Overseas Shipholding Group,Inc (NYSE: OSG) records that its subsidiaries have actually become part of arrangements with BP Oil Shipping Company United States as well as BP AMILeasing Inc to buy U.S.-flagged petroleum provider vessels run by Alaska Tanker Company LLC (ATC).
OSG presently possesses a 37.5% passion in ATC as well as, as component of the deal, OSG will certainly obtain the staying 62.5% passion of ATC that it does not have.
Sam Norton, OSG’s President as well as chief executive officer, stated, “The agreements reached with BP this week provide a clear commitment to maintaining ATC as BP Alaska’s principal marine transportation partner. ATC’s 20-year track record of safe and environmentally responsible crude oil transportation in the highly sensitive Alaskan trades is an achievement with which OSG has proudly been associated. We are excited to have the opportunity to assume full ownership of ATC and aspire to meet and exceed the high expectations that ATC’s constituents have for maintaining a continuing record of operational excellence.”
“The contracts concluded with BP Alaska provide an aggregate of 14 years of firm time charter commitments, adding increased visibility and stability to OSG’s book of forward revenue streams,” Norton included. “Each contract provides the charterer with options to extend the charter period beyond the base contract period, providing the framework for a continuing working partnership for many years to come.”
“Becoming a wholly owned subsidiary of OSG gives me great confidence that ATC will be positioned to maintain its world class safety and operations integrity standards,” stated Anil Mathur, ATC’s President as well as chief executive officer. “This outcome protects our shared environment. OSG’s culture fits well with ATC’s history of over two decades of proven results arising out of its operating philosophy centered on delivering sustainable, predictable, best-in-class transportation services to the shippers that we serve.”
The arrangements attend to down payments equivalent to 20% of the acquisition rate to be paid upon their implementation, with the equilibrium of the factor to consider to be paid at closing. Closing of the acquisitions undergoes different problems, consisting of the authorization of the United States Coast Guard as well as MARAD, in addition to invoice of Alaska governing authorization.
On conclusion of the deal, each OSG subsidiary will certainly become part of a bareboat charter of its vessel with ATC, as well as ATC will certainly consequently become part of back-to-back time charters for each and every of the vessels with BP Exploration (Alaska)Inc (BP Alaska) as charterers.