KNOT Offshore Partners (KNOP) 20-F 19 Mar 20 2019 FY Annual report (foreign) Financial data

Document and Entity Information

Document and Entity Information	12 Months Ended
	Dec. 31, 2019shares
Document And Entity Information
Document Type	20-F
Amendment Flag	false
Document Period End Date	Dec. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Entity Registrant Name	KNOT Offshore Partners LP
Entity Central Index Key	0001564180
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding	32,694,094
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Emerging Growth Company	false
Entity Shell Company	false

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Operating revenues: (Notes 2(e), 5 and 18)
Time charter and bareboat revenues	$ 282,502	$ 278,191	$ 212,501
Loss of hire insurance recoveries (Notes 2(t) and 8)		450	5,176
Other income	59	815	1,526
Total revenues (Notes 2(e), 5, 6, 7 and 18)	282,561	279,456	219,203
Operating expenses: (Note 18)
Vessel operating expenses (Note 2(e) and 6)	60,129	56,730	46,709
Depreciation (Note 13)	89,844	88,756	71,583
General and administrative expenses	4,858	5,290	5,555
Total operating expenses	154,831	150,776	123,847
Operating income	127,730	128,680	95,356
Finance income (expense): (Notes 2(f) and 18)
Interest income	865	739	248
Interest expense (Note 9(a))	(50,735)	(49,956)	(30,714)
Other finance expense (Note 9(b))	(845)	(1,260)	(1,406)
Realized and unrealized gain (loss) on derivative instruments (Note 10)	(17,797)	4,039	4,831
Net gain (loss) on foreign currency transactions	(252)	(79)	(267)
Total finance expense	(68,764)	(46,517)	(27,308)
Income before income taxes	58,966	82,163	68,048
Income tax benefit (expense) (Notes 2(r) and 17)	(9)	2	16
Net income	58,957	82,165	68,064
Series A Preferred unitholders' interest in net income	7,200	7,200	5,253
General Partner's interest in net income	956	1,384	1,160
Limited Partners' interest in net income	$ 50,801	$ 73,581	$ 61,651
Earnings per unit (Basic): (Note 20)
General Partner unit (diluted)	$ 1.554	$ 2.251	$ 2.046
Earnings per unit (Diluted): (Note 20)
General Partner unit (diluted)	1.554	2.251	2.046
Common Units [Member]
Earnings per unit (Basic): (Note 20)
Common unit (basic)	1.554	2.251	2.050
Earnings per unit (Diluted): (Note 20)
Common unit (diluted)	$ 1.554	$ 2.217	$ 2.037

Condensed Consolidated Statemen

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Condensed Consolidated Statements of Comprehensive Income
Net income	$ 58,957	$ 82,165	$ 68,064
Comprehensive income	$ 58,957	$ 82,165	$ 68,064

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents (Notes 2(g) and 11)	$ 43,525	$ 41,712
Amounts due from related parties (Note 18(d)))	2,687	1,141
Inventories (Note 2(i))	2,292	2,443
Derivative assets (Notes 2(q), 10 and 11)	920	4,621
Other current assets (Notes 2(j) and 12(b))	3,386	2,462
Total current assets	52,810	52,379
Long-term assets:
Vessels, net of accumulated depreciation (Notes 2(k), 2(m), 2(n), 13 and 18(f))	1,677,488	1,767,080
Right-of-use assets (Notes 2(1) and 6)	1,799
Intangible assets, net (Notes 2(o) and 14(a))	1,286	1,891
Derivative assets (Notes 2(q), 10 and 11)	648	11,667
Accrued income	3,976	3,807
Total long term assets	1,685,197	1,784,445
Total assets	1,738,007	1,836,824
Current liabilities:
Trade accounts payable (Note 18(e))	2,730	4,800
Accrued expenses (Note 15)	6,617	6,464
Current portion of long-term debt (Notes 11 and 16)	83,453	106,926
Current lease liabilities (Notes 2(1) and 6)	572
Current portion of derivative liabilities (Notes 2(q), 10 and 11)	910	1,740
Income taxes payable (Notes 2(r) and 17)	98	130
Current portion of contract liabilities (Notes 2(o) and 14(b))	1,518	1,518
Prepaid charter (Note 2(s))	6,892	5,771
Amount due to related parties (Note 18(d))	1,212	1,070
Total current liabilities	104,002	128,419
Long-term liabilities:
Long-term debt (Notes 2 (p), 11 and 16)	911,943	970,365
Lease liabilities (Notes 2(1) and 6)	1,227
Derivative liabilities (Notes 2(q), 10 and 11)	5,133	345
Contract liabilities (Notes 2(o) and 14(b))	3,685	5,203
Deferred tax liabilities (Notes 2(r) and 17)	357	453
Total long-term liabilities	922,345	976,366
Total liabilities	1,026,347	1,104,785
Commitments and contingencies (Notes 2(t) and 19)
Series A Convertible Preferred Units (Note 22)	89,264	89,264
Partners' capital:
Common unitholders: 32,694,094 units issued and outstanding at December 31, 2019 and 2018.	611,241	631,244
General partner interest: 615,117 units issued and outstanding at December 31, 2019 and 2018.	11,155	11,531
Total partners' capital	622,396	642,775
Total liabilities and equity	$ 1,738,007	$ 1,836,824

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Allowance for doubtful accounts	$ 0	$ 0
General partners' capital account, units issued	615,117	615,117
General partners' capital account, units outstanding	615,117	615,117
Common Units [Member]
Limited partners' capital account, units issued	32,694,094	32,694,094
Limited partners' capital account, units outstanding	32,694,094	32,694,094

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Changes in Partners' Capital - USD ($) $ in Thousands	General Partner Unit [Member]	Limited Partner [Member]Common Units [Member]	Total
Beginning balance at Dec. 31, 2016	$ 10,297	$ 511,413	$ 521,710
Net income	1,160	61,651	62,811
Cash distributions	(1,210)	(64,307)	(65,517)
Net proceeds from issuance of common units	1,232	119,714	120,946
Ending balance at Dec. 31, 2017	11,479	628,471	639,950
Net income			5,253
Cash distributions			(3,453)
Net proceeds from sale of Series A Convertible Preferred Units			87,464
Convertible preferred units, ending balance at Dec. 31, 2017			89,264
Net income	1,384	73,581	74,965
Cash distributions	(1,332)	(70,804)	(72,136)
Net proceeds from issuance of common units		(4)	(4)
Ending balance at Dec. 31, 2018	11,531	631,244	642,775
Net income			7,200
Cash distributions			(7,200)
Convertible preferred units, ending balance at Dec. 31, 2018			89,264
Net income	956	50,801	51,757
Cash distributions	(1,332)	(70,804)	(72,136)
Ending balance at Dec. 31, 2019	$ 11,155	$ 611,241	622,396
Net income			7,200
Cash distributions			(7,200)
Convertible preferred units, ending balance at Dec. 31, 2019			$ 89,264

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
OPERATING ACTIVITIES
Net income	$ 58,957	$ 82,165	$ 68,064
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation	89,844	88,756	71,583
Amortization of contract intangibles / liabilities	(912)	(912)	(1,089)
Amortization of deferred revenue		(1,056)	(1,487)
Amortization of deferred debt issuance cost	2,617	3,188	1,737
Drydocking expenditure	(252)	(12,421)	(6,885)
Income tax expense	9	(2)	(16)
Income taxes paid	(132)	(190)	(219)
Unrealized (gain) loss on derivative instruments	18,676	(2,076)	(7,391)
Unrealized (gain) loss on foreign currency transactions	44	45	45
Changes in operating assets and liabilities
Decrease (increase) in amounts due from related parties	(1,547)	(49)	62,391
Decrease (increase) in inventories	152	55	(358)
Decrease (increase) in other current assets	(912)	3,256	(1,724)
Decrease (increase) in accrued revenue	(168)	(2,114)	(540)
Increase (decrease) in trade accounts payable	(2,100)	(1,297)	2,195
Increase (decrease) in accrued expenses	153	(1,052)	142
Increase (decrease) prepaid revenue charter	1,121	(3,154)	1,435
Increase (decrease) in amounts due to related parties	142	(4,496)	(33,298)
Net cash provided by operating activities	165,692	148,646	154,585
INVESTING ACTIVITIES
Net cash provided by (used in) investing activities		(15,493)	(94,857)
FINANCING ACTIVITIES
Proceeds from long-term debt (Note 16)		497,779	211,500
Repayment of long-term debt (Note 16)	(84,534)	(527,979)	(297,708)
Repayment of long-term debt from related parties		(22,535)	(93,369)
Payment of debt issuance cost	21	(5,301)	(1,241)
Cash distributions	(79,336)	(79,336)	(68,970)
Net proceeds from issuance of common units (Note 22)		(4)	120,946
Net proceeds from sale of Convertible Preferred Units (Note 22)			87,464
Net cash used in financing activities	(163,849)	(137,376)	(41,378)
Effect of exchange rate changes on cash	(30)	(169)	90
Net increase (decrease) in cash and cash equivalents	1,813	(4,392)	18,440
Cash and cash equivalents at the beginning of the period	41,712	46,104	27,664
Cash and cash equivalents at the end of the period	$ 43,525	41,712	46,104
Property, Plant and Equipment, Excluding Acquired Vessels
INVESTING ACTIVITIES
Disposals (additions) to vessel and equipment		(117)	(849)
Anna Knutsen
INVESTING ACTIVITIES
Disposals (additions) to vessel and equipment		$ (15,376)
Brasil Knutsen
INVESTING ACTIVITIES
Payments for acquisition, net of cash acquired			(547)
Lena Knutsen
INVESTING ACTIVITIES
Payments for acquisition, net of cash acquired			(32,766)
Vigdis Knutsen
INVESTING ACTIVITIES
Payments for acquisition, net of cash acquired			(28,321)
Tordis Knutsen
INVESTING ACTIVITIES
Payments for acquisition, net of cash acquired			$ (32,374)

Description of Business

Description of Business	12 Months Ended
	Dec. 31, 2019
Description of Business
Description of Business	1) Description of Business KNOT Offshore Partners LP (the “Partnership”) was formed as a limited partnership under the laws of the Republic of the Marshall Islands. The Partnership was formed for the purpose of acquiring 100% ownership interests in four shuttle tankers owned by Knutsen NYK Offshore Tankers AS (“KNOT”) in connection with the Partnership’s initial public offering of its common units (the “IPO”), which was completed on April 15, 2013. Pursuant to the Partnership’s Amended and Restated Agreement of Limited Partnership (the “Partnership Agreement”), KNOT Offshore Partners GP LLC, a wholly owned subsidiary of KNOT, and the general partner of the Partnership (the “General Partner”), has irrevocably delegated to the Partnership’s board of directors the power to oversee and direct the operations of, manage and determine the strategies and policies of the Partnership. During the period from the Partnership’s IPO until the time of the Partnership’s first annual general meeting (“AGM”) on June 25, 2013, the General Partner retained the sole power to appoint, remove and replace all members of the Partnership’s board of directors. From the first AGM, four of the seven board members became electable by the common unitholders and accordingly, from this date, KNOT, as the owner of the General Partner, no longer retained the power to control the Partnership’s board of directors and, hence, the Partnership. As a result, the Partnership is no longer considered to be under common control with KNOT and as a consequence, the Partnership accounts for acquisitions of businesses and assets under the purchase method of accounting and not as transfers of equity interests between entities under common control. All acquisitions have been consolidated into the Partnership’s results as of the date of acquisition. Please read Note 2—Summary of Significant Accounting Policies and Note 21—Acquisitions. As of December 31, 2019, the Partnership had a fleet of sixteen shuttle tankers, the Windsor Knutsen , the Bodil Knutsen , the Recife Knutsen , the Fortaleza Knutsen , the Carmen Knutsen, the Hilda Knutsen, the Torill Knutsen , the Dan Cisne , the Dan Sabia, the Ingrid Knutsen , the Raquel Knutsen, the Tordis Knutsen, the Vigdis Knutsen, the Lena Knutsen , the Brasil Knutsen and the Anna Knutsen , each referred to as a “Vessel” and, collectively, as the “Vessels”. The Vessels operate under fixed long-term charter contracts to charterers, with expiration dates between 2020 and 2025. Please see Note 6—Operating Leases. The consolidated financial statements have been prepared assuming that the Partnership will continue as a going concern. The Partnership expects that its primary future sources of funds will be available cash, cash from operations, borrowings under any new loan agreements and the proceeds of any equity financings. The Partnership believes that these sources of funds (assuming the current rates earned from existing charters) will be sufficient to cover operational cash outflows and ongoing obligations under the Partnership’s financing commitments to pay loan interest and make scheduled loan repayments and to make distributions on its outstanding units. Accordingly, as of March 19, 2020, the Partnership believes that its current resources, including the undrawn portion of its revolving credit facilities of $28.7 million, are sufficient to meet working capital requirements for its current business for at least the next twelve months.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2019
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	2) Summary of Significant Accounting Policies (a) Basis of Preparation The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). All intercompany balances and transactions are eliminated. The consolidated financial statements include the financial statements of the entities listed in Note 4—Subsidiaries. (b) Business Combinations and Asset Acquisitions Business combinations are accounted for under the purchase method of accounting. On acquisition, the identifiable assets, liabilities and contingent liabilities are measured at their fair values at the date of acquisition. Any excess of the cost of acquisition over the fair values of the identifiable net assets acquired is recognized as goodwill. The consideration transferred for an acquisition is measured at fair value of the consideration given. Acquisition related costs are expensed as incurred. The results of operations of the acquired businesses are included in the consolidated results as of the date of the applicable acquisition. Dependent on the facts and circumstances, the assessment of a transaction may be considered the acquisition of an asset, when substantially all of the fair value of assets acquired is concentrated in a single identifiable asset, rather than a business combination. Asset acquisitions are accounted for by allocating the cost of the acquisition to the individual assets acquired and liabilities assumed on a relative fair value basis. Acquisition related costs are capitalized as a component of the assets acquired. (c) Reporting Currency The consolidated financial statements are prepared in the reporting currency of U.S. Dollars. The functional currency of the vessel-owning Partnership subsidiaries is the U.S. Dollar, because the subsidiaries operate in the international shipping market, in which all revenues are U.S. Dollar-denominated and the majority of expenditures are made in U.S. Dollars. Transactions involving other currencies during the year are converted into U.S. Dollars using the exchange rates in effect at the time of the transactions. As of the balance sheet dates, monetary assets and liabilities that are denominated in currencies other than the U.S. Dollar are translated to reflect the year-end exchange rates. Resulting gains or losses are reflected separately in the accompanying consolidated statements of operations. (d) Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the useful lives and impairment of Vessels, drydocking, purchase price allocation and income taxes. (e) Revenues and Operating Expenses The Partnership’s time charter contracts include both a lease component, consisting of the lease of the vessel, and non-lease component, consisting of operation of the vessel for the customers. The bareboat element is accounted for as an operating lease on a straight-line basis over the term of the charter, while the service element consisting of the operation of the vessel is recognized over time as the services are delivered. Revenue from time charters is recognized net of any commissions and is not recognized during days the Vessel is off-hire. Revenue is recognized from delivery of the Vessel to the charterer, until the end of the contract period. Under bareboat charters, the Partnership provides a specified Vessel for a fixed period of time at a specified day rate and the Partnership recognizes revenues from bareboat charters as operating leases on a straight-line basis over the term of the charter, net of any commissions. Where the term of the contract is based on the duration of a single voyage, the partnership evaluates whether the voyage contain leases and, if so, recognizes lease revenue as described above, and if not, recognizes revenue in accordance with ASC 606 upon the satisfaction of the performance obligations in the contract, i.e, when the underlying transportation service is provided to the customer. Voyage expenses are all expenses unique to a particular voyage, including bunker fuel expenses, port fees, cargo loading and unloading expenses, canal tolls and agency fees. Voyage expenses are paid by the customer under time charter and bareboat charters. Voyage expenses are paid by the Partnership for spot contracts and during periods of off-hire and are recognized when incurred. Vessel operating expenses include crewing, repairs and maintenance, insurance, stores, lube oils and communication expenses. Vessel operating expenses are paid by the Partnership for time charters, spot contracts and during off-hire and are recognized when incurred. The Partnership directly employs one onshore employee and no seagoing employees. Related parties have provided the management services for the Vessels and employ the crews that work on the Vessels. The Partnership is not liable for any pension or post-retirement benefits. See Note 18—Related Party Transactions. (f) Financial Income (Expense) Other finance expense includes external bank fees, commitment fees paid on undrawn revolving credit facility, financing service fees paid to related parties and guarantee commissions paid to external parties in connection with the Partnership’s debt and other bank services. (g) Cash and Cash Equivalents The Partnership considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. (h) Trade Accounts Receivable Accounts receivable are recorded at the invoiced amount and do not bear interest. Under terms of the current time charters and bareboat charters, the customers are committed to pay for the full month’s charter the first day of each month. See Note 2(s)—Prepaid Charter. The allowance for doubtful accounts is the Partnership’s best estimate of the amount of probable credit losses in existing accounts receivable. The Partnership establishes provisions for doubtful accounts on a case-by-case basis when it is unlikely that required payments of specific amounts will occur. In establishing these provisions, the Partnership considers the financial condition of the customer as well as specific circumstances related to the receivable. Receivable amounts determined to be unrecoverable are written-off. There were no allowances for doubtful accounts or amounts written off against the allowance for doubtful accounts as of December 31, 2019 and 2018. The Partnership does not have any off-balance-sheet credit exposure related to its customers. (i) Inventories Inventories, which are comprised principally of lubricating oils, are stated at the lower of cost or net realizable value. For vessels on time charters or bareboat charters, there are no bunkers, as the charterer supplies the bunkers, which principally consist of fuel oil. Cost is determined using the first-in, first-out method for all inventories. (j) Other Current Assets Other current assets principally consist of prepaid expenses and other receivables. (k) Vessels and Equipment Vessels and equipment are stated at the historical acquisition or construction cost, including capitalized interest, supervision and technical and delivery cost, net of accumulated depreciation and impairment loss, if any. Expenditures for subsequent conversions and major improvements are capitalized, provided that such costs increase the earnings capacity or improve the efficiency or safety of the vessels. Generally, the Partnership drydocks each vessel every 60 months until the vessel is 15 years old and every 30 months thereafter, as required for the renewal of certifications issued by classification societies. For vessels operating on time charters, the Partnership capitalizes the costs directly associated with the classification and regulatory requirements for inspection of the vessels and improvements incurred during drydocking. Drydock cost is depreciated on a straight-line basis over the period until the next planned drydocking takes place. The Partnership expenses costs related to routine repairs and maintenance performed during drydocking or as otherwise incurred. For vessels that are newly built or acquired, an element of the cost of the vessel is initially allocated to a drydock component and depreciated on a straight-line basis over the period until the next planned drydocking. When significant dry-docking expenditures occur prior to the expiration of this period, the Partnership expenses the remaining balance of the original drydocking cost in the month of the subsequent drydocking. For vessels operating on bareboat charters, the charter-party bears the cost of any drydocking. Depreciation on vessels and equipment is calculated on a straight-line basis over the asset’s estimated useful life, less an estimated residual value, as follows: Useful Life Hull 25 years Anchor-handling, loading and unloading equipment 25 years Main/auxiliary engine 25 years Thruster, dynamic positioning systems, cranes and other equipment 25 years Drydock costs 2.5 – 5 years A Vessel is depreciated to its estimated residual value, which is calculated based on the weight of the ship and estimated steel price. Any cost related to the disposal is deducted from the residual value. (l) Right-of-use assets and lease liabilities The Partnership assesses whether a contract contains a lease at inception of the contract. The assessment involves the exercise of judgement about whether it depends on a specified asset, whether the Partnership obtains substantially all the economic benefits from the use of that asset, and whether the Partnership has the right to direct the use of the asset. The Partnership does not separate lease components from non-lease components as lessee. The Partnership recognizes a right-of-use asset and a lease liability at the lease commencement date, except for short-term leases of 12 months or less, which are expensed on a straight-line basis over the lease term. (m) Capitalized Interest Interest expense incurred on the Partnership’s debt during the construction of the Vessels exceeding one year is capitalized during the construction period. (n) Impairment of Long-Lived Assets Vessels and equipment, vessels under construction and intangible assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group to be tested for possible impairment, the Partnership first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying value. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. (o) Intangibles Intangible assets represent contractual rights for charters obtained in connection with business and asset acquisitions that have favorable contractual terms relative to market as of the acquisition dates. Contract liabilities represent contractual rights obtained in connection with business acquisitions that have unfavorable contractual terms relative to market as of the acquisition dates. The favorable and unfavorable contract rights have definite lives and are amortized to revenues over the period of the related contracts. Intangible assets with a definite life are tested for impairment whenever events or circumstances indicate that their carrying amount may not be recoverable. An impairment loss is recognized if the carrying amount exceeds the estimated fair value of the asset. The contract related intangible assets and liabilities and their amortization periods at acquisition dates are as follows: Amortization Intangible category Period Above market time charter— Tordis Knutsen 4.8 years Above market time charter— Vigdis Knutsen 4.9 years Unfavorable contractual rights— Fortaleza Knutsen 12 years Unfavorable contractual rights— Recife Knutsen 12 years The intangible for the above market value of the time charter contract associated with the Tordis Knutsen is amortized to time charter revenue on a straight line basis over the remaining term of the contract of approximately 4.8 years as of the acquisition date. The intangible for the above market value of the time charter contract associated with the Vigdis Knutsen is amortized to time charter revenue on a straight line basis over the remaining term of the contract of approximately 4.9 years as of the acquisition date. See Note 21—Acquisitions. The unfavorable contractual rights for charters associated with Foraleza Knutsen and Recife Knutsen were obtained in connection with a step acquisition in 2008 that had unfavorable contractual terms relative to market as of acquisition date. The Fortaleza Knutsen and the Recife Knutsen commenced on their 12 years’ fixed bareboat charters in March 2011 and August 2011, respectively. The unfavorable contract rights related to Fortaleza Knutsen and Recife Knutsen are amortized to bareboat revenues on a straight line basis over the 12 years’ contract period that expires in March 2023 and August 2023, respectively. (p) Debt Issuance Costs Debt issuance costs, including fees, commissions and legal expenses, are deferred and presented net of debt. Debt issuance costs of term loans are amortized over the term of the relevant loan. Amortization of debt issuance costs is included in interest expense. These costs are presented as a deduction from the corresponding liability, consistent with debt discount. (q) Derivative Instruments The Partnership uses derivatives to reduce market risks associated with its operations. The Partnership uses interest rate swaps for the management of interest risk exposure. The interest rate swaps effectively convert a portion of the Partnership’s debt from a floating to a fixed rate over the life of the transactions without an exchange of underlying principal. The Partnership seeks to reduce its exposure to fluctuations in foreign exchange rates through the use of foreign currency forward contracts. All derivative instruments are initially recorded at fair value as either assets or liabilities in the accompanying consolidated balance sheets and subsequently measured to fair value. The Partnership does not apply hedge accounting to its derivative instruments. Changes in the fair value of the derivative instruments are recognized in earnings. Gains and losses from the interest rate swap contracts of the Partnership related to long-term mortgage debt and foreign exchange forward contracts are recorded in realized and unrealized gain (loss) on derivative instruments in the consolidated statements of operations. Cash flows related to interest rate swap contracts are presented as cash flows provided by operating activities. Cash flows related to foreign exchange forward contracts entered into to economically hedge operating expenses in currencies other than U.S. Dollars are presented as cash flows provided by operating activities in the consolidated statements of cash flows, while cash flows related to foreign exchange forward contracts entered into to hedge contractual obligations to pay the shipyard in currencies other than functional currency of U.S. Dollars are presented as cash flows used in investing activities in the consolidated statements of cash flows. (r) Income Taxes Historically, part of the Partnership’s activities were subject to ordinary taxation and taxes were paid on taxable income (including operating income and net financial income and expense), while part of the activities were subject to the Norwegian Tonnage Tax Regime (the “tonnage tax regime”). Under the tonnage tax regime, the tax is based on the tonnage of the vessel, and operating income is tax free. The net financial income and expense remains taxable as ordinary income tax for entities subject to the tonnage tax regime. Income taxes arising from the part of activities subject to ordinary taxation are included in income tax expense in the consolidated statements of operations. For the portion of activities subject to the tonnage tax regime, tonnage taxes are classified as vessel operating expenses while the current and deferred taxes arising on net financial income and expense are reflected as income tax expense in the consolidated statements of operations. See Note 17—Income Taxes. The Partnership accounts for deferred income taxes using the liability method. Under the liability method, deferred tax assets and liabilities are recognized for the anticipated future tax effects of temporary differences between the financial statement basis and the tax basis of the Partnership’s assets and liabilities using enacted tax rates expected to apply to taxable income in the years in which these temporary differences are expected to be recovered or settled. A valuation allowance for deferred tax assets is recorded when it is more likely than not that some or all of the benefit from the deferred tax asset will not be realized. Recognition of uncertain tax positions is dependent upon whether it is more-likely-than-not that a tax position taken or expected to be taken in a tax return will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. If a tax position meets the more-likely-than-not recognition threshold, it is measured to determine the amount of benefit to recognize in the financial statements based on U.S. GAAP guidance. The Partnership recognizes interest and penalties related to uncertain tax positions in income tax expense. (s) Prepaid Charter Under terms of the time charters and bareboat charters, the customer pays for the month’s charter the first day of each month that is recorded as prepaid charter revenues. (t) Commitments, Contingencies and Insurance Proceeds Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. See Note 19—Commitments and Contingencies. Insurance claims for property damage for recoveries up to the amount of loss recognized are recorded when the claims submitted to insurance carriers are probable of recovery. Claims for property damage in excess of the loss recognized and for loss of hire are considered gain contingencies, which are generally recognized when the proceeds are received. (u) Fair Value Measurements The Partnership utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Partnership determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels: · Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date. · Level 2 Inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. · Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. (v) Recently Adopted Accounting Standards In February 2016, the FASB issued ASU 2016-02, Leases (ASC 842), that amends the accounting guidance on leases for both lessors and lessees. On January 1, 2019, the Partnership adopted the new standard using the optional transition method to apply the new standard at the transition date of January 1, 2019 with no retrospective adjustments to prior periods. Consequently, the accounting and disclosures for the prior periods continue to be presented in accordance with the previous standard for leases The Partnership elected the package of practical expedients and has not reassessed whether any expired or existing contracts are, or contain leases, not reassessed lease classifications, and not reassessed initial direct costs for any existing leases. Additionally, the practical expedient of disregarding short-term leases for agreements with lease terms of 12 months or less and the practical expedient of not separating lease components from nonlease components for all leases where the Partnership is the lessee were adopted as accounting policies for all underlying assets. The practical expedient of not separating lease components from nonlease components has not been adopted for leases where the Partnership is the lessor. There were no changes to the timing or amount of revenue recognized, and therefore, no cumulative effect adjustment to retained earnings of initially applying the standard related to the lessor accounting. Additional qualitative and quantitative disclosures are required and have been implemented for reporting periods beginning as of January 1, 2019, while prior periods are not adjusted and continue to be reported under the previous accounting standards. See Note 6—Operating Leases. Adoption of the new standard resulted in recording a right-of-use asset and a lease liability on the consolidated balance sheet for operating leases of $2.3 million and $2.3 million, respectively, as of January 1, 2019. There was no cumulative effect adjustment to retained earnings of initially applying the standard related to the lessee accounting. The right-of-use asset and lease liability for operating leases are presented in separate lines on the balance sheets. See Note 6—Operating Leases. There are no other recent accounting pronouncements, whose adoption had a material impact on the consolidated financial statements in the current year. (w) New Accounting Standards Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments–Credit Losses: Measurement of Credit Losses on Financial Instruments (or ASU 2016-13). ASU 2016-13 replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This update is effective for the Partnership from January 1, 2020, with a modified-retrospective approach. The adoption of ASU 2016-13 is not expected to have material impact on the consolidated financial statements. Recently issued accounting pronouncements are not expected to materially impact the Partnership.

Formation Transactions and Init

Formation Transactions and Initial Public Offering	12 Months Ended
	Dec. 31, 2019
Formation Transactions and Initial Public Offering
Formation Transactions and Initial Public Offering	3) Formation Transactions and Initial Public Offering During April 2013, the following transactions occurred in connection with KNOT’s transfer of the interests in KNOT Shuttle Tankers AS and the subsequent IPO: Capital Contribution (i) KNOT contributed to the Partnership’s subsidiary KNOT Offshore Partners UK LLC (“KNOT UK”) its 100% interest in KNOT Shuttle Tankers AS, which directly or indirectly owned (1) Knutsen Shuttle Tankers XII KS, the owner of the Recife Knutsen and the Fortaleza Knutsen , (2) Knutsen Shuttle Tankers XII AS, the general partner of Knutsen Shuttle Tankers XII KS, and (3) the Windsor Knutsen and the Bodil Knutsen and all of their related charters, inventory and long-term debt. This was accounted for as a capital contribution by KNOT to the Partnership. Recapitalization of the Partnership (ii) The Partnership issued to KNOT 8,567,500 subordinated units, representing a 49.0% limited partner interest in the Partnership, and 100% of the incentive distribution rights (“IDRs”), which entitle KNOT to increasing percentages of the cash the Partnership distributes in excess of $0.43125 per unit per quarter. (iii) The Partnership issued 349,694 general partner units to the General Partner representing a 2.0% general partner interest in the Partnership. Initial Public Offering (iv) In connection with the IPO, the Partnership issued and sold to the public, through the underwriters, 8,567,500 common units (including 1,117,500 common units sold pursuant to the full exercise of the underwriters’ option to purchase additional units), representing a 49.0% limited partner interest in the Partnership. The price per common unit in the IPO was $21.00. The Partnership received gross proceeds of approximately $179.9 million in connection with the IPO. Expenses relating to the IPO, including, among other things, incremental costs directly attributable to the IPO, were deferred and charged against the gross proceeds of the IPO, whereas other costs were expensed as incurred. The net proceeds of the IPO (approximately $160.7 million, after deducting underwriting discounts, commissions and structuring fees and offering expenses payable by the Partnership) were used by the Partnership to make a cash distribution to KNOT of approximately $21.95 million (which equals net proceeds from the underwriters’ option exercised in full after deducting the underwriting discounts and commissions), to repay approximately $118.9 million of outstanding debt and pre-fund approximately $3.0 million of the Partnership’s one-time entrance tax into the Norwegian tonnage tax regime. The remainder of the net proceeds was made available for general partnership purposes. Agreements In connection with the IPO, at or prior to the closing of the IPO, the Partnership entered into several agreements, including: · An Administrative Services Agreement with KNOT UK, pursuant to which: · KNOT UK agreed to provide to the Partnership administrative services; and · KNOT UK is permitted to subcontract certain of the administrative services provided under the administrative services agreement to Knutsen OAS (UK) Ltd. (“KOAS UK”) and Knutsen OAS Shipping AS (“KOAS”), both wholly owned subsidiaries of TS Shipping Invest AS (“TSSI”); · Amended Technical Management Agreements with KNOT Management AS (“KNOT Management”), a wholly owned subsidiary of KNOT, that govern the crew, technical and commercial management of the vessels in the fleet; · A Contribution and Sale Agreement with KNOT pursuant to which the Partnership acquired the entities that comprised its initial fleet; · Amendments to certain of the Partnership’s existing vessel financing agreements to permit the transactions pursuant to which the Partnership acquired its initial fleet in connection with the IPO and to include a $20.0 million revolving credit facility; and · An Omnibus Agreement with KNOT, the General Partner and the other parties thereto governing, among other things: · To what extent the Partnership and KNOT may compete with each other; · The Partnership’s option to purchase the Carmen Knutsen, the Hilda Knutsen , the Torill Knutsen , the Ingrid Knutsen and the Raquel Knutsen from KNOT; · Certain rights of first offer on shuttle tankers operating under charters of five or more years; · The provision of certain indemnities to the Partnership by KNOT; and · KNOT’s guarantee of the payment of the hire rate under the existing Bodil Knutsen and Windsor Knutsen charters for a period of five years following the closing date of the IPO.

Subsidiaries

Subsidiaries	12 Months Ended
	Dec. 31, 2019
Subsidiaries
Subsidiaries	4) Subsidiaries The following table lists the Partnership’s subsidiaries and their purpose as of December 31, 2019. Company Name Jurisdiction of Formation Purpose KNOT Offshore Partners UK LLC Marshall Islands Holding Company KNOT Shuttle Tankers AS Norway Holding Company KNOT Shuttle Tankers 12 AS Norway Majority owner of Knutsen Shuttle Tankers XII KS KNOT Shuttle Tankers 17 AS Norway Owner of the Bodil Knutsen KNOT Shuttle Tankers 18 AS Norway Owner of the Windsor Knutsen Knutsen Shuttle Tankers XII KS Norway Owner of the Fortaleza Knutsen and the Recife Knutsen Knutsen Shuttle Tankers XII AS Norway General partner of Knutsen Shuttle Tankers XII KS Knutsen Shuttle Tankers 13 AS Norway Owner of the Carmen Knutsen Knutsen Shuttle Tankers 14 AS Norway Owner of the Hilda Knutsen Knutsen Shuttle Tankers 15 AS Norway Owner of the Torill Knutsen KNOT Shuttle Tankers 20 AS Norway Owner of the Dan Cisne KNOT Shuttle Tankers 21 AS Norway Owner of the Dan Sabia Knutsen NYK Shuttle Tankers 16 AS Norway Owner of the Ingrid Knutsen Knutsen Shuttle Tankers 19 AS Norway Owner of the Raquel Knutsen KNOT Shuttle Tankers 24 AS Norway Owner of the Tordis Knutsen KNOT Shuttle Tankers 25 AS Norway Owner of the Vigdis Knutsen KNOT Shuttle Tankers 26 AS Norway Owner of the Lena Knutsen KNOT Shuttle Tankers 32 AS Norway Owner of the Brasil Knutsen KNOT Shuttle Tankers 30 AS Norway Owner of the Anna Knutsen

Significant Risks and Uncertain

Significant Risks and Uncertainties Including Business and Credit Concentrations	12 Months Ended
	Dec. 31, 2019
Significant Risks and Uncertainties Including Business and Credit Concentrations
Significant Risks and Uncertainties Including Business and Credit Concentrations	5) Significant Risks and Uncertainties Including Business and Credit Concentrations Each of the Vessels is employed under long-term fixed rate charters, which mitigates earnings risk. The Partnership’s operational results are dependent on the worldwide market for shuttle tankers and timing of entrance into long-term charters. Market conditions for shipping activities are typically volatile, and, as a consequence, the hire rates may vary from year to year. The market is mainly dependent upon two factors: the supply of vessels and the overall growth in the world economy. The general supply of vessels is impacted by the combination of newbuilds, demolition activity of older vessels and legislation that limits the use of older vessels or new standards for vessels used in specific trades. As of December 31, 2019, all of the Partnership’s Vessel crews, which are employed through KOAS were represented by collective bargaining agreements that are renegotiated annually, or bi-annually. The Partnership did not incur any loss relating to its customers during the years ended December 31, 2019, 2018 and 2017. The following table presents time charter and bareboat revenues and percentage of revenues for customers that accounted for more than 10% of the Partnership’s revenues during the years ended December 31, 2019, 2018 and 2017. All of these customers are subsidiaries of major international oil companies. Year Ended December 31, (U.S. Dollars in thousands) 2019 2018 2017 Eni Trading and Shipping S.p.A. $ 44,610 16 % $ 43,955 16 % $ 46,441 22 % Fronape International Company, a subsidiary of Petrobras Transporte S.A. 45,116 16 % 45,115 17 % 45,115 21 % Equinor Shipping Inc, a subsidiary of Equinor ASA 20,728 7 % 23,426 8 % 23,189 11 % Repsol Sinopec Brasil, B.V., a subsidiary of Repsol Sinopec Brasil, S.A. 36,346 13 % 36,978 13 % 28,129 13 % Brazil Shipping I Limited, a subsidiary of Royal Dutch Shell 66,199 23 % 81,816 29 % 51,259 24 % Galp Sinopec Brasil Services BV 35,541 13 % 30,029 11 % 734 1 % The Partnership has financial assets that expose it to credit risk arising from possible default by a counterparty. The Partnership considers its counterparties to be creditworthy banking and financial institutions and does not expect any significant loss to result from non-performance by such counterparties. The maximum loss due to credit risk that the Partnership would incur if counterparties failed completely to perform would be the carrying value of cash and cash equivalents, and derivative assets. The Partnership, in the normal course of business, does not demand collateral from its counterparties.

Operating Leases

Operating Leases	12 Months Ended
	Dec. 31, 2019
Operating Leases
Operating Leases	6) Operating Leases Revenues The Partnership’s primary source of revenues is chartering its shuttle tankers to its customers. The Partnership uses two types of contracts, time charter contracts and bareboat charter contracts. The Partnership’s time-charter contracts include both a lease component, consisting of the bareboat element of the contract, and non-lease component, consisting of operation of the vessel for the customers, which includes providing the crewing and other services related to the Vessel's operations, the cost of which is included in the daily hire rate, except when off hire. The following table presents the Partnership's revenues by time charter and bareboat charters and other revenues for the years ended December 31, 2019, 2018 and 2017: Year Ended December 31, (U.S. Dollars in thousands) 2019 2018 2017 Time charter revenues (service element included) $ 237,387 $ 233,076 $ 167,386 Bareboat revenues 45,115 45,115 45,115 Other revenues (loss of hire insurance recoveries and other income) 59 1,265 6,702 Total revenues $ 282,561 $ 279,456 $ 219,203 As a result of the revised guidance on leasing, the lessor accounting did not change. See Note 2(l)—Right-of-use assets and lease liabilities. As of December 31, 2019, the minimum contractual future revenues to be received from time charters and bareboat charters during the next five years and thereafter are as follows (service element of the time charter included): (U.S. Dollars in thousands) 2020 $ 272,166 2021 226,557 2022 149,350 2023 63,918 2024 20,093 2025 8,581 Total $ 740,665 The minimum contractual future revenues should not be construed to reflect total charter hire revenues for any of the years. Minimum contractual future revenues are calculated based on certain assumptions such as operating days per year. In addition, minimum contractual future revenues presented in the table above have not been reduced by estimated off-hire time for periodic maintenance. The amounts may vary given unscheduled future events such as vessel maintenance. The Partnership’s fleet as of December 31, 2019 consisted of: · the Fortaleza Knutsen , a shuttle tanker built in 2011 that is currently operating under a bareboat charter that expires in March 2023 with Fronape International Company, a subsidiary of Petrobras Transporte S.A. (“Transpetro”); · the Recife Knutsen , a shuttle tanker built in 2011 that is currently operating under a bareboat charter that expires in August 2023 with Transpetro; · the Bodil Knutsen , a shuttle tanker built in 2011 that is currently operating under a time charter that expires in May 2021 with Equinor Shipping Inc. A subsidiary of Equinor ASA, with options to extend until May 2024; · the Windsor Knutsen , a conventional oil tanker built in 2007 and retrofitted to a shuttle tanker in 2011. The vessel operated under a time charter with Brazil Shipping I Limited, a subsidiary of Shell, until July 2014. From July 2014 until October 2015, the vessel was employed under a time charter with KNOT. Beginning in October 2015, the vessel commenced operations under a two-year time charter with Brazil Shipping I Limited, with options to extend until 2023. In March 2019, the time charter contract was suspended until April 2020. During the suspension period, the Windsor Knutsen is operating under a time charter contract with Knutsen Shuttle Tankers Pool AS on the same terms as the existing contract with Shell. As a result of the suspension period, Shell has options to extend the time charter until October 2024. On July 16, 2019, Shell exercised its option to extend the time charter of the Windsor Knutsen by one additional year until October 2020; · the Carmen Knutsen , a shuttle tanker built in 2013 that is currently operating under a time charter that expires in January 2023, with Repsol Sinopec Brasil, B.V. a subsidiary of Repsol Sinopec Brasil, S.A. (“Repsol”), with options to extend until January 2026; · the Hilda Knutsen , a shuttle tanker built in 2013 that is currently operating under a time charter that expires in August 2022 with Eni Trading and Shipping S.p.A. (“ENI”), with options to extend until August 2025; · the Torill Knutsen , a shuttle tanker built in 2013 that is currently operating under a time charter that expires in November 2020 with ENI, with options to extend until November 2023; · the Dan Cisne , a shuttle tanker built in 2011 that is currently operating under a bareboat charter that expires in September 2023 with Transpetro; · the Dan Sabia , a shuttle tanker built in 2012 that is currently operating under a bareboat charter that expires in January 2024 with Transpetro; · the Ingrid Knutsen , a shuttle tanker built in 2013 that is currently operating under a time charter that expires in February 2024 with Vår Energi Marine AS, a Norwegian subsidiary of Vår Energi ("Vår"), with options to extend until February 2029; · the Raquel Knutsen , a shuttle tanker built in 2015 that is currently operating under a time charter that expires in June 2025 with Repsol, with options to extend until June 2030; · the Tordis Knutsen , a shuttle tanker built in 2016 that is currently operating under a time charter that expires in January 2022 with a subsidiary of Shell, with options to extend until January 2032; · the Vigdis Knutsen , a shuttle tanker built in 2017 that is currently operating under a time charter that expires in the second quarter of 2022 with a subsidiary of Shell, with options to extend until the second quarter of 2032; · the Lena Knutsen , a shuttle tanker built in 2017 that is currently operating under a time charter that expires in the third quarter of 2022 with a subsidiary of Shell, with options to extend until the third quarter of 2032; · the Brasil Knutsen , a shuttle tanker built in 2013 that is currently operating under a time charter that expires in the third quarter of 2022 with Galp Sinopec Brazil Services B.V. (“Galp”), with options to extend until the third quarter of 2028; and · The Anna Knutsen , a shuttle tanker built in 2017 that is currently operating under a time charter that expires in the first quarter of 2022 with Galp, with options to extend until the first quarter of 2028. Lease obligations The Partnership does not have any material leased assets but has some leased equipment on operational leases on the various ships operating on time charter contracts. Consequently, adoption of the new standard resulted in recording a right-of-use asset and a lease liability on the consolidated balance sheet for operating leases of $2.3 million as of January 1, 2019. There was no cumulative effect adjustment to retained earnings of initially applying the standard related to the lessee accounting. As of December 31, 2019, the right-of-use asset and lease liability for operating leases was $1.8 million and are presented as separate line items on the balance sheets. The operating lease cost and corresponding cash flow effect for 2019 was $0.6 million. As of December 31, 2019, the weighted average discount rate for the operating leases was 4.8% and was determined using the expected incremental borrowing rate for a loan facility of similar term. As of December 31, 2019, the weighted average remaining lease term is 3.0 years. A maturity analysis of the Partnership’s lease liabilities from leased-in equipment as of December 31, 2019 is as follows: (U.S. Dollars in thousands) 2020 $ 644 2021 644 2022 644 Total $ 1,932 Less imputed interest 133 Carrying value of operating lease liabilities $ 1,799

Segment Information

Segment Information	12 Months Ended
	Dec. 31, 2019
Segment Information
Segment Information	7) Segment Information The Partnership has not presented segment information as it considers its operations to occur in one reportable segment, the shuttle tanker market. At December 31, 2018 and 2019, the Partnership’s fleet operated under twelve time charters and four bareboat charters and at December 31, 2017, the Partnership’s fleet operated under eleven time charters and four bareboat charters. See Note 5—Significant Risks and Uncertainties Including Business and Credit Concentrations for revenues from customers accounting for over 10% of the Partnership’s consolidated revenue. In both time charters and bareboat charters, the charterer, not the Partnership, controls the choice of which trading areas the Vessels will serve. Accordingly, the Partnership’s management, including the chief operating decision makers, does not evaluate performance according to geographical region.

Insurance Proceeds

Insurance Proceeds	12 Months Ended
	Dec. 31, 2019
Insurance Proceeds
Insurance Proceeds	8) Insurance Proceeds Raquel Knutsen In February 2017, the Raquel Knutsen damaged its propeller hub. As a result, the Vessel was off-hire from February 22, 2017 to May 15, 2017 for repairs. Under the Partnership’s loss of hire policies, its insurer will pay the Partnership the hire rate agreed in respect of each vessel for each day, in excess of 14 deductible days, for the time that the Vessel is out of service as a result of damage, for a maximum of 180 days. For the year ended December 31, 2017, the Partnership received payments for loss of hire insurance of $3.4 million which was recorded as a component of total revenues since day rates are recovered under terms of the policy. In addition, for the year ended December 31, 2017, the Partnership recorded $3.9 million for recoveries up to the amount of loss under hull and machinery insurance for the repairs as a result of the propeller hub damage to the Raquel Knutsen . This is classified under vessel operating expense along with cost of the repairs of $4.2 million for the period, resulting in a net expense of $0.3 million. See Note 19—Commitments and Contingencies. Carmen Knutsen During the fourth quarter of 2017, the Carmen Knutsen undertook her 5‑year special drydocking survey. During dismantling for overhaul, a technical default with her controllable pitch propeller was found. As a result, the Vessel went to a different yard to complete the repair. Repairs were completed and the Vessel was back on hire on January 1, 2018. The additional off-hire and technical costs were subject to an insurance claim. Under its loss of hire insurance policies, the Partnership’s insurer is expected to pay the hire rate agreed in respect of the Carmen Knutsen for each day in excess of 14 deductible days while the Vessel was off-hire as a result of the repairs of the controllable pitch propeller. For the years ended December 31, 2018 and 2017, the Partnership recorded $0.45 million and $1.75 million, respectively, for loss of hire which were recorded as a component of total revenues since day rates are recovered under the terms of the policy. For the year ended December 31, 2017, the Partnership recorded $2.40 million to vessel operating expense as an estimate of the cost of repairs of the controllable pitch propeller. During 2018, an additional repair cost of $0.15 million was recorded to vessel operating expenses. As of December 31, 2018, the Partnership had received payments and recorded $2.25 million for hull and machinery repairs, resulting in a net expense of $0.30 million. See Note 19— Commitments and Contingencies.

Other Finance Expenses

Other Finance Expenses	12 Months Ended
	Dec. 31, 2019
Other Finance Expenses
Other Finance Expenses	9) Other Finance Expenses (a) Interest Expense The following table presents the components of interest cost as reported in the consolidated statements of operations for the years ended December 31, 2019, 2018 and 2017: Year Ended December 31, (U.S. Dollars in thousands) 2019 2018 2017 Interest expense $ 48,118 $ 46,768 $ 28,977 Amortization of debt issuance cost and fair value of debt assumed 2,617 3,188 1,737 Total interest cost $ 50,735 $ 49,956 $ 30,714 (b) Other Finance Expense The following table presents the components of other finance expense for the years ended December 31, 2019, 2018 and 2017: Year Ended December 31, (U.S. Dollars in thousands) 2019 2018 2017 Bank fees, charges $ 597 $ 551 $ 516 Guarantee costs — 403 621 Commitment fees 248 306 269 Total other finance expense $ 845 $ 1,260 $ 1,406

Derivative Instruments

Derivative Instruments	12 Months Ended
	Dec. 31, 2019
Derivative Instruments
Derivative Instruments	10) Derivative Instruments Interest Rate Risk Management The consolidated financial statements include the results of interest rate swap contracts to manage the Partnership’s exposure related to changes in interest rates on its variable rate debt instruments and the results of foreign exchange forward contracts to manage its exposure related to changes in currency exchange rates on its operating expenses, mainly crew expenses, in currency other than the U.S. Dollar and on its contract obligations. The Partnership does not apply hedge accounting for derivative instruments. The Partnership does not speculate using derivative instruments. By using derivative financial instruments to economically hedge exposures to changes in interest rates, the Partnership exposes itself to credit risk and market risk. Derivative instruments that economically hedge exposures are used for risk management purposes, but these instruments are not designated as hedges for accounting purposes. Credit risk is the failure of the counterparty to perform under the terms of the derivative instrument. When the fair value of a derivative instrument is positive, the counterparty owes the Partnership, which creates credit risk for the Partnership. When the fair value of a derivative instrument is negative, the Partnership owes the counterparty, and, therefore, the Partnership is not exposed to the counterparty’s credit risk in those circumstances. The Partnership minimizes counterparty credit risk in derivative instruments by entering into transactions with major banking and financial institutions. The derivative instruments entered into by the Partnership do not contain credit risk-related contingent features. The Partnership has not entered into master netting agreements with the counterparties to its derivative financial instrument contracts. Market risk is the adverse effect on the value of a derivative instrument that results from a change in interest rates, currency exchange rates or commodity prices. The market risk associated with interest rate contracts is managed by establishing and monitoring parameters that limit the types and degree of market risk that may be undertaken. The Partnership assesses interest rate risk by monitoring changes in interest rate exposures that may adversely impact expected future cash flows and by evaluating economical hedging opportunities. The Partnership has historically used variable interest rate mortgage debt to finance its vessels. The variable interest rate mortgage debt obligations expose the Partnership to variability in interest payments due to changes in interest rates. The Partnership believes that it is prudent to limit the variability of a portion of its interest payments. To meet this objective, the Partnership entered into London Interbank Offered Rate (“LIBOR”) based interest rate swap contracts to manage fluctuations in cash flows resulting from changes in the benchmark interest rate of LIBOR. These swaps change the variable rate cash flow exposure on the mortgage debt obligations to fixed cash flows. Under the terms of the interest rate swap contracts, the Partnership receives LIBOR-based variable interest rate payments and makes fixed interest rate payments, thereby creating the equivalent of fixed rate debt for the notional amount of its debt hedged. As of December 31, 2019 and 2018, the total notional amount of the Partnership’s outstanding interest rate swap contracts that were entered into in order to hedge outstanding or forecasted debt obligations were $561.8 million and $555.5 million, respectively. As of December 31, 2019 and 2018 the carrying amount of the interest rate swaps contracts were net liability of $4.7 million and net assets of $15.9 million, respectively. See Note 11—Fair Value Measurements. Changes in the fair value of interest rate swap contracts are reported in realized and unrealized gain (loss) on derivative instruments in the same period in which the related interest affects earnings. The Partnership and its subsidiaries utilize the U.S. Dollar as their functional and reporting currency, because all of their revenues and the majority of their expenditures, including the majority of their investments in vessels and their financing transactions, are denominated in U.S. Dollars. Payment obligations in currencies other than the U.S. Dollar, and in particular operating expenses in NOK, expose the Partnership to variability in currency exchange rates. The Partnership believes that it is prudent to limit the variability of a portion of its currency exchange exposure. To meet this objective, the Partnership entered into foreign exchange forward contracts to manage fluctuations in cash flows resulting from changes in the exchange rates towards the U.S. Dollar. The agreements change the variable exchange rate to fixed exchange rates at agreed dates. As of December 31, 2019 and 2018, the total contract amount in foreign currency of the Partnership’s outstanding foreign exchange forward contracts that were entered into to economically hedge outstanding future payments in currencies other than the U.S. Dollar were NOK 46.1 million and NOK 244.2 million, respectively. As of December 31, 2019 and 2018, the carrying amount of the Partnership’s foreign exchange forward contracts was a net asset of $0.2 million and a net liability of $1.7 million, respectively. See Note 11—Fair Value Measurements. The following table presents the realized and unrealized gains and losses that are recognized in earnings as net gain (loss) on derivative instruments for the years ended December 31, 2019, 2018 and 2017: Year Ended December 31, (U.S. Dollars in thousands) 2019 2018 2017 Realized gain (loss): Interest rate swap contracts $ 3,812 $ 1,180 $ (2,840) Foreign exchange forward contracts (2,933) 1,084 280 Total realized gain (loss): 879 2,264 (2,560) Unrealized gain (loss): Interest rate swap contracts (20,663) 4,429 5,514 Foreign exchange forward contracts 1,987 (2,654) 1,877 Total unrealized gain (loss): (18,676) 1,775 7,391 Total realized and unrealized gain (loss) on derivative instruments: $ (17,797) $ 4,039 $ 4,831

Fair Value Measurements

Fair Value Measurements	12 Months Ended
	Dec. 31, 2019
Fair Value Measurements
Fair Value Measurements	11) Fair Value Measurements (a) Fair Value of Financial Instruments The following table presents the carrying amounts and estimated fair values of the Partnership’s financial instruments as of December 31, 2019 and 2018. Fair value is defined as the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. December 31, 2019 December 31, 2018 Carrying Fair Carrying Fair (U.S. Dollars in thousands) Amount Value Amount Value Financial assets: Cash and cash equivalents $ 43,525 $ 43,525 $ 41,712 $ 41,712 Current derivative assets: Interest rate swap contracts 674 674 4,621 4,621 Foreign exchange forward contracts 246 246 — — Non-current derivative assets: Interest rate swap contracts 648 648 11,667 11,667 Financial liabilities: Current derivative liabilities: Interest rate swap contracts 910 910 — — Foreign exchange forward contracts — — 1,740 1,740 Non-current derivative liabilities: Interest rate swap contracts 5,133 5,133 345 345 Long-term debt, current and non-current 1,002,813 1,002,813 1,087,347 1,087,347 The carrying amounts shown in the table above are included in the consolidated balance sheets under the indicated captions. Carrying amount of long-term debt, current and non-current, above excludes capitalized debt issuance cost of $7.4 million and $10.1 million as of December 31, 2019 and 2018, respectively. The carrying value of trade accounts receivable, trade accounts payable and receivables/payables to owners and affiliates approximate their fair value. The fair values of the financial instruments shown in the above table as of December 31, 2019 and 2018 represent the amounts that would be received to sell those assets or that would be paid to transfer those liabilities in an orderly transaction between market participants at that date. Those fair value measurements maximize the use of observable inputs. However, in situations where there is little, if any, market activity for the asset or liability at the measurement date, the fair value measurement reflects the Partnership’s own judgment about the assumptions that market participants would use in pricing the asset or liability. Those judgments are developed by the Partnership based on the best information available in the circumstances, including expected cash flows, appropriately risk-adjusted discount rates and available observable and unobservable inputs. The following methods and assumptions were used to estimate the fair value of each class of financial instruments: · Cash and cash equivalents and restricted cash: The fair value of the Partnership’s cash balances approximates the carrying amounts due to the current nature of the amounts. As of December 31, 2019 and 2018 there is no restricted cash. · Foreign exchange forward contracts: The fair value is calculated using mid-rates (excluding margins) as determined by counterparties based on available market rates as of the balance sheet date. The fair value is discounted from the value at expiration to the current value of the contracts. · Interest rate swap contracts: The fair value of interest rate swap contracts is determined using an income approach using the following significant inputs: (1) the term of the swap contract (weighted average of 4.0 years and 4.9 years, as of December 31, 2019 and 2018, respectively), (2) the notional amount of the swap contract (ranging from $8.5 million to $50.0 million as of December 31, 2019 and ranging from $10.0 million to $50.0 million as of December 31, 2018), discount rates interpolated based on relevant LIBOR swap curves; and (3) the rate on the fixed leg of the swap contract (rates ranging from 1.38% to 2.90% for the contracts as of December 31, 2019 and rates ranging from 1.38% to 2.90% for the contracts as of December 31, 2018). · Long-term debt: With respect to long-term debt measurements, the Partnership uses market interest rates and adjusts for risks such as its own credit risk. In determining an appropriate spread to reflect its credit standing, the Partnership considered interest rates currently offered to KNOT for similar debt instruments of comparable maturities by KNOT’s and the Partnership’s bankers as well as other banks that regularly compete to provide financing to the Partnership. (b) Fair Value Hierarchy The following table presents the placement in the fair value hierarchy of assets and liabilities that are measured at fair value on a recurring basis (including items that are required to be measured at fair value or for which fair value is required to be disclosed) as of December 31, 2019 and 2018: Fair Value Measurements at Reporting Date Using Quoted Price in Active Significant Carrying Markets for Other Significant Value Identical Observable Unobservable December 31, Assets Inputs Inputs (U.S. Dollars in thousands) 2019 (Level 1) (Level 2) (Level 3) Financial assets: Cash and cash equivalents $ 43,525 $ 43,525 $ — $ — Current derivative assets: Interest rate swap contracts 674 — 674 — Foreign exchange forward contracts 246 — 246 — Non-current derivative assets: Interest rate swap contracts 648 — 648 — Foreign exchange forward contracts — — — — Financial liabilities: Current derivative liabilities: Interest rate swap contracts 910 — 910 — Foreign exchange forward contracts — — — — Non-current derivative liabilities: Interest rate swap contracts 5,133 — 5,133 — Foreign exchange forward contracts — — — — Long-term debt, current and non-current 1,002,813 — 1,002,813 — Fair Value Measurements at Reporting Date Using Quoted Price in Active Significant Carrying Markets for Other Significant Value Identical Observable Unobservable December 31, Assets Inputs Inputs (U.S. Dollars in thousands) 2018 (Level 1) (Level 2) (Level 3) Financial assets: Cash and cash equivalents $ 41,712 $ 41,712 $ — $ — Current derivative assets: Interest rate swap contracts 4,621 — 4,621 — Foreign exchange forward contracts — — — — Non-current derivative assets: Interest rate swap contracts 11,667 — 11,667 — Foreign exchange forward contracts — — — — Financial liabilities: Current derivative liabilities: Interest rate swap contracts — — — — Foreign exchange forward contracts 1,740 — 1,740 — Non-current derivative liabilities: Interest rate swap contracts 345 — 345 — Foreign exchange forward contracts — — — — Long-term debt, current and non-current 1,087,347 — 1,087,347 — The Partnership’s accounting policy is to recognize transfers between levels of the fair value hierarchy on the date of the event or change in circumstances that caused the transfer. There were no transfers into or out of Level 1, Level 2 or Level 3 as of December 31, 2019 and 2018.

Trade Accounts Receivables and

Trade Accounts Receivables and Other Current Assets	12 Months Ended
	Dec. 31, 2019
Trade Accounts Receivables and Other Current Assets
Trade Accounts Receivables and Other Current Assets	12) Trade Accounts Receivables and Other Current Assets (a) Trade Accounts Receivables Trade accounts receivable are presented net of provisions for doubtful accounts. As of December 31, 2019 and 2018, there was no provision for doubtful accounts. (b) Other Current Assets Other current assets consist of the following: Year Ended December 31, (U.S. Dollars in thousands) 2019 2018 Refund of value added tax $ 1,429 $ 899 Prepaid expenses 1,014 810 Other receivables 943 753 Total other current assets $ 3,386 $ 2,462

Vessels and Equipment

Vessels and Equipment	12 Months Ended
	Dec. 31, 2019
Vessels and Equipment
Vessels and Equipment	13) Vessels and Equipment As of December 31, 2019 and 2018, Vessels with a book value of $1,677 million and $1,767 million, respectively, are pledged as security for the Partnership’s long-term debt. See Note 16—Long-Term Debt. Vessels & Accumulated (U.S. Dollars in thousands) equipment depreciation Net Vessels Vessels, December 31, 2017 $ 2,003,341 $ (280,318) $ 1,723,023 Additions 118,063 — 118,063 Drydock costs 14,750 — 14,750 Disposals (5,731) 5,731 — Depreciation for the year — (88,756) (88,756) Vessels, December 31, 2018 $ 2,130,423 $ (363,343) $ 1,767,080 Additions — — — Drydock costs 252 — 252 Disposals (1,663) 1,663 — Depreciation for the period — (89,844) (89,844) Vessels, December 31, 2019 $ 2,129,012 $ (451,524) $ 1,677,488 Drydocking activity for the years ended December 31, 2019 and 2018 is summarized as follows: Year Ended December 31, (U.S. Dollars in thousands) 2019 2018 Balance at the beginning of the year $ 25,568 $ 17,748 Costs incurred for dry docking 252 12,421 Costs allocated to drydocking as part of acquistion of business — 2,329 Drydock amortization (7,297) (6,930) Balance at the end of the year $ 18,523 $ 25,568

Intangible Assets and contract

Intangible Assets and contract Liabilities	12 Months Ended
	Dec. 31, 2019
Intangible Assets and Contract Liabilities
Intangible Assets and Contract Liabilities	14) Intangible Assets and Contract Liabilities (a) Intangible Assets Above market Above market time charter time charter Total (U.S. Dollars in thousands) Tordis Knutsen Vigdis Knutsen intangibles Intangibles, December 31, 2017 $ 1,215 $ 1,282 $ 2,497 Additions — — — Amortization for the year (304) (302) (606) Intangibles, December 31, 2018 $ 911 $ 980 $ 1,891 Additions — — — Amortization for the period (303) (302) (605) Intangibles, December 31, 2019 $ 608 $ 678 $ 1,286 The intangible for the above market value of time charter contract associated with the Tordis Knutsen is amortized to time charter revenue on a straight line basis over the remaining term of the contract of approximately 4.8 years as of the acquisition date. The intangible for the above market value of time charter contract associated with the Vigdis Knutsen is amortized to time charter revenue on a straight line basis over the remaining term of the contract of approximately 4.9 years as of the acquisition date. Also see Note 21—Acquisitions. The estimated future amortization of intangible assets at December 31, 2019 is as follows: (U.S. Dollars in thousands) 2020 $ 605 2021 605 2022 75 Total $ 1,286 (b) Contract Liabilities The unfavorable contractual rights for charters associated with Fortaleza Knutsen and Recife Knutsen were obtained in connection with a step acquisition in 2008 that had unfavorable contractual terms relative to market as of acquisition date. The Fortaleza Knutsen and the Recife Knutsen commenced on their 12 years’ fixed bareboat charters in March 2011 and August 2011, respectively. The unfavorable contract rights related to Fortaleza Knutsen and Recife Knutsen are amortized to bareboat revenues on a straight line basis over the 12 years’ contract period that expires in March 2023 and August 2023, respectively. Balance of Amortization for Balance of Amortization for Balance of December 31, the year ended December 31, the year ended December 31, (U.S. Dollars in thousands) 2017 December 31, 2018 2018 December 31, 2019 2019 Contract liabilities: Unfavourable contract rights $ (8,239) $ 1,518 $ (6,721) $ 1,518 $ (5,203) Total amortization income $ 1,518 $ 1,518 Accumulated amortization for contract liabilities was $13,012 and $11,494 as of December 31, 2019 and 2018, respectively. The amortization of contract liabilities that is classified under time charter and bareboat revenues for the next five years is expected to be as follows: (U.S. Dollars in thousands) 2020 2021 2022 2023 Contract liabilities: Unfavourable contract rights $ (1,518) $ (1,518) $ (1,518) $ (649)

Accrued Expenses

Accrued Expenses	12 Months Ended
	Dec. 31, 2019
Accrued Expenses
Accrued Expenses	15) Accrued Expenses The following table presents accrued expenses as of December 31, 2019 and 2018: Year Ended December 31, (U.S. Dollars in thousands) 2019 2018 Operating expenses $ 855 $ 832 Interest expenses 4,049 4,968 Other expenses 1,713 664 Total accrued expenses $ 6,617 $ 6,464

Long-Term Debt

Long-Term Debt	12 Months Ended
	Dec. 31, 2019
Long-Term Debt
Long-Term Debt	16) Long-Term Debt Long-term debt as of December 31, 2019 and 2018, consisted of the following: December 31, December 31, (U.S. Dollars in thousands) Vessel 2019 2018 $320 million loan facility Windsor Knutsen, Bodil Knutsen, Carmen Knutsen, Fortaleza Knutsen, Recife Knutsen, Ingrid Knutsen $ 282,360 $ 312,472 $55 million revolving credit facility 26,279 26,279 Hilda loan facility Hilda Knutsen 84,615 90,769 Torill loan facility Torill Knutsen 88,333 95,000 $172.5 million loan facility Dan Cisne, Dan Sabia 70,739 81,839 Raquel loan facility Raquel Knutsen 57,955 63,184 Tordis loan facility Tordis Knutsen 80,931 85,991 Vigdis loan facility Vigdis Knutsen 82,196 87,256 Lena loan facility Lena Knutsen 80,850 85,750 Brasil loan facility Brasil Knutsen 57,281 63,454 Anna loan facility Anna Knutsen 66,274 70,353 $25 million revolving credit facility 25,000 25,000 Total long-term debt $ 1,002,813 $ 1,087,347 Less: current installments 85,945 109,534 Less: unamortized deferred loan issuance costs 2,492 2,608 Current portion of long-term debt 83,453 106,926 Amounts due after one year 916,868 977,813 Less: unamortized deferred loan issuance costs 4,925 7,448 Long-term debt, less current installments, and unamortized deferred loan issuance costs $ 911,943 $ 970,365 The Partnership’s outstanding debt of $1,002.8 million as of December 31, 2019 is repayable as follows : (U.S. Dollars in thousands) Period repayment Balloon repayment 2020 $ 85,945 $ — 2021 86,545 95,811 2022 71,210 236,509 2023 55,535 202,185 2024 13,873 123,393 2025 and thereafter 1,307 30,500 Total $ 314,415 $ 688,398 As of December 31, 2019, the interest rates on the Partnership’s loan agreements were LIBOR plus a fixed margin ranging from 1.8% to 2.4%. $320 Million Term Loan Facility and $55 Million Revolving Credit Facility In September 2018, the Partnership’s subsidiaries which own the Windsor Knutsen , the Bodil Knutsen , the Fortaleza Knutsen , the Recife Knutsen , the Carmen Knutsen and the Ingrid Knutsen (“the Vessels”), entered into new senior secured credit facilities (the “Multi-vessels Facility”) in order to refinance their existing long term bank debt. The Multi-vessels Facility consists of a term loan of $320 million and a $55 million revolving credit facility. The term loan is repayable in 20 consecutive quarterly installments, with a final payment at maturity in September 2023 of $177 million, which includes the balloon payment and last quarterly installment. The term loan bears interest at a rate per annum equal to LIBOR plus a margin of 2.125%. The revolving credit facility will mature in September 2023, and bears interest at LIBOR plus a margin of 2.125%. There is a commitment fee of 0.85% payable on the undrawn portion of the revolving credit facility. The loans are guaranteed by the Partnership and secured by mortgages on the Vessels. The Multi-vessels Facility refinanced the $220 million facility, the $35 million revolving credit facility, the Fortaleza and Recife loan facility and the Ingrid loan facility. The Vessels, assignments of earnings, charterparty contracts and insurance proceeds are pledged as collateral for the Multi-vessel facility. The Partnership and the borrowers (except for the Partnership subsidiary that owns the Recife Knutsen and the Fortaleza Knutsen) are guarantors, and the Multi-vessels Facility is secured by vessel mortgages on the Windsor Knutsen , the Bodil Knutsen , the Fortaleza Knutsen , the Recife Knutsen , the Carmen Knutsen and the Ingrid Knutsen. The Multi-vessels Facility contains the following financial covenants: · The aggregate market value of the Vessels shall not be less than 125% of the outstanding balance under the Multi-vessels Facility; · Positive working capital of the borrowers and the Partnership; · Minimum liquidity of the Partnership of $15 million plus increments of $1.5 million for each owned vessel with less than 12 months remaining tenor on its employment contract up to 8 vessels and $1 million for each owned vessel with less than 12 months remaining tenor on its employment contract up to 12 additional vessels in excess of 8 vessels; · Minimum book equity ratio for the Partnership of 30%; and · Minimum EBITDA to interest ratio for the Partnership of 2.50. The Multi-vessels Facility also identifies various events that may trigger mandatory reduction, prepayment and cancellation of the facility, including total loss or sale of a vessel and customary events of default. As of December 31, 2019, the borrowers and the guarantors were in compliance with all covenants under this facility. Hilda Loan Facility In May 2017, the Partnership’s subsidiary, Knutsen Shuttle Tankers 14 AS, which owns the vessel Hilda Knutsen , entered into a new $100 million senior secured term loan facility with Mitsubishi UFJ Lease & Finance (Hong Kong) Limited (the “New Hilda Facility”). The New Hilda Facility replaced the $117 million loan facility, which was due to be paid in full in August 2018. The New Hilda Facility is repayable in 28 consecutive quarterly installments with a final payment at maturity of $58.5 million, which includes the balloon payment and last quarterly installment. The New Hilda Facility bears interest at a rate per annum equal to LIBOR plus a margin of 2.2%. The Partnership and KNOT Shuttle Tankers AS are the sole guarantors. The facility matures in May 2024. The Hilda Facility contains the following primary financial covenants: · Market value of the Hilda Knutsen shall not be less than 110% of the outstanding balance under the Hilda Facility for the first two years, 120% for the third and fourth year, and 125% thereafter; · Positive working capital of the borrower and the Partnership; · Minimum liquidity of the Partnership of $15 million plus increments of $1 million for each additional vessel acquired by the Partnership in excess of eight vessels and $1.5 million for each owned vessel with less than 12 months remaining tenor on its employment contract; · Minimum book equity ratio for the Partnership of 30%; and · Minimum EBITDA to interest ratio for the Partnership of 2.50. The Hilda Facility also identifies various events that may trigger mandatory reduction, prepayment and cancellation of the facility, including total loss or sale of a vessel and customary events of default. As of December 31, 2019, the borrower and the guarantors were in compliance with all covenants under this facility. Torill Loan Facility In January 2018, the Partnership’s subsidiary, Knutsen Shuttle Tankers 15 AS, which owns the vessel Torill Knutsen , entered into a new $100 million senior secured term loan facility (the “Torill Facility”) with a consortium of banks, in which The Bank of Tokyo-Mitsubishi UFJ acted as agent. The Torill Facility replaced a $117 million secured loan facility, which was due to be paid in full in October 2018. The Torill Facility is repayable in 24 consecutive quarterly installments with a balloon payment of $60.0 million due at maturity. The Torill Facility bears interest at a rate per annum equal to LIBOR plus a margin of 2.1%. The facility will mature in January 2024 and is guaranteed by the Partnership. The Torill Facility contains the following primary financial covenants: · Market value of the Torill Knutsen shall not be less than 110% of the outstanding balance under the Torill Facility for the first two years, 120% for the third and fourth years, and 125% thereafter; · Positive working capital of the borrower and the Partnership; · Minimum liquidity of the Partnership of $15 million plus increments of $1.5 million for each owned vessel with less than 12 months remaining tenor on its employment contract up to 8 vessels and $1 million for each owned vessel with less than 12 months remaining tenor on its employment contract in excess of 8 vessels; · Minimum book equity ratio for the Partnership of 30%; and · Minimum EBITDA to interest ratio for the Partnership of 2.50. The Torill Facility also identifies various events that may trigger mandatory reduction, prepayment and cancellation of the facility, including total loss or sale of a vessel and customary events of default. As of December 31, 2019, the borrower and the guarantor were in compliance with all covenants under this facility. $172.5 Million Secured Loan Facility In April 2014, KNOT Shuttle Tankers 20 AS and KNOT Shuttle Tankers 21 AS, the subsidiaries owning the Dan Cisne and Dan Sabia , as the borrowers, entered into a $172.5 million senior secured loan facility. In connection with the Partnership’s acquisition of the Dan Cisne , in December 2014, the $172.5 million senior secured loan facility was split into a tranche related to the Dan Cisne (the “Dan Cisne Facility”) and a tranche related to Dan Sabia (the “Dan Sabia Facility”). The Dan Cisne Facility and the Dan Sabia Facility are guaranteed by the Partnership and secured by a vessel mortgage on the Dan Cisne and Dan Sabia . The Dan Cisne Facility and the Dan Sabia Facility bear interest at LIBOR plus a margin of 2.4% and are repayable in semiannual installments with a final balloon payment due at maturity in September 2023 and January 2024, respectively. The Dan Cisne Facility and Dan Sabia Facility contain the following financial covenants: · Market value of each of the Dan Cisne and Dan Sabia shall not be less than 100% of the outstanding balance under the Dan Cisne Facility and Dan Sabia Facility, respectively, for the first three years, and 125% thereafter; · Minimum liquidity of the Partnership of $15 million plus increments of $1 million for each additional vessel acquired by the Partnership in excess of eight vessels and $1.5 million for each owned vessel with less than 12 months remaining tenor on its employment contract; and · Minimum book equity ratio for the Partnership of 30%. The facility also identifies various events that may trigger mandatory reduction, prepayment and cancellation of the facility, including total loss or sale of a vessel and customary events of default. As of December 31, 2019, the borrowers and the guarantor were in compliance with all covenants under this facility. Raquel Loan Facility In December 2014, Knutsen Shuttle Tankers 19 AS, the subsidiary owning the Raquel Knutsen , as the borrower, entered into a secured loan facility in an aggregate amount of $90.0 million (the “Raquel Facility”). The Raquel Facility is repayable in quarterly installments with a final balloon payment of $30.5 million due at maturity in March 2025. The Raquel Facility bears interest at an annual rate equal to LIBOR plus a margin of 2.0%. The facility is secured by a vessel mortgage on the Raquel Knutsen . The Raquel Knutsen , assignments of earnings, charterparty contracts and insurance proceeds are pledged as collateral for the Raquel Facility. The Partnership and KNOT Shuttle Tankers AS are the sole guarantors. The Raquel Facility contains the following financial covenants: · Market value of the Raquel Knutsen shall not be less than 100% of the of the outstanding balance under the Raquel Facility for the first three years, and 125% thereafter; · Minimum liquidity of the Partnership of $15 million plus increments of $1 million for each additional vessel acquired by the Partnership in excess of eight vessels and $1.5 million for each owned vessel with less than 12 months remaining tenor on its employment contract; and · Minimum book equity ratio for the Partnership of 30%. The Raquel Facility also identifies various events that may trigger mandatory reduction, prepayment and cancellation of the facility, including total loss or sale of a vessel and customary events of default. As of December 31, 2019, the borrower and the guarantors were in compliance with all covenants under this facility. Tordis Loan Facility In April 2015, KNOT Shuttle Tankers 24 AS, the subsidiary owning the Tordis Knutsen , as the borrower, entered into a secured loan facility (the “Tordis Facility”). As of the time of the acquisition of the Tordis Knutsen on March 1, 2017, the aggregate amount outstanding under the facility was $114.4 million. The Tordis Facility is repayable in quarterly installments with a final balloon payment of $70.8 million due at maturity in November 2021. The Tordis Facility bears interest at an annual rate equal to LIBOR plus a margin of 1.9%. The facility is secured by a vessel mortgage on the Tordis Knutsen . The Tordis Knutsen , assignments of earnings, charterparty contracts and insurance proceeds are pledged as collateral for the Tordis Facility. The Partnership and KNOT Shuttle Tankers AS are the sole guarantors. The Tordis Facility contains the following financial covenants: · Aggregate market value of the Tordis Knutsen, the Vigdis Knutsen and the Lena Knutsen shall not be less than 130% of the aggregate outstanding balance under the Tordis Facility, the Vigdis Facility and the Lena Facility at any time; · Positive working capital of the borrower and the Partnership; · Minimum liquidity of the Partnership of $15 million plus increments of $1.5 million for each owned vessel with less than 12 months remaining tenor on its employment contract up to 8 vessels and $1 million for each owned vessel with less than 12 months remaining tenor on its employment contract in excess of 8 vessels; · Minimum book equity ratio for the Partnership of 30%; and · Minimum EBITDA to interest ratio for the Partnership of 2.50. The Tordis Facility also identifies various events that may trigger mandatory reduction, prepayment and cancellation of the facility, including total loss or sale of a vessel and customary events of default. As of December 31, 2019, the borrower and the guarantors were in compliance with all covenants under this facility. Vigdis Loan Facility In April 2015, KNOT Shuttle Tankers 25 AS, the subsidiary owning the Vigdis Knutsen, as the borrower, entered into a secured loan facility (the “Vigdis Facility”). The Vigdis Facility is repayable in quarterly installments with a final balloon payment of $70.8 million due at maturity in February 2022. The Vigdis Facility bears interest at an annual rate equal to LIBOR plus a margin of 1.9%. The facility is secured by a vessel mortgage on the Vigdis Knutsen . The Vigdis Knutsen, assignments of earnings, charterparty contracts and insurance proceeds are pledged as collateral for the Vigdis Facility. The Partnership and KNOT Shuttle Tankers AS are the sole guarantors. The Vigdis Facility contains the following financial covenants: · Aggregate market value of the Tordis Knutsen, the Vigdis Knutsen and the Lena Knutsen shall not be less than 130% of the aggregate outstanding balance under the Tordis Facility, the Vigdis Facility and the Lena Facility at any time; · Positive working capital of the borrower and the Partnership; · Minimum liquidity of the Partnership of $15 million plus increments of $1.5 million for each owned vessel with less than 12 months remaining tenor on its employment contract up to 8 vessels and $1 million for each owned vessel with less than 12 months remaining tenor on its employment contract in excess of 8 vessels; · Minimum book equity ratio for the Partnership of 30%; and · Minimum EBITDA to interest ratio for the Partnership of 2.50. The Vigdis Facility also identifies various events that may trigger mandatory reduction, prepayment and cancellation of the facility, including total loss or sale of a vessel and customary events of default. As of December 31, 2019, the borrower and the guarantors were in compliance with all covenants under this facility. Lena Loan Facility In April 2015, KNOT Shuttle Tankers 26 AS, the subsidiary owning the Lena Knutsen , as the borrower, entered into a secured loan facility (the “Lena Facility”). The Lena Facility is repayable in quarterly installments with a final balloon payment of $68.6 million due at maturity in June 2022. The Lena Facility bears interest at an annual rate equal to LIBOR plus a margin of 1.9%. The facility is secured by a vessel mortgage on the Lena Knutsen . The Lena Knutsen , assignments of earnings, charterparty contracts and insurance proceeds are pledged as collateral for the Lena Facility. The Partnership and KNOT Shuttle Tankers AS are the sole guarantors. The Lena Facility contains the following financial covenants: · Aggregate market value of the Tordis Knutsen, the Vigdis Knutsen and the Lena Knutsen shall not be less than 130% of the aggregate outstanding balance under the Tordis Facility, the Vigdis Facility and the Lena Facility at any time; · Positive working capital of the borrower and the Partnership; · Minimum liquidity of the Partnership of $15 million plus increments of $1.5 million for each owned vessel with less than 12 months remaining tenor on its employment contract up to 8 vessels and $1 million for each owned vessel with less than 12 months remaining tenor on its employment contract in excess of 8 vessels; · Minimum book equity ratio for the Partnership of 30%; and · Minimum EBITDA to interest ratio for the Partnership of 2.50. The Lena Facility also identifies various events that may trigger mandatory reduction, prepayment and cancellation of the facility, including total loss or sale of a vessel and customary events of default. As of December 31, 2019, the borrower and the guarantors were in compliance with all covenants under this facility. Brasil Loan Facility In June 2017, KNOT Shuttle Tankers 32 AS, the subsidiary owning the Brasil Knutsen , as the borrower, entered into a secured loan facility (the “Brasil Facility”). The Brasil Facility is repayable in quarterly installments with a final balloon payment of $40.0 million due at maturity in July 2022. The Brasil Facility bears interest at an annual rate equal to LIBOR plus a margin of 2.3%. The facility is secured by a vessel mortgage on the Brasil Knutsen . The Brasil Knutsen , assignments of earnings, charterparty contracts and insurance proceeds are pledged as collateral for the Brasil Facility. The Partnership and KNOT Shuttle Tankers AS are the sole guarantors. The Brasil Facility contains the following financial covenants: · Market value of the Brasil Knutsen shall not be less than 125% of the of the outstanding balance under the Brasil Facility for the first four years, and 135% thereafter; · Positive working capital of the borrower and the Partnership; · Minimum liquidity of the Partnership of $15 million plus increments of $1.5 million for each owned vessel with less than 12 months remaining tenor on its employment contract up to a total of eight (8) vessels and $1 million for each owned vessel with less than 12 months remaining tenor on its employment contract up to a total of twelve (12) vessels; · Minimum book equity ratio for the Partnership of 30%; and · Minimum EBITDA to interest ratio for the Partnership of 2.50. The Brasil Facility also identifies various events that may trigger mandatory reduction, prepayment and cancellation of the facility, including total loss or sale of a vessel and customary events of default. As of December 31, 2019, the borrower and the guarantors were in compliance with all covenants under this facility. Anna Loan Facility In September 2016, KNOT Shuttle Tankers 30 AS, the subsidiary owning the Anna Knutsen , as the borrower, entered into a secured loan facility (the “Anna Facility”). The Anna Facility is repayable in quarterly installments with a final balloon payment of $57.1 million due at maturity in March 2022. The Anna Facility bears interest at an annual rate equal to LIBOR plus a margin of 2.0%. The facility is secured by a vessel mortgage on the Anna Knutsen . The Anna Knutsen , assignments of earnings, charterparty contracts and insurance proceeds are pledged as collateral for the Anna Facility. The Partnership and KNOT Shuttle Tankers AS are the sole guarantors. The Anna Facility contains the following financial covenants: · Market value of the Anna Knutsen shall not be less than 130% of the aggregate outstanding balance under the Anna Facility at any time; · Positive working capital of the borrower and the Partnership; · Minimum liquidity of the Partnership of $15 million plus increments of $1.5 million for each owned vessel with less than 12 months remaining tenor on its employment contract up to 8 vessels and $1 million for each owned vessel with less than 12 months remaining tenor on its employment contract in excess of 8 vessels; · Minimum book equity ratio for the Partnership of 30%; and · Minimum EBITDA to interest ratio for the Partnership of 2.50. The Anna Facility also identifies various events that may trigger mandatory reduction, prepayment and cancellation of the facility, including total loss or sale of a vessel and customary events of default. As of December 31, 2019, the borrower and the guarantors were in compliance with all covenants under this facility. $25 Million Revolving Credit Facility In June 2019, KNOT Shuttle Tankers AS extended the maturity of its unsecured revolving credit facility of $25 million with NTT Finance Corporation. The facility will mature in August 2021, bears interest at LIBOR plus a margin of 1.8% and has a commitment fee of 0.5% on the undrawn portion of the facility.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2019
Income Taxes
Income Taxes	17) Income Taxes (a) Components of Current and Deferred Tax Expense All of the income from continuing operations before income taxes was taxable to Norway and UK for the years ended December 31, 2019, 2018 and 2017. The entities and activities taxable to Norway are subject to the Norwegian tonnage tax regime. Under the Norwegian tonnage tax regime, the tax is based on the tonnage of the vessel, and the operating income is tax free. The amount of tonnage tax included in operating expenses for each of the years ended December 31, 2019, 2018 and 2017 was $0.2 million. The net financial income and expense remains taxable as ordinary income tax for entities subject to the tonnage tax regime. See Note 2(r)—Income Taxes. The activities taxable to UK relates to KNOT UK and is based on the operating income for the entity. The significant components of current and deferred income tax expense attributable to income from continuing operations for the years ended December 31, 2019, 2018 and 2017 are as follows: Year Ended December 31, (U.S. Dollars in thousands) 2019 2018 2017 Current tax benefit (expense) $ (9) $ (18) $ (12) Deferred tax benefit (expense) — 20 28 Income tax benefit (expense) $ (9) $ 2 $ 16 (b) Taxation Income taxes attributable to income from continuing operations was an income tax expense of $9,000 for the year ended December 31, 2019 and an income tax benefit of $2,000 and $16,000 for the years ended December 31, 2018, 2017, respectively, and differed from the amounts computed by applying the Norwegian and the UK ordinary income tax rate of 22% and 20% in 2019, respectively, by applying the Norwegian and the UK ordinary income tax rate of 23% and 20% in 2018, respectively, and by applying the Norwegian and the UK ordinary income tax rate of 24% and 20% in 2017, respectively, to pretax net income as a result of the following: Year Ended December 31, (U.S. Dollars in thousands) 2019 2018 2017 Income tax benefit (expense) at Norwegian tonnage tax regime $ — $ 20 $ 28 Income tax benefit (expense) within UK (9) (18) (12) Income tax benefit (expense) $ (9) $ 2 $ 16 Effective tax rate % % % (c) Components of Deferred Tax Assets and Liabilities The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities as of December 31, 2019 and 2018 are presented below: As of December 31, (U.S. Dollars in thousands) 2019 2018 Deferred tax assets: Financial derivatives $ (3) $ 24 Financial loss carry forwards for tonnage tax 17,331 16,946 Total deferred tax asset 17,328 16,970 Less valuation allowance (17,328) (16,970) Net deferred tax asset — — Deferred tax liabilities: Entrance tax 357 453 Total deferred tax liabilities $ 357 $ 453 The net deferred tax liability is classified in the consolidated balance sheets as follows: As of December 31, (U.S. Dollars in thousands) 2019 2018 Current deferred tax asset $ — $ — Non-current deferred tax liabilities 357 453 Net deferred tax liabilities $ 357 $ 453 Changes in the net deferred tax liabilities at December 31, 2019 and 2018 are presented below: As of December 31, (U.S. Dollars in thousands) 2019 2018 Net deferred tax liabilities at January 1, $ 453 $ 624 Change in temporary differences (90) (142) Translation differences (6) (29) Net deferred tax liabilities at December 31, $ 357 $ 453 The Partnership records a valuation allowance for deferred tax assets when it is more likely than not that some or all of the benefit from the deferred tax asset will not be realized. The valuation allowances were $17.3 million and $17.0 million as of December 31, 2019 and 2018, respectively. The valuation allowances relate to the financial loss carry forwards and other deferred tax assets for tonnage tax that, in the judgment of the Partnership, are more-likely-than not to be realized reflecting the Partnership’s cumulative loss position for tonnage tax. In assessing the realizability of deferred tax assets, the Partnership considers whether it is more-likely-than-not that some portion or all of the deferred tax assets will not be realized taking into account all the positive and negative evidence available. As of December 31, 2019, the Partnership determined that the deferred tax assets are likely to not be realized, and the booked value was, therefore, zero. There is no expiration date for losses carried forward. After the reorganization of the Partnership's predecessor's activities into the new group structure in February 2013, all profit from continuing operations in Norway is taxable within the tonnage tax regime. The consequence of the reorganization is a one-time entrance tax into the Norwegian tonnage tax regime due to the Partnership's acquisition of the shares in the subsidiary that owns the Fortaleza Knutsen and the Recife Knutsen . The total amount of the entrance tax was estimated to be approximately $3.0 million, which was recognized in the three months ended March 31, 2013. At September 30, 2017 the Partnership acquired the shares in the subsidiary that owns the Lena Knutsen , and recognized an additional entrance tax of $0.1 million. The entrance tax on this gain is payable over several years and is calculated by multiplying the Norwegian tax rate by the declining balance of the gain, which will decline by 20% each year. At December 31, 2018 the entrance tax had declined to approximately $0.6 million due to paid entrance tax, change in tax rate and translation effects. At December 31, 2019 the entrance tax had declined to approximately $0.4 million due to paid entrance tax, change in tax rate and translation effects. The taxes payable, mainly related to the entrance tax, are calculated based on the Norwegian corporate tax rate of 22% for 2019 and 23% for 2018, and the deferred tax liabilities, also mainly related to the entrance tax, are calculated based on a tax rate of 22% effective as from January 1, 2020 and January 1, 2019, respectively. Income tax expense within the UK of $8,754 and $18,331 for 2019 and 2018, respectively, was calculated by multiplying the tax basis with the UK tax rate of 20%. As of December 31, 2019, the total income taxes payable are estimated to be $0.1 million and consist of payable entrance tax and ordinary UK corporation tax. As of December 31, 2018, the total income taxes payable were estimated to be $0.1 million and consisted of payable entrance tax and ordinary UK corporation tax. As of December 31, 2019, approximately $0.09 million of the estimated entrance tax of $0.45 million is estimated to be payable in the first and second quarter of 2020 and is presented as income taxes payable, while $0.36 million is presented as non-current deferred taxes payable. As of December 31, 2018, approximately $0.1 million of the estimated entrance tax of $0.6 million is estimated to be payable in the first and second quarter of 2018 and is presented as income taxes payable, while $0.5 million is presented as non-current deferred taxes payable. The tax loss carry forward from ordinary taxation and financial loss carry forwards for tonnage tax have no expiration dates. The Partnership’s Norwegian income tax returns are subject to examination by Norwegian tax authorities going back ten years from 2014. The Partnership had no unrecognized tax benefits as December 31, 2019 and 2018. During the years ended December 31, 2019 and 2018, the Partnership did not incur any interest or penalties on its tax returns. On December 14, 2017, the Norwegian government concluded the negotiations with the EFTA Surveillance Authority regarding the Norwegian tonnage tax regime, which has been approved for another ten years, until 2027. Pursuant to the approval, Norway has introduced restrictions that eliminates the ability of companies that own vessels under certain bareboat charters to qualify for the Norwegian tonnage tax regime. Companies that no longer qualify for the Norwegian tonnage tax regime will instead be subject to Norwegian corporate income tax. However, there are no limitations on intra-group bareboat chartering, as well as bareboat charters where crewing services are carried out by a related party. In order to constitute a related party, a minimum of 25% ownership/control is required, according to the “associated enterprise” definition in the ATAD directive (Council Directive EU 2016/1164.) Due to the fact that KNOT has an ownership interest in the Partnership that exceeds 25% as well as an ownership interest of 100% in KNOT Management and KNOT Management Denmark AS which provide services to the Vessels owned by the Partnership which operate on bareboat charters, the Vessels operating on bareboat charters are effectively seen as time charter services to the customer. The services are provided to the charterer. If this related party situation is ended, other alternatives and possibly mitigating measures must be evaluated.

Related Party Transactions

Related Party Transactions	12 Months Ended
	Dec. 31, 2019
Related Party Transactions
Related Party Transactions	18) Related Party Transactions (a) Related Parties Prior to the IPO, the Partnership’s predecessor operated as an integrated part of KNOT. KNOT is owned 50% by TSSI and 50% by Nippon Yusen Kaisha (“NYK”). The Windsor Knutsen , the Bodil Knutsen , the Carmen Knutsen , the Hilda Knutsen , the Torill Knutsen , the Ingrid Knutsen , the Raquel Knutsen , the Tordis Knutsen , the Vigdis Knutsen , the Lena Knutsen , the Brasil Knutsen and the Anna Knutsen , all of which operate under time charters, are subject to technical management agreements pursuant to which certain crew, technical and commercial management services are provided by KNOT Management or KNOT Management Denmark. Under these technical management agreements, the Partnership’s subsidiaries pay fees to and reimburse the costs and expenses of KNOT Management. The Fortaleza Knutsen , the Recife Knutsen , the Dan Cisne and the Dan Sabia operate under bareboat charters and, as a result, the customer is responsible for providing the crew, technical and commercial management of the vessel. However, each of these vessels are subject to management and administration agreements with either KNOT Management or KNOT Management Denmark, a 100% owned subsidiary of KNOT, pursuant to which these companies provide general monitoring services for the vessels in exchange for an annual fee. The Partnership is a party to an administrative services agreement with KNOT UK, pursuant to which KNOT UK provides administrative services, and KNOT UK is permitted to subcontract certain of the administrative services provided under the administrative services agreement to KOAS UK and KOAS. On May 7, 2015, the Partnership entered into an amendment to the administrative services agreement, which allows KNOT UK to also subcontract administrative services to KNOT Management. Effective as of February 26, 2018, the Partnership entered into a second amendment to the administrative services agreement extending the term of the agreement indefinitely, subject to termination by any party upon 90 days’ notice for any reason. The amounts of such costs and expenses included in the consolidated statements of operations for the years ended December 31, 2019, 2018 and 2017 are as follows: Year Ended December 31, (U.S. Dollars in thousands) 2019 2018 2017 Statements of operations: Time charter and bareboat revenues: Time charter income from KNOT (1) $ 15,910 $ — $ — Other income: Guarantee income from KNOT (2) — 749 1,499 Operating expenses: Technical and operational management fee from KNOT to Vessels (3) 6,954 6,491 4,617 Operating expenses from other related parties (4) 487 — — General and administrative expenses: Administration fee from KNOT Management (5) 1,280 1,434 1,457 Administration fee from KOAS (5) 663 583 461 Administration fee from KOAS UK (5) 116 123 122 Administration and management fee from KNOT (6) 170 161 149 Finance income (expense): Interest expense charged from KNOT (7) — — (52) Total income (expenses) $ 6,240 $ (8,043) $ (5,359) At December 31, At December 31, At December 31, (U.S. Dollars in thousands) 2019 2018 2017 Balance Sheet: Vessels: Drydocking supervision fee from KNOT (8) $ — $ 187 $ 89 Drydocking supervision fee from KOAS (8) — 24 8 Total $ — $ 211 $ 97 (1) Time charter income from KNOT: On December 17, 2018, the Partnership's subsidiary that owns the Windsor Knutsen and Royal Dutch Shell ("Shell") agreed to suspend the vessel's time charter contract. The suspension period commenced March 4, 2019 and will end April 3, 2020, when the vessel is expected to be redelivered to Shell. During the suspension period, the Windsor Knutsen has been operating under a time charter contract with Knutsen Shuttle Tankers Pool AS on the same terms as the existing time charter contract with Shell. (2) Guarantee income from KNOT : Pursuant to the Omnibus Agreement, KNOT agreed to guarantee the payments of the hire rate under the initial charter of the Bodil Knutsen and Windsor Knutsen for a period of five years from the closing date of the IPO (until April 15, 2018). In October 2015, the Windsor Knutsen commenced on a new Shell time charter with a hire rate below the hire rate in the initial charter. The difference between the new hire rate and the initial rate was paid by KNOT until April 15, 2018. The Vigdis Knutsen suffered damages to its hull in connection with a ship-to-ship loading on May 24, 2017 and the vessel went off-hire 6 days in June 2017 due to repairs of the damage. In connection with the Vigdis Knutsen acquisition, KNOT agreed to pay for the repair cost and charter hire lost in connection with the incident. The reimbursement from KNOT for lost charter hire is accounted for as guarantee income. See Note 18(b)—Related Party Transactions—Guarantees and Indemnifications. (3) Technical and operational management fee from KNOT Management or KNOT Management Denmark to Vessels : KNOT Management or KNOT Management Denmark provides technical and operational management of the vessels on time charter including crewing, purchasing, maintenance and other operational service. In addition, there is also a charge for 24‑hour emergency response services provided by KNOT Management for all vessels managed by KNOT Management. (4) Operating expenses from other related parties: Simsea Real Operations AS, a company jointly owned by Trygve Seglem and by other shipping companies in Haugesund, provides simulation, operational training assessment and other certified maritime courses for seafarers. The cost is course fees for seafarers. Knutsen OAS Crewing AS, a subsidiary of TSSI, provides administrative services related to East European crew on vessels operating on time charter contracts. The cost is a fixed fee per month per East European crew onboard the vessel. (5) Administration fee from KNOT Management and Knutsen OAS Shipping AS (“KOAS”) and Knutsen OAS (UK) Ltd. ("KOAS UK") : Administration costs include the compensation and benefits of KNOT Management’s management and administrative staff as well as other general and administration expenses. Some benefits are also provided by KOAS and KOAS UK. Net administration costs are total administration cost plus a 5% margin, reduced for the total fees for services delivered by the administration staffs and the estimated shareholder costs for KNOT that have not been allocated. As such, the level of net administration costs as a basis for the allocation can vary from year to year based on the administration and financing services offered by KNOT to all the vessels in its fleet each year. KNOT Management also charges each subsidiary a fixed annual fee for the preparation of the statutory financial statement. (6) Administration and management fee from KNOT Management and KNOT Management Denmark : For bareboat charters, the shipowner is not responsible for providing crewing or other operational services and the customer is responsible for all vessel operating expenses and voyage expenses. However, each of the vessels under bareboat charters is subject to a management and administration agreement with either KNOT Management or KNOT Management Denmark, pursuant to which these companies provide general monitoring services for the vessels in exchange for an annual fee. (7) Interest expense charged from KNOT : KNOT invoiced interest (expense) income for any outstanding payables to (receivable from) owners and affiliates to the vessel-owning subsidiaries. (8) Drydocking supervision fee from KNOT and KOAS : KNOT and KOAS provide supervision and hire out service personnel during drydocking of the vessels. The fee is calculated as a daily fixed fee. In addition, the Partnership reimburses costs related to crew and other related costs according to the technical management agreements with KNOT Management and KNOT Management Denmark. (b) Guarantees and Indemnifications Pursuant to the Omnibus Agreement, KNOT agreed to guarantee the payments of the hire rate under the initial charters of each of the Windsor Knutsen and the Bodil Knutsen for a period of five years from the closing date of the IPO (until April 15, 2018). In April 2014, the Partnership was notified that Shell would not exercise its option to extend the Windsor Knutsen time charter after the expiration of its initial term. The vessel was re-delivered on July 28, 2014. In order to comply with its obligations under the Omnibus Agreement, on July 29, 2014, KNOT and the Partnership entered into a time charter for the vessel at a rate of hire that would have been in effect during the option period under the previous Shell time charter. This charter was effective until the new Shell time charter commenced in October 2015. The new Shell charter has a hire rate that is lower than the hire rate in the initial charter. The difference between the new hire rate and the initial rate was paid by KNOT until April 15, 2018. On June 1, 2017, the Partnership acquired KNOT’s 100% interest in KNOT Shuttle Tankers 25 AS, the company that owns and operate the Vigdis Knutsen . Shortly before the closing of the acquisition and on May 24, 2017, the Vigdis Knutsen suffered damages to its hull in connection with a ship-to-ship loading and the vessel went off-hire 6 days in June 2017 due to repairs of the damage. In connection with the Vigdis Knutsen acquisition, KNOT agreed to pay for the repair cost and charter hire lost in connection with the incident. Under the Omnibus Agreement, KNOT agreed to indemnify the Partnership until April 15, 2018 (or for a period of at least three years after the purchase of the Hilda Knutsen , the Torill Knutsen , the Ingrid Knutsen and the Raquel Knutsen , as applicable), against certain environmental and toxic tort liabilities with respect to certain assets that KNOT contributed or sold to the Partnership to the extent arising prior to the time they were contributed or sold. However, claims are subject to a deductible of $0.5 million and an aggregate cap of $5 million. (c) Transactions with Management and Directors Trygve Seglem, the Chairman of the Partnership’s board of directors and the President and CEO of KNOT, controls Seglem Holding AS, which owns 100% of the equity interest in TSSI, which controls KOAS. TSSI owns 50% of the equity interest in KNOT. NYK, which owns 50% of the equity interest in KNOT, has management and administrative personnel on secondment to KNOT. See the footnotes to Note 18(a)—Related Party Transactions—Related Parties for a discussion of the allocation principles for KNOT’s administrative costs, including management and administrative staff, included in the consolidated statements of operations. Directors each receive a director fee of $50,000 per year. Members of the audit and conflicts committees each receive a committee fee of $12,000 and the Chairman of such committees receive an additional fee of $3,000 per year. Andrew Beveridge and Richard Beyer also each receive a fee of $10,000 as directors of KNOT UK. John Costain and Gary Chapman received total compensation of $114,892 and $102,198 respectively for the year ended December 31, 2019 under the employment agreements in KNOT UK. (d) Amounts Due from and Due to Related Parties Balances with related parties consisted of the following: At December 31, At December 31, (U.S. Dollars in thousands) 2019 2018 Balance Sheet: Trading balances due from KOAS $ 687 $ 466 Trading balances due from KNOT and affiliates 2,000 675 Amount due from related parties $ 2,687 $ 1,141 Trading balances due to KOAS $ 840 $ 629 Trading balances due to KNOT and affiliates 372 441 Amount due to related parties $ 1,212 $ 1,070 Amounts due from and due to related parties are unsecured and intended to be settled in the ordinary course of business. The majority of these related party transactions relate to vessel management and other fees due to KNOT, KNOT Management, KOAS UK and KOAS. e) Trade accounts payables and other currents assets Trade accounts payables to related parties are included in total trade accounts payables in the balance sheet. The balances to related parties consisted of the following: At December 31, At December 31, (U.S. Dollars in thousands) 2019 2018 Balance Sheet: Trading balances due to KOAS $ 216 $ 381 Trading balances due to KNOT and affiliates 685 411 Trade accounts payables to related parties $ 901 $ 792 Trading balances from KNOT and affiliates are included in other current assets in the balance sheet. The balances from related parties consisted of the following: At December 31, At December 31, (U.S. Dollars in thousands) 2019 2018 Balance Sheet: Trading balances due from KNOT and affiliates $ 105 $ — Other current assets from related parties $ 105 $ — (f) Acquisitions from KNOT On March 1, 2017, the Partnership acquired KNOT’s 100% interest in KNOT Shuttle Tankers 24 AS, the company that owns and operates the Tordis Knutsen . This acquisition was accounted for as an acquisition of a business. On June 1, 2017, the Partnership acquired KNOT’s 100% interest in KNOT Shuttle Tankers 25 AS, the company that owns and operates the Vigdis Knutsen . This acquisition was accounted for as an acquisition of a business. On September 30, 2017, the Partnership acquired KNOT’s 100% interest in KNOT Shuttle Tankers 26 AS, the company that owns and operates the Lena Knutsen . This acquisition was accounted for as an acquisition of a business. On December 15, 2017, the Partnership acquired KNOT’s 100% interest in KNOT Shuttle Tankers 32 AS, the company that owns and operates the Brasil Knutsen . This acquisition was accounted for as an acquisition of a business. On March 1, 2018, the Partnership acquired KNOT’s 100% interest in KNOT Shuttle Tankers 30 AS, the company that owns and operates the Anna Knutsen . This acquisition was accounted for as an acquisition of assets. The board of directors of the Partnership and the Conflicts Committee of the board approved the purchase price for each transaction described above. The Conflicts Committee retained a financial advisor to assist with its evaluation of each of the transactions. See Note 21—Acquisitions.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2019
Commitments and Contingencies
Commitments and Contingencies	19) Commitments and Contingencies Assets Pledged As of December 31, 2019 and 2018, Vessels with a book value of $1,677 million and $1,767 million, respectively, were pledged as security held as guarantee for the Partnership’s long-term debt and interest rate swap obligations. See Note 10—Derivative Instruments, Note 13—Vessels and Equipment and Note 16—Long-Term Debt. Claims and Legal Proceedings Under the Partnership’s time charters, claims to reduce the hire rate payments can be made if the Vessel does not perform to certain specifications in the agreements. An accrual of $0.4 million for a probable claim was recorded for the year ended December 31, 2017. No accrual for possible claim was recorded for the years ended December 31, 2019 and 2018. From time to time, the Partnership is involved in various claims and legal actions arising in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the consolidated financial position, results of operations or cash flows. Insurance The Partnership maintains insurance on all the Vessels to insure against marine and war risks, which include damage to or total loss of the Vessels, subject to deductible amounts that average $0.15 million per Vessel, and loss of hire. Under the loss of hire policies, the insurer will pay a compensation for the lost hire rate agreed in respect of each Vessel for each day, in excess of 14 deductible days, for the time that the Vessel is out of service as a result of damage, for a maximum of 180 days. In addition, the Partnership maintains protection and indemnity insurance, which covers third-party legal liabilities arising in connection with the Vessels’ activities, including, among other things, the injury or death of third-party persons, loss or damage to cargo, claims arising from collisions with other vessels and other damage to other third-party property, including pollution arising from oil or other substances. This insurance is unlimited, except for pollution, which is limited to $1 billion per vessel per incident. The protection and indemnity insurance is maintained through a protection and indemnity association, and as a member of the association, the Partnership may be required to pay amounts above budgeted premiums if the member claims exceed association reserves, subject to certain reinsured amounts. If the Partnership experiences multiple claims each with individual deductibles, losses due to risks that are not insured or claims for insured risks that are not paid, it could have a material adverse effect on the Partnership’s results of operations and financial condition. Raquel Knutsen In February 2017, the Raquel Knutsen damaged its propeller hub. As a result, the Vessel was off-hire from February 22, 2017 to May 15, 2017 for repairs. Under the Partnership’s loss of hire policies, its insurer will pay the Partnership the hire rate agreed in respect of each vessel for each day, in excess of 14 deductible days, for the time that the Vessel is out of service as a result of damage, for a maximum of 180 days. For the year ended December 31, 2017, the Partnership received payments for loss of hire insurance of $3.4 million which was recorded as a component of total revenues since day rates are recovered under terms of the policy. In addition, for the year ended December 31, 2017, the Partnership recorded $3.9 million for recoveries up to the amount of loss under hull and machinery insurance for the repairs as a result of the propeller hub damage to the Raquel Knutsen. This is classified under vessel operating expense along with cost of the repairs of $4.2 million for the period, resulting in a net expense of $0.3 million. See Note 8—Insurance Proceeds. Carmen Knutsen During the fourth quarter of 2017, the Carmen Knutsen undertook her 5‑year special drydocking survey. During dismantling for overhaul, a technical default with her controllable pitch propeller was found. As a result, the Vessel went to a different yard to complete the repair. Repairs were completed and the Vessel was back on hire on January 1, 2018. The additional off-hire and technical costs were subject to an insurance claim. Under its loss of hire insurance policies, the Partnership’s insurer is expected to pay the hire rate agreed in respect of the Carmen Knutsen for each day in excess of 14 deductible days while the Vessel was off-hire as a result of the repairs of the controllable pitch propeller. For the years ended December 31, 2018 and 2017, the Partnership recorded $0.45 million and $1.75 million, respectively, for loss of hire which were recorded as a component of total revenues since day rates are recovered under the terms of the policy. For the year ended December 31, 2017, the Partnership recorded $2.40 million to vessel operating expense as an estimate of the cost of repairs of the controllable pitch propeller. During 2018, an additional repair cost of $0.15 million was recorded to vessel operating expenses. As of December 31, 2018, the Partnership had received payments and recorded $2.25 million for hull and machinery repairs, resulting in a net expense of $0.30 million. See Note 8—Insurance Proceeds.

Earnings per Unit and Cash Dist

Earnings per Unit and Cash Distributions	12 Months Ended
	Dec. 31, 2019
Earnings per Unit and Cash Distributions
Earnings per Unit and Cash Distributions	20) Earnings per Unit and Cash Distributions The calculations of basic and diluted earnings per unit (1) are presented below: Year Ended December 31, (U.S. Dollars in thousands, except per unit data) 2019 2018 2017 Net income $ 58,957 $ 82,165 $ 68,064 Less: Series A Preferred unitholders’ interest in net income 7,200 7,200 5,253 Net income attributable to the unitholders of KNOT Offshore Partners LP 51,757 74,965 62,811 Less: Distributions (2) 72,136 72,136 67,171 Under (over) distributed earnings (20,379) 2,829 (4,360) Under (over) distributed earnings attributable to: Common unitholders (3) (20,003) 2,777 (4,280) General Partner (376) 52 (80) Weighted average units outstanding (basic) (in thousands): Common unitholders 32,694 32,694 30,068 Subordinated unitholders — — — General Partner 615 615 567 Weighted average units outstanding (diluted) (in thousands): Common unitholders(4) 32,694 36,370 32,804 General Partner 615 615 567 Earnings per unit (basic) Common unitholders $ 1.554 $ 2.251 $ 2.050 General Partner 1.554 2.251 2.046 Earnings per unit (diluted): Common unitholders (4) $ 1.554 $ 2.217 $ 2.037 General Partner 1.554 2.251 2.046 Cash distributions declared and paid in the period per unit (5) $ 2.080 $ 2.080 $ 2.080 Subsequent event: Cash distributions declared and paid per unit relating to the period (6) $ 0.520 $ 0.520 $ 0.520 (1) Earnings per unit have been calculated in accordance with the cash distribution provisions set forth in the Partnership Agreement. (2) This refers to distributions made or to be made in relation to the period irrespective of the declaration and payment dates and based on the numbers of units outstanding at the record date. This includes cash distributions to the IDR holder (KNOT) for the years ended December 31, 2019, 2018 and 2017 of $2.8 million, $2.8 million and $2.6 million, respectively. (3) This includes the net income attributable to the IDR holder. The net income attributable to IDRs for the years ended December 31, 2019, 2018 and 2017 was $2.8 million, $2.8 million and $2.6 million, respectively. (4) Diluted weighted average units outstanding for the year ended December 31, 2019 excludes 3.8 million potential common shares relating to the convertible preferred units since the assumed issuance had an anti-dilutive effect on the calculation of diluted earnings per unit. (5) Refers to cash distributions declared and paid during the period. (6) Refers to cash distributions declared and paid subsequent to December 31, 2019. As of December 31, 2019, 73.5% of the Partnership’s total number of common units outstanding representing limited partner interests were held by the public (in the form of 24,036,226 common units) and 26.2% of such units were held directly by KNOT (in the form of 8,567,500 common units). In addition, KNOT, through its ownership of the General Partner, held a 1.85% general partner interest (in the form of 615,117 general partner units) and a 0.3% limited partner interest (in the form of 90,368 common units). Earnings per unit—basic is determined by dividing net income, after deducting the amount of net income attributable to the Series A Preferred Units and the distribution paid or to be made in relation to the period by the weighted-average number of units outstanding during the applicable period. The computation of limited partners’ interest in net income per common unit—diluted assumes the issuance of common units for all potentially dilutive securities consisting of the Series A Preferred Units. Consequently, the net income attributable to limited partners’ interest is exclusive of any distributions on the Series A Preferred Units. In addition, the weighted average number of common units outstanding has been increased assuming the Series A Preferred Units have been converted to common units using the if-converted method. The computation of limited partners’ interest in net income per common unit—diluted does not assume the issuance of Series A Preferred Units if the effect would be anti-dilutive. The General Partner’s, common unitholders’ and subordinated unitholders’ interest in net income was calculated as if all net income was distributed according to the terms of the Partnership Agreement, regardless of whether those earnings would or could be distributed. The Partnership Agreement does not provide for the distribution of net income. Rather, it provides for the distribution of available cash, which is a contractually defined term that generally means all cash on hand at the end of each quarter less the amount of cash reserves established by the Partnership’s board of directors (the “Board”) to provide for the proper conduct of the Partnership’s business, including reserves for maintenance and replacement capital expenditures, anticipated credit needs and capital requirements and any accumulated distributions on, or redemptions of, the Series A Preferred Units. In addition, KNOT, as the initial holder of all IDRs, has the right, at the time when there are no subordinated units outstanding and it has received incentive distributions at the highest level to which it is entitled (48.0% for each of the prior four consecutive fiscal quarters), to reset the initial cash target distribution levels at higher levels based on the distribution at the time of the exercise of the reset election. Unlike available cash, net income is affected by non-cash items, such as depreciation and amortization, unrealized gains and losses on derivative instruments and unrealized foreign currency gains and losses. Distributions of available cash from operating surplus for any quarter are required to be made in the following manner: · first , 98.15% to all common unitholders, pro rata, and 1.85% to the General Partner, until each outstanding common unit has received an amount equal to $0.375 (the “MQD”) for that quarter; · second , 98.15% to all common unitholders, pro rata, and 1.85% to the General Partner, until each outstanding common unit has received a total of $0.43125 (the “first target distribution”) for that quarter; · third , 85.15% to all common unitholders, pro rata, 1.85% to the General Partner, and 13% to the IDR holders, pro rata, until each outstanding common unit has received a total of $0.46875 (the “second target distribution”) for that quarter; · fourth , 75.15% to all common unitholders, pro rata, 1.85% to the General Partner, and 23% to the IDR holders, pro rata, until each outstanding common unit has received a total of $0.5625 (the “third target distribution”) for that quarter; and · thereafter , 50.15% to all common unitholders, pro rata, 1.85% to the General Partner, and 48% to the IDR holders, pro rata. The percentage interests set forth above assumed that the General Partner continues to own a 1.85% general partner interest and that the Partnership has not issued additional classes of equity securities.

Acquisitions

Acquisitions	12 Months Ended
	Dec. 31, 2019
Acquisitions
Acquisitions	21) Acquisitions During the years ended December 31, 2017 and 2018, the Partnership acquired from KNOT equity interests in certain subsidiaries which own and operate the Tordis Knutsen, the Vigdis Knutsen, the Lena Knutsen , the Brasil Knutsen and the Anna Knutsen. The Partnership did not make any acquisitions during the year ended December 31,2019. The board of directors of the Partnership and the Conflicts Committee approved the purchase price for each transaction. The Conflicts Committee retained a financial advisor to assist with its evaluation of the transactions. The cost of the fee paid to the financial advisor was divided equally between the Partnership and KNOT. Acquisition related costs of $nil million, $0.1 million and $0.2 million as of December 31, 2019, 2018 and 2017, respectively, were expensed as incurred under general and administrative expenses. The allocation of the purchase price to acquired identifiable assets was based on their estimated fair values at the date of acquisition. The purchase price of each acquisition has been allocated to the identifiable assets acquired. The details of each transaction are as follows: Final Final Final Anna Knutsen Brasil Knutsen Lena Knutsen March 1, December 15, September 30, (U.S. Dollars in thousands) 2018 2017 2017 Purchase consideration (1) $ 19,913 $ 5,764 $ 33,235 Less: Fair value of net assets acquired: Vessels and equipment (2) 120,274 96,000 142,457 Cash 4,537 5,217 470 Inventories 257 146 243 Derivatives assets 1,839 — 1,729 Others current assets 111 125 193 Amounts due from related parties 520 2 23,599 Long-term debt (84,217) (59,000) (111,068) Long-term debt from related parties (22,535) — (22,706) Deferred debt issuance costs 1,228 618 867 Trade accounts payable (971) (154) (256) Accrued expenses (1,013) (1,185) (224) Prepaid charter and deferred revenue — — (1,758) Amounts due to related parties (117) (36,005) (186) Income tax payable — — (125) Subtotal 19,913 5,764 33,235 Difference between the purchase price and fair value of net assets acquired $ — $ — $ — Final Final Vigdis Knutsen Tordis Knutsen June 1, March 1, (U.S. Dollars in thousands) 2017 2017 Purchase consideration (1) $ 31,759 $ 32,983 Less: Fair value of net assets acquired: Vessels and equipment (2) 145,772 145,754 Intangibles: Above market time charter 1,458 1,468 Cash 3,438 609 Inventories 190 129 Derivatives assets 226 1,377 Others current assets 128 1,348 Amounts due from related parties 18,374 20,834 Long-term debt (114,411) (114,411) Long-term debt from related parties (22,703) (22,960) Deferred debt issuance costs 928 795 Trade accounts payable (187) (106) Accrued expenses (1,082) (503) Amounts due to related parties (372) (1,351) Income tax payable — — Subtotal 31,759 32,983 Difference between the purchase price and fair value of net assets acquired $ — $ — (1) The purchase consideration comprises the following: Final Final Final Anna Knutsen Brasil Knutsen Lena Knutsen March 1, December 15, September 30, (U.S. Dollars in thousands) 2018 2017 2017 Cash consideration paid to KNOT (from KNOT) $ 14,637 $ 2,383 $ 33,343 Purchase price adjustments 5,276 3,381 (108) Purchase price $ 19,913 $ 5,764 $ 33,235 Final Final Vigdis Knutsen Tordis Knutsen June 1, March 1, (U.S. Dollars in thousands) 2017 2017 Cash consideration paid to KNOT (from KNOT) $ 28,109 $ 31,242 Purchase price adjustments 3,650 1,741 Purchase price $ 31,759 $ 32,983 (2) Vessel and equipment includes allocation to drydocking for the following vessels (in thousands): Anna Knutsen of $2,329, Brasil Knutsen of $260, Lena Knutsen of $2,741, Vigdis Knutsen of $2,709, Tordis Knutsen of $2,753 and Raquel Knutsen of $1,663. Anna Knutsen On March 1, 2018, the Partnership’s wholly owned subsidiary, KNOT Shuttle Tankers AS, acquired KNOT’s 100% interest in KNOT Shuttle Tankers 30 AS (“KNOT 30”), the company that owns and operates the Anna Knutsen. The purchase price for the vessel was $120.0 million, less $106.8 million of outstanding indebtedness, plus approximately $1.4 million for certain capitalized fees related to the financing of the vessel and plus other purchase price adjustments of $5.3 million. Following of adoption of ASU 2017‑01, effective from January 1, 2018, Business Combinations: Clarifying the Definition of a Business, the Partnership accounted for this acquisition as an acquisition of an asset. The cost of the group of assets acquired in the asset acquisition has been allocated to the individual assets acquired or liabilities assumed based on their relative fair values. Brasil Knutsen On December 15, 2017, the Partnership’s wholly owned subsidiary, KNOT Shuttle Tankers AS, acquired KNOT’s 100% interest in KNOT Shuttle Tankers 32 AS (“KNOT 32”), the company that owns and operates the Brasil Knutsen. The purchase price was $96.0 million, less $59.0 million of outstanding indebtedness, less approximately $35.2 million for a loan owed by KNOT 32 to KNOT (the “Company Liquidity Loan”), plus approximately $0.6 million for certain capitalized fees related to the financing of the Brasil Knutsen , and plus $3.4 million of post-closing adjustments for working capital. The cash portion of the purchase price was financed with the proceeds from the Partnership’s public offering of 3,000,000 common units which closed on November 9, 2017. See Note 22—Equity Offerings and Sale of Series A Preferred Units—Equity Offerings. The Partnership accounted for this acquisition as an acquisition of a business. The purchase price of the acquisition has been allocated to the identifiable assets acquired. The allocation of the purchase price to acquired identifiable assets was based on their fair values at the date of acquisition. Revenue and profit contributions The Brasil Knutsen business contributed revenues of $0.7 million and net income of $0.3 million to the Partnership for the period from December 15, 2017 to December 31, 2017. Pro forma financial information The table below shows comparative summarized consolidated pro forma financial information for the Partnership for the year ended December 31, 2017, giving effect to the Partnership’s acquisition and financing of the Brasil Knutsen as if this acquisition had taken place on January 1, 2017. KNOT acquired the Brasil Knutsen from Chevron in July 2017 and the vessel was not operating on any contract at the time KNOT bought the vessel. From July 2017, the Brasil Knutsen operated on short term contracts until it commenced its time charter contract with Galp in November 2017. Unaudited Year Ended (U.S. Dollars in thousands) December 31, 2017 Revenue $ 223,220 Net income 64,034 Included in the pro forma adjustments is depreciation related to the purchase price allocations performed on the acquired identifiable assets as if the acquisition had taken place on January 1, 2017. In addition, the pro forma adjustments reflect changes in guarantors. Lena Knutsen On September 30, 2017, KNOT Shuttle Tankers AS acquired KNOT’s 100% interest in KNOT Shuttle Tankers 26 AS (“KNOT 26”), the company that owns and operates the Lena Knutsen . The purchase price was $142.0 million, less approximately $133.8 million of outstanding indebtedness, plus approximately $24.1 million for a receivable owed by KNOT to KNOT 26, plus approximately $1.0 million for certain capitalized fees related to the financing of the Lena Knutsen and less $0.1 million of post-closing adjustments for working capital and interest rate swaps. The Partnership accounted for this acquisition as an acquisition of a business. The purchase price of the acquisition has been allocated to the identifiable assets acquired. The allocation of the purchase price to acquired identifiable assets was based on their fair values at the date of acquisition. Revenue and profit contributions The Lena Knutsen business contributed revenues of $5.2 million and net loss of $0.1 million to the Partnership for the period from September 30, 2017 to December 31, 2017. Pro forma financial information The table below shows comparative summarized consolidated pro forma financial information for the Partnership for the year ended December 31, 2017, giving effect to the Partnership’s acquisition and financing of the Lena Knutsen as if this acquisition had taken place on January 1, 2017. Unaudited Year Ended (U.S. Dollars in thousands) December 31, 2017 Revenue $ 220,904 Net income 62,999 Included in the pro forma adjustments is depreciation related to the purchase price allocations performed on the acquired identifiable assets as if the acquisition had taken place on January 1, 2017. In addition, the pro forma adjustments reflect changes in guarantors as if the acquisition had taken place from the date of delivery of the vessel. Vigdis Knutsen On June 1, 2017, KNOT Shuttle Tankers AS, acquired KNOT’s 100% interest in KNOT Shuttle Tankers 25 AS (“KNOT 25”), the company that owns and operates the Vigdis Knutsen . The purchase price was $147.0 million, less approximately $137.7 million of outstanding indebtedness, plus approximately $17.9 million for a receivable owed by KNOT to KNOT 25, plus approximately $0.9 million for certain capitalized fees related to the financing of the Vigdis Knutsen and plus $3.7 million of post-closing adjustments for working capital and interest rate swaps. The Partnership accounted for this acquisition as an acquisition of a business. The purchase price of the acquisition has been allocated to the identifiable assets acquired. The allocation of the purchase price to acquired identifiable assets was based on their fair values at the date of acquisition. Revenue and profit contributions The Vigdis Knutsen business contributed revenues of $11.8 million and net income of $2.6 million to the Partnership for the period from June 1, 2017 to December 31, 2017. Pro forma financial information The table below shows comparative summarized consolidated pro forma financial information for the Partnership for the year ended December 31, 2017, giving effect to the Partnership’s acquisition and financing of the Vigdis Knutsen as if this acquisition had taken place on January 1, 2017. Unaudited Year Ended (U.S. Dollars in thousands) December 31, 2017 Revenue $ 222,354 Net income 63,225 Included in the pro forma adjustments is depreciation related to the purchase price allocations performed on the acquired identifiable assets as if the acquisition had taken place on January 1, 2017. In addition, the pro forma adjustments reflect changes in guarantors and amortization of the above market time charter as if the acquisition had taken place from the date of delivery of the vessel. Tordis Knutsen On March 1, 2017, the Partnership’s wholly owned subsidiary, KNOT Shuttle Tankers AS, acquired KNOT’s 100% interest in KNOT Shuttle Tankers 24 AS (“KNOT 24”), the company that owns and operates the Tordis Knutsen . The purchase price was $147.0 million, less approximately $137.7 million of outstanding indebtedness, plus approximately $21.1 million for a receivable owed by KNOT to KNOT 24, plus approximately $0.8 million for certain capitalized fees related to the financing of the Tordis Knutsen and plus $1.7 million of post-closing adjustments for working capital and interest rate swaps. The cash portion of the purchase price was financed with the proceeds from the Partnership’s sale and issuance of 2,083,333 Series A Preferred Units which closed on February 2, 2017. See Note 22—Equity Offerings and Sale of Series A Preferred Units—Sale of Series A Preferred Units. The Partnership accounted for this acquisition as an acquisition of a business. The purchase price of the acquisition has been allocated to the identifiable assets acquired. The allocation of the purchase price to acquired identifiable assets was based on their fair values at the date of acquisition. Revenue and profit contributions The Tordis Knutsen business contributed revenues of $17.2 million and net income of $3.2 million to the Partnership for the period from March 1, 2017 to December 31, 2017. Pro forma financial information The table below shows comparative summarized consolidated pro forma financial information for the Partnership for the year ended December 31, 2017, giving effect to the Partnership’s acquisition and financing of the Tordis Knutsen as if this acquisition had taken place on January 1, 2017. Unaudited Year Ended (U.S. Dollars in thousands) December 31, 2017 Revenue $ 221,198 Net income 66,584 Included in the pro forma adjustments is depreciation related to the purchase price allocations performed on the acquired identifiable assets as if the acquisition had taken place on January 1, 2017. In addition, the pro forma adjustments reflect changes in guarantors and amortization of the above market time charter as if the acquisition had taken place from the date of delivery of the vessel.

Equity Offerings and Sale of Se

Equity Offerings and Sale of Series A Preferred Units	12 Months Ended
	Dec. 31, 2019
Equity Offerings and Sale of Series A Preferred Units
Equity Offerings and Sale of Series A Preferred Units	22) Equity Offerings and Sale of Series A Preferred Units Equity Offerings 2019 2018 January 2017 November 2017 Total 2017 (U.S. Dollars in thousands) Offering Offering Offering Offering Offering Gross proceeds received $ — $ — $ 56,125 $ 66,936 (1) $ 123,061 Less: Underwriters’ discount — — 925 660 1,585 Less: Offering expenses — — 300 230 530 Net proceeds received $ — $ — $ 54,900 $ 66,046 $ 120,946 (1) Includes the General Partner’s 1.85% proportional capital contribution. On November 9, 2017, the Partnership sold 3,000,000 common units in a public offering. In connection with the offering, the General Partner contributed a total of $1.2 million in order to maintain its 1.85% general partner interest in the Partnership. The total net proceeds from the offering and the related General Partner’s contribution were $66.0 million. The Partnership used the net proceeds from the offering to fund the cash portion of the purchase price of the Brasil Knutsen and to repay $43.5 million of borrowings under the revolving credit facility. On January 10, 2017, the Partnership sold 2,500,000 common units, representing limited partner interests, in an underwritten public offering. The Partnership’s total net proceeds from the offering were $54.9 million. The Partnership used the net proceeds from the offering to fund the cash portion of the purchase price of the Tordis Knutsen and to repay debt and for general partnership purposes. Sale of Series A Preferred units February 2017 June 2017 Total Series A Series A Series A (U.S. Dollars in thousands) Preferred Units Preferred Units Preferred Units Gross proceeds received $ 50,000 $ 40,000 $ 90,000 Less: Fee 1,000 1,000 2,000 Less: Expenses 386 150 536 Net proceeds received $ 48,614 $ 38,850 $ 87,464 On February 2, 2017, the Partnership issued and sold in a private placement 2,083,333 Series A Preferred Units at a price of $24.00 per unit. After deducting fees and expenses, the net proceeds from the sale were $48.6 million. The Partnership used the net proceeds from the sale to fund the cash portion of the purchase price of the Tordis Knutsen and to repay debt and for general partnership purposes. On June 30, 2017, the Partnership (i) issued and sold in a second private placement 1,666,667 additional Series A Preferred Units at a price of $24.00 per unit and (ii) amended and restated its Partnership Agreement to make certain amendments to the terms of the Series A Preferred Units, including the 2,083,333 Series A Preferred Units issued on February 2, 2017. After deducting estimated fees and expenses, the net proceeds of the sale were $38.9 million. The Partnership used $30.0 million of the net proceeds to repay the revolving credit facility, which was drawn in connection with acquisition of the Vigdis Knutsen. The Series A Preferred Units rank senior to the common units as to the payment of distributions and amounts payable upon liquidation, dissolution or winding up. The Series A Preferred Units have a liquidation preference of $24.00 per unit, plus any Series A unpaid cash distributions, plus all accrued but unpaid distributions on such Series A Preferred Unit with respect to the quarter in which the liquidation occurs to the date fixed for the payment of any amount upon liquidation. The Series A Preferred Units are entitled to cumulative distributions from their initial issuance date, with distributions being calculated at an annual rate of 8.0% on the stated liquidation preference and payable quarterly in arrears within 45 days after the end of each quarter, when, as and if declared by the Board. The Series A Preferred Units are generally convertible, at the option of the holders of the Series A Preferred Units, into common units commencing on February 2, 2019 at the then applicable conversion rate. The conversion rate will be subject to adjustment under certain circumstances. In addition, the conversion rate will be redetermined on a quarterly basis, such that the conversion rate will be equal to $24.00 (the “Issue Price”) divided by the product of (x) the book value per common unit at the end of the immediately preceding quarter (pro-forma for per unit cash distributions payable with respect to such quarter) multiplied by (y) the quotient of (i) the Issue Price divided by (ii) the book value per common unit on February 2, 2017. In addition, the Partnership may redeem the Series A Preferred Units at any time between February 2, 2019 and February 2, 2027 at the redemption price specified in the Partnership Agreement, provided, however, that upon notice from the Partnership to the holders of Series A Preferred Units of its intent to redeem, such holders may elect, instead, to convert their Series A Preferred Units into common units at the then applicable conversion rate. For the year ended December 31, 2019, the calculated possible conversion of the Series A Preferred Units into common units are included in Note 20—Earnings per Unit and Cash Distributions. Upon a change of control of the Partnership, the holders of Series A Preferred Units will have the right to require cash redemption at 100% of the Issue Price. In addition, the holders of Series A Preferred Units will have the right to cause the Partnership to redeem the Series A Preferred Units on February 2, 2027 in, at the option of the Partnership, (i) cash at a price equal to 70% of the Issue Price or (ii) common units such that each Series A Preferred Unit receives common units worth 80% of the Issue Price (based on the volume-weighted average trading price, as adjusted for splits, combinations and other similar transactions, of the common units as reported on the NYSE for the 30 trading day period ending on the fifth trading day immediately prior to the redemption date) plus any accrued and unpaid distributions. In addition, at any time following February 2, 2019 and subject to certain conditions, the Partnership will have the right to convert the Series A Preferred Units into common units at the then applicable conversion rate if the aggregate market value (calculated as set forth in the partnership agreement) of the common units into which the then outstanding Series A Preferred Units are convertible, based on the then applicable conversion rate, is greater than 130% of the aggregate Issue Price of the then outstanding Series A Preferred Units. The Series A Preferred Units have voting rights that are identical to the voting rights of the common units, except they do not have any right to nominate, appoint or elect any of the directors of the Board, except whenever distributions payable on the Series A Preferred Units have not been declared and paid for four consecutive quarters (a “Trigger Event”). Upon a Trigger Event, holders of Series A Preferred Units, together with the holders of any other series of preferred units upon which like rights have been conferred and are exercisable, may replace one of the members of the Board appointed by the General Partner with a person nominated by such holders, such nominee to serve until all accrued and unpaid distributions on the preferred units have been paid. The Series A Preferred Units are entitled to vote with the common units as a single class so that the Series A Preferred Units are entitled to one vote for each common unit into which the Series A Preferred Units are convertible at the time of voting. For additional information about the Series A Preferred Units, please read the Partnership’s Report on Form 8‑A/A filed with the Securities and Exchange Commission on June 30, 2017.

Subsequent Events

Subsequent Events	12 Months Ended
	Dec. 31, 2019
Subsequent Events
Subsequent Events	23) Subsequent Events The Partnership has evaluated subsequent events from the balance sheet date through March 19, 2020, the date at which the audited consolidated financial statements were available to be issued, and determined that there are no other items to disclose, except as follows: On February 13, 2020, the Partnership paid a quarterly cash distribution of $0.52 per common unit with respect to the quarter ended December 31, 2019. The aggregate amount of the distribution was $18.0 million. On February 13, 2020, the Partnership also paid a cash distribution to holders of Series A Preferred Units with respect to the quarter ended December 31, 2019 in an aggregate amount equal to $1.8 million. After the balance sheet date, we have seen significant macro-economic uncertainty as a result of the coronavirus (COVID-19) outbreak. The scale and duration of this development remains uncertain and could materially impact our earnings and cash flow.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2019
Summary of Significant Accounting Policies
Basis of Preparation	(a) Basis of Preparation The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). All intercompany balances and transactions are eliminated. The consolidated financial statements include the financial statements of the entities listed in Note 4—Subsidiaries.
Business Combinations and Asset Acquisitions	(b) Business Combinations and Asset Acquisitions Business combinations are accounted for under the purchase method of accounting. On acquisition, the identifiable assets, liabilities and contingent liabilities are measured at their fair values at the date of acquisition. Any excess of the cost of acquisition over the fair values of the identifiable net assets acquired is recognized as goodwill. The consideration transferred for an acquisition is measured at fair value of the consideration given. Acquisition related costs are expensed as incurred. The results of operations of the acquired businesses are included in the consolidated results as of the date of the applicable acquisition. Dependent on the facts and circumstances, the assessment of a transaction may be considered the acquisition of an asset, when substantially all of the fair value of assets acquired is concentrated in a single identifiable asset, rather than a business combination. Asset acquisitions are accounted for by allocating the cost of the acquisition to the individual assets acquired and liabilities assumed on a relative fair value basis. Acquisition related costs are capitalized as a component of the assets acquired.
Reporting Currency	(c) Reporting Currency The consolidated financial statements are prepared in the reporting currency of U.S. Dollars. The functional currency of the vessel-owning Partnership subsidiaries is the U.S. Dollar, because the subsidiaries operate in the international shipping market, in which all revenues are U.S. Dollar-denominated and the majority of expenditures are made in U.S. Dollars. Transactions involving other currencies during the year are converted into U.S. Dollars using the exchange rates in effect at the time of the transactions. As of the balance sheet dates, monetary assets and liabilities that are denominated in currencies other than the U.S. Dollar are translated to reflect the year-end exchange rates. Resulting gains or losses are reflected separately in the accompanying consolidated statements of operations.
Use of Estimates	(d) Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the useful lives and impairment of Vessels, drydocking, purchase price allocation and income taxes.
Revenues and Operating Expenses	(e) Revenues and Operating Expenses The Partnership’s time charter contracts include both a lease component, consisting of the lease of the vessel, and non-lease component, consisting of operation of the vessel for the customers. The bareboat element is accounted for as an operating lease on a straight-line basis over the term of the charter, while the service element consisting of the operation of the vessel is recognized over time as the services are delivered. Revenue from time charters is recognized net of any commissions and is not recognized during days the Vessel is off-hire. Revenue is recognized from delivery of the Vessel to the charterer, until the end of the contract period. Under bareboat charters, the Partnership provides a specified Vessel for a fixed period of time at a specified day rate and the Partnership recognizes revenues from bareboat charters as operating leases on a straight-line basis over the term of the charter, net of any commissions. Where the term of the contract is based on the duration of a single voyage, the partnership evaluates whether the voyage contain leases and, if so, recognizes lease revenue as described above, and if not, recognizes revenue in accordance with ASC 606 upon the satisfaction of the performance obligations in the contract, i.e, when the underlying transportation service is provided to the customer. Voyage expenses are all expenses unique to a particular voyage, including bunker fuel expenses, port fees, cargo loading and unloading expenses, canal tolls and agency fees. Voyage expenses are paid by the customer under time charter and bareboat charters. Voyage expenses are paid by the Partnership for spot contracts and during periods of off-hire and are recognized when incurred. Vessel operating expenses include crewing, repairs and maintenance, insurance, stores, lube oils and communication expenses. Vessel operating expenses are paid by the Partnership for time charters, spot contracts and during off-hire and are recognized when incurred. The Partnership directly employs one onshore employee and no seagoing employees. Related parties have provided the management services for the Vessels and employ the crews that work on the Vessels. The Partnership is not liable for any pension or post-retirement benefits. See Note 18—Related Party Transactions.
Financial Income (Expense)	(f) Financial Income (Expense) Other finance expense includes external bank fees, commitment fees paid on undrawn revolving credit facility, financing service fees paid to related parties and guarantee commissions paid to external parties in connection with the Partnership’s debt and other bank services.
Cash and Cash Equivalents	(g) Cash and Cash Equivalents The Partnership considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents.
Trade Accounts Receivable	(h) Trade Accounts Receivable Accounts receivable are recorded at the invoiced amount and do not bear interest. Under terms of the current time charters and bareboat charters, the customers are committed to pay for the full month’s charter the first day of each month. See Note 2(s)—Prepaid Charter. The allowance for doubtful accounts is the Partnership’s best estimate of the amount of probable credit losses in existing accounts receivable. The Partnership establishes provisions for doubtful accounts on a case-by-case basis when it is unlikely that required payments of specific amounts will occur. In establishing these provisions, the Partnership considers the financial condition of the customer as well as specific circumstances related to the receivable. Receivable amounts determined to be unrecoverable are written-off. There were no allowances for doubtful accounts or amounts written off against the allowance for doubtful accounts as of December 31, 2019 and 2018. The Partnership does not have any off-balance-sheet credit exposure related to its customers.
Inventories	(i) Inventories Inventories, which are comprised principally of lubricating oils, are stated at the lower of cost or net realizable value. For vessels on time charters or bareboat charters, there are no bunkers, as the charterer supplies the bunkers, which principally consist of fuel oil. Cost is determined using the first-in, first-out method for all inventories.
Other Current Assets	(j) Other Current Assets Other current assets principally consist of prepaid expenses and other receivables.
Vessels and Equipment	(k) Vessels and Equipment Vessels and equipment are stated at the historical acquisition or construction cost, including capitalized interest, supervision and technical and delivery cost, net of accumulated depreciation and impairment loss, if any. Expenditures for subsequent conversions and major improvements are capitalized, provided that such costs increase the earnings capacity or improve the efficiency or safety of the vessels. Generally, the Partnership drydocks each vessel every 60 months until the vessel is 15 years old and every 30 months thereafter, as required for the renewal of certifications issued by classification societies. For vessels operating on time charters, the Partnership capitalizes the costs directly associated with the classification and regulatory requirements for inspection of the vessels and improvements incurred during drydocking. Drydock cost is depreciated on a straight-line basis over the period until the next planned drydocking takes place. The Partnership expenses costs related to routine repairs and maintenance performed during drydocking or as otherwise incurred. For vessels that are newly built or acquired, an element of the cost of the vessel is initially allocated to a drydock component and depreciated on a straight-line basis over the period until the next planned drydocking. When significant dry-docking expenditures occur prior to the expiration of this period, the Partnership expenses the remaining balance of the original drydocking cost in the month of the subsequent drydocking. For vessels operating on bareboat charters, the charter-party bears the cost of any drydocking. Depreciation on vessels and equipment is calculated on a straight-line basis over the asset’s estimated useful life, less an estimated residual value, as follows: Useful Life Hull 25 years Anchor-handling, loading and unloading equipment 25 years Main/auxiliary engine 25 years Thruster, dynamic positioning systems, cranes and other equipment 25 years Drydock costs 2.5 – 5 years A Vessel is depreciated to its estimated residual value, which is calculated based on the weight of the ship and estimated steel price. Any cost related to the disposal is deducted from the residual value.
Right-of-use assets and lease liabilities	(l) Right-of-use assets and lease liabilities The Partnership assesses whether a contract contains a lease at inception of the contract. The assessment involves the exercise of judgement about whether it depends on a specified asset, whether the Partnership obtains substantially all the economic benefits from the use of that asset, and whether the Partnership has the right to direct the use of the asset. The Partnership does not separate lease components from non-lease components as lessee. The Partnership recognizes a right-of-use asset and a lease liability at the lease commencement date, except for short-term leases of 12 months or less, which are expensed on a straight-line basis over the lease term.
Capitalized Interest	(m) Capitalized Interest Interest expense incurred on the Partnership’s debt during the construction of the Vessels exceeding one year is capitalized during the construction period.
Impairment of Long-Lived Assets	(n) Impairment of Long-Lived Assets Vessels and equipment, vessels under construction and intangible assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group to be tested for possible impairment, the Partnership first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying value. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary.
Intangibles	(o) Intangibles Intangible assets represent contractual rights for charters obtained in connection with business and asset acquisitions that have favorable contractual terms relative to market as of the acquisition dates. Contract liabilities represent contractual rights obtained in connection with business acquisitions that have unfavorable contractual terms relative to market as of the acquisition dates. The favorable and unfavorable contract rights have definite lives and are amortized to revenues over the period of the related contracts. Intangible assets with a definite life are tested for impairment whenever events or circumstances indicate that their carrying amount may not be recoverable. An impairment loss is recognized if the carrying amount exceeds the estimated fair value of the asset. The contract related intangible assets and liabilities and their amortization periods at acquisition dates are as follows: Amortization Intangible category Period Above market time charter— Tordis Knutsen 4.8 years Above market time charter— Vigdis Knutsen 4.9 years Unfavorable contractual rights— Fortaleza Knutsen 12 years Unfavorable contractual rights— Recife Knutsen 12 years The intangible for the above market value of the time charter contract associated with the Tordis Knutsen is amortized to time charter revenue on a straight line basis over the remaining term of the contract of approximately 4.8 years as of the acquisition date. The intangible for the above market value of the time charter contract associated with the Vigdis Knutsen is amortized to time charter revenue on a straight line basis over the remaining term of the contract of approximately 4.9 years as of the acquisition date. See Note 21—Acquisitions. The unfavorable contractual rights for charters associated with Foraleza Knutsen and Recife Knutsen were obtained in connection with a step acquisition in 2008 that had unfavorable contractual terms relative to market as of acquisition date. The Fortaleza Knutsen and the Recife Knutsen commenced on their 12 years’ fixed bareboat charters in March 2011 and August 2011, respectively. The unfavorable contract rights related to Fortaleza Knutsen and Recife Knutsen are amortized to bareboat revenues on a straight line basis over the 12 years’ contract period that expires in March 2023 and August 2023, respectively.
Debt Issuance Costs	(p) Debt Issuance Costs Debt issuance costs, including fees, commissions and legal expenses, are deferred and presented net of debt. Debt issuance costs of term loans are amortized over the term of the relevant loan. Amortization of debt issuance costs is included in interest expense. These costs are presented as a deduction from the corresponding liability, consistent with debt discount.
Derivative Instruments	(q) Derivative Instruments The Partnership uses derivatives to reduce market risks associated with its operations. The Partnership uses interest rate swaps for the management of interest risk exposure. The interest rate swaps effectively convert a portion of the Partnership’s debt from a floating to a fixed rate over the life of the transactions without an exchange of underlying principal. The Partnership seeks to reduce its exposure to fluctuations in foreign exchange rates through the use of foreign currency forward contracts. All derivative instruments are initially recorded at fair value as either assets or liabilities in the accompanying consolidated balance sheets and subsequently measured to fair value. The Partnership does not apply hedge accounting to its derivative instruments. Changes in the fair value of the derivative instruments are recognized in earnings. Gains and losses from the interest rate swap contracts of the Partnership related to long-term mortgage debt and foreign exchange forward contracts are recorded in realized and unrealized gain (loss) on derivative instruments in the consolidated statements of operations. Cash flows related to interest rate swap contracts are presented as cash flows provided by operating activities. Cash flows related to foreign exchange forward contracts entered into to economically hedge operating expenses in currencies other than U.S. Dollars are presented as cash flows provided by operating activities in the consolidated statements of cash flows, while cash flows related to foreign exchange forward contracts entered into to hedge contractual obligations to pay the shipyard in currencies other than functional currency of U.S. Dollars are presented as cash flows used in investing activities in the consolidated statements of cash flows.
Income Taxes	(r) Income Taxes Historically, part of the Partnership’s activities were subject to ordinary taxation and taxes were paid on taxable income (including operating income and net financial income and expense), while part of the activities were subject to the Norwegian Tonnage Tax Regime (the “tonnage tax regime”). Under the tonnage tax regime, the tax is based on the tonnage of the vessel, and operating income is tax free. The net financial income and expense remains taxable as ordinary income tax for entities subject to the tonnage tax regime. Income taxes arising from the part of activities subject to ordinary taxation are included in income tax expense in the consolidated statements of operations. For the portion of activities subject to the tonnage tax regime, tonnage taxes are classified as vessel operating expenses while the current and deferred taxes arising on net financial income and expense are reflected as income tax expense in the consolidated statements of operations. See Note 17—Income Taxes. The Partnership accounts for deferred income taxes using the liability method. Under the liability method, deferred tax assets and liabilities are recognized for the anticipated future tax effects of temporary differences between the financial statement basis and the tax basis of the Partnership’s assets and liabilities using enacted tax rates expected to apply to taxable income in the years in which these temporary differences are expected to be recovered or settled. A valuation allowance for deferred tax assets is recorded when it is more likely than not that some or all of the benefit from the deferred tax asset will not be realized. Recognition of uncertain tax positions is dependent upon whether it is more-likely-than-not that a tax position taken or expected to be taken in a tax return will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. If a tax position meets the more-likely-than-not recognition threshold, it is measured to determine the amount of benefit to recognize in the financial statements based on U.S. GAAP guidance. The Partnership recognizes interest and penalties related to uncertain tax positions in income tax expense.
Prepaid Charter	(s) Prepaid Charter Under terms of the time charters and bareboat charters, the customer pays for the month’s charter the first day of each month that is recorded as prepaid charter revenues.
Commitments, Contingencies and Insurance Proceeds	(t) Commitments, Contingencies and Insurance Proceeds Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. See Note 19—Commitments and Contingencies. Insurance claims for property damage for recoveries up to the amount of loss recognized are recorded when the claims submitted to insurance carriers are probable of recovery. Claims for property damage in excess of the loss recognized and for loss of hire are considered gain contingencies, which are generally recognized when the proceeds are received.
Fair Value Measurements	(u) Fair Value Measurements The Partnership utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Partnership determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels: · Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date. · Level 2 Inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. · Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date.
Recently Adopted Accounting Standards and New Accounting Standards Not Yet Adopted	(v) Recently Adopted Accounting Standards In February 2016, the FASB issued ASU 2016-02, Leases (ASC 842), that amends the accounting guidance on leases for both lessors and lessees. On January 1, 2019, the Partnership adopted the new standard using the optional transition method to apply the new standard at the transition date of January 1, 2019 with no retrospective adjustments to prior periods. Consequently, the accounting and disclosures for the prior periods continue to be presented in accordance with the previous standard for leases The Partnership elected the package of practical expedients and has not reassessed whether any expired or existing contracts are, or contain leases, not reassessed lease classifications, and not reassessed initial direct costs for any existing leases. Additionally, the practical expedient of disregarding short-term leases for agreements with lease terms of 12 months or less and the practical expedient of not separating lease components from nonlease components for all leases where the Partnership is the lessee were adopted as accounting policies for all underlying assets. The practical expedient of not separating lease components from nonlease components has not been adopted for leases where the Partnership is the lessor. There were no changes to the timing or amount of revenue recognized, and therefore, no cumulative effect adjustment to retained earnings of initially applying the standard related to the lessor accounting. Additional qualitative and quantitative disclosures are required and have been implemented for reporting periods beginning as of January 1, 2019, while prior periods are not adjusted and continue to be reported under the previous accounting standards. See Note 6—Operating Leases. Adoption of the new standard resulted in recording a right-of-use asset and a lease liability on the consolidated balance sheet for operating leases of $2.3 million and $2.3 million, respectively, as of January 1, 2019. There was no cumulative effect adjustment to retained earnings of initially applying the standard related to the lessee accounting. The right-of-use asset and lease liability for operating leases are presented in separate lines on the balance sheets. See Note 6—Operating Leases. There are no other recent accounting pronouncements, whose adoption had a material impact on the consolidated financial statements in the current year. (w) New Accounting Standards Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments–Credit Losses: Measurement of Credit Losses on Financial Instruments (or ASU 2016-13). ASU 2016-13 replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This update is effective for the Partnership from January 1, 2020, with a modified-retrospective approach. The adoption of ASU 2016-13 is not expected to have material impact on the consolidated financial statements. Recently issued accounting pronouncements are not expected to materially impact the Partnership.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2019
Summary of Significant Accounting Policies
Schedule of estimated useful life of vessels and equipment	Useful Life Hull 25 years Anchor-handling, loading and unloading equipment 25 years Main/auxiliary engine 25 years Thruster, dynamic positioning systems, cranes and other equipment 25 years Drydock costs 2.5 – 5 years
Summary of contract related intangible assets and liabilities and their amortization periods at acquisition dates	Amortization Intangible category Period Above market time charter— Tordis Knutsen 4.8 years Above market time charter— Vigdis Knutsen 4.9 years Unfavorable contractual rights— Fortaleza Knutsen 12 years Unfavorable contractual rights— Recife Knutsen 12 years

Significant Risks and Uncerta_2

Significant Risks and Uncertainties Including Business and Credit Concentrations (Tables)	12 Months Ended
	Dec. 31, 2019
Significant Risks and Uncertainties Including Business and Credit Concentrations
Schedule consolidated revenues and percentages of revenues for customers	Year Ended December 31, (U.S. Dollars in thousands) 2019 2018 2017 Eni Trading and Shipping S.p.A. $ 44,610 16 % $ 43,955 16 % $ 46,441 22 % Fronape International Company, a subsidiary of Petrobras Transporte S.A. 45,116 16 % 45,115 17 % 45,115 21 % Equinor Shipping Inc, a subsidiary of Equinor ASA 20,728 7 % 23,426 8 % 23,189 11 % Repsol Sinopec Brasil, B.V., a subsidiary of Repsol Sinopec Brasil, S.A. 36,346 13 % 36,978 13 % 28,129 13 % Brazil Shipping I Limited, a subsidiary of Royal Dutch Shell 66,199 23 % 81,816 29 % 51,259 24 % Galp Sinopec Brasil Services BV 35,541 13 % 30,029 11 % 734 1 %

Operating Leases (Tables)

Operating Leases (Tables)	12 Months Ended
	Dec. 31, 2019
Operating Leases
Schedule of Partnership's revenues by time charter and bareboat charters and other revenues	Year Ended December 31, (U.S. Dollars in thousands) 2019 2018 2017 Time charter revenues (service element included) $ 237,387 $ 233,076 $ 167,386 Bareboat revenues 45,115 45,115 45,115 Other revenues (loss of hire insurance recoveries and other income) 59 1,265 6,702 Total revenues $ 282,561 $ 279,456 $ 219,203
Schedule of minimum contractual future revenues	(U.S. Dollars in thousands) 2020 $ 272,166 2021 226,557 2022 149,350 2023 63,918 2024 20,093 2025 8,581 Total $ 740,665
Schedule of maturity analysis of partnership's lease liabilities	(U.S. Dollars in thousands) 2020 $ 644 2021 644 2022 644 Total $ 1,932 Less imputed interest 133 Carrying value of operating lease liabilities $ 1,799

Other Finance Expenses (Tables)

Other Finance Expenses (Tables)	12 Months Ended
	Dec. 31, 2019
Other Finance Expenses
Summary of components of interest cost	Year Ended December 31, (U.S. Dollars in thousands) 2019 2018 2017 Interest expense $ 48,118 $ 46,768 $ 28,977 Amortization of debt issuance cost and fair value of debt assumed 2,617 3,188 1,737 Total interest cost $ 50,735 $ 49,956 $ 30,714
Summary of components of other finance expense	Year Ended December 31, (U.S. Dollars in thousands) 2019 2018 2017 Bank fees, charges $ 597 $ 551 $ 516 Guarantee costs — 403 621 Commitment fees 248 306 269 Total other finance expense $ 845 $ 1,260 $ 1,406

Derivative Instruments (Tables)

Derivative Instruments (Tables)	12 Months Ended
	Dec. 31, 2019
Derivative Instruments
Schedule of realized and unrealized gains and losses recognized in earnings	Year Ended December 31, (U.S. Dollars in thousands) 2019 2018 2017 Realized gain (loss): Interest rate swap contracts $ 3,812 $ 1,180 $ (2,840) Foreign exchange forward contracts (2,933) 1,084 280 Total realized gain (loss): 879 2,264 (2,560) Unrealized gain (loss): Interest rate swap contracts (20,663) 4,429 5,514 Foreign exchange forward contracts 1,987 (2,654) 1,877 Total unrealized gain (loss): (18,676) 1,775 7,391 Total realized and unrealized gain (loss) on derivative instruments: $ (17,797) $ 4,039 $ 4,831

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	12 Months Ended
	Dec. 31, 2019
Fair Value Measurements
Carrying amounts and estimated fair values of financial instruments	December 31, 2019 December 31, 2018 Carrying Fair Carrying Fair (U.S. Dollars in thousands) Amount Value Amount Value Financial assets: Cash and cash equivalents $ 43,525 $ 43,525 $ 41,712 $ 41,712 Current derivative assets: Interest rate swap contracts 674 674 4,621 4,621 Foreign exchange forward contracts 246 246 — — Non-current derivative assets: Interest rate swap contracts 648 648 11,667 11,667 Financial liabilities: Current derivative liabilities: Interest rate swap contracts 910 910 — — Foreign exchange forward contracts — — 1,740 1,740 Non-current derivative liabilities: Interest rate swap contracts 5,133 5,133 345 345 Long-term debt, current and non-current 1,002,813 1,002,813 1,087,347 1,087,347
Schedule of assets and liabilities measured at fair value on recurring basis	Fair Value Measurements at Reporting Date Using Quoted Price in Active Significant Carrying Markets for Other Significant Value Identical Observable Unobservable December 31, Assets Inputs Inputs (U.S. Dollars in thousands) 2019 (Level 1) (Level 2) (Level 3) Financial assets: Cash and cash equivalents $ 43,525 $ 43,525 $ — $ — Current derivative assets: Interest rate swap contracts 674 — 674 — Foreign exchange forward contracts 246 — 246 — Non-current derivative assets: Interest rate swap contracts 648 — 648 — Foreign exchange forward contracts — — — — Financial liabilities: Current derivative liabilities: Interest rate swap contracts 910 — 910 — Foreign exchange forward contracts — — — — Non-current derivative liabilities: Interest rate swap contracts 5,133 — 5,133 — Foreign exchange forward contracts — — — — Long-term debt, current and non-current 1,002,813 — 1,002,813 — Fair Value Measurements at Reporting Date Using Quoted Price in Active Significant Carrying Markets for Other Significant Value Identical Observable Unobservable December 31, Assets Inputs Inputs (U.S. Dollars in thousands) 2018 (Level 1) (Level 2) (Level 3) Financial assets: Cash and cash equivalents $ 41,712 $ 41,712 $ — $ — Current derivative assets: Interest rate swap contracts 4,621 — 4,621 — Foreign exchange forward contracts — — — — Non-current derivative assets: Interest rate swap contracts 11,667 — 11,667 — Foreign exchange forward contracts — — — — Financial liabilities: Current derivative liabilities: Interest rate swap contracts — — — — Foreign exchange forward contracts 1,740 — 1,740 — Non-current derivative liabilities: Interest rate swap contracts 345 — 345 — Foreign exchange forward contracts — — — — Long-term debt, current and non-current 1,087,347 — 1,087,347 —

Trade Accounts Receivables an_2

Trade Accounts Receivables and Other Current Assets (Tables)	12 Months Ended
	Dec. 31, 2019
Trade Accounts Receivables and Other Current Assets
Schedule of Other Current Assets	Year Ended December 31, (U.S. Dollars in thousands) 2019 2018 Refund of value added tax $ 1,429 $ 899 Prepaid expenses 1,014 810 Other receivables 943 753 Total other current assets $ 3,386 $ 2,462

Vessels and Equipment (Tables)

Vessels and Equipment (Tables)	12 Months Ended
	Dec. 31, 2019
Vessels and Equipment
Schedule of vessels and equipment	Vessels & Accumulated (U.S. Dollars in thousands) equipment depreciation Net Vessels Vessels, December 31, 2017 $ 2,003,341 $ (280,318) $ 1,723,023 Additions 118,063 — 118,063 Drydock costs 14,750 — 14,750 Disposals (5,731) 5,731 — Depreciation for the year — (88,756) (88,756) Vessels, December 31, 2018 $ 2,130,423 $ (363,343) $ 1,767,080 Additions — — — Drydock costs 252 — 252 Disposals (1,663) 1,663 — Depreciation for the period — (89,844) (89,844) Vessels, December 31, 2019 $ 2,129,012 $ (451,524) $ 1,677,488
Schedule of drydocking activity	Year Ended December 31, (U.S. Dollars in thousands) 2019 2018 Balance at the beginning of the year $ 25,568 $ 17,748 Costs incurred for dry docking 252 12,421 Costs allocated to drydocking as part of acquistion of business — 2,329 Drydock amortization (7,297) (6,930) Balance at the end of the year $ 18,523 $ 25,568

Intangible Assets and Contrac_2

Intangible Assets and Contract Liabilities (Tables)	12 Months Ended
	Dec. 31, 2019
Intangible Assets and Contract Liabilities
Schedule of intangible assets	Above market Above market time charter time charter Total (U.S. Dollars in thousands) Tordis Knutsen Vigdis Knutsen intangibles Intangibles, December 31, 2017 $ 1,215 $ 1,282 $ 2,497 Additions — — — Amortization for the year (304) (302) (606) Intangibles, December 31, 2018 $ 911 $ 980 $ 1,891 Additions — — — Amortization for the period (303) (302) (605) Intangibles, December 31, 2019 $ 608 $ 678 $ 1,286
Summary of estimated future amortization of intangible assets	(U.S. Dollars in thousands) 2020 $ 605 2021 605 2022 75 Total $ 1,286
Schedule of contract liabilities	Balance of Amortization for Balance of Amortization for Balance of December 31, the year ended December 31, the year ended December 31, (U.S. Dollars in thousands) 2017 December 31, 2018 2018 December 31, 2019 2019 Contract liabilities: Unfavourable contract rights $ (8,239) $ 1,518 $ (6,721) $ 1,518 $ (5,203) Total amortization income $ 1,518 $ 1,518
Schedule of expected amortization of contract liabilities	(U.S. Dollars in thousands) 2020 2021 2022 2023 Contract liabilities: Unfavourable contract rights $ (1,518) $ (1,518) $ (1,518) $ (649)

Accrued Expenses (Tables)

Accrued Expenses (Tables)	12 Months Ended
	Dec. 31, 2019
Accrued Expenses
Schedule of accrued expenses	Year Ended December 31, (U.S. Dollars in thousands) 2019 2018 Operating expenses $ 855 $ 832 Interest expenses 4,049 4,968 Other expenses 1,713 664 Total accrued expenses $ 6,617 $ 6,464

Long-Term Debt (Tables)

Long-Term Debt (Tables)	12 Months Ended
	Dec. 31, 2019
Long-Term Debt
Schedule of Long-Term Debt	December 31, December 31, (U.S. Dollars in thousands) Vessel 2019 2018 $320 million loan facility Windsor Knutsen, Bodil Knutsen, Carmen Knutsen, Fortaleza Knutsen, Recife Knutsen, Ingrid Knutsen $ 282,360 $ 312,472 $55 million revolving credit facility 26,279 26,279 Hilda loan facility Hilda Knutsen 84,615 90,769 Torill loan facility Torill Knutsen 88,333 95,000 $172.5 million loan facility Dan Cisne, Dan Sabia 70,739 81,839 Raquel loan facility Raquel Knutsen 57,955 63,184 Tordis loan facility Tordis Knutsen 80,931 85,991 Vigdis loan facility Vigdis Knutsen 82,196 87,256 Lena loan facility Lena Knutsen 80,850 85,750 Brasil loan facility Brasil Knutsen 57,281 63,454 Anna loan facility Anna Knutsen 66,274 70,353 $25 million revolving credit facility 25,000 25,000 Total long-term debt $ 1,002,813 $ 1,087,347 Less: current installments 85,945 109,534 Less: unamortized deferred loan issuance costs 2,492 2,608 Current portion of long-term debt 83,453 106,926 Amounts due after one year 916,868 977,813 Less: unamortized deferred loan issuance costs 4,925 7,448 Long-term debt, less current installments, and unamortized deferred loan issuance costs $ 911,943 $ 970,365
Summary of Partnership's Outstanding Debt Repayable	The Partnership’s outstanding debt of $1,002.8 million as of December 31, 2019 is repayable as follows : (U.S. Dollars in thousands) Period repayment Balloon repayment 2020 $ 85,945 $ — 2021 86,545 95,811 2022 71,210 236,509 2023 55,535 202,185 2024 13,873 123,393 2025 and thereafter 1,307 30,500 Total $ 314,415 $ 688,398

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2019
Income Taxes
Significant Components of Current and Deferred Income Tax Expense Attributable to Income from Continuing Operations	Year Ended December 31, (U.S. Dollars in thousands) 2019 2018 2017 Current tax benefit (expense) $ (9) $ (18) $ (12) Deferred tax benefit (expense) — 20 28 Income tax benefit (expense) $ (9) $ 2 $ 16
Summary of Taxation	Year Ended December 31, (U.S. Dollars in thousands) 2019 2018 2017 Income tax benefit (expense) at Norwegian tonnage tax regime $ — $ 20 $ 28 Income tax benefit (expense) within UK (9) (18) (12) Income tax benefit (expense) $ (9) $ 2 $ 16 Effective tax rate % % %
Components of Deferred Tax Assets and Liabilities	The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities as of December 31, 2019 and 2018 are presented below: As of December 31, (U.S. Dollars in thousands) 2019 2018 Deferred tax assets: Financial derivatives $ (3) $ 24 Financial loss carry forwards for tonnage tax 17,331 16,946 Total deferred tax asset 17,328 16,970 Less valuation allowance (17,328) (16,970) Net deferred tax asset — — Deferred tax liabilities: Entrance tax 357 453 Total deferred tax liabilities $ 357 $ 453 The net deferred tax liability is classified in the consolidated balance sheets as follows: As of December 31, (U.S. Dollars in thousands) 2019 2018 Current deferred tax asset $ — $ — Non-current deferred tax liabilities 357 453 Net deferred tax liabilities $ 357 $ 453 Changes in the net deferred tax liabilities at December 31, 2019 and 2018 are presented below: As of December 31, (U.S. Dollars in thousands) 2019 2018 Net deferred tax liabilities at January 1, $ 453 $ 624 Change in temporary differences (90) (142) Translation differences (6) (29) Net deferred tax liabilities at December 31, $ 357 $ 453

Related Party Transactions (Tab

Related Party Transactions (Tables)	12 Months Ended
	Dec. 31, 2019
Related Party Transactions
Schedule of Related Party Costs and Expenses	Year Ended December 31, (U.S. Dollars in thousands) 2019 2018 2017 Statements of operations: Time charter and bareboat revenues: Time charter income from KNOT (1) $ 15,910 $ — $ — Other income: Guarantee income from KNOT (2) — 749 1,499 Operating expenses: Technical and operational management fee from KNOT to Vessels (3) 6,954 6,491 4,617 Operating expenses from other related parties (4) 487 — — General and administrative expenses: Administration fee from KNOT Management (5) 1,280 1,434 1,457 Administration fee from KOAS (5) 663 583 461 Administration fee from KOAS UK (5) 116 123 122 Administration and management fee from KNOT (6) 170 161 149 Finance income (expense): Interest expense charged from KNOT (7) — — (52) Total income (expenses) $ 6,240 $ (8,043) $ (5,359) At December 31, At December 31, At December 31, (U.S. Dollars in thousands) 2019 2018 2017 Balance Sheet: Vessels: Drydocking supervision fee from KNOT (8) $ — $ 187 $ 89 Drydocking supervision fee from KOAS (8) — 24 8 Total $ — $ 211 $ 97 (1) Time charter income from KNOT: On December 17, 2018, the Partnership's subsidiary that owns the Windsor Knutsen and Royal Dutch Shell ("Shell") agreed to suspend the vessel's time charter contract. The suspension period commenced March 4, 2019 and will end April 3, 2020, when the vessel is expected to be redelivered to Shell. During the suspension period, the Windsor Knutsen has been operating under a time charter contract with Knutsen Shuttle Tankers Pool AS on the same terms as the existing time charter contract with Shell. (2) Guarantee income from KNOT : Pursuant to the Omnibus Agreement, KNOT agreed to guarantee the payments of the hire rate under the initial charter of the Bodil Knutsen and Windsor Knutsen for a period of five years from the closing date of the IPO (until April 15, 2018). In October 2015, the Windsor Knutsen commenced on a new Shell time charter with a hire rate below the hire rate in the initial charter. The difference between the new hire rate and the initial rate was paid by KNOT until April 15, 2018. The Vigdis Knutsen suffered damages to its hull in connection with a ship-to-ship loading on May 24, 2017 and the vessel went off-hire 6 days in June 2017 due to repairs of the damage. In connection with the Vigdis Knutsen acquisition, KNOT agreed to pay for the repair cost and charter hire lost in connection with the incident. The reimbursement from KNOT for lost charter hire is accounted for as guarantee income. See Note 18(b)—Related Party Transactions—Guarantees and Indemnifications. (3) Technical and operational management fee from KNOT Management or KNOT Management Denmark to Vessels : KNOT Management or KNOT Management Denmark provides technical and operational management of the vessels on time charter including crewing, purchasing, maintenance and other operational service. In addition, there is also a charge for 24‑hour emergency response services provided by KNOT Management for all vessels managed by KNOT Management. (4) Operating expenses from other related parties: Simsea Real Operations AS, a company jointly owned by Trygve Seglem and by other shipping companies in Haugesund, provides simulation, operational training assessment and other certified maritime courses for seafarers. The cost is course fees for seafarers. Knutsen OAS Crewing AS, a subsidiary of TSSI, provides administrative services related to East European crew on vessels operating on time charter contracts. The cost is a fixed fee per month per East European crew onboard the vessel. (5) Administration fee from KNOT Management and Knutsen OAS Shipping AS (“KOAS”) and Knutsen OAS (UK) Ltd. ("KOAS UK") : Administration costs include the compensation and benefits of KNOT Management’s management and administrative staff as well as other general and administration expenses. Some benefits are also provided by KOAS and KOAS UK. Net administration costs are total administration cost plus a 5% margin, reduced for the total fees for services delivered by the administration staffs and the estimated shareholder costs for KNOT that have not been allocated. As such, the level of net administration costs as a basis for the allocation can vary from year to year based on the administration and financing services offered by KNOT to all the vessels in its fleet each year. KNOT Management also charges each subsidiary a fixed annual fee for the preparation of the statutory financial statement. (6) Administration and management fee from KNOT Management and KNOT Management Denmark : For bareboat charters, the shipowner is not responsible for providing crewing or other operational services and the customer is responsible for all vessel operating expenses and voyage expenses. However, each of the vessels under bareboat charters is subject to a management and administration agreement with either KNOT Management or KNOT Management Denmark, pursuant to which these companies provide general monitoring services for the vessels in exchange for an annual fee. (7) Interest expense charged from KNOT : KNOT invoiced interest (expense) income for any outstanding payables to (receivable from) owners and affiliates to the vessel-owning subsidiaries. (8) Drydocking supervision fee from KNOT and KOAS : KNOT and KOAS provide supervision and hire out service personnel during drydocking of the vessels. The fee is calculated as a daily fixed fee.
Summary of amounts due from and due to related parties	At December 31, At December 31, (U.S. Dollars in thousands) 2019 2018 Balance Sheet: Trading balances due from KOAS $ 687 $ 466 Trading balances due from KNOT and affiliates 2,000 675 Amount due from related parties $ 2,687 $ 1,141 Trading balances due to KOAS $ 840 $ 629 Trading balances due to KNOT and affiliates 372 441 Amount due to related parties $ 1,212 $ 1,070
Schedule of Trade accounts payable and other current assets	At December 31, At December 31, (U.S. Dollars in thousands) 2019 2018 Balance Sheet: Trading balances due to KOAS $ 216 $ 381 Trading balances due to KNOT and affiliates 685 411 Trade accounts payables to related parties $ 901 $ 792
Schedule of other current asset balances from related parties	At December 31, At December 31, (U.S. Dollars in thousands) 2019 2018 Balance Sheet: Trading balances due from KNOT and affiliates $ 105 $ — Other current assets from related parties $ 105 $ —

Earnings per Unit and Cash Di_2

Earnings per Unit and Cash Distributions (Tables)	12 Months Ended
	Dec. 31, 2019
Earnings per Unit and Cash Distributions
Schedule of calculations of basic and diluted earnings per unit	Year Ended December 31, (U.S. Dollars in thousands, except per unit data) 2019 2018 2017 Net income $ 58,957 $ 82,165 $ 68,064 Less: Series A Preferred unitholders’ interest in net income 7,200 7,200 5,253 Net income attributable to the unitholders of KNOT Offshore Partners LP 51,757 74,965 62,811 Less: Distributions (2) 72,136 72,136 67,171 Under (over) distributed earnings (20,379) 2,829 (4,360) Under (over) distributed earnings attributable to: Common unitholders (3) (20,003) 2,777 (4,280) General Partner (376) 52 (80) Weighted average units outstanding (basic) (in thousands): Common unitholders 32,694 32,694 30,068 Subordinated unitholders — — — General Partner 615 615 567 Weighted average units outstanding (diluted) (in thousands): Common unitholders(4) 32,694 36,370 32,804 General Partner 615 615 567 Earnings per unit (basic) Common unitholders $ 1.554 $ 2.251 $ 2.050 General Partner 1.554 2.251 2.046 Earnings per unit (diluted): Common unitholders (4) $ 1.554 $ 2.217 $ 2.037 General Partner 1.554 2.251 2.046 Cash distributions declared and paid in the period per unit (5) $ 2.080 $ 2.080 $ 2.080 Subsequent event: Cash distributions declared and paid per unit relating to the period (6) $ 0.520 $ 0.520 $ 0.520 (1) Earnings per unit have been calculated in accordance with the cash distribution provisions set forth in the Partnership Agreement. (2) This refers to distributions made or to be made in relation to the period irrespective of the declaration and payment dates and based on the numbers of units outstanding at the record date. This includes cash distributions to the IDR holder (KNOT) for the years ended December 31, 2019, 2018 and 2017 of $2.8 million, $2.8 million and $2.6 million, respectively. (3) This includes the net income attributable to the IDR holder. The net income attributable to IDRs for the years ended December 31, 2019, 2018 and 2017 was $2.8 million, $2.8 million and $2.6 million, respectively. (4) Diluted weighted average units outstanding for the year ended December 31, 2019 excludes 3.8 million potential common shares relating to the convertible preferred units since the assumed issuance had an anti-dilutive effect on the calculation of diluted earnings per unit. (5) Refers to cash distributions declared and paid during the period. (6) Refers to cash distributions declared and paid subsequent to December 31, 2019.

Acquisitions (Tables)

Acquisitions (Tables)	12 Months Ended
	Dec. 31, 2019
Acquisitions
Schedule of purchase price for the transaction	Final Final Final Anna Knutsen Brasil Knutsen Lena Knutsen March 1, December 15, September 30, (U.S. Dollars in thousands) 2018 2017 2017 Purchase consideration (1) $ 19,913 $ 5,764 $ 33,235 Less: Fair value of net assets acquired: Vessels and equipment (2) 120,274 96,000 142,457 Cash 4,537 5,217 470 Inventories 257 146 243 Derivatives assets 1,839 — 1,729 Others current assets 111 125 193 Amounts due from related parties 520 2 23,599 Long-term debt (84,217) (59,000) (111,068) Long-term debt from related parties (22,535) — (22,706) Deferred debt issuance costs 1,228 618 867 Trade accounts payable (971) (154) (256) Accrued expenses (1,013) (1,185) (224) Prepaid charter and deferred revenue — — (1,758) Amounts due to related parties (117) (36,005) (186) Income tax payable — — (125) Subtotal 19,913 5,764 33,235 Difference between the purchase price and fair value of net assets acquired $ — $ — $ — Final Final Vigdis Knutsen Tordis Knutsen June 1, March 1, (U.S. Dollars in thousands) 2017 2017 Purchase consideration (1) $ 31,759 $ 32,983 Less: Fair value of net assets acquired: Vessels and equipment (2) 145,772 145,754 Intangibles: Above market time charter 1,458 1,468 Cash 3,438 609 Inventories 190 129 Derivatives assets 226 1,377 Others current assets 128 1,348 Amounts due from related parties 18,374 20,834 Long-term debt (114,411) (114,411) Long-term debt from related parties (22,703) (22,960) Deferred debt issuance costs 928 795 Trade accounts payable (187) (106) Accrued expenses (1,082) (503) Amounts due to related parties (372) (1,351) Income tax payable — — Subtotal 31,759 32,983 Difference between the purchase price and fair value of net assets acquired $ — $ — (1) The purchase consideration comprises the following: Final Final Final Anna Knutsen Brasil Knutsen Lena Knutsen March 1, December 15, September 30, (U.S. Dollars in thousands) 2018 2017 2017 Cash consideration paid to KNOT (from KNOT) $ 14,637 $ 2,383 $ 33,343 Purchase price adjustments 5,276 3,381 (108) Purchase price $ 19,913 $ 5,764 $ 33,235 Final Final Vigdis Knutsen Tordis Knutsen June 1, March 1, (U.S. Dollars in thousands) 2017 2017 Cash consideration paid to KNOT (from KNOT) $ 28,109 $ 31,242 Purchase price adjustments 3,650 1,741 Purchase price $ 31,759 $ 32,983 (2) Vessel and equipment includes allocation to drydocking for the following vessels (in thousands): Anna Knutsen of $2,329, Brasil Knutsen of $260, Lena Knutsen of $2,741, Vigdis Knutsen of $2,709, Tordis Knutsen of $2,753 and Raquel Knutsen of $1,663.
Brasil Knutsen
Acquisitions
Schedule of summarized consolidated pro forma financial information	Unaudited Year Ended (U.S. Dollars in thousands) December 31, 2017 Revenue $ 223,220 Net income 64,034
Lena Knutsen
Acquisitions
Schedule of summarized consolidated pro forma financial information	Unaudited Year Ended (U.S. Dollars in thousands) December 31, 2017 Revenue $ 220,904 Net income 62,999
Vigdis Knutsen
Acquisitions
Schedule of summarized consolidated pro forma financial information	Unaudited Year Ended (U.S. Dollars in thousands) December 31, 2017 Revenue $ 222,354 Net income 63,225
Tordis Knutsen
Acquisitions
Schedule of summarized consolidated pro forma financial information	Unaudited Year Ended (U.S. Dollars in thousands) December 31, 2017 Revenue $ 221,198 Net income 66,584

Equity Offerings and Sale of _2

Equity Offerings and Sale of Series A Preferred Units (Tables)	12 Months Ended
	Dec. 31, 2019
Equity Offerings and Sale of Series A Preferred Units
Schedule of Equity Offerings	Equity Offerings 2019 2018 January 2017 November 2017 Total 2017 (U.S. Dollars in thousands) Offering Offering Offering Offering Offering Gross proceeds received $ — $ — $ 56,125 $ 66,936 (1) $ 123,061 Less: Underwriters’ discount — — 925 660 1,585 Less: Offering expenses — — 300 230 530 Net proceeds received $ — $ — $ 54,900 $ 66,046 $ 120,946 (1) Includes the General Partner’s 1.85% proportional capital contribution.
Schedule of Sale of Series A Preferred Units	Sale of Series A Preferred units February 2017 June 2017 Total Series A Series A Series A (U.S. Dollars in thousands) Preferred Units Preferred Units Preferred Units Gross proceeds received $ 50,000 $ 40,000 $ 90,000 Less: Fee 1,000 1,000 2,000 Less: Expenses 386 150 536 Net proceeds received $ 48,614 $ 38,850 $ 87,464

Description of Business (Detail

Description of Business (Details) $ in Millions	1 Months Ended
	Apr. 30, 2013item	Mar. 19, 2020USD ($)	Dec. 31, 2019itemdirector
Description of Business
Ownership interest in shuttle tankers acquired at formation (as a percent)	100.00%
Number of shuttle tankers acquired at formation | item	4
Number of operating vessels | item			16
Undrawn portion of revolving credit facilities | $		$ 28.7
Number of members on board of directors electable by common unitholders | director			4
Total number of board members | director			7

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Revenues and Operating Expenses (Details)	12 Months Ended
	Dec. 31, 2019employee
Summary of Significant Accounting Policies
Number of onshore employees	1

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Trade Accounts Receivable (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Summary of Significant Accounting Policies
Allowance for doubtful accounts	$ 0	$ 0

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Vessels and Equipment (Details)	12 Months Ended
	Dec. 31, 2019
Vessels and Equipment
Drydocking interval until a vessel is 15 years old	60 months
Age of vessels to switch from 60 to 30 month drydocking interval	15 years
Drydocking interval after a vessel is 15 years old	30 months
Hull [Member]
Vessels and Equipment
Asset's estimated useful life	25 years
Anchor-Handling, Loading and Unloading Equipment [Member]
Vessels and Equipment
Asset's estimated useful life	25 years
Main/Auxiliary Engine [Member]
Vessels and Equipment
Asset's estimated useful life	25 years
Thruster, Dynamic Positioning Systems, Cranes and Other Equipment [Member]
Vessels and Equipment
Asset's estimated useful life	25 years
Drydock Costs [Member] | Minimum
Vessels and Equipment
Asset's estimated useful life	2 years 6 months
Drydock Costs [Member] | Maximum
Vessels and Equipment
Asset's estimated useful life	5 years

Summary of Significant Accoun_7

Summary of Significant Accounting Policies - Intangibles (Details)	Jun. 01, 2017	Mar. 01, 2017	Jun. 30, 2017	Mar. 31, 2017	Aug. 31, 2011	Mar. 31, 2011
Fortaleza Knutsen
Intangible Assets
Amortization Period, Unfavorable contractual rights						12 years
Term of bareboat charter						12 years
Recife Knutsen
Intangible Assets
Amortization Period, Unfavorable contractual rights					12 years
Term of bareboat charter					12 years
Above Market Value Of Time Charter [Member] | Tordis Knutsen
Intangible Assets
Amortization Period, Above market time charter		4 years 9 months 18 days		4 years 9 months 18 days
Above Market Value Of Time Charter [Member] | Vigdis Knutsen
Intangible Assets
Amortization Period, Above market time charter	4 years 10 months 24 days		4 years 10 months 24 days

Summary of Significant Accoun_8

Summary of Significant Accounting Policies - Recently Adopted Accounting Standards (Details) - USD ($)	Mar. 01, 2018	Dec. 31, 2019	Jan. 01, 2019
New Accounting Pronouncements or Change in Accounting Principle [Table]
Right-of-use asset		$ 1,799,000	$ 2,300,000
Lease liability		1,799,000	2,300,000
Cumulative effect adjustment to retained earnings of initially applying the new lease standard		$ 0
ASU 2016-02, Leases | Restatement adjustment
New Accounting Pronouncements or Change in Accounting Principle [Table]
Right-of-use asset			2,300,000
Lease liability			$ 2,300,000
Anna Knutsen | Acquisitions from KNOT
New Accounting Pronouncements or Change in Accounting Principle [Table]
Percentage of Interest in Assets Acquired	100.00%

Formation Transactions and In_2

Formation Transactions and Initial Public Offering - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands	Feb. 13, 2020	Nov. 09, 2017	Jan. 10, 2017	Nov. 30, 2017	Jan. 31, 2017	Apr. 30, 2013	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Formation Transactions and Initial Public Offering
Number of general partner units issued to the General Partner							615,117	615,117
Gross proceeds received				$ 66,936	$ 56,125				$ 123,061
Net proceeds from the offering		$ 66,000	$ 54,900	$ 66,046	$ 54,900			$ (4)	$ 120,946
Repayment of outstanding debt						$ 118,900
One-time entrance tax into Norwegian tonnage tax regime						3,000
Revolving credit facility, outstanding						$ 20,000
KNOT [Member] | Bodil Knutsen
Formation Transactions and Initial Public Offering
Period of related party guarantee of payment of hire rate						5 years
KNOT [Member] | Windsor Knutsen
Formation Transactions and Initial Public Offering
Period of related party guarantee of payment of hire rate						5 years
IPO [Member]
Formation Transactions and Initial Public Offering
Gross proceeds received						$ 179,900
Net proceeds from the offering						160,700
KNOT [Member]
Formation Transactions and Initial Public Offering
Cash distribution						$ 21,950
General Partner
Formation Transactions and Initial Public Offering
Number of general partner units issued to the General Partner						349,694
Subordinated Units [Member] | KNOT [Member]
Formation Transactions and Initial Public Offering
Limited partners' capital account, units issued						8,567,500
Common Units [Member]
Formation Transactions and Initial Public Offering
Limited partners' capital account, units issued							32,694,094	32,694,094
Cash distribution	$ 18,000
Limited Partner [Member] | Common Units [Member]
Formation Transactions and Initial Public Offering
Common units sold and issued		3,000,000	2,500,000
Limited Partner [Member] | Common Units [Member] | IPO [Member]
Formation Transactions and Initial Public Offering
Common units sold and issued						8,567,500
Common unit, per share amount						$ 21
Limited Partner [Member] | Common Units [Member] | Underwriters' option to purchase additional units
Formation Transactions and Initial Public Offering
Common units sold and issued						1,117,500
IDR Holders
Formation Transactions and Initial Public Offering
Threshold quarterly distribution for increasing percentages allocated to the IDRs						$ 0.43125
KNOT UK | KNOT Shuttle Tankers AS
Formation Transactions and Initial Public Offering
Percentage of contribution to subsidiary						100.00%
KNOT [Member] | Partnership [Member]
Formation Transactions and Initial Public Offering
Percentage of limited partner interest						49.00%	26.20%
KNOT [Member] | Incentive Distribution Rights [Member]
Formation Transactions and Initial Public Offering
Percentage of limited partner interest						100.00%
General Partner | Partnership [Member]
Formation Transactions and Initial Public Offering
Percentage of partnership interest held by General Partner		1.85%				2.00%	1.85%
Public | Partnership [Member]
Formation Transactions and Initial Public Offering
Percentage of limited partner interest						49.00%	73.50%

Significant Risks and Uncerta_3

Significant Risks and Uncertainties Including Business and Credit Concentrations (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Significant Risks and Uncertainties Including Business and Credit Concentrations
Revenues	$ 282,561	$ 279,456	$ 219,203
Customer Concentration Risk [Member] | Revenues [Member] | Eni Trading and Shipping S.p.A.
Significant Risks and Uncertainties Including Business and Credit Concentrations
Revenues	$ 44,610	$ 43,955	$ 46,441
Percentage of partnership's consolidated revenues	16.00%	16.00%	22.00%
Customer Concentration Risk [Member] | Revenues [Member] | Fronape International Company, a subsidiary of Petrobras Transporte S.A.
Significant Risks and Uncertainties Including Business and Credit Concentrations
Revenues	$ 45,116	$ 45,115	$ 45,115
Percentage of partnership's consolidated revenues	16.00%	17.00%	21.00%
Customer Concentration Risk [Member] | Revenues [Member] | Equinor Shipping Inc, a subsidiary of Equinor ASA
Significant Risks and Uncertainties Including Business and Credit Concentrations
Revenues	$ 20,728	$ 23,426	$ 23,189
Percentage of partnership's consolidated revenues	7.00%	8.00%	11.00%
Customer Concentration Risk [Member] | Revenues [Member] | Repsol Sinopec Brasil, B.V., a subsidiary of Repsol Sinopec Brasil, S.A.
Significant Risks and Uncertainties Including Business and Credit Concentrations
Revenues	$ 36,346	$ 36,978	$ 28,129
Percentage of partnership's consolidated revenues	13.00%	13.00%	13.00%
Customer Concentration Risk [Member] | Revenues [Member] | Brazil Shipping I Limited, a subsidiary of Royal Dutch Shell
Significant Risks and Uncertainties Including Business and Credit Concentrations
Revenues	$ 66,199	$ 81,816	$ 51,259
Percentage of partnership's consolidated revenues	23.00%	29.00%	24.00%
Customer Concentration Risk [Member] | Revenues [Member] | Galp Sinopec Brasil Services BV
Significant Risks and Uncertainties Including Business and Credit Concentrations
Revenues	$ 35,541	$ 30,029	$ 734
Percentage of partnership's consolidated revenues	13.00%	11.00%	1.00%

Operating Leases (Details)

Operating Leases (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Disaggregation of Revenue [Line Items]
Revenue from contract with customers	$ 282,502	$ 278,191	$ 212,501
Other revenues (loss of hire insurance recoveries and other income)	59	1,265	6,702
Total revenues	282,561	279,456	219,203
Time charter revenues (service element included)
Disaggregation of Revenue [Line Items]
Revenue from contract with customers	237,387	233,076	167,386
Bareboat revenues
Disaggregation of Revenue [Line Items]
Revenue from contract with customers	$ 45,115	$ 45,115	$ 45,115

Operating Leases - Minimum Cont

Operating Leases - Minimum Contractual Future Revenues (Details) $ in Thousands	Dec. 31, 2019USD ($)
Lessor, Operating Lease, Payments, Fiscal Year Maturity [Abstract]
2020	$ 272,166
2021	226,557
2022	149,350
2023	63,918
2024	20,093
2025	8,581
Total	$ 740,665

Operating Leases - Additional I

Operating Leases - Additional Information (Details)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2015
Fortaleza Knutsen
Lessor, Lease, Description [Line Items]
Current bareboat charter expiration year	2023
Recife Knutsen
Lessor, Lease, Description [Line Items]
Current bareboat charter expiration year	2023
Bodil Knutsen
Lessor, Lease, Description [Line Items]
Current time charter expiration year	2021
Time charter expiration year under options to extend	2024
Windsor Knutsen
Lessor, Lease, Description [Line Items]
Term of time charter		2 years
Time charter expiration year under options to extend	2023
Carmen Knutsen
Lessor, Lease, Description [Line Items]
Current time charter expiration year	2023
Time charter expiration year under options to extend	2026
Hilda Knutsen
Lessor, Lease, Description [Line Items]
Current time charter expiration year	2022
Time charter expiration year under options to extend	2025
Torill Knutsen
Lessor, Lease, Description [Line Items]
Current time charter expiration year	2023
Dan Cisne
Lessor, Lease, Description [Line Items]
Current bareboat charter expiration year	2023
Dan Sabia
Lessor, Lease, Description [Line Items]
Current bareboat charter expiration year	2024
Ingrid Knutsen
Lessor, Lease, Description [Line Items]
Current time charter expiration year	2024
Time charter expiration year under options to extend	2029
Raquel Knutsen
Lessor, Lease, Description [Line Items]
Current time charter expiration year	2025
Time charter expiration year under options to extend	2030
Tordis Knutsen
Lessor, Lease, Description [Line Items]
Current time charter expiration year	2022
Time charter expiration year under options to extend	2032
Vigdis Knutsen
Lessor, Lease, Description [Line Items]
Current time charter expiration year	2022
Time charter expiration year under options to extend	2032
Lena Knutsen
Lessor, Lease, Description [Line Items]
Current time charter expiration year	2022
Time charter expiration year under options to extend	2032
Brasil Knutsen
Lessor, Lease, Description [Line Items]
Current time charter expiration year	2022
Time charter expiration year under options to extend	2028
Anna Knutsen
Lessor, Lease, Description [Line Items]
Current time charter expiration year	2022
Time charter expiration year under options to extend	2028

Operating Leases - Lease obliga

Operating Leases - Lease obligations (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Jan. 01, 2019
Operating Leases
Right-of-use asset	$ 1,799,000	$ 2,300,000
Lease liability	1,799,000	2,300,000
Cumulative effect adjustment to retained earnings of initially applying the new lease standard	0
Lease cost	$ 600,000
Weighted average discount rate (as a percent)	4.80%
Weighted average remaining lease term	3 years
Partnership's lease liabilities from leased-in equipment
2020	$ 644,000
2021	644,000
2022	644,000
Total	1,932,000
Less imputed interest	133,000
Carrying value of operating lease liabilities	$ 1,799,000	$ 2,300,000

Segment Information (Details)

Segment Information (Details)	12 Months Ended
	Dec. 31, 2019segmentitem	Dec. 31, 2018item	Dec. 31, 2017item
Segment Information
Number of reportable segments | segment	1
Number of vessels	16
Number of time charters	12	12	11
Number of bareboat charters	4	4	4

Insurance Proceeds (Details)

Insurance Proceeds (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Insurance Proceeds
Deductible period under business interruption insurance		14 days
Period of coverage under business interruption insurance		180 days
Loss of hire insurance payments recorded as a component of total revenues			$ 450	$ 5,176
Net vessel operating expense		$ 60,129	$ 56,730	46,709
Raquel Knutsen
Insurance Proceeds
Deductible period under business interruption insurance		14 days	14 days
Period of coverage under business interruption insurance		180 days	180 days
Raquel Knutsen | Propeller Hub Damage
Insurance Proceeds
Loss of hire insurance payments recorded as a component of total revenues				3,400
Recoveries for repairs				3,900
Cost of repairs				4,200
Net vessel operating expense				300
Carmen Knutsen
Insurance Proceeds
Special survey drydocking period	5 years
Deductible period under business interruption insurance	14 days
Carmen Knutsen | Technical Default in Controllable Pitch Propeller
Insurance Proceeds
Loss of hire insurance payments recorded as a component of total revenues			$ 450	1,750
Recoveries for repairs			2,250
Cost of repairs			150	$ 2,400
Net vessel operating expense			$ 300

Other Finance Expenses - Compon

Other Finance Expenses - Components Interest Cost (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Other Finance Expenses
Interest expense	$ 48,118	$ 46,768	$ 28,977
Amortization of debt issuance cost and fair value of debt assumed	2,617	3,188	1,737
Total interest cost	$ 50,735	$ 49,956	$ 30,714

Other Finance Expenses - Comp_2

Other Finance Expenses - Components of other finance expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Other Finance Expenses
Bank fees, charges	$ 597	$ 551	$ 516
Guarantee costs		403	621
Commitment fees	248	306	269
Total other finance expense	$ 845	$ 1,260	$ 1,406

Derivative Instruments - Additi

Derivative Instruments - Additional Information (Details) kr in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2019NOK (kr)	Dec. 31, 2019USD ($)	Dec. 31, 2018NOK (kr)	Dec. 31, 2018USD ($)
Interest Rate Swap Contracts [Member]
Derivative Instruments
Carrying amount of derivative liabilities		$ 4.7
Notional amount		561.8		$ 555.5
Carrying amount of derivative asset				15.9
Foreign Exchange Forward Contracts [Member]
Derivative Instruments
Carrying amount of derivative liabilities				$ 1.7
Notional amount | kr	kr 46.1		kr 244.2
Carrying amount of derivative asset		$ 0.2

Derivative Instruments - Realiz

Derivative Instruments - Realized and Unrealized Gains and Losses Recognized in Earnings (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Net gain (loss) on derivative instruments
Realized gain (loss)	$ 879	$ 2,264	$ (2,560)
Unrealized gain (loss)	(18,676)	1,775	7,391
Total realized and unrealized gain (loss) on derivative instruments	(17,797)	4,039	4,831
Interest Rate Swap Contracts [Member]
Net gain (loss) on derivative instruments
Realized gain (loss)	3,812	1,180	(2,840)
Unrealized gain (loss)	(20,663)	4,429	5,514
Foreign Exchange Forward Contracts [Member]
Net gain (loss) on derivative instruments
Realized gain (loss)	(2,933)	1,084	280
Unrealized gain (loss)	$ 1,987	$ (2,654)	$ 1,877

Fair Value Measurements - Carry

Fair Value Measurements - Carrying Amounts and Estimated Fair Values of Partnership 's Financial Instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Financial assets:
Current derivative assets	$ 920	$ 4,621
Non-current derivative assets	648	11,667
Financial liabilities:
Current derivative liabilities	910	1,740
Non-current derivative liabilities	5,133	345
Carrying Amount [Member]
Financial assets:
Cash and cash equivalents	43,525	41,712
Financial liabilities:
Long-term debt, current and non-current	1,002,813	1,087,347
Carrying Amount [Member] | Interest Rate Swap Contracts [Member]
Financial assets:
Current derivative assets	674	4,621
Non-current derivative assets	648	11,667
Financial liabilities:
Current derivative liabilities	910
Non-current derivative liabilities	5,133	345
Carrying Amount [Member] | Foreign Exchange Forward Contracts [Member]
Financial assets:
Current derivative assets	246
Financial liabilities:
Current derivative liabilities		1,740
Fair Value [Member]
Financial assets:
Cash and cash equivalents	43,525	41,712
Financial liabilities:
Long-term debt, current and non-current	1,002,813	1,087,347
Fair Value [Member] | Interest Rate Swap Contracts [Member]
Financial assets:
Current derivative assets	674	4,621
Non-current derivative assets	648	11,667
Financial liabilities:
Current derivative liabilities	910
Non-current derivative liabilities	5,133	345
Fair Value [Member] | Foreign Exchange Forward Contracts [Member]
Financial assets:
Current derivative assets	$ 246
Financial liabilities:
Current derivative liabilities		$ 1,740

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Fair Value, assets and liabilities measured on recurring and nonrecurring basis
Deferred debt issuance cost	$ 7,400,000	$ 10,100,000
Restricted cash	$ 0	$ 0
Interest Rate Swap Contracts [Member]
Fair Value, assets and liabilities measured on recurring and nonrecurring basis
Weighted average remaining terms	4 years	4 years 10 months 24 days
Interest Rate Swap Contracts [Member] | Minimum
Fair Value, assets and liabilities measured on recurring and nonrecurring basis
Notional amount per contract	$ 8,500,000	$ 10,000,000
Fixed interest rate	1.38%	1.38%
Interest Rate Swap Contracts [Member] | Maximum
Fair Value, assets and liabilities measured on recurring and nonrecurring basis
Notional amount per contract	$ 50,000,000	$ 50,000,000
Fixed interest rate	2.90%	2.90%

Fair Value Measurements - Fair

Fair Value Measurements - Fair Value Hierarchy (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Financial assets:
Current derivative assets	$ 920	$ 4,621
Non-current derivative assets	648	11,667
Financial liabilities:
Current derivative liabilities	910	1,740
Non-current derivative liabilities	5,133	345
Carrying Amount [Member]
Financial assets:
Cash and cash equivalents	43,525	41,712
Financial liabilities:
Long-term debt, current and non-current	1,002,813	1,087,347
Fair Value [Member]
Financial assets:
Cash and cash equivalents	43,525	41,712
Financial liabilities:
Long-term debt, current and non-current	1,002,813	1,087,347
Foreign Exchange Forward Contracts [Member] | Carrying Amount [Member]
Financial assets:
Current derivative assets	246
Financial liabilities:
Current derivative liabilities		1,740
Foreign Exchange Forward Contracts [Member] | Fair Value [Member]
Financial assets:
Current derivative assets	246
Financial liabilities:
Current derivative liabilities		1,740
Interest Rate Swap Contracts [Member] | Carrying Amount [Member]
Financial assets:
Current derivative assets	674	4,621
Non-current derivative assets	648	11,667
Financial liabilities:
Current derivative liabilities	910
Non-current derivative liabilities	5,133	345
Interest Rate Swap Contracts [Member] | Fair Value [Member]
Financial assets:
Current derivative assets	674	4,621
Non-current derivative assets	648	11,667
Financial liabilities:
Current derivative liabilities	910
Non-current derivative liabilities	5,133	345
Quoted Price in Active Markets for Identical Assets (Level 1) [Member] | Fair Value [Member]
Financial assets:
Cash and cash equivalents	43,525	41,712
Significant Other Observable Inputs (Level 2) [Member] | Fair Value [Member]
Financial liabilities:
Long-term debt, current and non-current	1,002,813	1,087,347
Significant Other Observable Inputs (Level 2) [Member] | Foreign Exchange Forward Contracts [Member] | Fair Value [Member]
Financial assets:
Current derivative assets	246
Financial liabilities:
Current derivative liabilities		1,740
Significant Other Observable Inputs (Level 2) [Member] | Interest Rate Swap Contracts [Member] | Fair Value [Member]
Financial assets:
Current derivative assets	674	4,621
Non-current derivative assets	648	11,667
Financial liabilities:
Current derivative liabilities	910
Non-current derivative liabilities	$ 5,133	$ 345

Fair Value Measurements - Fai_2

Fair Value Measurements - Fair Value transfers into or out of Level 1, Level 2 or Level 3 (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Fair Value Measurements
Transfers amount Fair value assets level 1 to level 2	$ 0	$ 0
Transfers amount Fair value assets level 2 to level 1	0	0
Transfers amount Fair value liabilities level 1 to level 2	0	0
Transfers amount Fair value liabilities level 2 to level 1	0	0
Transfers amount Fair value assets level 3 to level 1	0	0
Transfers amount Fair value assets level 3 to level 2	0	0
Transfers amount Fair value liabilities level 3 to level 1	0	0
Transfers amount Fair value liabilities level 3 to level 2	$ 0	$ 0

Trade Accounts Receivables an_3

Trade Accounts Receivables and Other Current Assets - Trade Accounts Receivable (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Trade Accounts Receivables and Other Current Assets
Provision for Doubtful Accounts	$ 0	$ 0

Trade Accounts Receivables an_4

Trade Accounts Receivables and Other Current Assets - Other Current Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Trade Accounts Receivables and Other Current Assets
Refund of value added tax	$ 1,429	$ 899
Prepaid expenses	1,014	810
Other receivables	943	753
Total other current assets	$ 3,386	$ 2,462

Vessels and Equipment - Pledged

Vessels and Equipment - Pledged Assets (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Vessels and Equipment
Book value of assets pledged as security for long-term debt	$ 1,677	$ 1,767

Vessels and Equipment - Schedul

Vessels and Equipment - Schedule of Property Plant and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Vessels & equipment - Activity
Vessels and equipment, beginning balance	$ 2,130,423	$ 2,003,341
Additions		118,063
Drydock costs	252	14,750
Disposals	(1,663)	(5,731)
Vessels and equipment, ending balance	2,129,012	2,130,423	$ 2,003,341
Accumulated depreciation - Activity
Accumulated depreciation, beginning balance	(363,343)	(280,318)
Accumulated depreciation, disposals	1,663	5,731
Depreciation for the period	(89,844)	(88,756)	(71,583)
Accumulated depreciation, ending balance	(451,524)	(363,343)	(280,318)
Net Vessels - Activity
Net vessel, beginning balance	1,767,080	1,723,023
Additions		118,063
Drydock costs	252	14,750
Depreciation for the period	(89,844)	(88,756)	(71,583)
Net vessel, ending balance	$ 1,677,488	$ 1,767,080	$ 1,723,023

Vessels and Equipment - Drydock

Vessels and Equipment - Drydocking Activity (Details) - Vessels & Equipment - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Movement in Capitalized Drydocking Costs [Roll Forward]
Balance at the beginning of the year	$ 25,568	$ 17,748
Costs incurred for drydocking	252	12,421
Costs allocated to drydocking as part of acquisition of business		2,329
Drydock amortization	(7,297)	(6,930)
Balance at the end of the year	$ 18,523	$ 25,568

Intangible Assets - Schedule of

Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Intangible Assets
Intangibles assets, beginning balance	$ 1,891	$ 2,497
Amortization for the year	(605)	(606)
Intangibles assets, ending balance	1,286	1,891
Above Market Value Of Time Charter [Member] | Tordis Knutsen
Intangible Assets
Intangibles assets, beginning balance	911	1,215
Amortization for the year	(303)	(304)
Intangibles assets, ending balance	608	911
Above Market Value Of Time Charter [Member] | Vigdis Knutsen
Intangible Assets
Intangibles assets, beginning balance	980	1,282
Amortization for the year	(302)	(302)
Intangibles assets, ending balance	$ 678	$ 980

Intangible Assets and Contrac_3

Intangible Assets and Contract Liabilities - Additional information (Details) - USD ($) $ in Thousands	Jun. 01, 2017	Mar. 01, 2017	Jun. 30, 2017	Mar. 31, 2017	Aug. 31, 2011	Mar. 31, 2011	Dec. 31, 2019	Dec. 31, 2018
Intangible Assets
Accumulated amortization for contract liabilities							$ 13,012	$ 11,494
Tordis Knutsen | Above Market Value Of Time Charter [Member]
Intangible Assets
Remaining term of the contract		4 years 9 months 18 days		4 years 9 months 18 days
Vigdis Knutsen | Above Market Value Of Time Charter [Member]
Intangible Assets
Remaining term of the contract	4 years 10 months 24 days		4 years 10 months 24 days
Fortaleza Knutsen
Intangible Assets
Period for amortization of unfavorable contractual rights						12 years
Recife Knutsen
Intangible Assets
Period for amortization of unfavorable contractual rights					12 years

Intangible Assets and Contrac_4

Intangible Assets and Contract Liabilities - Summary of Estimated Future Amortization of Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Estimated future amortization of intangible assets
2020	$ 605
2021	605
2022	75
Total	$ 1,286	$ 1,891	$ 2,497

Intangible Assets and Contrac_5

Intangible Assets and Contract Liabilities - Schedule of Contract Liabilities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Contract liabilities:
Unfavorable contract rights, Beginning Balance	$ (6,721)	$ (8,239)
Amortization income	1,518	1,518
Unfavorable contract rights, Ending Balance	$ (5,203)	$ (6,721)

Intangible Assets and Contrac_6

Intangible Assets and Contract Liabilities - Amortization of Contract Liabilities Classified Under Time Charter and Bareboat Revenues (Details) $ in Thousands	Dec. 31, 2019USD ($)
Amortization of contract liabilities
2020	$ (1,518)
2021	(1,518)
2022	(1,518)
2023	$ (649)

Accrued Expenses - Schedule of

Accrued Expenses - Schedule of Accrued Expenses (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Accrued Expenses
Operating expenses	$ 855	$ 832
Interest expenses	4,049	4,968
Other expenses	1,713	664
Total accrued expenses	$ 6,617	$ 6,464

Long-Term Debt - Components (De

Long-Term Debt - Components (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jan. 31, 2018	May 31, 2017	Mar. 01, 2017	Dec. 31, 2014	Apr. 01, 2014
Long-Term Debt
Long-term debt	$ 1,002,813,000	$ 1,087,347,000
Less: current installments	85,945,000	109,534,000
Less: unamortized deferred loan issuance costs	2,492,000	2,608,000
Current portion of long-term debt	83,453,000	106,926,000
Amounts due after one year	916,868,000	977,813,000
Less: unamortized deferred loan issuance costs	4,925,000	7,448,000
Long-term debt, less current installments, and unamortized deferred loan issuance costs	911,943,000	970,365,000
$320 million loan facility
Long-Term Debt
Long-term debt	282,360,000	312,472,000
Debt instrument face amount	320,000,000		$ 320,000,000
$55 million revolving credit facility
Long-Term Debt
Long-term debt	26,279,000	26,279,000
Debt instrument face amount	55,000,000
Hilda Loan Facility [Member]
Long-Term Debt
Long-term debt	84,615,000	90,769,000
Debt instrument face amount					$ 100,000,000
Torill Loan Facility [Member]
Long-Term Debt
Long-term debt	88,333,000	95,000,000
Debt instrument face amount				$ 100,000,000
$172.5 million loan facility
Long-Term Debt
Long-term debt	70,739,000	81,839,000
Debt instrument face amount	172,500,000	172,500,000						$ 172,500,000
Raquel Loan Facility [Member]
Long-Term Debt
Long-term debt	57,955,000	63,184,000
Debt instrument face amount							$ 90,000,000
Tordis Loan Facility [Member]
Long-Term Debt
Long-term debt	80,931,000	85,991,000				$ 114,400,000
Vigdis Loan Facility [Member]
Long-Term Debt
Long-term debt	82,196,000	87,256,000
Lena Loan Facility [Member]
Long-Term Debt
Long-term debt	80,850,000	85,750,000
Brasil Loan Facility [Member]
Long-Term Debt
Long-term debt	57,281,000	63,454,000
Anna loan facility
Long-Term Debt
Long-term debt	66,274,000	70,353,000
$25 million revolving credit facility
Long-Term Debt
Long-term debt	25,000,000	25,000,000
Debt instrument face amount	$ 25,000,000	$ 25,000,000

Long-Term Debt - Summary of Par

Long-Term Debt - Summary of Partnership's Outstanding Debt Repayable (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Debt Instrument, Redemption [Line Items]
Total long-term debt	$ 1,002,813	$ 1,087,347
Periodic repayment
Debt Instrument, Redemption [Line Items]
2020	85,945
2021	86,545
2022	71,210
2023	55,535
2024	13,873
2025 and thereafter	1,307
Total long-term debt	314,415
Balloon Repayment [Member]
Debt Instrument, Redemption [Line Items]
2021	95,811
2022	236,509
2023	202,185
2024	123,393
2025 and thereafter	30,500
Total long-term debt	$ 688,398

Long-Term Debt - Additional Inf

Long-Term Debt - Additional Information (Details) - Partnership's Loan Agreements [Member] - London Interbank Offered Rate (LIBOR) [Member]	12 Months Ended
	Dec. 31, 2019
Minimum
Long-Term Debt
Long-term debt, fixed margin percentage	1.80%
Maximum
Long-Term Debt
Long-term debt, fixed margin percentage	2.40%

Long-Term Debt - $320 Million T

Long-Term Debt - $320 Million Term Loan Facility and $55 Million Revolving Credit Facility (Details)	1 Months Ended	12 Months Ended
	Sep. 30, 2018USD ($)item	Dec. 31, 2019USD ($)	Apr. 30, 2013USD ($)
Long-Term Debt
Credit facility amount			$ 20,000,000
Multi-Vessels Facility
Long-Term Debt
Minimum aggregate market value of Vessels securing the loan, as percentage of outstanding balance		125.00%
Minimum liquidity of Partnership		$ 15,000,000
Incremental minimum liquidity, first 8 vessels with less than 12 months employment contract remaining		1,500,000
Incremental minimum liquidity, next 12 vessels with less than 12 months employment contract remaining		$ 1,000,000
Minimum book equity ratio for Partnership		30.00%
Minimum EBITDA to interest ratio for Partnership		2.50%
$320 million loan facility
Long-Term Debt
Loan facility amount	$ 320,000,000	$ 320,000,000
Number of consecutive quarterly installments | item	20
Balloon payment to be paid	$ 177,000,000
$320 million loan facility | London Interbank Offered Rate (LIBOR) [Member]
Long-Term Debt
Interest margin percentage	2.125%
$55 million revolving credit facility
Long-Term Debt
Loan facility amount		$ 55,000,000
Credit facility amount	$ 55,000,000
Commitment fee percentage	0.85%
$55 million revolving credit facility | London Interbank Offered Rate (LIBOR) [Member]
Long-Term Debt
Interest margin percentage	2.125%
$220 million loan facility
Long-Term Debt
Amount refinanced	$ 220,000,000
35 Million Revolving Credit Facility [Member]
Long-Term Debt
Amount refinanced	$ 35,000,000

Long-Term Debt - Hilda Loan Fac

Long-Term Debt - Hilda Loan Facility (Details) - Hilda Loan Facility [Member] $ in Millions	1 Months Ended	12 Months Ended
	May 31, 2017USD ($)item	Dec. 31, 2019USD ($)
Long-Term Debt
Loan facility amount	$ 100
Amount of previous loan facility, replaced by new facility	$ 117
Number of consecutive quarterly installments | item	28
Balloon payment to be paid	$ 58.5
Minimum liquidity of Partnership		$ 15
Incremental minimum liquidity, in excess of 8 vessels with less than 12 months employment contract remaining		1
Incremental minimum liquidity, first 8 vessels with less than 12 months employment contract remaining		$ 1.5
Minimum book equity ratio for Partnership		30.00%
Minimum EBITDA to interest ratio for Partnership		2.50%
First Two Years [Member]
Long-Term Debt
Minimum aggregate market value of Vessels securing the loan, as percentage of outstanding balance		110.00%
Third and Fourth Years [Member]
Long-Term Debt
Minimum aggregate market value of Vessels securing the loan, as percentage of outstanding balance		120.00%
Thereafter [Member]
Long-Term Debt
Minimum aggregate market value of Vessels securing the loan, as percentage of outstanding balance		125.00%
London Interbank Offered Rate (LIBOR) [Member]
Long-Term Debt
Interest margin percentage	2.20%

Long-Term Debt - Torill Loan Fa

Long-Term Debt - Torill Loan Facility (Details) - Torill Loan Facility [Member] $ in Millions	1 Months Ended	12 Months Ended
	Jan. 31, 2018USD ($)item	Dec. 31, 2019USD ($)
Long-Term Debt
Loan facility amount	$ 100
Amount of previous loan facility, replaced by new facility	$ 117
Number of consecutive quarterly installments | item	24
Balloon payment to be paid	$ 60
Minimum liquidity of Partnership		$ 15
Incremental minimum liquidity, first 8 vessels with less than 12 months employment contract remaining		1.5
Incremental minimum liquidity, in excess of 8 vessels with less than 12 months employment contract remaining		$ 1
Minimum book equity ratio for Partnership		30.00%
Minimum EBITDA to interest ratio for Partnership		2.50%
First Two Years [Member]
Long-Term Debt
Minimum aggregate market value of Vessels securing the loan, as percentage of outstanding balance		110.00%
Third and Fourth Years [Member]
Long-Term Debt
Minimum aggregate market value of Vessels securing the loan, as percentage of outstanding balance		120.00%
Thereafter [Member]
Long-Term Debt
Minimum aggregate market value of Vessels securing the loan, as percentage of outstanding balance		125.00%
London Interbank Offered Rate (LIBOR) [Member]
Long-Term Debt
Interest margin percentage	2.10%

Long-Term Debt - $172.5 Million

Long-Term Debt - $172.5 Million Secured Loan Facility (Details) - $172.5 million loan facility - USD ($)	Apr. 01, 2014	Dec. 31, 2019	Dec. 31, 2018
Long-Term Debt
Loan facility amount	$ 172,500,000	$ 172,500,000	$ 172,500,000
Minimum liquidity of Partnership		15,000,000
Incremental minimum liquidity, in excess of 8 vessels with less than 12 months employment contract remaining		1,000,000
Incremental minimum liquidity, first 8 vessels with less than 12 months employment contract remaining		$ 1,500,000
Minimum book equity ratio for Partnership		30.00%
First Three Years [Member]
Long-Term Debt
Minimum aggregate market value of Vessels securing the loan, as percentage of outstanding balance		100.00%
Thereafter [Member]
Long-Term Debt
Minimum aggregate market value of Vessels securing the loan, as percentage of outstanding balance		125.00%
London Interbank Offered Rate (LIBOR) [Member]
Long-Term Debt
Interest margin percentage	2.40%

Long-Term Debt - Raquel Loan Fa

Long-Term Debt - Raquel Loan Facility (Details) - Raquel Loan Facility [Member] - USD ($) $ in Millions	1 Months Ended	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2019
Long-Term Debt
Loan facility amount	$ 90
Final balloon payment to be paid	$ 30.5
Minimum liquidity of Partnership		$ 15
Incremental minimum liquidity, in excess of 8 vessels with less than 12 months employment contract remaining		1
Incremental minimum liquidity, first 8 vessels with less than 12 months employment contract remaining		$ 1.5
Minimum book equity ratio for Partnership		30.00%
London Interbank Offered Rate (LIBOR) [Member]
Long-Term Debt
Interest margin percentage	2.00%
First Three Years [Member]
Long-Term Debt
Minimum aggregate market value of Vessels securing the loan, as percentage of outstanding balance		100.00%
Thereafter [Member]
Long-Term Debt
Minimum aggregate market value of Vessels securing the loan, as percentage of outstanding balance		125.00%

Long-Term Debt - Tordis Loan Fa

Long-Term Debt - Tordis Loan Facility (Details) - USD ($) $ in Thousands	Mar. 01, 2017	Dec. 31, 2019	Dec. 31, 2018
Long-Term Debt
Long-term debt, outstanding		$ 1,002,813	$ 1,087,347
Tordis Loan Facility [Member]
Long-Term Debt
Long-term debt, outstanding	$ 114,400	80,931	$ 85,991
Final balloon payment to be paid	$ 70,800
Minimum liquidity of Partnership		15,000
Incremental minimum liquidity, first 8 vessels with less than 12 months employment contract remaining		1,500
Incremental minimum liquidity, in excess of 8 vessels with less than 12 months employment contract remaining		$ 1,000
Minimum book equity ratio for Partnership		30.00%
Minimum EBITDA to interest ratio for Partnership		2.50%
Minimum aggregate market value of Vessels securing the loan, as percentage of outstanding balance		130.00%
Tordis Loan Facility [Member] | London Interbank Offered Rate (LIBOR) [Member]
Long-Term Debt
Interest margin percentage	1.90%

Long-Term Debt - Vigdis Loan Fa

Long-Term Debt - Vigdis Loan Facility (Details) - Vigdis Loan Facility [Member] - USD ($) $ in Millions	1 Months Ended	12 Months Ended
	Apr. 30, 2015	Dec. 31, 2019
Long-Term Debt
Final balloon payment to be paid	$ 70.8
Minimum aggregate market value of Vessels securing the loan, as percentage of outstanding balance		130.00%
Minimum liquidity of Partnership		$ 15
Incremental minimum liquidity, first 8 vessels with less than 12 months employment contract remaining		1.5
Incremental minimum liquidity, in excess of 8 vessels with less than 12 months employment contract remaining		$ 1
Minimum book equity ratio for Partnership		30.00%
Minimum EBITDA to interest ratio for Partnership		2.50%
London Interbank Offered Rate (LIBOR) [Member]
Long-Term Debt
Interest margin percentage	1.90%

Long-Term Debt - Lena Loan Faci

Long-Term Debt - Lena Loan Facility (Details) - Lena Loan Facility [Member] - USD ($) $ in Millions	1 Months Ended	12 Months Ended
	Apr. 30, 2015	Dec. 31, 2019
Long-Term Debt
Final balloon payment to be paid	$ 68.6
Minimum aggregate market value of Vessels securing the loan, as percentage of outstanding balance		130.00%
Minimum liquidity of Partnership		$ 15
Incremental minimum liquidity, first 8 vessels with less than 12 months employment contract remaining		1.5
Incremental minimum liquidity, in excess of 8 vessels with less than 12 months employment contract remaining		$ 1
Minimum book equity ratio for Partnership		30.00%
Minimum EBITDA to interest ratio for Partnership		2.50%
London Interbank Offered Rate (LIBOR) [Member]
Long-Term Debt
Interest margin percentage	1.90%

Long-Term Debt - Brasil Loan Fa

Long-Term Debt - Brasil Loan Facility (Details) - Brasil Loan Facility [Member] - USD ($) $ in Millions	1 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2019
Long-Term Debt
Final balloon payment to be paid	$ 40
Minimum liquidity of Partnership		$ 15
Incremental minimum liquidity, first 8 vessels with less than 12 months employment contract remaining		1.5
Incremental minimum liquidity, next 12 vessels with less than 12 months employment contract remaining		$ 1
Minimum book equity ratio for Partnership		30.00%
Minimum EBITDA to interest ratio for Partnership		2.50%
First Four Years
Long-Term Debt
Minimum aggregate market value of Vessels securing the loan, as percentage of outstanding balance		125.00%
Thereafter [Member]
Long-Term Debt
Minimum aggregate market value of Vessels securing the loan, as percentage of outstanding balance		135.00%
London Interbank Offered Rate (LIBOR) [Member]
Long-Term Debt
Interest margin percentage	2.30%

Long-Term Debt - Anna Loan Faci

Long-Term Debt - Anna Loan Facility (Details) - Anna loan facility - USD ($) $ in Millions	1 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2019
Long-Term Debt
Final balloon payment to be paid	$ 57.1
Minimum aggregate market value of Vessels securing the loan, as percentage of outstanding balance		130.00%
Minimum liquidity of Partnership		$ 15
Incremental minimum liquidity, first 8 vessels with less than 12 months employment contract remaining		1.5
Incremental minimum liquidity, in excess of 8 vessels with less than 12 months employment contract remaining		$ 1
Minimum book equity ratio for Partnership		30.00%
Minimum EBITDA to interest ratio for Partnership		2.50%
London Interbank Offered Rate (LIBOR) [Member]
Long-Term Debt
Interest margin percentage	2.00%

Long-Term Debt - $25 Million Re

Long-Term Debt - $25 Million Revolving Credit Facility (Details) - USD ($) $ in Millions	1 Months Ended
	Jun. 30, 2019	Apr. 30, 2013
Long-Term Debt
Credit facility amount		$ 20
$25 million revolving credit facility
Long-Term Debt
Credit facility amount	$ 25
Interest margin percentage	1.80%
Commitment fee percentage	0.50%

Income Taxes - Significant Comp

Income Taxes - Significant Components of Current and Deferred Income Tax Expense Attributable to Income from Continuing Operations (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Taxes
Current tax benefit (expense)	$ (9)	$ (18)	$ (12)
Deferred tax benefit (expense)		20	28
Income tax benefit (expense) (Notes 2(r) and 17)	$ (9)	$ 2	$ 16

Income Taxes - Summary of Taxat

Income Taxes - Summary of Taxation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Tax Rate Reconciliation
Income tax benefit (expense)	$ (9)	$ 2	$ 16
Effective tax rate	0.00%	0.00%	0.00%
Norwegian Tonnage Tax Regime [Member]
Income Tax Rate Reconciliation
Income tax benefit (expense)		$ 20	$ 28
Effective tax rate	22.00%	23.00%	24.00%
UK tax
Income Tax Rate Reconciliation
Income tax benefit (expense)	$ (9)	$ (18)	$ (12)
Effective tax rate	20.00%	20.00%	20.00%

Income Taxes - Components of De

Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	May 31, 2013
Deferred tax assets:
Financial derivatives	$ (3,000)	$ 24,000
Financial loss carryforwards for tonnage tax	17,331,000	16,946,000
Total deferred tax asset	17,328,000	16,970,000
Less valuation allowance	(17,328,000)	(16,970,000)
Net deferred tax asset	0
Deferred tax liabilities:
Entrance tax	357,000	453,000		$ 3,000,000
Total deferred tax liabilities	357,000	453,000
Net deferred tax liabilities	$ 357,000	$ 453,000	$ 624,000

Income Taxes - Classification o

Income Taxes - Classification of Net Deferred Tax Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Taxes
Net deferred tax liabilities	$ 357	$ 453	$ 624

Income Taxes - Changes in Net D

Income Taxes - Changes in Net Deferred Tax Liabilities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Income Taxes
Net deferred tax liabilities at January 1,	$ 453	$ 624
Change in temporary differences	(90)	(142)
Translation differences	(6)	(29)
Net deferred tax liabilities at December 31,	$ 357	$ 453

Income Taxes - Additional infor

Income Taxes - Additional information (Details) - USD ($)	Jan. 01, 2020	Jan. 01, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	May 31, 2013
Income Tax Rate Reconciliation
Tonnage tax included in operating expenses			$ 200,000	$ 200,000	$ 200,000
Income tax benefit (expense)			(9,000)	2,000	16,000
Valuation allowances			17,328,000	16,970,000
Entrance tax			$ 357,000	453,000			$ 3,000,000
Entrance tax, annual decline in gain			20.00%
Deferred tax assets			$ 0
Entrance tax payable			$ 400,000	$ 600,000
Ordinary income tax rate			22.00%	23.00%
Income tax rate, deferred tax liabilities	22.00%	22.00%
Estimated income tax payable			$ 100,000	$ 100,000
Entrance tax payable, current			90,000	100,000
Entrance tax payable, non current			360,000	500,000
Entrance tax payable related to acquisition						$ 100,000
Unrecognized tax benefits			0	0
Interest or penalties on tax return			$ 0	0
Period for income tax returns			10 years
Minimum percentage of ownership/control required to constitute a related party			25.00%
KNOT [Member] | KNOT Management
Income Tax Rate Reconciliation
Ownership percentage acquired			100.00%
KNOT [Member] | KNOT Management Denmark AS
Income Tax Rate Reconciliation
Ownership percentage acquired			100.00%
UK tax
Income Tax Rate Reconciliation
Income tax benefit (expense)			$ (9,000)	(18,000)	$ (12,000)
Ordinary income tax rate			20.00%
Income tax expense			$ 8,754,000	$ 18,331,000

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Details)	1 Months Ended		12 Months Ended
	Jun. 30, 2017D	Apr. 30, 2013USD ($)	Dec. 31, 2019USD ($)	Jun. 01, 2017
Acquisitions from KNOT | Vigdis Knutsen
Related Party Transaction
Percentage of interest acquired				100.00%
Number of days vessel went off-hire due to damage | D	6
KNOT UK | Administrative Services Agreement
Related Party Transaction
Period of notice for termination of agreement			90 days
KNOT [Member]
Related Party Transaction
Period of indemnification for certain environmental and toxic tort liabilities		3 years
Deductible for claims related to indemnified environmental and toxic tort liabilities		$ 500,000
Aggregate cap on indemnification for certain environmental and toxic tort liabilities		$ 5,000,000
KNOT [Member] | Bodil Knutsen
Related Party Transaction
Period of related party guarantee of payment of hire rate		5 years
KNOT [Member] | Windsor Knutsen
Related Party Transaction
Period of related party guarantee of payment of hire rate		5 years
Directors
Related Party Transaction
Director and committee member fees			$ 50,000
Members of audit and conflicts committees
Related Party Transaction
Director and committee member fees			12,000
Chairmen of audit and conflicts committees
Related Party Transaction
Director and committee member fees			3,000
KNOT UK | Andrew Beveridge
Related Party Transaction
Director and committee member fees			10,000
KNOT UK | Richard Beyer
Related Party Transaction
Director and committee member fees			10,000
KNOT UK | John Costain
Related Party Transaction
Total compensation under employment agreements			114,892
KNOT UK | Gary Chapman
Related Party Transaction
Total compensation under employment agreements			$ 102,198
TSSI [Member] | KNOT [Member]
Related Party Transaction
Percentage ownership in joint venture			50.00%
NYK [Member] | KNOT [Member]
Related Party Transaction
Percentage ownership in joint venture			50.00%
KNOT [Member] | KNOT Management
Related Party Transaction
Ownership percentage acquired			100.00%
KNOT [Member] | KNOT Management Denmark AS
Related Party Transaction
Ownership percentage acquired			100.00%
Seglem Holding AS [Member] | TSSI [Member]
Related Party Transaction
Ownership percentage acquired			100.00%

Related Party Transactions - Re

Related Party Transactions - Related Party Costs and Expenses (Details) $ in Thousands	1 Months Ended		12 Months Ended
	Jun. 30, 2017D	Apr. 30, 2013	Dec. 31, 2019USD ($)	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)
Related Party Transaction
Operating expenses from other related parties			$ 487
Total income (expenses)			6,240	$ (8,043)	$ (5,359)
Vigdis Knutsen | Acquisitions from KNOT
Related Party Transaction
Number of days vessel went off-hire due to damage | D	6
KNOT Management
Related Party Transaction
Administration fee			1,280	1,434	1,457
KOAS [Member]
Related Party Transaction
Administration fee			$ 663	583	461
Margin rate on administration cost			5.00%
KOAS UK [Member]
Related Party Transaction
Administration fee			$ 116	123	122
Margin rate on administration cost			5.00%
KNOT [Member]
Related Party Transaction
Time charter income from KNOT			$ 15,910
Guarantee income from KNOT				749	1,499
Technical and operational management fee from KNOT to Vessels			6,954	6,491	4,617
Administration fee			$ 170	$ 161	149
Interest expense charged from KNOT					$ (52)
KNOT [Member] | Bodil Knutsen
Related Party Transaction
Period of related party guarantee of payment of hire rate		5 years
KNOT [Member] | Windsor Knutsen
Related Party Transaction
Period of related party guarantee of payment of hire rate		5 years

Related Party Transactions - Sc

Related Party Transactions - Schedule of Dues Payables to Related Party (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Related Party Transaction
Drydocking supervision fee	$ 211	$ 97
KNOT [Member]
Related Party Transaction
Drydocking supervision fee	187	89
KOAS [Member]
Related Party Transaction
Drydocking supervision fee	$ 24	$ 8

Related Party Transactions - Am

Related Party Transactions - Amounts Due from and Due to Related Parties (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Related Party Transaction
Amount due from related parties	$ 2,687	$ 1,141
Amount due to related parties	1,212	1,070
KOAS [Member]
Related Party Transaction
Amount due from related parties	687	466
Amount due to related parties	840	629
KNOT and affiliates
Related Party Transaction
Amount due from related parties	2,000	675
Amount due to related parties	$ 372	$ 441

Related Party Transactions - Tr

Related Party Transactions - Trade Accounts Payable (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Related Party Transaction
Trade accounts payable to related parties	$ 901	$ 792
KOAS [Member]
Related Party Transaction
Trade accounts payable to related parties	216	381
KNOT and affiliates
Related Party Transaction
Trade accounts payable to related parties	$ 685	$ 411

Related Party Transactions - Ot

Related Party Transactions - Other current assets (Details) $ in Thousands	Dec. 31, 2019USD ($)
Related Party Transaction [Line Items]
Other current assets from related parties	$ 105
KNOT and affiliates
Related Party Transaction [Line Items]
Trading balances due from KNOT and affiliates	$ 105

Related Party Transactions - Ac

Related Party Transactions - Acquisitions from KNOT (Details) - Acquisitions from KNOT	Mar. 01, 2018	Dec. 15, 2017	Sep. 30, 2017	Jun. 01, 2017	Mar. 01, 2017
Anna Knutsen
Related Party Transaction
Percentage of interest acquired	100.00%
Tordis Knutsen
Related Party Transaction
Partnership, ownership interest acquired					100.00%
Vigdis Knutsen
Related Party Transaction
Partnership, ownership interest acquired				100.00%
Lena Knutsen
Related Party Transaction
Partnership, ownership interest acquired			100.00%
Brasil Knutsen
Related Party Transaction
Partnership, ownership interest acquired		100.00%

Commitments and Contingencies -

Commitments and Contingencies - Assets Pledged, Claims and Legal Proceedings (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Commitments and Contingencies
Book value of assets pledged as security for long-term debt and interest rate swap obligations	$ 1,677	$ 1,767
Accrued claim	$ 0	$ 0	$ 0.4

Commitments and Contingencies_2

Commitments and Contingencies - Insurance (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Insurance Proceeds
Insurance coverage deductible amount per vessel		$ 150
Deductible period under business interruption insurance		14 days
Period of coverage under business interruption insurance		180 days
Limit of protection and indemnity insurance for pollution, per vessel per incident		$ 1,000,000
Loss of hire insurance payments recorded as a component of total revenues			$ 450	$ 5,176
Net vessel operating expense		$ 60,129	$ 56,730	46,709
Raquel Knutsen
Insurance Proceeds
Deductible period under business interruption insurance		14 days	14 days
Period of coverage under business interruption insurance		180 days	180 days
Raquel Knutsen | Propeller Hub Damage
Insurance Proceeds
Loss of hire insurance payments recorded as a component of total revenues				3,400
Recoveries for repairs				3,900
Cost of repairs				4,200
Net vessel operating expense				300
Carmen Knutsen
Insurance Proceeds
Special survey drydocking period	5 years
Deductible period under business interruption insurance	14 days
Carmen Knutsen | Technical Default in Controllable Pitch Propeller
Insurance Proceeds
Loss of hire insurance payments recorded as a component of total revenues			$ 450	1,750
Recoveries for repairs			2,250
Cost of repairs			150	$ 2,400
Net vessel operating expense			$ 300

Earnings per Unit and Cash Di_3

Earnings per Unit and Cash Distributions - Calculations of Basic and Diluted Earnings per Unit (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Earnings per Unit and Cash Distributions
Net income	$ 58,957	$ 82,165	$ 68,064
Less: Series A Preferred unitholders' interest in net income	7,200	7,200	5,253
Net income attributable to the unitholders of KNOT Offshore Partners LP	51,757	74,965	62,811
Less: Distributions	72,136	72,136	67,171
Under (over) distributed earnings	$ (20,379)	$ 2,829	$ (4,360)
Weighted average units outstanding (basic):
General Partner	615,000	615,000	567,000
Weighted average units outstanding (diluted):
General Partner	615,000	615,000	567,000
Earnings per unit (basic):
General Partner	$ 1.554	$ 2.251	$ 2.046
Earnings per unit (diluted):
General Partner	1.554	2.251	2.046
Cash distributions declared and paid in the period
Earnings per unit (diluted):
Distributions per unit	2.080	2.080	2.080
Subsequent event: Cash distributions declared and paid relating to the period
Earnings per unit (diluted):
Distributions per unit	$ 0.520	$ 0.520	$ 0.520
Common Units [Member]
Weighted average units outstanding (basic):
Common and subordinated unitholders	32,694,000	32,694,000	30,068,000
Weighted average units outstanding (diluted):
Common and subordinated unitholders	32,694,000	36,370,000	32,804,000
Limited Partner [Member] | Common Units [Member]
Earnings per Unit and Cash Distributions
Net income attributable to the unitholders of KNOT Offshore Partners LP	$ 50,801	$ 73,581	$ 61,651
Under (over) distributed earnings	(20,003)	2,777	(4,280)
General Partner Unit [Member]
Earnings per Unit and Cash Distributions
Net income attributable to the unitholders of KNOT Offshore Partners LP	956	1,384	1,160
Under (over) distributed earnings	(376)	52	(80)
IDR Holders
Earnings per Unit and Cash Distributions
Net income	2,800	2,800	2,600
Less: Distributions	$ 2,800	$ 2,800	$ 2,600

Earnings per Unit and Cash Di_4

Earnings per Unit and Cash Distributions - Additional Information (Details) - $ / shares	Nov. 09, 2017	Apr. 30, 2013	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Distribution Made to Limited Partner
Number of general partner units outstanding			615,117				615,117	615,117
Potential common shares relating to the convertible preferred units having an anti-dilutive effect on the calculation of diluted earnings per unit							3,800,000
General Partner Unit [Member] | First Target Distribution [Member]
Distribution Made to Limited Partner
Required percentage of operating surplus distribution							1.85%
General Partner Unit [Member] | Second Target Distribution [Member]
Distribution Made to Limited Partner
Required percentage of operating surplus distribution							1.85%
General Partner Unit [Member] | Third Target Distribution [Member]
Distribution Made to Limited Partner
Required percentage of operating surplus distribution							1.85%
General Partner Unit [Member] | Fourth Target Distribution [Member]
Distribution Made to Limited Partner
Required percentage of operating surplus distribution							1.85%
General Partner Unit [Member] | Target Distribution Thereafter [Member]
Distribution Made to Limited Partner
Required percentage of operating surplus distribution							1.85%
IDR Holders | Maximum
Distribution Made to Limited Partner
Required percentage of operating surplus distribution			48.00%	48.00%	48.00%	48.00%
IDR Holders | Third Target Distribution [Member]
Distribution Made to Limited Partner
Required percentage of operating surplus distribution							13.00%
IDR Holders | Fourth Target Distribution [Member]
Distribution Made to Limited Partner
Required percentage of operating surplus distribution							23.00%
IDR Holders | Target Distribution Thereafter [Member]
Distribution Made to Limited Partner
Required percentage of operating surplus distribution							48.00%
Common Units [Member]
Distribution Made to Limited Partner
Number of common units and subordinated units outstanding			32,694,094				32,694,094	32,694,094
Weighted average number of common units outstanding							32,694,000	32,694,000	30,068,000
Common Units [Member] | Limited Partner [Member] | Minimum Quarterly Distribution [Member]
Distribution Made to Limited Partner
Distribution, per unit			$ 0.375				$ 0.375
Common Units [Member] | Limited Partner [Member] | First Target Distribution [Member]
Distribution Made to Limited Partner
Required percentage of operating surplus distribution							98.15%
Distribution, per unit			0.43125				$ 0.43125
Common Units [Member] | Limited Partner [Member] | Second Target Distribution [Member]
Distribution Made to Limited Partner
Required percentage of operating surplus distribution							98.15%
Distribution, per unit			0.46875				$ 0.46875
Common Units [Member] | Limited Partner [Member] | Third Target Distribution [Member]
Distribution Made to Limited Partner
Required percentage of operating surplus distribution							85.15%
Distribution, per unit			$ 0.5625				$ 0.5625
Common Units [Member] | Limited Partner [Member] | Fourth Target Distribution [Member]
Distribution Made to Limited Partner
Required percentage of operating surplus distribution							75.15%
Common Units [Member] | Limited Partner [Member] | Target Distribution Thereafter [Member]
Distribution Made to Limited Partner
Required percentage of operating surplus distribution							50.15%
Common Units [Member] | Public
Distribution Made to Limited Partner
Number of common units and subordinated units outstanding			24,036,226				24,036,226
Common Units [Member] | KNOT [Member]
Distribution Made to Limited Partner
Number of common units and subordinated units outstanding			8,567,500				8,567,500
Public | Partnership [Member]
Distribution Made to Limited Partner
Percentage of limited partner interest		49.00%					73.50%
KNOT [Member] | Partnership [Member]
Distribution Made to Limited Partner
Percentage of limited partner interest		49.00%					26.20%
KNOT [Member] | KNOT [Member]
Distribution Made to Limited Partner
Number of general partner units outstanding			615,117				615,117
KNOT [Member] | Common Units [Member] | KNOT [Member]
Distribution Made to Limited Partner
Number of common units and subordinated units outstanding			90,368				90,368
KNOT [Member] | Partnership [Member]
Distribution Made to Limited Partner
Percentage of limited partner interest							0.30%
Percentage of general partner interest							1.85%
General Partner | Partnership [Member]
Distribution Made to Limited Partner
Percentage of general partner interest	1.85%	2.00%					1.85%

Acquisitions - Anna Knutsen (De

Acquisitions - Anna Knutsen (Details) $ in Thousands	Mar. 01, 2018USD ($)
Fair value, nonrecurring measurement for asset acquisition | Anna Knutsen
Vessels and Equipment
Purchase consideration	$ 19,913
Less: Fair value of net assets acquired:
Vessels and equipment	120,274
Cash	4,537
Inventories	257
Derivative assets	1,839
Other current assets	111
Amounts due from related parties	520
Long-term debt	(84,217)
Long-term debt from related parties	(22,535)
Deferred debt issuance costs	1,228
Trade accounts payable	(971)
Accrued expenses	(1,013)
Amounts due to related parties	(117)
Subtotal	19,913
Purchase consideration
Purchase price	19,913
Additional information
Vessel and equipment in purchase price	120,274
Anna Knutsen
Vessels and Equipment
Purchase consideration	19,913
Purchase consideration
Cash consideration paid to KNOT	14,637
Purchase price adjustments	5,276
Purchase price	19,913
Additional information
Purchase price adjustments	$ 5,276
Anna Knutsen | Acquisitions from KNOT
Additional information
Percentage of interest acquired	100.00%
Anna Knutsen | Fair value, nonrecurring measurement for asset acquisition
Less: Fair value of net assets acquired:
Allocation to drydocking	$ 2,329
Purchase consideration
Purchase price adjustments	5,300
Additional information
Outstanding indebtedness	106,800
Certain capitalized financing fees	1,400
Purchase price adjustments	$ 5,300

Acquisitions - Additional Infor

Acquisitions - Additional Information (Details) - USD ($) $ in Thousands

Dec. 15, 2017

Nov. 09, 2017

Sep. 30, 2017

Jun. 01, 2017

Mar. 01, 2017

Feb. 02, 2017

Jan. 10, 2017

Dec. 31, 2017

Dec. 31, 2017

Dec. 31, 2017

Dec. 31, 2017

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

Acquisitions

Acquisition related costs

$ 0

$ 100

$ 200

Series A Preferred Unit [Member]

Acquisitions

Number of preferred units issued and sold

2,083,333

Limited Partner [Member] | Common Units [Member]

Acquisitions

Partnership units sold

3,000,000

2,500,000

Brasil Knutsen

Acquisitions

Fair value of vessel and equipment acquired

$ 96,000

Outstanding indebtedness assumed

59,000

Company Liquidity Loan assumed

35,200

Certain capitalized financing fees

600

Post-closing adjustment

$ 3,381

Revenues contributed since the acquisition date

$ 700

Net income contributed since the acquisition date

$ 300

Brasil Knutsen | Acquisitions from KNOT

Acquisitions

Percentage of interest acquired

100.00%

Lena Knutsen

Acquisitions

Fair value of vessel and equipment acquired

$ 142,457

Fair value of vessel, equipment and above market time charter acquired

142,000

Outstanding indebtedness assumed

111,068

Outstanding debt including debt from related parties

133,800

Certain capitalized financing fees

1,000

Business acquisition, receivable owned

24,100

Post-closing adjustment

$ (108)

Revenues contributed since the acquisition date

$ 5,200

Net income contributed since the acquisition date

$ 100

Lena Knutsen | Acquisitions from KNOT

Acquisitions

Percentage of interest acquired

100.00%

Vigdis Knutsen

Acquisitions

Fair value of vessel and equipment acquired

$ 145,772

Fair value of vessel, equipment and above market time charter acquired

147,000

Outstanding indebtedness assumed

114,411

Outstanding debt including debt from related parties

137,700

Certain capitalized financing fees

900

Business acquisition, receivable owned

17,900

Post-closing adjustment

$ 3,650

Revenues contributed since the acquisition date

$ 11,800

Net income contributed since the acquisition date

$ 2,600

Vigdis Knutsen | Acquisitions from KNOT

Acquisitions

Percentage of interest acquired

100.00%

Tordis Knutsen

Acquisitions

Fair value of vessel and equipment acquired

$ 145,754

Fair value of vessel, equipment and above market time charter acquired

147,000

Outstanding indebtedness assumed

114,411

Outstanding debt including debt from related parties

137,700

Certain capitalized financing fees

800

Business acquisition, receivable owned

21,100

Post-closing adjustment

$ 1,741

Revenues contributed since the acquisition date

$ 17,200

Net income contributed since the acquisition date

$ 3,200

Tordis Knutsen | Acquisitions from KNOT

Acquisitions

Percentage of interest acquired

100.00%

Acquisitions - Purchase Price A

Acquisitions - Purchase Price Allocation (Details) - USD ($) $ in Thousands	Dec. 15, 2017	Sep. 30, 2017	Jun. 01, 2017	Mar. 01, 2017
Brasil Knutsen
Acquisitions
Purchase consideration	$ 5,764
Less: Fair value of net assets acquired:
Vessels and equipment	96,000
Cash	5,217
Inventories	146
Others current assets	125
Amounts due from related parties	2
Long-term debt	(59,000)
Deferred debt issuance costs	618
Trade accounts payable	(154)
Accrued expenses	(1,185)
Amounts due to related parties	(36,005)
Subtotal	$ 5,764
Lena Knutsen
Acquisitions
Purchase consideration		$ 33,235
Less: Fair value of net assets acquired:
Vessels and equipment		142,457
Cash		470
Inventories		243
Derivatives assets		1,729
Others current assets		193
Amounts due from related parties		23,599
Long-term debt		(111,068)
Long-term debt from related parties		(22,706)
Deferred debt issuance costs		867
Trade accounts payable		(256)
Accrued expenses		(224)
Prepaid charter and deferred revenue		(1,758)
Amounts due to related parties		(186)
Income tax payable		(125)
Subtotal		$ 33,235
Vigdis Knutsen
Acquisitions
Purchase consideration			$ 31,759
Less: Fair value of net assets acquired:
Vessels and equipment			145,772
Intangibles: Above market time charter			1,458
Cash			3,438
Inventories			190
Derivatives assets			226
Others current assets			128
Amounts due from related parties			18,374
Long-term debt			(114,411)
Long-term debt from related parties			(22,703)
Deferred debt issuance costs			928
Trade accounts payable			(187)
Accrued expenses			(1,082)
Amounts due to related parties			(372)
Subtotal			$ 31,759
Tordis Knutsen
Acquisitions
Purchase consideration				$ 32,983
Less: Fair value of net assets acquired:
Vessels and equipment				145,754
Intangibles: Above market time charter				1,468
Cash				609
Inventories				129
Derivatives assets				1,377
Others current assets				1,348
Amounts due from related parties				20,834
Long-term debt				(114,411)
Long-term debt from related parties				(22,960)
Deferred debt issuance costs				795
Trade accounts payable				(106)
Accrued expenses				(503)
Amounts due to related parties				(1,351)
Subtotal				$ 32,983

Acquisitions - Purchase Conside

Acquisitions - Purchase Consideration (Details) - USD ($) $ in Thousands	Dec. 15, 2017	Sep. 30, 2017	Jun. 01, 2017	Mar. 01, 2017	Dec. 31, 2019
Brasil Knutsen
Acquisitions
Cash consideration paid to KNOT	$ 2,383
Purchase price adjustments	3,381
Purchase price	$ 5,764
Allocation to drydocking included in property, plant and equipment					$ 260
Lena Knutsen
Acquisitions
Cash consideration paid to KNOT		$ 33,343
Purchase price adjustments		(108)
Purchase price		$ 33,235
Allocation to drydocking included in property, plant and equipment					2,741
Vigdis Knutsen
Acquisitions
Cash consideration paid to KNOT			$ 28,109
Purchase price adjustments			3,650
Purchase price			$ 31,759
Allocation to drydocking included in property, plant and equipment					2,709
Tordis Knutsen
Acquisitions
Cash consideration paid to KNOT				$ 31,242
Purchase price adjustments				1,741
Purchase price				$ 32,983
Allocation to drydocking included in property, plant and equipment					2,753
Raquel Knutsen
Acquisitions
Allocation to drydocking included in property, plant and equipment					$ 1,663

Acquisitions - Pro Forma Inform

Acquisitions - Pro Forma Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Brasil Knutsen
Acquisitions
Revenue		$ 223,220
Net income		64,034
Lena Knutsen
Acquisitions
Revenue		220,904
Net income		62,999
Vigdis Knutsen
Acquisitions
Revenue		222,354
Net income		$ 63,225
Tordis Knutsen
Acquisitions
Revenue	$ 221,198
Net income	$ 66,584

Equity Offerings and Sale of _3

Equity Offerings and Sale of Series A Preferred Units - Schedule of Equity Offerings (Details) - USD ($) $ in Thousands	Nov. 09, 2017	Jan. 10, 2017	Nov. 30, 2017	Jan. 31, 2017	Dec. 31, 2018	Dec. 31, 2017
Equity Offerings
Gross proceeds received			$ 66,936	$ 56,125		$ 123,061
Less: Underwriters' discount			660	925		1,585
Less: Offering expenses			230	300		530
Net proceeds received	$ 66,000	$ 54,900	$ 66,046	$ 54,900	$ (4)	$ 120,946

Equity Offerings and Sale of _4

Equity Offerings and Sale of Series A Preferred Units - Sale of Series A Preferred Units, Additional Information (Details) $ / shares in Units, $ in Thousands	Jun. 30, 2017USD ($)$ / sharesshares	Feb. 02, 2017USD ($)$ / sharesshares	Jun. 30, 2017USD ($)	Feb. 28, 2017USD ($)	Dec. 31, 2019USD ($)Vote$ / shares	Dec. 31, 2017USD ($)
Sale of Series A Preferred Units
Net proceeds from the sale | $						$ 87,464
Series A Preferred Unit [Member]
Sale of Series A Preferred Units
Number of preferred units issued and sold | shares		2,083,333
Net proceeds from the sale | $			$ 38,850	$ 48,614	$ 87,464
Preferred units liquidation preference | $ / shares					$ 24
Annual distribution rate percentage					8.00%
Period after quarter end for payment of distributions					45 days
Conversion price per unit | $ / shares					$ 24
Cash redemption rate as percentage of Issue Price, upon change of control					100.00%
Cash redemption rate as percentage of Issue Price, upon redemption eligibility date					70.00%
Common unit value redemption rate as percentage of Issue Price, upon redemption eligibility date					80.00%
Period of trading days used to determine value of common units issued for redemption					30 days
Threshold common unit market value as percentage of Issue Price, to trigger conversion eligibility					130.00%
Votes per unit | Vote					1
Private Placement [Member] | Series A Preferred Unit [Member]
Sale of Series A Preferred Units
Number of preferred units issued and sold | shares	1,666,667	2,083,333
Preferred units issued and sold, price per unit | $ / shares	$ 24	$ 24
Net proceeds from the sale | $	$ 38,900	$ 48,600

Equity Offerings and Sale of _5

Equity Offerings and Sale of Series A Preferred Units - Schedule of Sale of Series A Preferred Units (Details) - USD ($) $ in Thousands	1 Months Ended		12 Months Ended
	Jun. 30, 2017	Feb. 28, 2017	Dec. 31, 2019	Dec. 31, 2017
Preferred Units [Line Items]
Net proceeds received				$ 87,464
Series A Preferred Unit [Member]
Preferred Units [Line Items]
Gross proceeds received	$ 40,000	$ 50,000	$ 90,000
Less: Fee	1,000	1,000	2,000
Less: Expenses	150	386	536
Net proceeds received	$ 38,850	$ 48,614	$ 87,464

Equity Offerings and Sale of _6

Equity Offerings and Sale of Series A Preferred Units - Equity Offerings, Additional Information (Details) - USD ($) $ in Thousands	Nov. 09, 2017	Jun. 30, 2017	Jan. 10, 2017	Nov. 30, 2017	Jan. 31, 2017	Apr. 30, 2013	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Equity Offerings
Repayment of credit facility	$ 43,500	$ 30,000
Net proceeds from the offering	$ 66,000		$ 54,900	$ 66,046	$ 54,900			$ (4)	$ 120,946
Limited Partner [Member] | Common Units [Member]
Equity Offerings
Partnership units sold	3,000,000		2,500,000
General Partner Unit [Member]
Equity Offerings
General partner's contribution	$ 1,200
General Partner | Partnership [Member]
Equity Offerings
General partner interest in Partnership (as a percent)	1.85%					2.00%	1.85%

Subsequent Events (Details)

Subsequent Events (Details) $ / shares in Units, $ in Millions	Feb. 13, 2020USD ($)$ / shares
Series A Preferred Unit [Member]
Subsequent Events
Cash distributions	$ 1.8
Common Units [Member]
Subsequent Events
Cash distributions paid in the period per unit | $ / shares	$ 0.52
Cash distributions	$ 18