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Overseas Shipholding Group, Inc. & American Shipping Company ASA Jointly Announce Extension of Tanker Charters

Overseas Shipholding Group, Inc. and American Shipping Company ASA jointly announced that OSG has exercised options to extend its bareboat charter agreements with AMSC for four vessels currently under charter from AMSC. Each bareboat charter agreement was extended for additional three-year terms, commencing from December 2020 and ending in December 2023. OSG previously exercised its options to extend charter agreements for all of the six other vessels that it leases from AMSC. As a result, all ten bareboat charter agreements with AMSC have now been extended for additional periods.

OSG’s CEO Sam Norton said, “The contract extensions for the four vessels involved will allow us to continue our close working relationship with AMSC for many more years. The decision to further extend the maturities of each of the four vessels underscores our confidence that the continuing move towards balance in the Jones Act tanker market is an opportunity to serve our core customers in a rate environment that will provide attractive returns over time.”

The bareboat charter agreements provide that the three- and five-year options for these vessels are available indefinitely. The lease payments for the bareboat charters are fixed throughout the option periods, and the options are on a vessel-by-vessel basis and can be exercised individually.

AMSC’s CEO Pål Lothe Magnussen commented, “We are pleased to see OSG continuing to extend the bareboat charters for our vessels. AMSC benefits from the cash flow stability provided by these contracts and exposure to increasing profits in the future. We look forward to maintaining our cooperation with OSG.”