* Says facility secured by Petrojarl Varg

* Says to repay $160 mln of vendor financing

* Says to increase liquidity by $100 mln

Nov 12 (Reuters) - Teekay Offshore Partners LP (TOO.N: Quote, Profile, Research) said it had signed a $260 million revolving credit facility secured by a floating production storage and offloading unit which it had bought from its parent company Teekay Corp (TK.N: Quote, Profile, Research).

Teekay Offshore, whose tankers are used to transport oil from offshore fields to onshore processing facilities, said a portion of the facility will be used to repay $160 million of $220 million vendor financing provided by Teekay Corp at the time of acquisition of the unit, Petrojarl Varg FPSO.

The remaining $60 million financing will remain outstanding, while the undrawn portion of the facility will increase Teekay Offshore's liquidity by about $100 million, it added.

Teekay Offshore acquired Petrojarl Varg FPSO from Teekay Corp for $320 million in September.

The unit had commenced a four-year fixed-rate contract extension with Talisman Energy Inc (TLM.TO: Quote, Profile, Research) on the Varg oil field in the North Sea.

Units of Teekay Offshore closed at $17.20 Wednesday on the New York Stock Exchange.

For the alerts, please double click [ID:nWNAB4995] (Reporting by Arup Roychoudhury in Bangalore; Editing by Jarshad Kakkrakandy)