Kvaerner Philadelphia Shipyard recently announced that “final definitive agreements” are in place for chartering 10 new tankers scheduled for construction at the shipyard. SIU-contracted Overseas Shipholding Group will operate the tankers.Kvaerner Philadelphia’s news release is printed below and also is available on the shipyard’s web site here in the Press Releases section.
Kvaerner ASA, Parent of the Kvaerner Philadelphia Shipyard, Announces Final Agreement to Charter New Double-Hulled Product Tankers
PHILADELPHIA, PA (June 3, 2005): Final definitive agreements have today been signed with Overseas Shipholding Group, Inc. for bareboat charter of ten Veteran MT-46 class Jones Act Product Tankers to be constructed at Kvaerner Philadelphia Shipyard, Inc. (KPSI). The bareboat charters between subsidiaries of American Shipping Corporation (ASC), an affiliate of KPSI, and subsidiaries of OSG are initially entered on terms of five and seven years, with extension options, for the charter customer.
The charter agreements have an estimated contract value of more than $500 million to Kvaerner. The agreement is subject to government approvals.
The preliminary agreement on these charters as well as the announcement for the new vessel construction contracts was made on April 14 in ceremonies at the Shipyard.
“I am extremely pleased with the completion of these agreements which assure a strong future for KPSI and the approximately 800 men and women employed at the yard,” said Dave Meehan, President and CEO of KPSI. “This Project represents a commitment to this shipyard by Kvaerner and OSG and is a clear statement of support for the Jones Act and the entire United States maritime industry.”
###
Printer Friendly Page