Two Jones Act Tankers Chartered to Petrobras

Monday, October 15, 2007
Overseas Shipholding Group Inc., a global energy transportation services company, has signed a definitive agreement to charter two 46,000 dwt Jones Act tankers to Petrobras America Inc., marking the first U.S. Flag shuttle tankers to transport oil from ultra-deepwater drilling projects in the Gulf of Mexico

Petrobras America is a unit of Petroleo Brasileiro S.A., the 12th largest oil company in the world.

OSG will provide shuttle tanker services from a floating production storage and offloading facility in the Walker Ridge area of the Gulf of Mexico.

OSG reported it will convert to shuttle tankers two of the 12 product tankers it has ordered from Aker Philadelphia Shipyard. The company expects to deliver the converted shuttle tankers to Petrobras in the first quarters of 2010 and 2011.

Overseas Shipping is a publicly traded on the New York Stock Exchange under the ticker symbol “OSG.”

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