KNOT Offshore Partners LP has rejected acquisition talks for two Knutsen NYK shuttle tankers and is negotiating over a third vessel, according to KNOT Offshore Partners LP’s update.
The sponsor, Knutsen NYK Offshore Tankers AS, offered Frida Knutsen, Sindre Knutsen and Hedda Knutsen to KNOP earlier in June under the omnibus agreement signed at the time of KNOP’s initial public offering. KNOP’s Conflicts Committee, made up only of directors not affiliated with Knutsen NYK, decided not to pursue Frida Knutsen and Sindre Knutsen.
The two shuttle tankers have operated in the North Sea since late 2022 but fall outside KNOP’s business model because they lack fixed or guaranteed charter contracts of sufficient duration.
Knutsen NYK now has no further obligation to offer Frida Knutsen or Sindre Knutsen to KNOP unless either vessel later secures a charter of at least five years of fixed duration.
The Conflicts Committee is continuing talks with Knutsen NYK over Hedda Knutsen.
KNOT Offshore Partners LP is a master limited partnership classified as a corporation for US federal income tax purposes, issuing Form 1099 to unitholders rather than Form K-1.
Knutsen NYK Offshore Tankers AS is the sponsor of KNOP and the counterparty to the omnibus agreement governing the vessel offer process.