Teekay Offshore Partners has exercised one of its six options for a floating accommodation unit (FAU).

The cylindrical Sevan-designed unit is to be built at Cosco Shipyard Group's Nantong yard and will be delivered in the third quarter 2016

The announcement follows Teekay's acquisition of Logitel Offshore Holdings earlier this year. Logitel owned two hulls under conversion to FAUs, as well as the six options.

Sevan Marine ceo Carl Lieungh commented: "Sevan's cylindrical hull design is perceived to have several competitive advantages relative to competitors such as; lower cost, higher deck load capacity, better stability and more storage space. Teekay's exercise of the first FAU option will also have a positive effect on our earnings".