Aker Philadelphia Inks Definitive Agreement to Build Two Jones Act Tankers For ExxonMobil Affiliate

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September 29, 2011

This deal was first announced in July when a Letter of Intent was signed for the vessels’ construction,  however both parties entered into a definitive agreement today.

Exxon Mobil Corp.’s (XOM) U.S. marine affiliate signed an agreement valued at $400 million for the construction of two new tankers to be built in Philadelphia.

The job is expected to create more than 1,000 new direct jobs in the two-year construction period.

The deal was made between Aker Philadelphia Shipyard ASA (KPS.OS) and SeaRiver Maritime, an Exxon affiliate that operates a U.S. tanker fleet and provides marine services for Exxon and its other partners.

The double-hull vessels, each capable of carrying 730,000 barrels of crude, will be used to transport Alaska North Slope crude oil to the West Coast. They will replace two existing double-hull tankers.

The shipyard, which will build the tankers with the aid of Samsung Heavy Industries Co. (010140.SE), expects to start construction by mid-2012 and deliver them in 2014.

Exxon, the largest publicly traded oil and gas company, saw its profit rise 41% in its second quarter, benefiting from a rise in oil prices.

Exxon shares rose 1.4% to $73.10 in premarket trading. The stock is down 1.4% year to date.

-By Ben Fox Rubin, Dow Jones Newswires

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