Knot purchased shuttle tanker Daqing Knutsen from its subsidiary KNOT Shuttle Tankers 37 for $95 million. (Source: Shutterstock)
Knot Offshore Partners LP announced operational updates including a dropdown agreement of a shuttle tanker, according to a July 2 press release.
Knot purchased shuttle tanker Daqing Knutsen from its subsidiary KNOT Shuttle Tankers 37 for $95 million.
Daqing Knutsen is a 154,000-deadweight-ton DP2 Suezmax class shuttle tanker that was built in 2022 by COSCO Shipping Heavy Industry. The vessel is currently operating in Brazil on a charter contract with PetroChina, which expires in July 2027, according to the release.
Knot said it has guaranteed the hire rate for the vessel until July 2032, providing the company with approximately 7 years of fixed employment for Daqing.
The purchase price is less $70.5 million of outstanding debt and $300,000 of capitalized fees related to the credit facility secured by Daqing Knutsen, the release stated. The initial cost of the acquisition will therefore be approximately $24.8 million.
Knot’s board of directors also approved the sale of vessel Tove Knutsen to a Japanese-based lessor. Knot agreed to lease back the vessel for a duration of 10 years, the company said.
The gross price sale is $100 million and a portion of the proceeds will be used to repay the outstanding loan on the vessel, Knot said. Following the sale and leaseback’s closing and loan repayment, Knot said it expects net proceeds of approximately $32 million.
“By successfully executing the dropdown of the Daqing Knutsen in conjunction with the attractively priced sale-leaseback of one of our existing vessels, we are pleased to have once again agreed an accretive vessel acquisition that grows our fleet in the most in-demand shuttle tanker class, reduces our average fleet age and improves the value and duration of our long-term charters, all without drawing on our available liquidity,” said Derek Lowe, CEO of Knot Offshore Partners.
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