BG takes back tanker

KNOT Offshore Partners has persuaded BG Group to re-employ a shuttle tanker it is handing back in July.

The New York-listed owner said the energy giant's Brazil Shipping I will time charter the 162,000-dwt Windsor Knutsen (built 2007) for two years, with options for another three 12-month periods.

The rate is in line with the current deal with BG.

The vessel will begin the charter in Brazil in the fourth quarter.

It operated as a conventional crude carrier upon delivery in 2007 but was converted into a shuttle tanker at a cost of $40m in November 2010, when it started work for BG.

According to filings with the US Securities & Exchange Commission the Windsor Knutsen generated roughly $20.3m over the course of 2013, a year in which the charter accounted for approximately 28% of the company’s combined revenues.