Overseas Shipholding Group,
Inc. will acquire the Heidmar Lightering business from Heidmar Inc.,
a subsidiary of Morgan Stanley Capital Group Inc. The operation, a fleet of four International Flag Aframax tankers and two U.S. Flag workboats, provides crude oil lightering services to refiners, oil companies and trading companies primarily in the U.S. Gulf. The business manages a portfolio of one-to-three year fixed rate cargo
contracts.
Under the agreement, OSG will acquire the lightering fleet,
which is time chartered-in to one of Heidmar Inc.'s subsidiaries,
including a 50% residual interest in two specialized lightering Aframax
tankers. The agreement is subject to certain conditions, including
entering into definitive documentation.
The lightering operation will add synergies and expand OSG's already
significant Aframax cargo and logistical system in the Atlantic basin.
In addition, it provides opportunities to serve U.S. West Coast
customers with lightering service using OSG's Panamax tankers. Based in
Houston, Texas, Heidmar Lightering has performed over 900 lighterings
since beginning operations in November 2002. Jim Enright, 45, who has
nearly 20 years of oil trading and shipping industry experience, will
continue to lead the team of office staff and mooring masters out of
Houston. Enright will report to Mats Berglund, Senior Vice President
and Head of OSG's Crude Tanker unit.