News

2019 December 13 10:34

Overseas Shipholding Group and American Shipping Company jointly announce extension of tanker charters

Overseas Shipholding Group, Inc. and American Shipping Company ASA jointly announced that OSG has exercised options to extend its bareboat charter agreements with AMSC for four vessels currently under charter from AMSC. Each bareboat charter agreement was extended for additional three-year terms, commencing from December 2020 and ending in December 2023. OSG previously exercised its options to extend charter agreements for all of the six other vessels that it leases from AMSC. As a result, all ten bareboat charter agreements with AMSC have now been extended for additional periods.

The bareboat charter agreements provide that the three- and five-year options for these vessels are available indefinitely. The lease payments for the bareboat charters are fixed throughout the option periods, and the options are on a vessel-by-vessel basis and can be exercised individually.

About Overseas Shipholding Group, Inc.

Overseas Shipholding Group, Inc. is a publicly traded tanker company providing energy transportation services for crude oil and petroleum products in the U.S. Flag markets. OSG is a major operator of tankers and ATBs in the Jones Act industry. OSG's 21 vessel fleet consists of two conventional ATBs, two lightering ATBs, three shuttle tankers, 10 conventional MR tankers, and two non- Jones Act MR tankers that participate in the U.S. Maritime Security Program, all of which are U.S. flagged, as well as two Marshall Island flagged non-Jones Act MR tankers trading in international markets. In addition, OSG has two barges under construction in the U.S. that will be Jones Act qualified vessels, with delivery anticipated during 2020. These vessels are anticipated to be paired with the Company's existing tugs operating in the Jones Act trade.

About American Shipping Company ASA:

Established in 2005 and listed on the Oslo Stock Exchange, AMSC is a ship owning company with nine modern handy size product tankers and one modern handy size shuttle tanker on long term bareboat charter with Overseas Shipholding Group (OSG). OSG charters the vessels out on time charters to major oil companies in the U.S. coastwise Jones Act trade. AMSC has a significant contract backlog as well as a profit sharing agreement with OSG which offers visibility with respect to future earnings and potential dividend capacity.