OSG’s International Flag and U.S. Flag fleets operate worldwide transporting crude oil, petroleum products and gas for customers that include major independent and state owned oil companies, oil traders, and U.S. and international government entities The Company’s vessel operations are focused on four market segments: crude oil, products, U.S. Flag and gas.
The strength of OSG’s commercial platform, with office locations in New York, Houston, London, Singapore, Tampa and Montreal, enables customers to have access at all times to information about their cargo’s position and status. OSG’s commercial success is also due to the strength of the Company’s technical operations.
Overseas Shipholding Group has more than doubled its operating and newbuild fleet since 2003. Key acquisition, fleet expansion and diversification activities include:
Entrance into the FSO Market – In 2008 OSG entered the FSO (Floating Storage and Offloading) service vessel market. Maersk Oil Qatar AS awarded two long-term service contracts to OSG and a joint venture partner. Two ULCC vessels are being converted and are expected to commence operations in the Al Shaheen field off shore Qatar in late 2009 and early 2010.
- Product Carrier Market Expansion – As product trades shift and globalize, OSG has expanded its fleet of LR1 (coated Panamax) tankers to better serve its customer base. In 2005, the Company significantly expanded its product fleet by acquiring Stelmar Shipping Ltd., adding a fleet of 40 vessels and a technical management center based in Athens, Greece.
- U.S. Flag Expansion – In 2006 OSG acquired Maritrans Inc., a leading U.S. Flag crude oil and petroleum product shipping company. The acquisition significantly expanded OSG’s U.S. Flag presence with the addition of 21 articulated tug barges and Handysize product carriers as well as provided a technical and commercial platform based in Tampa, FL. The acquisition, coupled with OSG’s order of 10 Jones Act product tankers and two shuttle tankers with Aker Philadelphia Shipyard, strengthened OSG’s position as a leading player in the U.S. Flag bulk shipping market.
Entrance into the Suezmax Market – In 2007 OSG acquired two Suezmax tankers, completing the transition to a full service provider for every segment of crude tankers. In 2008 Suezmax International was formed.
Entrance into U.S. Shuttle Tanker Trade – In 2007, OSG was awarded the first contract to supply U.S. Flag shuttle tankers to transport oil from Floating Production Storage and Offloading (FPSO) facilities at the Chinook and Cascade ultra-deepwater fields in the Walker Ridge area of the Gulf of Mexico. Operations commenced in 2011.
- Lightering Expansion – The acquisition of Houston-based Heidmar Lightering in 2007 provided crude oil lightering services to refiners, oil companies and trading companies primarily in the U.S. Gulf with a fleet of four International Flag Aframaxes and two U.S. Flag workboats. The business manages a portfolio of one-to-three year fixed rate cargo contracts. OSG has doubled its U.S. Gulf market share and fleet since the acquisition.
- Gas Market Entrance – In 2004, OSG entered the LNG transport business. Four state-of-the-art LNG carriers delivered in 2007 and 2008.