Overseas Shipholding announces new bareboat charter
Overseas Shipholding announced that it has entered into a Bareboat Charter Party Agreement with the owner of the vessel known as the Oregon Voyager. OSG will rename the 1999-built U.S. flagged product tanker the Overseas Key West and intends to use this vessel in the U.S. coastwise trade under the Jones Act. The Bareboat Charter extends for 10 years, into 2029. OSG will undertake the vessel's fourth special survey following the vessel's expected delivery and expects the vessel to commence commercial operations during the second quarter of 2019. CEO Sam Norton added, "At current market levels, we expect the Overseas Key West to contribute more than $18 million per annum in time charter equivalent revenue once she enters into service. At this revenue level, we estimate that the Overseas Key West would add approximately $5.5 million in net annual vessel operating contribution, which would be a welcome addition toward building a solid future cash flow profile."