KNOT OFFSHORE PARTNERS

KNOT currently own and operate a modern fleet of five state of the art shuttle tankers, each under long term charters with major oil and gas companies engaged in offshore productions, such as BG Group, Statoil and Transpetro. It is their strategy to operate their vessels under long-term charters with stable cash flows and to grow their position in the shuttle tanker market through acquisitions from KNOT and third parties. Pursuant to their omnibus agreement with KNOT, They have the right to purc... hase from KNOT four newbuilds, three delivered to charterers during 2013 and one due to be delivered in 2014. Additionally pursuant to this omnibus agreement, They also have the right to purchase from KNOT any shuttle tankers operating under charters of five or more years. This right will continue throughout the entire term of the omnibus agreement. They also believe they can grow organically by continuing to provide reliable customer service to their charterers and leveraging KNOT’s relationships, expertise and reputation.More