Kvaerner, OSG In 10 Jones Act Ship Deal

Thursday, April 14, 2005
Kvaerner ASA and Overseas Shipholding Group, Inc. signed an agreement in principle in which Kvaerner Philadelphia Shipyard, Inc. will build ten Veteran MT-46 class Jones Act Product Tankers, with an option for two additional vessels, and transfer them to another subsidiary which will bareboat charter them to subsidiaries of OSG for initial terms of five or seven years, with extension options for the charterer. For Kvaerner, the proposed transaction is valued at more than $500 million. The agreement in principle is subject to, among other conditions, approval by the Boards of Directors of Kvaerner and OSG, preparation and execution of final agreements and relevant government approvals.

"The proposed construction of ten Jones Act Product Tankers by KPSI is one of the largest commercial ship building transactions undertaken by a U.S. shipyard and represents a significant achievement for the American shipbuilding industry," stated Dave Meehan, President of Kvaerner Philadelphia Shipyard, Inc. "The proposed bareboat charters of ten newbuild Jones Act Product Tankers by subsidiaries of OSG represent a significant commitment by OSG to its U.S. Flag business," said Morten Arntzen, President and Chief Executive Officer of OSG. "With these charters, OSG will have one of the largest and most modern Jones Act Product Tanker fleets."

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

People & Company News

Lukoil Shipped Canadian Crude from Houston

Russian oil major Lukoil has emerged as one of the first companies to buy Canadian crude re-exported from a U.S. port, shipping one cargo last month to its refinery in Augusta,

Vestas Profit Beats Forecast

Danish wind turbine maker Vestas Wind Systems posted much higher than expected second-quarter earnings and slightly increased its guidance for the full year, signaling

MV Cape Ray Signals DTRA 'Mission Complete'

The Defense Threat Reduction Agency announces the successful completion of the Cape Ray's mission to destroy Syria's chemical weapons components at sea. The Defense Threat Reduction Agency/U.

Contracts

Lukoil Shipped Canadian Crude from Houston

Russian oil major Lukoil has emerged as one of the first companies to buy Canadian crude re-exported from a U.S. port, shipping one cargo last month to its refinery in Augusta,

Vestas Profit Beats Forecast

Danish wind turbine maker Vestas Wind Systems posted much higher than expected second-quarter earnings and slightly increased its guidance for the full year, signaling

OSV Hull Arrives at Havyard's Leirvik Yard

Havyard says that newbuild number 118 has arrived from Turkey at the yard in Leirvik, being the first of two vessels that will be outfitted to provide service and

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Offshore Oil Pipelines Port Authority Ship Repair Ship Simulators Shipbuilding / Vessel Construction 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: 0.1633 sec (6 req/sec)