KNOT Offshore Partners in new vessel swap deal with parent

Shuttle tanker player KNOT Offshore Partners has agreed a new swap dead with parent Knutsen NYK Offshore Tankers (KNOT) that will see the company add a modern suezmax in exchange for its nine years older panamax unit.

The New York-listed firm is buying the 2021-built 152,800 dwt Live Knutsen from KNOT while selling its 2012-built 59,000 dwt shuttle taker, Dan Sabia.

The purchase price for the Live Knutsen is $100m less $73.4m of outstanding debt plus $0.35m of capitalised fees related to the credit facility secured by the vessel. The partnership is selling the Dan Sabia for $25.75m.

KNOT Offshore Partners operates a fleet of 18 ships primarily under long-term charters in the offshore oil production regions of the North Sea and Brazil.

The Live Knutsen is currently in Brazil fixed to Galp Sinopec until November 2026, but with extension options for a further six years.

The company has been looking at options for its smaller-size vessel Dan Sabia, following the expiry of its bareboat charter to Transpetro and redelivery last July. Several possibilities were explored including redeployment in the tightening Brazilian market, deployment to the North Sea, charter to Knutsen NYK, short-term conventional tanker work and sale.

Last September, the two companies agreed on a similar deal for the 2021-built 152,800 dwt suezmax Tuva Knutsen and 2011-built 57,600 dwt shuttle taker, Dan Cisne.

“We are pleased to have once again agreed a vessel swap that grows and concentrates our fleet in the most in-demand shuttle tanker class, reduces our average fleet age, and improves our long-term charter pipeline, all without a requirement for new funding. Our focus remains on securing long-term employment with high-quality counterparties that provide the partnership with stable, predictable cashflows,” said Derek Lowe, CEO of KNOT Offshore Partners.