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

ABERDEEN, Scotland–(BUSINESS WIRE)–KNOT Offshore Partners LP (the “Partnership”) (NYSE:KNOP) announced
today that it has completed its acquisition of the ownership interests
in the company that owns and operates the shuttle tanker Vigdis
Knutsen (KNOT Shuttle Tankers 25 AS “KNOT 25”) for an aggregate
purchase price of $147.0 million less $137.7 million of outstanding
indebtedness plus approximately $17.9 million for a receivable owed by
Knutsen NYK to KNOT 25 (the “Receivable”) and approximately $0.9 million
for certain capitalized fees related to the financing of the Vigdis
Knutsen. On the closing of the acquisition, KNOT 25 repaid
approximately $42.8 million of the indebtedness, leaving an aggregate of
approximately $94.9 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. On the closing of the acquisition,
Knutsen NYK repaid the Receivable in full.

The Vigdis Knutsen is an 156,559-deadweight ton shuttle
tanker, built by Hyundai Heavy Industries in Korea and delivered
in February 2017. The vessel is operating in the Brazil under a
five-year time charter with a subsidiary of Royal Dutch Shell plc, which
will expire in the expire second quarter of 2022. The charterer has
options to extend the charter for two five-year periods.

Including the Vigdis Knutsen, the Partnership now has a
fleet of thirteen vessels with an average age of 4.6 years and a fixed
average employment of 4.6 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