Overseas Shipholding Group, Inc. (NYSE: OSG) has taken delivery of two 50,000 dwt class product and chemical tankers from South Korean shipbuilder Hyundai Mipo Dockyard Co., Ltd.
The Overseas Gulf Coast and Overseas Sun Coast will be operating in the international market under the Marshall Islands flag, with both vessels having entered into one-year time charters.
Following this initial contract period, says OSG, it anticipates that the vessels will transition to operate under the U.S. flag.
“An important – although still provisional – initiative in the U.S. House of Representatives’ annual National Defense Authorization Act seeks to augment the current Maritime Security Program with a new Tanker Security Program,” said Sam Norton, OSG’s President and CEO. “The Tanker Security Program as conceived would, if made law, create a fleet of up to ten U.S. flagged MR tankers in a program effectively replicating the structure of the current MSP program. Our commitment to supporting this initiative, and the national defense objectives which it targets, is most visibly evident in our investments in the Overseas Gulf Coast and Overseas Sun Coast. Both vessels will be made available to join this program if passed into law in the coming months.”
The Overseas Gulf Coast and Overseas Sun Coast, have been built to comply with MARPOL Annex VI Regulation 13 Tier III standards regarding nitrogen oxide emissions within emission control areas. In addition, each is fitted with an exhaust gas cleaning system, or scrubber, to meet the MARPOL Annex VI Regulation 14 standards regarding sulfur oxide emissions.