Overseas Shipholding Group, Inc. announced that its subsidiaries have completed the purchase of three U.S.-flagged crude oil carrier vessels, the Alaskan Explorer, Alaskan Legend, and Alaskan Navigator from BP Oil Shipping Company USA and BP AMI Leasing Inc. (BP) and have entered into a bareboat charter with BP for a fourth vessel, the Alaskan Frontier. In connection with these transactions, OSG also completed the acquisition of Alaska Tanker Company LLC (ATC), the operator of the vessels, making ATC a wholly owned subsidiary of OSG.
The vessels purchased will continue to be operated by ATC under time charters with BP Exploration (Alaska), Inc., with firm charter periods lasting until 2022, 2025, and 2026. Each charter also provides for five one-year extension options.
The net new capital investment for OSG for the series of transactions completed today is $54 million. Bank America Leasing led the financing for the transaction, which is secured by mortgages on the vessels.
This transaction builds upon several other recent transactions by OSG, including:
the delivery in September 2019 of two 50,000 DWT class product and chemical tankers, named the Overseas Gulf Coastand Overseas Suncoast, built at Hyundai Mipo Dockyard Co., Ltd.;
the exercise of options to extend charter agreements with AMSC for nine vessels, five of which commenced in December 2019 and end in December 2022; and
the impending delivery of two 204,000 barrel Oil and Chemical ATB barges, built at Gunderson Marine’s Portland, Oregon facility, set to be delivered in the second half of 2020.
About Overseas Shipholding Group, Inc.
Overseas Shipholding Group, Inc. (NYSE: OSG) is a publicly traded 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 22 vessel U.S. Flag fleet consists of the three crude oil tankers just acquired doing business in Alaska, two conventional ATBs, two lightering ATBs, three shuttle tankers, ten MR tankers, and two non-Jones Act MR tankers that participate in the U.S. Maritime Security Program. OSG also currently owns and operates two Marshall Islands flagged MR tankers which trade internationally. In addition to the currently operating fleet, OSG has on order two Jones Act compliant barges which are scheduled for delivery in 2020.
OSG is committed to setting high standards of excellence for its quality, safety and environmental programs. OSG is recognized as one of the world’s most customer-focused marine transportation companies and is headquartered in Tampa, FL.