KNOT Offshore Partners LP has decided not to acquire the Frida Knutsen and Sindre Knutsen shuttle tankers from its Sponsor, Knutsen NYK Offshore Tankers AS, as the vessels lack fixed or guaranteed charter contracts of sufficient duration. The Conflicts Committee of the Board, comprised solely of directors unaffiliated with the Sponsor, determined these vessels fall outside the company's business model. Consequently, Knutsen NYK Offshore Tankers AS has no further obligation to offer these vessels to KNOT Offshore Partners LP unless either secures a charter of at least five years of fixed duration in the future.

The decision follows an offer earlier in June from Knutsen NYK Offshore Tankers AS regarding the potential purchase of the Frida Knutsen, Sindre Knutsen, and Hedda Knutsen. This offer was made pursuant to an omnibus agreement established between KNOT Offshore Partners LP and Knutsen NYK Offshore Tankers AS at the time of the initial public offering. The Frida Knutsen and Sindre Knutsen have been in operation in the North Sea since late 2022.

Negotiations are currently underway regarding the third vessel, the Hedda Knutsen. The Conflicts Committee is engaging with Knutsen NYK Offshore Tankers AS to evaluate the terms for this potential acquisition.

Vessel Acquisition Status

KNOT Offshore Partners LP owns, operates, and acquires shuttle tankers primarily under long-term charters in the offshore oil production regions of Brazil and the North Sea. The company is structured as a publicly traded master limited partnership but is classified as a corporation for U.S. federal income tax purposes. Its common units trade on the New York Stock Exchange under the symbol "KNOP".