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Marine Log

March 6, 2007

OSG orders ATB's

Overseas Shipholding Group, Inc. (NYSE: OSG), reports that it has entered into a definitive agreement to build three new Articulated Tug Barges (ATBs), each with a carrying capacity of approximately 290,000 barrels. Each barge will be connected to a new 12,000 horsepower tug boat and will be capable of carrying refined petroleum products as well as crude oil within the U.S. Jones Act market. The units are scheduled to be delivered from late 2009 through late 2010.

The tug boats will be constructed at Bender Shipbuilding & Repair Co., Inc. in Mobile, Alabama and the barges will be constructed at Bender's affiliated company, Tampa Bay Shipbuilding & Repair Company. OSG estimates that the total cost of construction, including owner-furnished equipment, will be approximately $90 million for each ATB unit.

The new vessels will add 148,200 deadweight tons (dwt) to the company's U.S. Flag fleet, bringing its total owned, operated and newbuild U.S. flag fleet to 42 vessels, aggregating 1.7 million dwt, three of which, says OSG, "are subject to definitive documentation as of today's date."