Marine Log

Keel laying of second tanker at Aker Philadelphia

May 15, 2006

Milestone at Aker Philadelphia

Aker Philadelphia Shipyard achieved another significant milestone in its current ten-ship tanker build program today with keel laying for the second vessel in the series of 46,000 dwt tankers, the sixth ship constructed at the yard since it started production in 2000.

The first section of the double-hulled product tanker scheduled for completion in 2007 was installed in the yard's Building Dock just a few hundred yards behind the first ship in the series, also currently under construction in the dock.

The first ship in the program is expected to be delivered by the end of 2006, with the second vessel scheduled for completion during 2007. All ten product tankers in the series will be owned by American Shipping Corporation, a subsidiary of Aker American Shipping, and chartered to Overseas Shipholding Group (OSG). To date, six of the ten tankers in the build program are under signed time charter, with two-ship agreements in place between OSG and Shell, BP and Tesoro.

Dave Meehan, President and CEO of Aker Philadelphia Shipyard said, "Keel laying for our second tanker just days after start of production on our third tanker signifies another important step in advancing our yard and the ten ship build program to new levels of efficiency and sophistication. For the first time in its history, Aker Philadelphia Shipyard now has four ships currently under construction, including three tanker vessels of the exact same design." added Meehan.

As part of the ceremony, coins were placed under the keel block in a practice which recreates a long-standing tradition whereby shipbuilders hide special coins in the keel section of a ship as a permanent symbol of good fortune and safe travels.

Aker American Shipping CFO Jan Ivar Nielsen represented Aker in the ceremony, with Theo Mandopoulos, OSG's site manager at the yard, participating from OSG.

Aker Philadelphia Shipyard, Inc. is the shipbuilding subsidiary of Aker American Shipping, both of which are members of the Norwegian-based Aker group of companies