KNOT Offshore Swaps Older Tanker for Newer Suezmax Vessel
(P&GJ) — KNOT Offshore Partners LP has agreed to swap its 2012-built shuttle tanker, Dan Sabia, for the 2021-built Live Knutsen, strengthening its fleet with a larger, industry-standard vessel.
Under the agreement with Knutsen NYK Offshore Tankers AS (KNOT), KNOT Offshore will acquire Live Knutsen for a net payment of $1.21 million after accounting for debt and adjustments. The swap is expected to close on Feb. 28, 2025.
The Live Knutsen, a 153,000-deadweight-ton DP2 Suezmax shuttle tanker, is currently operating in Brazil under a charter with Galp Sinopec. The fixed contract runs through November 2026, with options for an additional six years. As part of the deal, KNOT has guaranteed the vessel's hire rate through 2029, securing nearly five years of contracted revenue for KNOT Offshore.
Derek Lowe, CEO of KNOT Offshore, said the swap aligns with the company’s strategy to modernize its fleet and secure long-term charters.
"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," Lowe said.
KNOT Offshore’s board and independent Conflicts Committee approved the transaction, with support from outside financial and legal advisors.
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