Welcome to Teekay Offshore Partners Second Quarter 2019 Earnings Results Conference Call. [Operator Instructions]
Now for opening remarks and introductions, I would like to turn the call over to Ingvild Saether, Teekay Offshore Group's President and Chief Executive Officer. Please go ahead.
Jan Rune Steinsland -- Chief Financial Officer
Before Ingvild begins, I would like to direct all participants to our website at teekayoffshore.com, where you will find a copy of the second quarter 2019 earnings presentation. Ingvild and I will review this presentation during today's conference call.
Please allow me to remind you that our discussion today contains forward-looking statements. Actual results may differ materially from results projected by those forward-looking statements. Additional information concerning factors that could cause actual results to materially differ from those in the forward-looking statements is contained in the second quarter 2019 earnings release and earnings presentation that are available on our website.
I will now turn the call over to Ingvild to begin.
Ingvild Saether -- President and Chief Executive Officer
Thank you, Jan Rune. Hello, everyone, and thank you for joining us on our second quarter 2019 earnings call. With me today I have Jan Rune Steinsland, CFO of the Teekay Offshore Group.
Starting with Slide 3, our large and diversified portfolio of forward revenues stands at approximately $4.9 billion at the end of the second quarter. This provides significant cash flow stability to Teekay Offshore. And this is before including any contract options or upside from oil price and production tariffs on certain FPSO contracts. On top of this stable portfolio, we have additional upside to earnings from redeployment opportunities, tariffs spot market operations and improving market fundamentals. I would also like to underline the relatively low counterparty risk from working with a very strong customer base.
Turning to Slide 4. In the second quarter, Teekay Offshore delivered solid results, both operationally and financially. We generated adjusted EBITDA of $159 million and the underlying business is basically performing in line with the first quarter 2019, which was a strong quarter. The reduction in adjusted EBITDA of $29 million from the prior quarter is primarily driven by a decrease of non-cash items as well as the end of contract for the offshore FPSO in March and lower towage utilization. We decided to terminate the agreements with Alpha Petroleum in the quarter, as they were unable to lift all the conditions precedent related to financing of the Cheviot project. I will touch on this later in the presentation. We have executed a good portion of the extensive 2019 financing and refinancing programs, including closing in April a new important $400 million long-term debt facility that will be used to finance four LNG-fueled shuttle tankers.
In May, Brookfield Business Partners, together with its institutional partners, purchased all of Teekay Corporation's remaining interest in the partnership, and the general partner. And in late May the partnership with these unsolicited non-binding proposals from Brookfield to acquire all common units that we don't already own. Please note that we will not be able to answer any questions on this proposal because the process is still unfolding between Brookfield and Teekay Offshore Conflicts Committee. The Conflicts Committee is consisting of two independent non-Brookfield affiliated directors.
I will now turn it over to Jan Rune to go over the financial results.
Jan Rune Steinsland -- Chief Financial Officer
Thanks, Ingvild. Turning to Slide 5. Adjusted EBITDA of $159 million is down $29 million from $188 million in the first quarter. This is primarily reflecting lower earnings in the FSO segment. The FSO segment recorded an adjusted EBITDA of $72 million in the second quarter, a decrease of $22 million from the first quarter, primarily reflecting absence of $15 million of non-cash Piranema in process revenue from the previous Piranema contract that became fully amortized in the first quarter, and from $7 million lower contributions from the Ostras FPSO where the contract ended in March.
We had also recognized all deferred revenues and deferred operating cost related to large Cheviot agreements in the P&L this quarter, which resulted in a negative effect of nearly $2 million. Our Shuttle Tanker segment adjusted EBITDA came in at $68 million basically in line with $67 million in the previous quarter. The FSO segment recorded an adjusted EBITDA of $23 million also consistent with the first quarter. Our long-distance Towage segment showed a decrease in utilization in the second quarter following a strong first quarter. In addition, we added cost by reactivating one vessel that was previously in layup, leaving only one unit in layup. This resulted in an adjusted EBITDA around zero in the quarter, down from $4 million in the first quarter.
I will now turn it back to Ingvild to cover our operating performance in more detail.
Ingvild Saether -- President and Chief Executive Officer
Thanks, Jan Rune. Turning to Slide 6, we continue to focus on securing charter contract extensions and new contracts for our existing FPSO units. In the quarter it became clear that Alpha Petroleum have experienced further delays to provide full funding to cover the life extension and the -- of the cost for the Petrojarl Varg FPSO for use at the U.K., Cheviot Field. As we have talked about in the previous quarters, the effectiveness of the agreement remains subject to some conditions precedent being satisfied, including that Alpha Petroleum provides initial funding for the required FPSO upgrades.
Although Alpha Petroleum are still working with full [Indecipherable] details the opportunity cost of being exclusive without problem increasing as a number of other field developments in the area are being matured. It was therefore important for us to either reach a final contract award with Alpha Petroleum or make the units generally available for other field developments. The creativity, innovation and cost optimization, we managed to develop together with Alpha Petroleum is not wasted. The amount of work we have performed in defining the technical scope as well as the commercial business model can to a large extent also be applied in discussions with other customers.
The Varg FPSO has had the longest history of reliable production on the Norwegian Continental Shelf and provides a flexible production solution for a wide range of future developments in the North Sea. We definitely remain confident that we will find a new good next contract for our vessel. Lastly, we know that operationally, we had a strong quarter with 99% commercial uptime for the units on contract.
Looking at Slide 7, our Shuttle Tanker segment delivered strong results this quarter with 100% uptime for the time charter and CoA shuttle tankers. Our CoA segment, which makes up about 30% of our shuttle tankers fees, continues to have high and consistent utilization, concerning the tightness in this segment. We have a significant new building program for fleet renewal in the North Sea with a total of six vessels on the construction at the Samsung yard in Korea. As these vessels are coming to the end of the construction period, it is rewarding to see the enthusiasm from our customers related to these environmental performance of these vessels compared to the vessels they replaced.
The tax that we have received for environmental and innovation award support our view that the configuration of these vessels have been the result of a revolution in the time rather than an evolution. And as a reminder, these vessels are fueled by LNG, have their batteries for peak savings, and are also using banker from the cargo SKUs. And as a result, these yields to emissions are reduced by almost 50%. Total remaining CapEx for the six vessel newbuild programs is estimated at $615 million.
Turning to Slide 8. Our FSO segment continues to generate strong and convincing results reflecting high uptime. This quarter, we recorded 98% on-hire when we had three days of uplanned on-hire downtime on the Randgrid FSO. As announced on the last earnings call, we sold Pattani Spirit for $16 million in April. There was no outstanding debts related to the vessel.
On Slide 9, you can see the results of our Towage segment, also close to 100% utilization of our towage fleet in Q1, we had some available capacity in Q2 and delivered a breakeven result for this segment. While earnings significantly is generally lower in the segment, we do expect to generate positive EBITDA for the full year 2019.
I will now turn it back to Jan Rune to go over our recent financing in more detail.
Jan Rune Steinsland -- Chief Financial Officer
Thanks, Ingvild. As you can see on Slide 10 we have made good progress on our extensive 2019 financing and refinancing program by executing three financing initiatives in the second quarter. The financing of the first four shuttle newbuilds and the refinancing of the three FPSOs were included in the last earnings release since they were closed in April. I will, therefore, not comment on this in any detail except to say that we are pleased for the interest of our banks and export credit agencies as well as the returns obtained.
In May, we closed a refinancing of the $450 million outstanding balance of our shuttle tanker revolving credit facility with commercial banks. The new terms of LIBOR plus 2.5% with a tenure of five years and probably most importantly this refinancing reduced our annual amortization of the leased facility from $100 million to $64 [Phonetic] million a year. We are also getting closer to the finalization of the financing for the remaining two shuttle newbuilds and we now expect to close the sale and leaseback transaction in the third quarter rather than in the second quarter as indicated earlier.
On Slide 11, we have included the debt maturity schedule as we promised on the previous earnings call. The stages is for -- end of the second quarter and it includes the financing of the first four shuttle tankers, but it excludes the non-recourse debt in the two FPSO joint ventures that is serviced by the cash flow in the joint ventures. Since June 30, we have repaid the remaining balance of $75 million on the U.S. baby bond that you can see in gray at the left bar, as it was outstanding by June 30.
In order to finance debt repayment, we have redrawn $75 million of the $125 million GP revolver from Brookfield that is now again fully drawn. There are also in the third quarter maturities related to the Arendal Spirit accommodation unit, the light blue on top of the left bar and the Suksan Salamander under FSO as part of the red field and we have a good dialogue with the relevant banks to extend those facilities. As you furthermore can see from the maturity schedule in 2020 and in 2021, we have relatively normal amounts of repayments to maturities. While in 2022 and in 2023 we have also the maturities of our two senior unsecured bonds coming up.
I will then hand back to you again Ingvild.
Ingvild Saether -- President and Chief Executive Officer
Thank you. Turning to the final slide of our presentation today. To conclude this presentation, I want to take the opportunity to remind you of our top business priorities in 2019, which includes -- maintain the highest safety standards to secure FPSO charter extensions and redeployment, increase the profitability in our existing business, execute the contemplated financing initiative and strengthen our balance sheet through delevering. And while we are very focused on delivering the visible and stable results from our core business. We are also encouraged and excited by the growth potential created by the development in the FPSO and Shuttle Tanker segment. In Brazil, the tanker activities both for FPSO and shuttle tankers are the highest in the decade. And we believe that over the coming years there might be more demand than the established FPSO companies, with a proven record can respond to. And this leads back to the extent of available capital, we can be selective and disciplined in what we bid for and engage in the projects that our most people brought on the technical [Indecipherable] and also the projects that offer the right risk/reward balance.
The new [Phonetic] production from the FPSO when we opt to take solutions. In the next decade, we will see a significant shift in Brazil from the Petrobras dominated infrastructure delivered by a large fleet of shuttle tankers to need for solutions that will serve a much more diverse customer base in Brazil. And in the North Sea, we observed a very dynamic and exciting development, at the oil major are divesting their interest which is creating a changing customer landscape in the region. We will play our part in this development and we work hard to offer customer value not only by repeating the existing business models, but also by developing new solutions for the next decade.
Operator, we are now available to take questions.
Questions and Answers:
Operator
Thank you. At this time, there are no questions in the queue. I would like to turn the call over back to Ingvild Saether for closing remarks.
Ingvild Saether -- President and Chief Executive Officer
I just want to thank everyone for listening in today and wish you a good summer. Thank you.
Jan Rune Steinsland -- Chief Financial Officer
Thank you very much.
Operator
[Operator Closing Remarks]
Duration: 17 minutes
Call participants:
Jan Rune Steinsland -- Chief Financial Officer
Ingvild Saether -- President and Chief Executive Officer
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