Overseas Shipholding Group (OSG) has exercised options to extend bareboat charters with the Oslo-listed American Shipping Company (AMSC) for six Jones Act-compliant tankers.
The charter extensions will add three-year terms commencing in December 2023. With this deal the New York-listed tanker player will continue to lease seven vessels from AMSC, six until December 2026 and one by 2025.
Sam Norton, OSG’s president and CEO, stated: “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. 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.”
The Tampa-based OSG operates of a fleet of 20 Jones Act oil tankers and oil tug-barges. Earlier this year the company decided not to extend and return three MR2 product tankers to AMSC, the Overseas New York, Overseas Los Angeles and Overseas Texas City, all now bareboat chartered to Keystone Shipping.
