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OSG inks agreement to takeover Alaska Tanker

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Overseas Shipholding Group, Inc. (OSG) has penned an agreement to takeover Alaska Tanker Company (ATC) that will also see the company acquire the four suezmax tankers under ATC’s fleet.

OSG will then enter into a bareboat charter of the suezmaxes with ATC, and ATC will in turn enter into back-to-back time charters for each of the vessels with BP Exploration (Alaska) Inc. as charterers. The four 2006-built tankers are the Alaskan Legend, Alaskan Explorer, Alaskan Frontier, and Alaskan Navigator.

OSG currently owns a 37.5% interest in ATC. The latest deal will see OSG acquire the remaining 62.5% interest in ATC.

Sam Norton, president and ceo of OSG, said: “The agreements reached with BP this week provide a clear commitment to maintaining ATC as BP Alaska’s principle marine transportation partner.

“The contracts concluded with BP Alaska provide an aggregate of 14 years of firm time charter commitments, adding increased visibility and stability to OSG’s book of forward revenue streams. Each contract provides the charterer with options to extend the charter period beyond the base contract period, providing the framework for a continuing working partnership for many years to come,” Norton added.

Anil Mathur, president and ceo of ATC, said becoming a wholly owned subsidiary of OSG will allow the company to be positioned to maintain world class safety and operations integrity standards.

Closing of the purchases is subject to various conditions, including the approval of the United States Coast Guard and the Maritime Administration under the United States Department of Transportation, as well as receipt of Alaska regulatory approval.

At present, OSG’s fleet consists of 21 vessels including 10 MR tankers, three shuttle tankers and articulated tug barges.

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