BP to Charter Two OSG-Controlled Product Carriers

Sea Technology, Mar 2006

Last month, Overseas Shipholding Group (OSG) Inc. (New York, New York) announced that charter agreements with BP (London, England) have been signed off on for two of the Jones Act product carrier newbuildings that OSG will bareboat upon delivery from the Aker Philadelphia Shipyard.

Morten Arntzen, president and chief executive officer of OSG said, "The strong commercial interest in these U.S.-built product carriers further validates our U.S. flag expansion strategy, uniquely positioning us in the Jones Act market. With two other tankers in the series already chartered out to another major oil company, OSG has now signed 40 percent of the 10-ship order scheduled for completion in 2010."

Work on the Veteran MT-46-class tanker vessels began immediately after Aker and OSG announced the 10-ship program in April 2005.

Keel laying for the first product tanker, scheduled for delivery to OSG in late 2006, took place in the yard's dry dock this past October.

Production of the second vessel in the series has commenced as well, marked by the beginning of steel cutting for the ship in late November.

For more information, visit www.osg.com.