TGP Teekay Lng Partners LP

Teekay Corporation (Teekay or the Company) (NYSE:TK) announces the completion of the remaining conditions precedent relating to the previously announced Decommissioning Services Agreement (DSA) with CNR International (UK) Limited (CNRI), on behalf of the Banff joint venture, whereby Teekay has engaged CNRI to decommission the Company’s remaining subsea infrastructure located within the CNRI-operated Banff Field. As part of the DSA, which is now in full effect, CNRI has assumed full responsibility for Teekay’s remaining asset retirement obligations (Phase II) for the above-mentioned facilities, which should enable CNRI to complete Teekay’s Phase II work in conjunction with their other decommissioning work at the Banff Field in a more efficient manner.

As part of the transaction, Teekay has now been deemed to have completed all of its prior decommissioning obligations associated with the Banff Field and as a result, the Company expects to reduce its accrued asset retirement obligations by approximately $30 million in the second quarter of 2021.

“This agreement is a major milestone towards achieving our strategic goal of winding down our FPSO segment,” commented Kenneth Hvid, Teekay’s President and CEO. “This transaction also reflects the strong collaboration with our customer and represents the conclusion of our involvement on the Banff Field after over 20 years of successful operations.”

About Teekay

Teekay is a leading provider of international crude oil and gas marine transportation services. Teekay provides these services primarily through its directly-owned fleet and its controlling ownership interests in Teekay LNG Partners L.P. (NYSE:TGP), one of the world’s largest independent owners and operators of LNG carriers, and Teekay Tankers Ltd. (NYSE:TNK), one of the world’s largest owners and operators of mid-sized crude tankers. The consolidated Teekay entities manage and operate total assets under management of approximately $9 billion, comprised of approximately 135 liquefied gas, offshore, and conventional tanker assets. With offices in 10 countries and approximately 5,350 seagoing and shore-based employees, Teekay provides a comprehensive set of marine services to the world’s leading oil and gas companies.

Teekay’s common stock is listed on the New York Stock Exchange where it trades under the symbol “TK”.

For Investor Relations enquiries contact:

Ryan HamiltonTel: +1 (604) 609-2963Website: www.teekay.com

Forward Looking Statement

This release contains forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934, as amended) which reflect management’s current views with respect to certain future events and performance, including statements, among other things, regarding: the ability of CNRI to assume responsibility for Teekay’s remaining asset retirement and decommissioning obligations with respect to the Banff Field decommissioning and incorporate these obligations into its own decommissioning process; the expected impact of the DSA on the Company’s future involvement on the Banff Field as well as on the Company’s strategic goal of winding down its FPSO segment; and the anticipated reduction of the Company’s accrued asset retirement obligations and the timing thereof.

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: the ability of CNRI to perform under the terms of the DSA; the potential incurrence by the Company of any residual decommissioning liabilities not covered under the terms of the DSA; and other factors discussed in Teekay’s filings from time to time with the SEC, including its Annual Report on Form 20-F for the fiscal year ended December 31, 2020. Teekay 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 Teekay’s expectations with respect thereto or any change in events, conditions or circumstances on which any such statement is based.