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KNOT Concludes Time-Charter Contract for Two Shuttle Tankers

September 16, 2014

Knutsen NYK Offshore Tankers AS (KNOT; headquarters: Haugesund, Norway), of which NYK has a 50 percent share, has concluded a time-charter contract with Brazil Shipping 1 Limited, a subsidiary of the U.K. energy company British Gas (BG). The contract is for two shuttle tankers* for a maximum 20-year period starting from the fourth quarter of fiscal 2016.
The contract aims to use two 158,000 DWT Suezmax tankers equipped with dynamic-positioning systems built by Hyundai Heavy Industries Co. Ltd. to shuttle crude oil produced in waters off Brazil. BG owns interests in oil and gas fields in the waters off Brazil and is one of the major players in this area.
Upon commencement of this two-tanker contract, the KNOT Group will have 30 shuttle tankers in operation or on order.
In accordance with its medium-term management plan “More Than Shipping 2018,” NYK will continue its efforts to provide stable and economical energy transport services, such as those that are part of the company’s shuttle tanker and offshore business.
* Shuttle tanker

Also called a “floating pipeline,” a shuttle tanker loads crude oil from floating production, storage, and offloading (FPSO) units in deepwater fields while maintaining a certain distance in the ocean, and then transports the oil to crude-oil storage units or petroleum storage stations on land.

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