From shuttle tanker to floating storage and offloading vessel

New life for shuttle tanker in the North Sea

Following a major conversion, the oil tanker “Hanne Knutsen” will start a new life as a Floating Storage and Offloading vessel (FSO) at the Martin Linge oil field in the North Sea.

Following a major conversion, the oil tanker “Hanne Knutsen” will start a new life as a Floating Storage and Offloading vessel (FSO) at the Martin Linge oil field in the North Sea.

In the Polish port city of Gdansk, up to 1000 people have been working hard at Remontowa ship yard. Their mission is to transform the vessel “Hanne Knutsen” from a shuttle tanker to a FSO, which is used to store oil from nearby platforms or subsea installations before being loaded onto a shuttle tanker for further transportation to terminal.

Extensive Work

Upon completion (expected Q4, 2016), “Hanne Knutsen” will have undergone major changes. The work includes alterations to the hull, main deck and oil tanks, as well as  installation of 30 main equipment packages and new safety systems. A number of Norwegian deliveries (ship equipment and services) have also been made by Norwegian sub-contractors from the maritime industry.

Due to a solid share of Norwegian content in the contract, Export Credit Norway has contributed with a loan to the financing of the conversion. The debtor is KNOT FSO 1 AS, owned by the holding company Knutsen NYK Offshore Tankers.

The weight of the vessel is just less than 30,000 tonnes. When the conversion to an FSO is completed, it will weigh almost 37,000 tonnes. Photo: TOTAL/Woldcam

The weight of the vessel is just less than 30,000 tonnes. When the conversion to an FSO is completed, it will weigh almost 37,000 tonnes. Photo: TOTAL/Woldcam

Attractive CIRR interest rates

CFO of Knutsen NYK Offshore Tankers, Mr. Øystein M. Kalleklev, is satisfied with the cooperation with Export Credit Norway.

“The loan from Export Credit Norway made it easier to finance such a capital-intensive project and simultaneously allowed us not to overextend the capacity of our banks as Export Credit Norway is lending NOK 700 millon of the total of NOK 1,7 billion. With the recent reductions in interest rates, the CIRR loans are favourable”, says Øystein M. Kalleklev, CFO in Knutsen NYK Offshore Tankers.

The loan from Export Credit Norway has a maturity of 8,5 years and is fully guaranteed by GIEK.

Kontakt oss:
Olav Einar Rygg
Olav Einar Rygg Head of Lending +47 995 85 074 +47 995 85 074
Tellef K. Tellefsen
Tellef K. Tellefsen Ocean Industries +47 920 64 968 +47 920 64 968