OSG To Build Four Tankers

Wednesday, March 29, 2006
Overseas Shipholding Group, Inc. will build four, 114,000 dwt 44-meterbeam Aframax tankers at the New Times Shipbuilding Co., Ltd. shipyard based in Jinjiang, China. The vessels, scheduled for delivery in 2008 and 2009, will increase OSG's Aframax fleet to 21 tankers serving customers in the Atlantic basin, and will operate in the Aframax International (AI) pool. The tankers will be built using the new Common Structural Rules (CSR) recently established by IACS for all tankers and bulk carriers ordered after April 1, 2006. Among other design upgrades, the new rules set forth stricter hull strength requirements and technical criteria of double hull tankers that had previously differed by each classification society. OSG has agreed to pay approximately $58 million for each of the high specification tankers.

The new tankers will add 456,000 deadweight tons to the Company's fleet, bringing its total owned, operated and newbuild fleet to 113 vessels, aggregating 12,652,837 dwt and 864,800 cbm. OSG co-founded and co-manages the AI pool which holds the number-two market position worldwide with a combined fleet of 42 Aframax tankers.

Additionally, the Company announced its intention to sell two of its older Aframax tankers. By replacing the older tonnage with newer, more efficient vessels, OSG will benefit from increased revenue and lower vessel operating expenses.

Mats Berglund, head of OSG's Crude Transportation Strategic Business unit stated, "The newbuild price we were able to negotiate was significantly less than the $75 million rates being quoted in the market today for less efficient vessels that are not CSR-compliant. After the sale of the older tankers, our marginal investment will more than double the commercial life of the vessels. Furthermore, the new ships are faster, have a larger carrying capacity and shallower draft than the vessels we intend to sell."

Maritime Reporter September 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Contracts

Total CEO Killed in Moscow Runway Accident

Private jet collided with snow plow during takeoff; Total's CEO a defender of Moscow policies. Insiders Boisseau and Pouyanne long seen as potential successors.

Offshore Oil: Lamprell Completes Caspian Sea Drilling Unit

UAE-based Lamprell said that it completed construction of the second Caspian Sea jackup drilling rig, Mercury, for service in the Caspian Sea.   "I am delighted

Salamander Energy Updates on SONA Transaction

Salamander Energy said it has submitted a draft shareholder circular to the Financial Conduct Authority in relation to previously stated plans to divest of an interest in the Greater Bualuang Area.

Coast Guard

Coast Guard Foundation to Honor USCG in Miami

The Coast Guard Foundation, a nonprofit organization committed to the education and welfare of all Coast Guard members and their families, announced today that

Sunken Barge Salvage Stops Traffic on Chicago River

The U.S. Coast Guard said it is restricting vessel traffic on the Chicago River to allow for salvage of a sunken barge. All cargo has been removed from the sunken

USCG Reopens Port Allen Post Hurricane Ana

The Coast Guard Captain of the Port reopened Port Allen in Kauai Monday morning after surveying crews deemed it  safe for transit. The maritime public is advised

 
 
Maritime Careers / Shipboard Positions Naval Architecture Offshore Oil Pipelines Salvage Ship Electronics Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1187 sec (8 req/sec)