Overseas Shipholding Group, Inc. (OSG) has announced its agreement with BP Oil Shipping Company, USA, to purchase the tank vessel Alaskan Frontier.
The Jones Act-compliant vessel, a sister to three other Alaskan Class tankers operated by OSG’s subsidiary, Alaskan Tanker Company, has been in cold layup in Malaysia since 2019. OSG plans to reactivate the 1.3-million-barrel capacity tanker and make significant investments to prepare it for commercial service by the fourth quarter of 2024.
“The acquisition of the Alaskan Frontier enables OSG to own all four Alaskan class crude oil tankers, which aligns perfectly with the anticipated expansion of crude oil production in Alaska,” stated Sam Norton, President and CEO of OSG. “With shipyard work, including lifecycle upgrades and engine improvements, we believe the Alaskan Frontier will meet the increasing demand for transportation capacity while providing enhanced performance and longevity.”
The reactivation work, expected to take approximately one year, will involve engine upgrades, installation of a ballast water treatment system, and other necessary improvements. This comprehensive modernization project, carried out by MAN Energy Solutions SE, will not only improve the vessel’s performance and fuel efficiency but also prepare the engines for potential methanol fuel use in the future. As a result, the Alaskan Frontier is projected to achieve 15-20% fuel savings compared to its current consumption, leading to a significant reduction in carbon emissions. The total capital commitment for the project, including the vessel’s purchase price, amounts to approximately fifty million dollars.
Built in 2004 by General Dynamics NASSCO, the Alaskan Frontier served as part of the active fleet of the Alaska Tanker Company until 2019, when it was placed in cold lay-up in Labuan, Malaysia.
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