KNOT Awarded Long-Term Charters With ENI For Two New Shuttle Tankers With LNG Propulsion System

ABERDEEN, Scotland--(BUSINESS WIRE)-- 

KNOT Offshore Partners LP (NYSE:KNOP) (“The Partnership”) (“KNOP”)

KNOT Offshore Partners LP Announced Today That Knutsen NYK Offshore Tankers, as Our Sponsor, Has Sent Out The Following Press Release:

Haugesund, Norway – February 7, 2020:

Knutsen NYK Offshore Tankers (“KNOT”) market leading independent owner and operator of shuttle tankers announced today that it has been awarded a contract to build two LNG fueled Shuttle Tanker.

The two new 124,000 DWT LNG fueled shuttle tankers will be built by Daewoo Shipbuilding & Marine Engineering Co. Ltd shipyard in Korea with delivery mid-2022 and the vessels will operate in North Sea under time-charter contract for a maximum 10 years period. These vessels will be able to reduce emissions of CO2 equivalents significantly compared to conventional oil-fueled shuttle tankers, through using LNG as the primary fuel and further utilized the energy recovered from volatile organic compounds. There will also be installed a battery package to save energy during DP operation.

“We are pleased to announce that KNOT and ENI extend their partnership in the North Sea with two new LNG shuttle tankers. ENI, through their ownership in Vår Energi has many interests in North Sea gas and oil fields and is thus one of the major players in the area. This contract is the third and fourth long-term time-charter shuttle-tanker contracts between ENI and KNOT Group. We are pleased that ENI has recognized KNOT capabilities and expertise in the shuttle tanker operation with the awarding of this new contracts”

Mr. Trygve Seglem,
President and CEO of KNOT

About Knutsen NYK Offshore Tankers

Knutsen NYK Offshore Tankers is a leading shuttle tanker operator in the world with 28 shuttle tankers and two FSO in operation in addition to six newbuildings under construction. The Company is a joint venture by TS Shipping Invest and NYK Group. TS Shipping Invest is owned by CEO Trygve Seglem and his family. The Company is headquartered in Haugesund.

The two ENI vessels referred in the KNOT press release dated February 7, 2020 have the benefit of firm charter periods of 7 and 5 years respectively from delivery, both then having further charterers options up to a maximum of 10 years each in total.

Pursuant to the Omnibus Agreement between KNOT and KNOP, KNOP has the option to acquire both vessels from KNOT following each vessel’s commencement of operations under its respective time charter. KNOP is not obligated to purchase either of these vessels and any acquisition 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 acquire these, or any, additional vessels from KNOT.

About KNOT Offshore Partners LP

KNOT Offshore Partners LP owns, operates and acquires shuttle tankers under long-term charters in the offshore oil production regions of the North Sea and Brazil. KNOT Offshore Partners LP is structured as a publicly traded master limited partnership. KNOT Offshore Partners LP’s common units’ trade on the New York Stock Exchange under the symbol “KNOP.”

KNOP does not assume any obligation to update the information contained in this press release.

Forward looking statements

This press release includes statements that may constitute forward-looking statements. Such forward-looking statements are subject to a variety of known and unknown risks, uncertainties, and other factors that are difficult to predict and many of which are beyond management’s control. Factors that can affect future results are discussed in the Annual Report on Form 20-F filed by the Partnership with the SEC. The Partnership undertakes no obligation to update or revise any forward-looking statement to reflect new information or events.