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.
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.
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.