OSG Agrees 10-Year Bareboat Charter for US Tanker

TankerIllustration. Image Courtesy of Shaah Shahidh on Unsplash

Florida-based tanker shipping company Overseas Shipholding Group has entered into a bareboat charter deal with the owner of the 1999-built product tanker Oregon Voyager.

The company plans to rename the U.S. flagged tanker the Overseas Key West and intends to use the vessel in the U.S. coastwise trade under the Jones Act.

As part of the charter, which extends for 10 years into 2029, OSG will undertake the vessel’s fourth special survey following its expected delivery and expects the tanker to commence commercial operations during the second quarter of 2019.

“Following closely on our decision to extend all of the leases for our AMSC-owned tankers, the addition of the Overseas Key West to our fleet of Jones Act tank vessels is an important and visible signal of OSG’s continuing commitment to sustaining our leading position in the markets which we serve,” Sam Norton, OSG’s President and CEO, said.

“The extended duration of this new lease agreement is both an affirmation of our positive outlook for the future as well as a validation of OSG’s reputation as a preferred counterparty in operating Jones Act tank vessels to the high standards demanded by its customers.”

Norton explained that, at current market levels, the company expects Overseas Key West to contribute more than USD 18 million per year in time charter equivalent revenue once it enters into service.

Additionally, the company said it estimates that Overseas Key West would add around USD 5.5 million in net annual vessel operating contribution.

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