ABERDEEN, Scotland -- Knutsen NYK Offshore Tankers has entered new long-term charters with a subsidiary of BG Group to provide shuttle tanker services in Brazil. The contract with BG will be serviced by two newbuild Suezmax-size DP-2 shuttle tanker to be constructed by Hyundai Heavy Industries in South Korea.
Upon delivery in 2016, the vessels will operate under long-term time-charters. If BG declares all extension options, the vessels could operate under the charters for up to a maximum of 20 years.
For a period of one year BG will also have the option to increase the number of shuttle tankers to three or four in total at similar terms. Pursuant to the omnibus agreement between Knutsen and KNOT Offshore Partners LP requiring KNOT to offer to KNOP vessels with contracts longer than five years, KNOP will have the option to acquire the vessels at fair market value from Knutsen following the charterer’s acceptance of the vessels.