KNOT Offshore Partners, a leading operator of shuttle tankers, has strengthened its cooperation with Equinor by signing an agreement to extend the charter of the Bodil Knutsen until March 2029. The deal also includes two additional one-year extension options.
The New York–listed company stated that the extension reinforces its position in the shuttle tanker market and is part of a long-term strategy to ensure stable fleet utilization. With this new agreement, KNOT has now secured 100% coverage of its fleet for the second half of 2025 (after scheduled drydockings) and approximately 89% for 2026.
“We remain focused on expanding charter coverage and taking advantage of opportunities for re-chartering in today’s tight market environment,” said Derek Low, CEO and CFO of KNOT Offshore Partners.
The company operates a fleet of nearly 20 shuttle tankers, primarily employed on long-term contracts in Brazil and the North Sea. As of the end of June, the fleet’s average age was 10.1 years, which decreased to 9.7 years following the July acquisition of the modern tanker Daqing Knutsen (built in 2022). This purchase also increased KNOT’s presence in Brazil to 15 vessels.
Market activity in the shuttle tanker sector has been strong in recent months. In August, parent company Knutsen NYKsigned a seven-year contract with Repsol for the construction of a new shuttle tanker in China, with an option for a second vessel. Delivery of the first unit is scheduled for early 2028, with the possibility of a further five-year charter extension. Earlier, in March 2025, Knutsen NYK signed a seven-year charter with Equinor for another newbuild in Brazil, with options to extend for an additional 13 years. That vessel is also expected to be delivered in early 2028.
