Teekay Offshore Partners Announces Repurchase of Remaining Bonds Maturing in 2018

HAMILTON, Bermuda, Oct. 05, 2017 -- Teekay Offshore Partners L.P (NYSE:TOO) (Teekay Offshore or the Partnership) announces that it has exercised its call option for the remaining outstanding balances under each of its NOK 420 million Senior Unsecured Bond Agreement with Nordic Trustee AS dated January 25, 2012 (as amended) with ISIN NO 0010635329 and its NOK 800 million Senior Unsecured Bond Agreements with Nordic Trustee AS dated January 21, 2013 (as amended) with ISIN NO 0010670128, respectively, in each case for settlement on November 16, 2017 in accordance with their respective terms. Upon completion, the Partnership will have repurchased all of its NOK bonds maturing in 2018.

About Teekay Offshore

Teekay Offshore Partners L.P. is an international provider of marine transportation, oil production, storage, long-distance towing and offshore installation and maintenance and safety services to the oil industry, primarily focusing on oil production-related activities of its customers and operating in offshore oil regions of the North Sea, Brazil and the East Coast of Canada. Teekay Offshore is structured as a publicly-traded master limited partnership (MLP) with consolidated assets of approximately $5.6 billion, comprised of 62 offshore assets, including floating production, storage and offloading (FPSO) units, shuttle tankers, floating storage and offtake (FSO) units, units for maintenance and safety (UMS), long-distance towing and offshore installation vessels and conventional tankers. The majority of Teekay Offshore's fleet is employed on medium-term, stable contracts.

Teekay Offshore Partners’ common units and Series A and B preferred units trade on the New York Stock Exchange under the symbol “TOO”, “TOO PR A” and “TOO PR B”, respectively.

For Investor Relations
enquiries contact:

Ryan Hamilton
Tel: +1 (604) 844-6654
Website: www.teekay.com

Forward Looking Statements

This release contains forward-looking statements (as defined in Section 21E of the U.S. Securities Exchange Act of 1934, as amended) which reflect management's current views with respect to certain future events and performance, including statements regarding: the timing and certainty of completing the bond repurchases. The following factors are among those that could cause actual results to differ materially from the forward-looking statements, which involve risks and uncertainties, and that should be considered in evaluating any such statement: factors discussed in Teekay Offshore’s filings from time to time with the SEC, including its Report on Form 20-F for the fiscal year ended December 31, 2016. The Partnership expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Partnership’s expectations with respect thereto or any change in events, conditions or circumstances on which any such statement is based.