American Shipping Company Changes Tanker Building Sequence (15.10.08)

American Shipping Company (Oslo: AMSC) has notified Aker Philadelphia Shipyard (Oslo: AKPS) and Overseas Shipholding Group (NYSE: OSG) that AMSC will change the building sequence of its 12 tanker build program, as AMSC has not yet been able to arrange financing for the two shuttle tankers in that program.

The two shuttle tankers are intended for bareboat charter to Overseas Shipholding Group, who will time charter the vessels to Petrobras for operation in the Gulf of Mexico. Without financing in place for the shuttle tankers, Aker Philadelphia Shipyard cannot draw on its committed construction financing facility to build these vessels and, therefore, the building sequence will be changed.

AMSC notes that the shipbuilding contracts and bareboat charters for the shuttle tankers provide flexibility with respect to delivery of the vessels and make this change in building sequence possible. AMSC currently anticipates that the two shuttle tankers will be delivered in compliance with their respective bareboat charters, provided that financing is in place. This change in building sequence will not delay delivery of the product tankers.

American Shipping Company owns and leases world-class quality vessels for operation between ports in the United States. When the current series of twelve tankers is completed in 2011, American Shipping Company will own the most modern product tanker fleet in the United States; and it will be the first company in the United States to own shuttle tankers for use in the U.S. Gulf of Mexico.

American Shipping Company ASA