New Time Charters for ONAV

Friday, November 07, 2008

Omega Navigation Enterprises, Inc. (NASDAQ:ONAV, SGX:ONAV50), a provider of global marine transportation services focusing on product tankers, announced that an agreement has been reached to charter to ST Shipping (a wholly owned subsidiary of Glencore International, AG) the vessels Omega Lady Sarah and Omega Lady Miriam, from the third or fourth quarter of 2009 for a three year period. The new charters ensure full employment for these vessels for all of 2009, 2010, 2011 and at least the first half of 2012.

Omega and ST Shipping have agreed on rates which are higher than those under their current employment. The new rates for both vessels will consist of a base rate of $25,500 per day plus a 50/50 profit sharing element in which Omega and ST Shipping will share equally on a quarterly basis in the vessels' actual trading results above the base rate.

George Kassiotis, President and CEO of Omega Navigation Enterprises commented, "We are extremely pleased to have concluded these new charters with ST Shipping. With charter rates at higher levels than their previous employment notwithstanding the vessels' forward delivery and with profit sharing, a feature which has proven very beneficial giving us the ability to participate in the upside of the spot market, it shows ST Shipping's and Omega's confidence in the strong fundamentals of the product tanker sector going forward. As evidenced by these new charters, rates have remained strong in the product tanker sector, while rates in other shipping sectors have come under pressure. In addition, these new charters further reinforce the already strong relationship between our Group and the Glencore Group of companies, and demonstrate Glencore's confidence in our ability to operate efficiently and safely, even in this very difficult economic climate. The new charters enable ST Shipping to take advantage of Omega's technical expertise while allowing Omega to share in ST Shipping's commercial acumen. With charters which extend through 2012, Omega has enhanced its ability to generate stable and predictable cash flows."

About Omega Navigation Enterprises, Inc.
Omega Navigation Enterprises, Inc. is an international provider of marine transportation services through the ownership and operation of double hull product tankers. The current fleet includes eight double hull product tankers with a carrying capacity of 512,358 dwt which are chartered out under three-year time charters with an average age of less than three years. The company has also announced the signing of shipbuilding contracts to construct and acquire five additional product tankers with a capacity of 37,000 dwt each scheduled for delivery between March 2010 and early in 2011 and two additional product tankers with a capacity of 47,000 dwt the first scheduled for delivery on or about the second quarter 2009 and the second scheduled for delivery on or about the third quarter 2010. With the addition of these seven vessels, Omega's fleet will expand to 15 product tankers with a total deadweight capacity of 791,358 dwt.

(www.omeganavigation.com)

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