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Marine Log

September 10, 2007

OSG names first Q-Flex LNG ships

Overseas Shipholding Group, Inc. (NYSE: OSG ) has announced the naming of the LNG Carrier Al Gattara, heralding a new generation of Q-Flex LNG carriers--described by OSG as "the world's safest, most advanced and largest ships to transport this critical energy source."

The vessel is the first in a series of four sister ships to be delivered to OSG Nakilat, the joint venture between OSG and Qatargas Transport Company (Nakilat).

The ship's sponsor, Mrs. Cathy Houston, wife of Dennis Houston, Executive Vice President, ExxonMobil Refining and Supply Company, officially named the Al Gattara in a ceremony at the Hyundai Heavy Industries shipyard. The second ship in the series, the Tembek, constructed by Samsung Heavy Industries in Geoje Island, South Korea,is to be named on Tuesday, September 11. Mrs. Naomi Campbell, spouse of Mr. Angus Campbell, Head of OSG's Gas Strategic Business Unit, will be the ship's sponsor.

OSG Nakilat's fleet of LNG carriers can each transport 216,000 cubic meters of LNG, approximately 40 percent more than the standard LNG vessels in service today.

In addition, this new generation of LNG vessels has significantly lower energy requirements than conventional LNG vessels due to economies of scale created by their size and the efficiency of the engines.

The new class of ships is powered by low-emission, electronically controlled diesel engines.

The vessels have dual propeller and rudders (a redundant safety feature) and advanced security systems. An on-board reliquefaction plant cools boil-off gas and converts it back to liquid for return to the tanks.

The vessels are long-term, 25-year charters to Qatargas.

Morten Arntzen, President and CEO of OSG commented, "OSG continues to diversify its business by moving into new and related markets and LNG, one of the fastest areas of energy growth, presents us with tremendous opportunities to expand."

"This new class of LNG carriers is unique and has been designed and constructed using all advanced technology that is available today," Arntzen continued. "Building on our reputation as a leading provider of safe, clean, reliable energy transportation services, we look forward to a long-term partnership with Qatargas. This is a momentous occasion for OSG."