Marine Log

October 17, 2006

Tesoro takes two more from Aker Philadelphia

Charter agreements have been signed for two more of the ten Jones Act commercial product tankers being built at Aker Philadelphia Shipyard.

The agreements were made between Gold Star Maritime Company, an affiliate of Tesoro Corporation (Tesoro), and Overseas Shipholding Group, Inc. (OSG), which has partnered in the new fleet with Aker American Shipping (AKASA), parent company of the shipyard.

As part of the Aker group of companies, Aker American Shipping, in conjunction with its subsidiaries, operates as both shipbuilder and shipowner in the Jones Act segment of the U.S. commercial maritime industry.

Tesoro had previously secured two vessels in the series in April of this year.

In addition to the four vessels chartered to Tesoro companies, both Shell Oil and BP Shipping have each previously signed two-ship time charters. In total, 80% of the 10-ship order due for completion in 2010 now has signed time charter agreements in place.

Four of the double-hulled, environmentally friendly vessels are currently in production at the yard, with the Naming Ceremony and delivery of the first ship in the series slated to take place during the fourth quarter of this year.