Overseas Shipholding Group, Inc. (“OSG”) announced an agreement with BP Oil Shipping Company, USA, to purchase the tank vessel Alaskan Frontier, a sister vessel to three other Alaskan Class tankers operated by OSG’s wholly owned subsidiary, Alaskan Tanker Company, according to the company's release. Following the expected early November completion of the transaction, OSG intends to reactivate the 1.3-million-barrel capacity tanker which has been in cold layup in Malaysia since 2019. OSG plans to make significant investments in the vessel for it to begin commercial trade by the fourth quarter of 2024.
The engine upgrades for the Alaskan Frontier are considered a lifecycle upgrade, which will be completed by MAN Energy Solutions SE. This comprehensive modernization of each of the four engines onboard will improve performance and fuel efficiency and also prepare the engines for possible methanol fuel in the future. It is expected that the fuel efficiency gain will result in 15-20% fuel savings as compared to the vessel’s current consumption, leading to a meaningful reduction in carbon output. The significant capital investment being made will permit the company to operate the vessel for a longer period of time and with fewer maintenance costs for its remaining life.
The Alaskan Frontier was built in 2004 by General Dynamics NASSCO and was part of the active fleet of the Alaska Tanker Company until 2019 when the vessel was placed in cold lay-up in Labuan, Malaysia.
Overseas Shipholding Group, Inc. is a publicly traded company providing liquid bulk transportation services in the U.S. Flag markets. OSG’s U.S. Flag fleet consists of Suezmax crude oil tankers doing business in Alaska, conventional and lightering ATBs, shuttle and conventional MR tankers, and non-Jones Act MR tankers that participate in the U.S. Tanker Security Program.