Overseas Shipholding Group Purchases Vessel from BP
13 October 2023 - 12:15AM
Business Wire
Alaskan Frontier to be reactivated -
expected in-service availability by 4th Quarter 2024
Overseas Shipholding Group, Inc. (“OSG”) announced today 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. 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 purchase of the Alaskan Frontier brings all four of the
Alaskan class crude oil tankers under OSG’s ownership at a time
when the prospect for expanded crude oil production in Alaska
offers great promise for continued and increasing demand for ships
of her type,” said Sam Norton, President and CEO of OSG. “Upon
completion of shipyard work, which will include lifecycle upgrades
on the engines that will improve the performance and longevity of
the vessel, we believe that the Alaskan Frontier will be primed to
provide additional transportation capacity to suit the needs of our
customers in a time of limited availability.” Mr. Norton added,
“The full scope of reactivation work is expected to require a
period of approximately one year and will, in addition to the
engine upgrades, entail a ballast water treatment system
installation and other improvements to prepare her for commercial
use.” The total capital commitment for the project, including the
purchase price of the vessel, is approximately fifty million
dollars.
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.
About Overseas Shipholding Group, Inc
Overseas Shipholding Group, Inc. (NYSE: OSG) 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.
Headquartered in Tampa, Florida, OSG is committed to setting
high standards of excellence for its quality, safety, and
environmental programs and is recognized as one of the world’s most
customer-focused marine transportation companies.
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version on businesswire.com: https://www.businesswire.com/news/home/20231012380902/en/
Investor Relations & Media Contact: Susan Allan,
Overseas Shipholding Group, Inc. (813) 209-0620 sallan@osg.com
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