New York-listed KNOT Offshore Partners LP has revealed that its subsidiary KNOT Shuttle Tankers AS sealed a deal with Knutsen NYK Offshore Tankers AS (KNOT) to simultaneously acquire from KNOT the shuttle tanker, Tuva Knutsen and to sell to KNOT the shuttle tanker, Dan Cisne.
To remind, KNOT Offshore Partners LP owns, operates and acquires shuttle tankers primarily under long-term charters in the offshore oil production regions of Brazil and the North Sea.
“These transactions will be effected by the purchase and sale of the entities which own the respective vessels,” KNOT Offshore Partners LP said in its release on September 3.
As reported, the purchase price for the Tuva Knutsen acquisition is $97.5m less $69m of outstanding debt plus $0.4m of capitalized fees related to the credit facility secured by the Tuva Knutsen.
The sale price for the Dan Cisne sale is $30m.
These purchase and sale prices are due to be set off, with the result that a net payment of $1.1m is due to be paid by KNOT to the partnership – KNOT Offshore Partners LP – subject to customary adjustments relating to working capital.
Completion is expected to take place on the date of this release, the company said.
The Tuva Knutsen, a 153,000-dwt ton DP2 suezmax class shuttle tanker, was built by COSCO Shipping Heavy Industry and delivered in 2021.
The vessel is operating in Brazil on a charter contract with TotalEnergies, for which the current fixed period expires in February 2026, and for which the charterer holds options for a further 10 years.
As a term of this deal, KNOT has effectively guaranteed the hire rate for the vessel until August 2031 on the same basis as if TotalEnergies had exercised its options through such date, thus providing the partnership with 7 years of fixed employment for Tuva Knutsen.
Please view source here with the full release.
