| Schedule of Related Party Costs and Expenses |
| | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | | | June 30, | | June 30, | | (U.S. Dollars in thousands) | | 2026 | | 2025 | | 2026 | | 2025 | | Statements of operations: | | | | | | | | | | | | | | Time charter and bareboat revenues: | | | | | | | | | | | | | | Time charter income from KNOT (1) | | $ | 685 | | $ | — | | $ | 952 | | $ | 2,777 | | Operating expenses: | | | | | | | | | | | | | | Vessel operating expenses (2) | | | 5,089 | | | 6,494 | | | 7,897 | | | 10,116 | | Technical and operational management fee from KNOT to Vessels (3) | | | 3,702 | | | 3,470 | | | 7,426 | | | 6,894 | | Operating expenses from other related parties (4) | | | 562 | | | 291 | | | 826 | | | 540 | | General and administrative expenses: | | | | | | | | | | | | | | Administration fee from KNOT Management (5) | | | 452 | | | 433 | | | 880 | | | 860 | | Administration fee from KOAS (5) | | | 260 | | | 215 | | | 513 | | | 419 | | Administration fee from KOAS UK (5) | | | 9 | | | 13 | | | 22 | | | 25 | | Administration and management fee from KNOT (6) | | | — | | | 1 | | | — | | | 4 | | Total income (expenses) | | $ | (9,389) | | $ | (10,917) | | $ | (16,612) | | $ | (16,081) | |
| | | | | | | | | | | | | | | | (U.S. Dollars in thousands) | | At June 30, 2026 | | At December 31, 2025 | | Balance Sheet: | | | | | | | | Vessels: | | | | | | | | Drydocking supervision fee from KNOT (7) | | $ | 58 | | $ | 69 | | Drydocking supervision fee from KOAS (7) | | | (28) | | | 81 | | Total | | $ | 30 | | $ | 150 | |
| (1) | Time charter income from KNOT: Time charter contracts with Knutsen Shuttle Tankers Pool AS have been in operation in respect of the Hilda Knutsen since the third quarter of 2022 until her delivery to Brazil Shipping I Limited in March 2025; the Bodil Knutsen for five days in February 2026, the Torill Knutsen for four days in June 2026 and the Fortaleza Knutsen for nine days in June 2026 and thereafter since August 7, 2026. |
| (2) | Vessel operating expenses: KNOT Management provides technical and operational management of the vessels on time charter including crewing and crew training services. |
| (3) | Technical and operational management fee, from KNOT Management to Vessels: KNOT Management 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 the Partnership’s Chairman of the Board, Trygve Seglem, and by other third-party 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 Eastern European crew on vessels operating on time charter contracts. The cost is a fixed fee per month per such crew member onboard a vessel. Level Power & Automation AS, a company that provides the Partnership’s vessels with equipment and inspection services, is owned by Level Group AS, where Trygve Seglem, his family and members of TSSI management have significant influence. |
| (5) | Administration fee from KNOT Management, Knutsen OAS Shipping AS (“KOAS”) and Knutsen OAS (UK) Ltd. (“KOAS UK”): Administration costs include compensation and benefits of KNOT Management’s management and administrative staff on a time-spent basis as well as other general and administration expenses. Some services are also provided by KOAS and KOAS UK. Net costs are total administration cost plus a 5% margin. As such, the level of administration costs charged to the Partnership can vary |
| from year to year based on the administration and financing services provided each year. KNOT Management also charges each subsidiary a fixed annual fee for the preparation of statutory financial statements. |
| (6) | Administration and management fee from KNOT Management: 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, pursuant to which these companies provide general monitoring services for the vessels in exchange for an annual fee. |
| (7) | Drydocking supervision fee from KNOT Management and KOAS: KNOT Management and KOAS provide supervision and hire out service personnel during drydocking of the vessels. |
|
| Schedule of amounts due from and due to related parties |
| | | | | | | | | | At June 30, | | At December 31, | | (U.S. Dollars in thousands) | | 2026 | | 2025 | | Balance Sheet: | | | | | | | | Trading balances due from KOAS | | $ | 153 | | $ | 33 | | Trading balances due from KNOT and affiliates | | | — | | | 672 | | Amount due from related parties | | $ | 153 | | $ | 705 | | Trading balances due to KOAS | | $ | 1,570 | | $ | 1,663 | | Trading balances due to KNOT and affiliates | | | 1,208 | | | 729 | | Amount due to related parties | | $ | 2,778 | | $ | 2,392 | |
|
| Schedule of trade accounts payable to related parties |
| | | | | | | | | | At June 30, | | At December 31, | | (U.S. Dollars in thousands) | | 2026 | | 2025 | | Balance Sheet: | | | | | | | | Trading balances due to KOAS | | $ | 1,112 | | $ | 1,309 | | Trading balances due to KNOT and affiliates | | | 1,172 | | | 1,614 | | Trade accounts payables to related parties | | $ | 2,284 | | $ | 2,923 | |
|
| Schedule of trading balances from KNOT and affiliates are included in other current assets |
| | | | | | | | | | At June 30, | | At December 31, | | (U.S. Dollars in thousands) | | 2026 | | 2025 | | Balance Sheet: | | | | | | | | Other trading balances due from KOAS | | $ | 675 | | $ | 1,317 | | Other trading balances due from KNOT and affiliates | | | 1,342 | | | 1 | | Other current assets from related parties | | $ | 2,017 | | $ | 1,318 | |
|