Aker Philadelphia Shipyard and SeaRiver ink definitive Alaska tanker contract

At a ceremony at its shipyard today, Aker Philadelphia Shipyard, Inc. (APSI), the sole operating subsidiary of Aker Philadelphia Shipyard ASA (Oslo: AKPS), signed definitive documentation for the construction of two aframax tankers with SeaRiver Maritime, Inc. (SeaRiver), Exxon Mobil Corporation’s U.S. marine affiliate. The 820 foot long, 115,000 deadweight ton tankers are intended to transport Alaskan North Slope crude oil from Prince William Sound to the U.S. West Coast. The vessels will be equipped with double hull protection, the latest navigation and communications equipment, and energy efficient engines.

This transaction was originally disclosed when a Letter of Intent was signed on July 25, 2011 and is valued at approximately US $400 million. This transaction does not require any third party financing.

Engineering and planning work is already underway in conjunction with APSI’s technical partner, Korean shipbuilding giant Samsung Heavy Industries. Construction of the first vessel is expected to begin by mid-2012 and both vessels are scheduled for delivery in 2014. When both vessels are under construction, the workforce at the shipyard is expected to exceed 1,000 people.

“The signing of this contract today marks a major milestone for the shipyard and we thank SeaRiver for its trust and confidence. We truly look forward to working together on this project,” said Kristian Røkke, Aker Philadelphia Shipyard President and CEO. “I speak for all of the dedicated men and women of the shipyard in saying we are excited to continue the proud tradition of shipbuilding in Philadelphia.”

SeaRiver President Will Jenkins commented, “This project is consistent with our long term, ongoing commitment to safe and reliable marine transportation in the United States and throughout the world. Known as the Liberty Class, the design incorporates key technologies and experience from both the aerospace and maritime industries, and it has been tailored to meet some of the most demanding marine conditions.”

Aker Philadelphia Shipyard is currently constructing two 46,000 deadweight product tankers for delivery in late 2012 and early 2013, respectively.

September 29, 2011