Aker Philadelphia Shipyard (APSI) and Crowley Corporation have announced today a partnership to build four Jones Act-compliant, 50,000 dwt, 330,000-barrel product tankers, plus options to build another four product tankers.
Today’s announcement is a follow-up to Aker Philadelphia’s Oslo stock exchange filing in February.
Deliveries are planned through 2016 for the first four tankers at a total contract value of approximately $500 million.
Crowley will own the vessels and maintain full technical and commercial management, however APSI and Crowley will share in the economics of the operation and chartering of the new vessels.
APSI expects to make an investment of approximately $115 million in the first four vessels of the partnership through a combination of existing shipyard equity and new debt.
“The shale revolution is creating industrial opportunities throughout the United States and specifically here in Philadelphia. We are pleased to expand our partnership with a first class operator like Crowley to help meet the nation’s longstanding goal of energy security,” Kristian Rokke, President & CEO of AKPS, said.
“This strategic opportunity allows us to capitalize on the increased demand for Jones Act tankers in a way that will transform APSI in the years ahead. Diversifying our assets enhances Aker Philadelphia Shipyard’s resilience and creates long-term value for both our customers and shareholders.”
“We are very pleased to be partnering again with Aker in the construction of these new tankers,” said Rob Grune, Crowley Senior Vice President and General Manager, petroleum services. “They are a well established and highly respected shipbuilder. We appreciate working with Aker to supply our customers and the nation with the necessary tonnage to bring U.S. petroleum to market.”
The new 50,000 dwt product tankers are based on a proven Hyundai Mipo Dockyards (HMD) design which incorporates numerous fuel efficiency features, flexible cargo capability, and the latest regulatory requirements. The vessels will be constructed with consideration for the use of LNG for propulsion in the future. HMD and APSI collaborated on the successful construction of 14 product tankers at APSI between 2005 and 2013. Design and procurement activities are already underway to support the start of construction of the first tanker in January 2014.
APSI is currently constructing two 115,000 dwt crude oil carriers for SeaRiver Maritime, Inc., ExxonMobil Corporation’s U.S. marine affiliate. Both of these crude oil tankers are scheduled for delivery in 2014.
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