KNOT Offshore Partners LP formed an agreement with Brazil Shipping I Ltd., an affiliate of BG Group, for the time charter of shuttle tanker Windsor Knutsen, the company announced on 13 June 2014.
The charter has an initial term of two years. BG Group has options to extend the term of the charter for three additional one-year periods. The charter will commence in or around 4Q 2015. If all three extension options are exercised, the Windsor Knutsen will operate for BG Group until the end of 2020.
The Windsor Knutsen is a 1A ice-class Suezmax tanker, built at the Daewoo shipyard at Busan, South Korea, in 2007. The vessel has capacity to hold 1.1MMbbl of crude oil. The Windsor Knutsen arrived in Brazil for BG Group in 2011, and received first oil from the Lula FPSO in July 2011, according to BG Group's Data Book 2013.
BG Group notified the KNOT that the Windsor Knutsen will be redelivered under its existing charter at the end of July 2014. The process of reemploying the vessel prior to the commencement of its new charter with BG is ongoing, KNOT said.