OSG to purchase, time charter vessels

Overseas Shipholding Group (OSG), through its subsidiaries, has entered into agreements with BP Oil Shipping Company USA and BP AMI Leasing to purchase two US-flagged crude oil carriers operated by Alaska Tanker Company (ATC).

OSG currently owns a 37.5 per cent interest in ATC. As part of the transaction, OSG will acquire the remaining 62.5 per cent interest of ATC that it does not own.

Closing of the purchases is subject to various conditions, including the approval of the US Coast Guard and the Maritime Administration (MARAD) under the US Department of Transportation, as well as receipt of Alaska regulatory approval.

Upon completion of the transaction, each OSG subsidiary will enter into a bareboat charter of its vessel with ATC, and ATC will in turn enter into back-to-back time charters for each of the vessels with BP Exploration Alaska as charterers.