training and development of our staff is important to ensure
that we at all times are up to date with operational procedures, technical
equipment, legal requirements and internal requirements. Our procedures
and system for training and development ensure that knowledge and training
are kept up to date.
Each operating unit’s competency matrix is updated annually. In 2015, we
started a project to further strengthen this process by reviewing the content
of the existing competence matrices for all TOP FPSOs, and reviewing the
existing system of how we identify competence requirements. The aim of
the project is to prepare a proposal for how TOP can ensure quality-assured
matrices in the future in a cost-effective way.
Our employees spent a total of 11,415 days in job-related courses in 2015,
which is a 37 % increase from 2014. This development is mainly due to
the crew training related to the start-up of Petrojarl Knarr.
Piranema Spirit

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PEOPLE
1,069PERMANENT
EMPLOYEES
MEN 87%
WOMEN 13%
NUMBEROFEMPLOYEESINCOUNTRY
NUMBEROFEMPLOYEESOFFSHORE/ONSHORE
NUMBEROFEMPLOYEESBYNATIONALITY
(notdividedbygender)
Men
Woman
SUPERVISORSBYGENDER
72 20 43
336
307
291
Norway UK Brazil Norway UK Brazil Poland Other
444 283 239 43 60
Onshore Offshore
64
11 100
763
33
171
102
Onshore Offshore

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PEOPLE
Operational Safety
Our safety performance was not satisfactory in 2015. We had eight lost
time injuries and nine high potential incidents.
Definition:
MTI - Medical Treatment
Injuries: Injuries to per-
sonell requiring medical
treatment.
LTI - Lost time injuries:
Injuries to personnel where
the person was not able to
do his/her normal work the
following day.
TRIF - Total Recordable
Injury Frequency: Number
of MTI’s and LTI’s per
million hours worked.
Our target in 2015 was a TRIF rate of <3.5. Unfortunately, we experienced several
injuries to our personnel in 2015, bringing the TRIF to 7.5. This is unacceptable, and we
are working hard to find out how we can turn this trend around.
The two most serious personnel injuries in 2015 were a steam leakage, causing injury to
an operator on Petrojarl Cidade de Rio das Ostras in January, and a serious injury during
crane operation on Voyageur Spirit in February.
The rest of the LTI and MTI incidents were of less serious nature as hand and finger
injuries, debris in eyes, «slip, trips and falls» etc.
Definition: Number of high potential HSE
incidents (HSE incidents with serious
potential consequences) in the fleet.
Our 2015 target was high potential frequency rate of < 3.0. However, we experienced too
many high potential incidents in 2015, bringing the frequency up to 4.22.
The two personnel injuries described were the most serious high potential
incidents in 2015.
In March 2015, a fire was reported in the HVAC system serving the forward machinery
spaces on board Petrojarl Knarr. There was no injury to personnel and no environmental
damage. The incident was investigated both internally and externally, and lessons learned
were implemented and shared to avoid similar events happening again.
INJURIES
HIGHPOTENTIALINCIDENTSGASLEAKS
Definition: Number of gas leakages
classified as high potential (>10 kg) in
the fleet.
We experienced two gas leakages classified as serious in 2015. The first on Voyageur
Spirit in June leading to release of 37 kg gas, and the second on Piranema Spirit in
October releasing 29 kg gas.
MTI
LTI
4 4
5
8
8
2013 2014 2015
4 4 9
2013 2014 2015
2 20
2013 2014 2015

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CASE STORY - “WHY DIDN’T WE STOP THE JOB?”
As a response to the high injury rate in the fleet over the last couple of years, a series of initiatives have
been taken to turn this trend around through a TOP Operational and Safety Journey. One of these measures
has been to focus on the actual people behind the HSE statistics sharing their personal refelctions on
what actually went wrong.
In 2014, we had a serious injury on Petrojarl Varg, involving our very experienced Deck Foreman with
over 25 years’ offshore experience within Teekay. In 2015, we asked him to share his story in a film, so
that we all can learn and reflect on what we must do to avoid injuries, individually and together. In this
case, there were several factors which led to his foot being crushed under a generator during a lifting
job, all of which, in hindsight, was easy to see. That the job should have been stopped and risk reasses-
sed before continuing the task.
We strongly believe that we all have a lot to learn from this story, independent of where we work. The film is therefore shared with companies and
organisations we work with within the Oil and Gas Industry worldwide, and the feedback has been very positive.
Watch the film by following this link: teekay.com/hseq-videos/
Asset Integrity Management
In order to ensure safe and reliable operations, it is vital that we secure and
maintain the integrity of our assets.
Teekay Offshore Production strives to ensure good design and maintenance
of our facilities. This includes setting standards and acceptable risk criteria
in design, as well as managing risks of major accidents through activities like
monitoring, testing, measurements, inspections and repairs, and ensuring
that adequate maintenance programs are established to maintain barriers.
One of our main asset integrity focus areas in 2015 was the revised mana-
gement of change process to improve the way our units maintain technical
integrity by a structured process of review and approval of changes.
Petrojarl Knarr

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Barrier Management System
A new Barrier Management System was implemented on our two vessels
on the Norwegian shelf, Petrojarl Varg and Petrojarl Knarr. This system is
established to ensure that we have control of the integrity of the vessel,
and is an important part in meeting Norwegian Petroleum Safety Authority
(PSA) regulations and requirements for management of major accident
risk.
The development of the new system is also a great demonstration of Teekay
SPIRIT values as it is an in-house development, saving cost and utilizing
the people and talent within our organisation.
PEOPLE
Project HSE Management
HSE management is an integral part of our project management when
executing projects. A specific project HSSE plan (Health, Safety, Security
and Sustainability) is developed for each site during the construction phase.
In 2015 we had two projects in this phase, the Atlanta project in the Net-
herlands and the Libra project in Singapore (OOGTK - Odebrecht Oil and
Gas/Teekay Joint Venture).
Whereas we are not directly responsible for the day-to-day HSE manage-
ment during project execution, we aim to influence the HSE standards
in the shipyard by working with the shipyard personnel in developing the
project HSSE Plan, by encouraging HSE reporting and by site audits that
are continuously carried out throughout the project.
PiranemaSpirit

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PEOPLE
Occupational Health
We believe that a healthy workplace, safe work environment and satisfied
employees contribute to a robust workplace which attracts good employees,
and this is reflected in our occupational health management system. We
strive to involve the crew in all stages of the management process, and
welcome their initiatives in improving and developing their own workplace.
We aim to take proactive and reactive measures to reduce the occupational
health risk in our fleet. We have identified noise, chemical exposure, and
heavy and repetitive manual work as the main occupational health risks.
Teekay Offshore Production is certified against OHSAS 18001 (international
standard for health and safety).
In 2015, the focus in occupational health was to further reduce sick leave for
each FPSO in the fleet, through a series of proactive and reactive measures.
Our Social Footprint
In Teekay Offshore Production, we acknowledge that our business doesn't
exist in isolation, nor is it simply a way of making money. We operate in
different parts of the world where our employees, our customers, suppliers
and the local community will be affected by our operations and activities
and depend on us being a responsible, long-term oriented company.
Definition: Short-term, long-term
and restricted work sick leave.
For offshore crew only.
Target was to reduce sick leave by minimum 10% compared to last year per FPSO.
Unfortunately, this target was not reached. The year started with a high sick leave in the
fleet in general, but from the last two quarters of 2015 the sick leave have showed a
declining trend.
SICKLEAVE
FPSOCidadedeItajaí
5.4 4.3 4.3
2013 2014 2015

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PEOPLE
Community Investments
In spite of the tough times in the oil industry worldwide, Teekay Offshore
Production (TOP), decided in 2015 to donate funds normally allocated to
Christmas gifts for both onshore and offshore employees, to the Save the
Children Fund, in particular the “Children are Freezing” Christmas cam-
paign for refugees, in the amount of NOK 500,000.
In addition, through private donations from Teekay Offshore (TOO) employees
to the “Teekay Offshore Cares” Campaign on the Save the Children web
site, we managed to raise NOK 109,115. In total then, TOO donated to the
Save the Children Fund in 2015, NOK 609,115.
In addition to this, before the above-mentioned campaigns started, TOPs
Social Footprints Fund had already donated to the following charities in the
countries in which we operate our FPSOs:
TOP, also through its Social Footprints Funds, supports sports and / or
cultural activities in which all TOP permanent employees (both onshore and
offshore) and / or their children, are eligible to participate. A draw is held
annually, based on applications which have come in from the employees
for support for said activities. A total of 10 names are drawn by the Social
Footprints Committee for a maximum support of NOK 10,000 per winner.
Total amount of support is NOK 100,000.
Norway:
• NOK 20,000 to the Child Cancer Association, Trøndelag County
• NOK 15,000 to the St. Olav’s Hospital Clowns
• NOK 10,000 to The Church City Mission in Norway – Trøndelag Div.
UK:
• NOK 20,000 to The Lewis Moody Foundation
• NOK 15,000 to Bounce Higher (social outreach programme)
Brazil:
• NOK 20,000 to “SAME” & Creche do Almir do Picolé (a local Aracaju
charity for needy children and needy elderly on outskirts of Aracaju,
Brazil)
"Bounce Higher", a Children and Family Work Programme running out of St. Andrews
Church in Borrowstounness in Scotland, was one of the winners of NOK 10,000 from
the Social Footprints Found in 2015.

19
PLANET
Our FPSOs operate in some of the harshest and most challenging climates on earth. We also work
in an industry with significant effects on the natural environment. We therefore have a responsibility
to constantly focus on the environmental effects of our daily operations, and to avoid accidents that
might have consequences for the environment, people and/or equipment.
O
nbehalfofourclients,weproduceenergyforconsumptionandworktomeettheincreasingenergy
demandoftheworldmarket.Atthesametime,theaimistocontinuouslyimproveourenvironmental
performance.TeekayOffshoreProduction’senvironmentalvisionisnodamagetotheenvironment,
which in practical terms means working actively to minimise any negative influence our work has on the
environment.Ourgoalistomakeenvironmentalresponsibilityanintegralpartofallourtasksandactivities.
Our commitment to environmental responsibility is integrated in our systems and procedures,
and all of our vessels as well as our main office, are ISO14001-certified.
This chapter explores our environmental performance in 2015.

20
PLANET
Environmental Impact
In general, we are satisfied with the awareness throughout our fleet of
operating in a manner that influences the environment as little as possible.
However, we see challenges related to operating in mature fields requiring
more energy input to sustain oil production. This will necessarily have an
impact on our environmental results. The same will apply to the production
start-up of a new field such as the Knarr field, as flaring is neccessary for
safety purposes, but contribues to emissions to air.
Definition: Greenhouse gas emissions (CO2, CH4
and nmVOC) in CO2 equivalents from TOP
operations in thousand tonnes.
*) Emission figures from the two tankers, Petronordic
and Petroatlantic were included in 2013 data. These
vessels are no longer in operation for TOP.
Definition: Average specific GHG emission (kg
CO2 equivalents per liquid treated).
”Liquid treated” includes both oil equivalents
produced and produced water handled.
Although the total GHG Emissions to air have
increased from 2014 to 2015, has specific
GHG emissions decreased due to new
production (Petrojarl Knarr).
SPECIFICGHGEMISSIONS
GHGEMISSIONS
Emissions to Air
Our GHG emissions have increased substantially
from 2014 to 2015. This is mainly due to the fact
that Petrojarl Knarr came into operation in 2015,
with a large amount of flaring in the start-up phase.
With Petrojarl Banff back in full operation,
this also contributes to the increase in GHG
emissions.
In 2015, the UK Government introduced the Energy Savings Opportunity
Scheme (ESOS). This new legislation is mandatory for all UK companies
which employ over 250 people and meet certain financial criteria. We were
pleased that compliance for our UK operations was achieved well before the
deadline.
We are happy to see that the positive trend with regards to accidental spills
continues in 2015.
All environmental data are consolidated based on the principle of operational control, i.e. includes data from units operated by TOP.
1.153.4707.9737.3
2013 2014 2015 2013 2014 2015
181 218 208
*)

21
PLANET
Discharges to Sea
PRODUCEDWATEROIL
CONTENT(OIW)
Definition: Average produced water oil
content (mg/l).
We see a slight decrease in the average
OiW from 2014 to 2015. The average
is still high due to issues with the de-
oilifier on Petrojarl Foinaven. Two of our
FPSOs do not have produced water, and
are therefore not included in produced
water figures.
TOTALOILINWATER
We see a substantial increase in the
amount of oil to water through produced
water. This increase is mainly due to two
factors, the first being more produced
water being released to sea from Petrojarl
Foinaven in 2015, and late life issues on
the Varg Field, increasing the amount of
produced water.
Definition: Weight of oil discharged to
water through produced water in tonnes.
While our vision is zero spills to sea, our target for 2015 was to maintain frequency of
spills below <5.0. With a frequency of 1.41, this target was well met. We had a total of
three spills to sea in 2015: A diesel fuel overflow from minute tank (estimated to 400 l);
a water injection minimum flow valve passing produced water overboard (estimated to
350 l); and a spill to sea of calcium nitrate due to burst hose (100 l).
Definition: Total number of accidental
discharges of oil and chemicals to sea.
Waste Management
ACCIDENTALSPILLSWASTEPRODUCTION
We see an increase in the amount of
waste produced on board our FPSOs
from 2014 to 2015. The main reason for
this increase is normal variations due to
activities, e.g. where a major turnaround
has been performed, the amount of waste
increases.
Definition: Total waste (hazardous and
general waste) produced on our FPSOs.
WASTESEGREGATION
The waste segregation rate remains high
and stable, with an average of 80 % of the
general waste being segregated on board.
Definition: Average percentage of general
waste segregated onboard our FPSOs.
*) Waste figures from the two tankers
Petronordic and Petroatlantic were included
in 2013 data. These vessels are no longer in
operation for TOP.
20.2 24.8 22.8
2013 2014 2015
32.5 17 61.2
2013 2014 2015
692 480 566
2013 2014 2015
76 80 80
2013 2014 2015
6
1
1
3
3
2013 2014 2015
Authory reported
Non-reportable
*)
*)

22
PROFIT
Running a profitable business is a goal shared by all trading companies. Arguably, from the perspective
of sustainability, profit is the most critical part of the triple bottom line. In the current oil and gas market
situation, the importance of this aspect has become even more evident, with companies looking at
organisational and financial efficiencies to ensure the long-term sustainability of their businesses.
I
n this chapter, we take a closer look at the operational
performance, international development and financial
highlights of 2015.
PetrojarlCidadedeRiodasOstras

23
PROFIT
Adapting to the “New Normal”
With oil prices plummeting more rapidly and to lower levels than any ana-
lyst could have predicted, 2015 was for TOP, as for all other players in the
industry, a year for coming to term with and adapting to the “New Normal”.
In December, Teekay Offshore Partners (NYSE: TOO) announced that it
will temporarily cut its quarterly dividends paid to shareholders and rea-
locate this cash to finance its existing growth projects. This is a significant
change to the way we have financed the growth of our businesses over the
last decade and is a reflection of the market situation of 2015.
Another reflection of the New Normal is the shift from growth focus to
securing our existing business while finding efficiency improvement.
Several initiatives were started in 2015 focusing both on reducing cost
and improving the organisational efficiency of TOP.
TOTAL OIL
PRODUCTION
32.56MILL. BARRELS
REVENUES:
809MILLION $US
ASSET VALUE:
3.4BILLION $US
Supply Chain
Teekay Offshore Production’s suppliers are ranging from large strategic
suppliers of services and goods to smaller suppliers of specialised equip-
ment, systems etc. Our suppliers are located around the world and supply
our operations, offices and projects worldwide.
We are committed to using suppliers that maintain high standards of inte-
grity, HSE focus and quality, and our expectations are raised and followed
up throughout the process from pre-qualification onwards, to continuous
monitoring and reevaluation of strategic suppliers.
We strive to use local suppliers in our countries of operations. Excluding
our projects, we purchased goods and services for over 478 million USD
in 2015. Of these, purchases in Norway accounted for approximately 215
MUSD (77 % local content), UK for over 246 MUSD (88 % local content)
and Brazil for over 17.5 MUSD (78 % local content).
Finance
Our financial performance in 2015 has been solid, with figures for revenue
and income increasing from 2014 to 2015. An overview of our key financial
results for 2015 can be found under «Key Figures» on page 25.
Operational Excellence
Ensuring high regularity of production, excellent HSE results and streamli-
ned cooperation with our customers is key to maintaining our standing in
the market. The process plant uptime on our FPSOs, indicating our ability
to provide reliable production and operation to our clients. With a Produ-
ction Utilization Factor (PUF) of 93.3%, we were slightly below our goal for
2015 of 94.5%.

24
PROFIT
Growth
Teekay Offshore Production’s strategy in the past few years has been to
expand its operations. With the new market situation, the strategy is shif-
ting towards ensuring the efficiency of our operations and executing on the
projects already in our portfolio.
One of our main achievements in 2015 was bringing Petrojarl Knarr into
operation in March 2015. Our Petrojarl I for Atlanta project in Rotterdam
and the Libra project in Singapore (for Joint Venture OOGTK) are ongoing.
Ethics and Anti-Corruption
At Teekay, we acknowledge that it is not enough to do the right things; it is
also important to do them the right way. We are aware of and strictly obey
the laws and regulations that govern the management of our business.
We are responsible for understanding these laws and regulations as they
apply to our jobs and for preventing, detecting and reporting instances of
non-compliance to the Company’s Chief Compliance Officer. It is our policy
to conduct all of our business with integrity. We take a zero-tolerance app-
roach to bribery and corruption and are committed to acting professionally,
fairly and in an honest and ethical manner in all our business dealings and
relationships, wherever we operate or propose to operate, and to imple-
menting and enforcing effective systems to counter bribery and corruption.
We will uphold all laws relevant to countering bribery and
corruption in all the jurisdictions in which we operate, including the UK
Bribery Act 2010 (the “Bribery Act”) and the United States Foreign
Corrupt Practices Act of 1977, as amended (the “FCPA”) and any other
applicable laws, statutes, regulations or codes of other countries relating to
anti-bribery or anti-corruption.
The Standards of Business Conduct (SBC) reflect our continued commit-
ment to ethical business practices and regulatory compliance. In order to
ensure knowledge of the policy and specifically anti-corruption legislation,
all onshore employees are required to participate in anti-corruption training
annually.
All Teekay Offshore Production employees can submit confidential con-
cerns regarding accounting, fraud or financial auditing matters through the
Business Conduct Reporting Tool, or by contacting an externally operated
toll-free hotline.
Petrojarl I

25
KEY FIGURES
2013 2014 2015
PEOPLE
Health and Safety
Total recordable injury frequency1
2.4 5.07 7.4
Lost time injuries 0 4 8
High potential incident frequency2
2.4 2.25 4.22
Sick leave (%)3
5.4 4.3 4.3
Fatalities 0 0 0
HSE ideas registered4
2646 2800 2866
Human Resources
Proportion of female employees (%) 12.4 10.9 13.7
Turnover rate % (onshore/oppshore) 7.8 / 9 2.6 / 4.2 5.19 / 1.8
PLANET
Total GHG (Green House Gases) emissions
(CO2
equivalent, thousand tons)
737.3 708 1,153
Flaring (MSm3
) 86.4 85.3 163.3
Accidental discharges (number of)5
1 3 3
Oil discharged with produced water (tons) 32.5 17 61.2
Waste produced offhore (tons) 692 480 566
Waste segregation (%) 76 80 80
PROFIT
Production
Combined oil production (million barrels)6
20.7 22.1 32.
Production utilization factor, PUF (vol % of oil
production against production target)
>94.5 94.7 >94.5
Finance (number in thousand US dollars)7
Revenues 567,620 614,463 809,396
Income (loss) from vessel operations (1,918) 31,022 124,926
Total asset of operating segments at year end 2,836,998 3,442,109 3,427,726
1
Lost time injuries plus medical treatment injuries per
million man-hours worked
2
Reported high-potential incidents per million man hours
worked
3
Offshore crew only
4
HSE ideas = all health, safety, environment and security
ideas, including performance improvement ideas and
positive observation reports
5
Authority-reported oil and chemical spills
6
Incl. Hummingbird Spirit
7
For further details see the segment reporting part of the
financial statements from Teekay Corporation. These can be
found on www.teekay.com.

26
BRINGING ENERGY TO THE WORLD WITH TEEKAY SPIRIT
Petrojarl Varg

Teekay Offshore Production Sustainability Report 2015

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