UK-based Knot Offshore Partners’ subsidiary has signed an agreement to acquire Knot Shuttle Tankers 21 for $103m.

Under the share purchase agreement, Knot acquired the company that owns Dan Sabia shuttle tanker from Knutsen NYK Offshore Tankers.

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Operating under a bareboat charter with Petrobras Transporte, the Dan Sabia started with delivery of the vessel in the first quarter of 2012.

The charter is expected to end in the first quarter of 2024.

"Net proceeds will be used to maintain its 2% general partner interest to fund the cash portion of the purchase price of the acquisition of Dan Sabia."

The partnership is said to have entered the agreement in connection with its fifth acquisition since its initial public offering that took place in April 2013 and is structured as a master limited partnership.

According to Knot, the shuttle tankers are owned, operated and acquired by partnership under long-term charters in North Sea and Brazil’s offshore oil production regions.

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Subject to customary closing conditions, the acquisition is expected to conclude within a period of one month.

The partnership’s management has recommended to the board an increase in the partnership’s quarterly cash distribution of between $0.01 and $0.015 per unit.

Separately, Knot has announced plans to offer 5,000,000 common units in a public offering.

The partnership expects to grant a 30-day option to the underwriters to buy up to extra 750,000 common units.

Net proceeds will be used to maintain its 2% general partner interest to fund the cash portion of the purchase price of the acquisition of Dan Sabia.