Posted on March 16, 2020
US-based tanker company Overseas Shipholding Group (OSG) has completed the purchase of three US-flagged crude oil carriers, finalizing the acquisition of Alaska Tanker Company (ATC), the operator of the vessel trio.
As a result, ATC has become a wholly-owned subsidiary of OSG.
Specifically, the Alaskan Explorer, Alaskan Legend, and Alaskan Navigator have been bough from BP Oil Shipping Company USA and BP AMI Leasing Inc. In addition, OSG has entered into a bareboat charter with BP for a fourth vessel, the Alaskan Frontier.
The vessels purchased will continue to be operated by ATC under time charters with BP Exploration (Alaska), Inc., with firm charter periods lasting until 2022, 2025, and 2026. Each charter also provides for five one-year extension options, OSG said.
According to OSG, the net new capital investment for OSG for the series of transactions completed is USD 54 million.
“We have long viewed consolidation among owners of Jones Act tankers as an opportunity for OSG to build on its … franchise in serving the distribution needs of domestic oil producers and refiners,” Sam Norton, OSG’s President and CEO, commented.
“The addition of ATC and its operated vessels to OSG’s platform is a notable achievement in this context, providing the opportunity for substantial additional revenue in the years to come.”
This transaction builds upon several other recent transactions by OSG, including the delivery of two 50,000 dwt class product and chemical tankers in September 2019, the exercise of options to extend charter agreements with AMSC for nine vessels and the impending delivery of two 204,000 barrel oil and chemical ATB barges.
Source: worldmaritimenews.com
