KNOT Offshore Partners taking over Lena Knutsen shuttle tanker

KNOT Offshore Partners is set to expand its fleet with the recently built Lena Knutsen shuttle tanker.

During the second quarter, the company entered into a share purchase agreement with Knutsen NYK
to acquire the company that owns the Lena Knutsen.

Built by Hyundai Heavy Industries in South Korea in June of 2017, the Lena Knutsen is a Suezmax class enhanced DP2 shuttle tanker operating under time charter with Shell in Brazil.

The charter expires in the third quarter of 2022, with options to extend to 2032.

In a conference call on Thursday, Knot Offshore Partners said it had reached a deal with its sponsor Knutsen NYK to acquire the vessel for $142 million with delivery effective from the start of October 2017.

The acquisition price for the Lena Knutsen is $142 million. This is $5 million less than the purchase price for Tordis and Vigdis, the recently acquired sister vessels.

The current data from VesselsValue shows the Lena Knutsen is already in Brazil, currently sailing past Salvador, Brazil, going South.

Worth noting, KNOT Offshore Partners might soon add another vessel to its fleet.  Knutsen NYK in July acquired from Chevron the Brazil Voyager, a DP2 Suezmax class shuttle tanker built in 2013.

The vessel, which is located in Brazil, is not currently under contract. The vessel has been renamed Brasil Knutsen, and Knutsen NYK is seeking to secure a long-term time charter for it. The vessel might then be taken by KNOT.

Offshore Energy Today Staff