OSG Extends Bareboat Charters with American Shipping Company

U.S.-flag energy shipping company Overseas Shipholding Group (NYSE: OSG) has exercised options to extend its bareboat charter agreements with American Shipping Company ASA (AMSC) for six Jones Act tankers.

The six bareboat charter extensions are for three-year terms commencing in December 2023. With the extensions, OSG will have seven tankers on lease from AMSC – six with maturity at the end of December 2026 and one with a maturity of 2025.

“We believe the market continues to support attractive commercial opportunities for these vessel leases to supplement the strong and stable cash flow generation from our niche businesses,” said Sam Norton, OSG’s President and CEO. “There is currently a healthy conventional tanker market, which we believe should continue for the foreseeable future, and are pleased to retain these vessels as key contributors to our steady and strong earnings.”

OSG this month reduced the number of tankers leased from AMSC by three after previously opting not to exercise extension options for the vessels following their bareboat charters that concluded this month, releasing OSG from annual fixed payment obligations of approximately $27 million starting next year.

OSG’s 20-vessel U.S. Flag fleet consists of three Suezmax crude oil tankers operating Alaska, two conventional ATBs, two lightering ATBs, three shuttle tankers, seven MR tankers, two non-Jones Act MR tankers that participate in the U.S. Maritime Security Program, and one tanker in cold layup.

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