Knot Shuttle Tankers 21 operates the Dan Sabia shuttle tanker, which transports crude oil and condensates from offshore oil field to onshore terminals and refineries.
The shuttle tanker is currently operating with Petrobras Transporte, as part of a bareboat contract which is scheduled to expire in the first quarter of 2024.
Subject to customary closing conditions, the transaction is expected to be completed within 30 days.
Knot Offshore Partners expects the acquisition to facilitate its plan to quarterly cash distribution of between $0.01 and $0.015 per unit, to the board of directors.
Meanwhile, Knot said it is planning to offer 5,000,000 common units in a public offering to fund the Dan Sabia acquisition.
A 30-day option has also been granted to the underwriters to obtain additional 750,000 common units.
The proceeds from the offering and related general partner’s capital contribution will be used to maintain its 2% general partner interest, as well as prepay senior secured loan facility related to the Dan Sabia take over and general partnership purposes.
Knot Offshore Partners is a master limited partnership established to own and operate shuttle tankers in the offshore oil production regions of the North Sea and Brazil, under long-term charters.
