Overseas Shipholding Group, Inc. (NYSE: OSG) (OSG) a provider of energy transportation services for crude oil and petroleum products in the U.S. Flag markets, announced Monday that it has signed binding contracts with Hyundai Mipo Dockyard Company Ltd. (HMD) for the construction of two 50,000 deadweight tons class product chemical tankers for anticipated delivery to the Company during the second half of 2019.
These tankers will be constructed at HMD’s Ulsan, Korea ship building facilities and will be built to comply with MARPOL Annex VI Regulation 13 Tier III standards regarding nitrogen oxide emissions within Emission Control Areas. In addition, each vessel will have installed exhaust gas cleaning systems, often referred to as “scrubbers”, to meet the standards of MARPOL Annex VI Regulation 14 standards regarding sulphur oxide emissions. The Company anticipates that these vessels, following delivery, will participate as US flagged vessels in trades served by existing Company vessels.
“OSG is committed to maintaining a leading presence in the US Flag petroleum transportation sector,” said Sam Norton, OSG’s President and CEO. “Our initiative to pursue construction of modern, efficient and environmentally responsible vessels sends a strong signal to our customers, our stockholders and our employees that we are confident in achieving our commitment and that we have the resources and unique skill sets to enable us to do so. We look forward to the contribution that these vessels will make to our long-term success once delivered.”