Overseas Shipholding Group Orders Two U.S.-Flag Tankers to Be Built in Korea

Updated: July 23, 2018 (Originally published July 17, 2018)

U.S.-flag tanker company Overseas Shipholding Group, Inc. (NYSE: OSG) has signed shipbuilding contracts with Hyundai Mipo Dockyard in South Korea for the construction of two 50,000 dwt product chemical tankers.

The vessels are scheduled for delivery during the seoncd half of 2019 and will be built at HMD’s yard in Ulsan, South Korea.

Upon delivery the ships will operate in the U.S. flag market on trades served by OSG’s existing vessels. 

OSG says the tankers will comply MARPOL Annex VI Regulation 13 Tier III standards covering nitrogen oxide emissions within Emission Control Areas. Each vessel will be equipped with exhaust gas cleaning systems, often referred to as “scrubbers”, to meet the standards of MARPOL Annex VI Regulation 14 standards regarding sulphur oxide emissions.

“OSG is committed to maintaining a leading presence in the US Flag petroleum transportation sector,” said Sam Norton, OSG’s President and CEO. “Our initiative to pursue construction of modern, efficient and environmentally responsible vessels sends a strong signal to our customers, our stockholders and our employees that we are confident in achieving our commitment and that we have the resources and unique skill sets to enable us to do so. We look forward to the contribution that these vessels will make to our long-term success once delivered.”

Overseas Shipholding Group provides energy transportation services for crude oil and petroleum products in the U.S. Flag markets and a major operator of tankers and ATBs in the Jones Act industry. OSG’s 23-vessel U.S. Flag fleet consists of seven ATBs, two lightering ATBs, three shuttle tankers, nine MR tankers, and two non-Jones Act MR tankers that participate in the U.S. MSP.

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