KNOT Offshore Partners LP Announces Completion of the Acquisition of Anna Knutsen

ABERDEEN, Scotland–(BUSINESS WIRE)–KNOT Offshore Partners LP (the “Partnership”) (NYSE:KNOP) announced
today that its wholly owned subsidiary, KNOT Shuttle Tankers AS, has
acquired (the “Acquisition”) all of the ownership interests in KNOT
Shuttle Tankers 30 AS (“KNOT 30”), the company that owns and operates
the shuttle tanker Anna Knutsen, from Knutsen NYK Offshore
Tankers AS (“Knutsen NYK”) for an aggregate purchase price of $120.0
million, less $106.8 million of outstanding indebtedness under the
secured credit facility related to the vessel (the “Anna Facility”),
plus approximately $1.4 million for certain capitalized fees related to
the financing of the Anna Knutsen. On the closing of the
acquisition, KNOT 30 repaid approximately $32.4 million of the
indebtedness, leaving an aggregate of approximately $74.4 million of
debt outstanding under the secured credit facility related to the
vessel. The purchase price was settled in cash and will be subject to
certain post-closing adjustments for working capital and interest rate
swaps.

The Anna Knutsen is DP2 Suexmax class shuttle tanker, delivered
in March 2017 and is operating in Brazil under a time charter with Galp
Sinopec Brazil Services B.V., which will expire in the second quarter of
2022. The charterer has options to extend the charter for two three-year
periods.

The Board of Directors of the Partnership (the “Board”) and the
Conflicts Committee of the Board approved the purchase price and terms
of the Acquisition. The Conflicts Committee retained an outside
financial advisor to assist with its evaluation of the Acquisition.

Including the Anna Knutsen, the Partnership now has a fleet
of sixteen vessels with an average age of 4.6 years and a fixed average
employment of 4.0 years.

About KNOT Offshore Partners LP

The Partnership owns, operates and acquires shuttle tankers under
long-term charters in the deep-water offshore oil production regions of
the North Sea and Brazil. The Partnership is structured as a master
limited partnership. The Partnership’s common units trade on the New
York Stock Exchange under the symbol “KNOP.”

Contacts

KNOT Offshore Partners LP
John Costain, 44 749 6170 620
Chief
Executive Officer and Chief Financial Officer