Aker and OSG Announce Tanker Agreement

Aker American Shipping ASA and Overseas Shipholding Group, Inc. (OSG) announced today that they have signed an agreement pursuant to which Aker Philadelphia Shipyard, a subsidiary of Aker American Shipping, will construct two additional Veteran Class MT-46 Jones Act Product Tankers and transfer them to another subsidiary, American Shipping Corporation, which will bareboat charter the vessels to subsidiaries of OSG for initial terms of 10 years. For Aker American Shipping the full transaction is valued in excess of $240m (before profit sharing) reflecting the higher rates and longer terms. The agreement is subject to relevant government approvals. As part of this agreement, the February 7th 2007 Agreement in Principle for three fixed plus three option vessels has expired. The series of now twelve MT-46 Product Tankers is continuing with two tankers delivered and an additional four vessels under construction at the yard. The third tanker is scheduled for delivery before the end of the year. OSG has already taken delivery of two of the initial 10 tankers, the Overseas Houston and the Overseas Long Beach. The third tanker in the series, Hull 007 (to be named the Overseas Los Angeles), is expected to deliver before the end of 2007.