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Marine Log

February 10, 2007

Aker Philadelphia delivers first product tanker

Aker Philadelphia Shipyard has delivered the first vessel in an order for up to 16 product tankers.

The 600-foot long MT46 Veteran Class Overseas Houston now becomes the first ship in the series leased to subsidiaries of Overseas Shipholding Group, Inc. (OSG).

Originally announced in April 2005 with a series of 10 ships, the build program is part of a pioneering arrangement with OSG to bring double-hulled, environmentally friendly newbuild product tankers into the Jones Act trades.

Recently, Aker American Shipping announced an agreement in principal with OSG for up to six additional product tankers in the series that would extend the order book into 2012.

"Delivery of the first product tanker in the series is a satisfying achievement for the shipyard and product of the hard work of our employees and partners." said Aker American Shipping President and CEO Dave Meehan. "With our first vessel now in operation the second dimension of Aker American Shipping's exciting build and own strategy in the Jones Act is now in place."

Eric Smith, Chief Commercial Officer and Head of Government Affairs for OSG America commented, "OSG America is very excited to have taken delivery of the Overseas Houston today. Our relationship with Aker American Shipping is excellent. We use our combined resolve to deliver new Jones Act tonnage to our customers like Shell who will employ this vessel for many years to come."

In the coming days, the Overseas Houston will sail from the yard to the Gulf of Mexico where it will soon begin service transporting refined petroleum products for Shell Oil Company under that company's time charter agreement with OSG.

There are three other product tankers in the series currently under production at the yard with the second due to be delivered this summer.