Source: Teekay Offshore Partners L.P.

Teekay Offshore Partners Increases Cash Distribution by 4 Percent

HAMILTON, BERMUDA--(Marketwired - Oct. 2, 2015) - Teekay Offshore GP LLC, the general partner of Teekay Offshore Partners L.P. (Teekay Offshore or the Partnership) (NYSE:TOO), has declared a cash distribution of $0.56 per unit for the quarter ended September 30, 2015, an increase of 4 percent compared to the cash distribution paid in the prior quarter. The cash distribution is payable on November 13, 2015 to all unitholders of record on October 13, 2015. Teekay Offshore's cash distributions are reported on Form 1099 for United States tax purposes.

"We are pleased to be increasing the cash distribution per unit by four percent this quarter primarily as a result of the recent acquisition of the Petrojarl Knarr FPSO, which is on long-term charter to BG Group in the North Sea," commented Peter Evensen, Chief Executive Officer of Teekay Offshore GP LLC. Mr. Evensen continued, "Our distributable cash flow is stable and growing, supported by a large and diversified portfolio of fee-based contracts totaling approximately $8.4 billion of forward revenues that are not directly linked to oil prices. Our stability is enhanced since our shuttle tankers and FPSO units are considered to be critical elements of our customers' oil production supply chains. In addition, financing for a substantial portion of our remaining capital commitments have now been secured."

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 offshore oil industry, primarily focusing on the growing deepwater offshore oil regions of the North Sea and Brazil. Teekay Offshore is structured as a publicly-traded master limited partnership (MLP) with consolidated assets of approximately $5.6 billion, comprised of 68 offshore assets, including shuttle tankers, floating production, storage and offloading (FPSO) units, 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's common units trade on the New York Stock Exchange under the symbol "TOO".

Forward Looking Statements

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 regarding: the stability and growth of the Partnership's future distributable cash flows; expected forward revenues from the Partnership's fee-based contract portfolio; the importance of the Partnership's shuttle tankers and FPSO units to its customers' oil production supply chains; and the financing of the Partnership's remaining capital commitments. 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: vessel operations and oil production volumes; significant changes in oil prices; variations in expected levels of field maintenance; increased operating expenses; different-than-expected levels of oil production in the North Sea, Brazil and East Coast of Canada offshore fields; potential early termination of contracts; changes in exploration, production and storage of offshore oil and gas, either generally or in particular regions that would impact expected future growth; the Partnership's ability to raise adequate financing to purchase additional assets and complete organic growth projects; and other 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, 2014 and Form 6-K for the quarter ended June 30, 2015. 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.

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