Overseas Shipholding Group (OSG) has signed an agreement with the US BP Oil Shipping Company to purchase a ready-made Suezmax tanker.
The Tampa-based company purchased the 2004 NASSCO-built Alaskan Frontier, a sister ship to three other Alaskan Class tankers operated by its subsidiary, the Alaskan Tanker Company.
“The acquisition of Alaska Frontier brings all four of the Alaska-class crude oil tankers under OSG’s ownership, as the prospect of increased crude oil production in Alaska provides continued demand for such vessels,” said OSG President and CEO Sam Norton. and it shows great promise for its increase.” said.
OSG said the deal should be completed in November and that it plans to invest and restart the 193,100 dwt ship, which has been on standby in Malaysia since 2019, by the fourth quarter of 2024.
The reactivation work will include methanol-ready engine upgrades, ballast water treatment system installation and other improvements, the company said.
“The total capital commitment for the project, including the purchase price of the vessel, is approximately $50 million,” Norton said. he added.
OSG, which is listed on the New York Stock Exchange, has 21 ships in its fleet, including suezmaxes, conventional and flint articulated tugs, shuttles and conventional MR tankers.
The opinions expressed herein are the author’s and not necessarily those of News2Sea.
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