ABERDEEN, Scotland--(BUSINESS WIRE)--KNOT OFFSHORE PARTNERS LP ANNOUNCED TODAY THAT KNUTSEN NYK OFFSHORE TANKERS AS, OUR SPONSOR, HAS SENT OUT THE FOLLOWING PRESS RELEASE:
HAUGESUND, Norway - 17 June 2015 - Press Release: KNOT orders one new DP2 Shuttle tanker for long-term charter with BG Group plc
Knutsen NYK Offshore Tankers (“KNOT”) is pleased to announce that it has received a notice from a subsidiary of BG Group plc (“BG”) that BG has exercised its option for an additional Suezmax-size DP2 shuttle tanker newbuilding for operation in Brazil.
In connection with the September 12, 2014 contract between KNOT and BG for two Suezmax-size DP2 shuttle tanker newbuildings, BG received an option, for a period of one year, to take up to two more shuttle tanker newbuildings. Following the current exercise of its option for an additional vessel, BG has a remaining option for one more shuttle tanker.
The new vessel will be constructed by Hyundai Heavy Industries (HHI) in South Korea, as are the first two vessels.
Upon delivery, expected to be in mid-2017, the vessel will commence operations under a time charter with BG (this will have a minimum term of 5 years). If BG exercises all extension options, the vessel would operate under this charter for a period of 20 years.
Pursuant to the Omnibus Agreement between KNOT and KNOT Offshore Partners LP, KNOT will be required to offer all three vessels to KNOP at fair market value following each vessel’s commencement of operations under its respective time charter. KNOP is not obligated to purchase any of these vessels. The acquisition of any of these vessels would be subject to approval by the board of directors of KNOT and KNOP and the conflicts committee of KNOP, and third-party consents. There can be no assurance that KNOP will purchase any of these vessels.
KNOP (NYSE: KNOP) owns, operates and acquires shuttle tankers under long-term charters in the offshore oil production regions of the North Sea and Brazil. KNOP is structured as a master limited partnership. KNOP’s common units trade on the New York Stock Exchange under the symbol “KNOP.”
The statements in this press release that are not historical facts may be forward-looking statements. These forward-looking statements are based upon the current beliefs and expectations of KNOP’s management and are subject to risks and uncertainties, which could cause actual results to differ from the forward-looking statements. Factors that can affect future results are discussed in the most recent Annual Report on Form 20-F and subsequent Current Reports on Form 6-K filed by KNOP with U.S. Securities and Exchange Commission. The information set forth herein should be read in light of such risks. KNOP does not assume any obligation to update the information contained in this press release.
Source: Knot Offshore Partners LP