Overseas Shipholding Group, Inc. (OSG) revealed that it has entered into a definitive agreement to charter two 46,000 dwt Jones Act tankers to Petrobras America, Inc. a unit of Petroleo Brasileiro S.A. (PBR, PBRA).
The company said that it would provide shuttle tanker services from a Floating Production Storage and Offloading facility, or FPSO. Wherever pipeline infrastructure is too costly, FPSOs and shuttle tankers are a cost-effective means of transporting offshore oil.
Overseas Shipholding would convert to shuttle tankers two of the 12 product tankers that it has ordered from Aker Philadelphia Shipyard
. The delivery of converted shuttle tankers to Petrobras is anticipated to occur in the first quarters of 2010 and 2011. [Source: http://www.tradingmarkets.com]