Oct 12, 2023

Overseas Shipholding Group Purchases Vessel from BP

Alaskan Frontier to be reactivated – expected in-service availability by 4th Quarter 2024

TAMPA, Fla. –
Overseas Shipholding Group, Inc. (“OSG”) announced today an agreement with BP Oil Shipping Company, USA, to purchase the tank vessel Alaskan Frontier, a sister vessel to three other Alaskan Class tankers operated by OSG’s wholly owned subsidiary, Alaskan Tanker Company. Following the expected early November completion of the transaction, OSG intends to reactivate the 1.3-million-barrel capacity tanker which has been in cold layup in Malaysia since 2019. OSG plans to make significant investments in the vessel for it to begin commercial trade by the fourth quarter of 2024.

“The purchase of the Alaskan Frontier brings all four of the Alaskan class crude oil tankers under OSG’s ownership at a time when the prospect for expanded crude oil production in Alaska offers great promise for continued and increasing demand for ships of her type,” said Sam Norton, President and CEO of OSG. “Upon completion of shipyard work, which will include lifecycle upgrades on the engines that will improve the performance and longevity of the vessel, we believe that the Alaskan Frontier will be primed to provide additional transportation capacity to suit the needs of our customers in a time of limited availability.” Mr. Norton added, “The full scope of reactivation work is expected to require a period of approximately one year and will, in addition to the engine upgrades, entail a ballast water treatment system installation and other improvements to prepare her for commercial use.” The total capital commitment for the project, including the purchase price of the vessel, is approximately fifty million dollars.

The engine upgrades for the Alaskan Frontier are considered a lifecycle upgrade, which will be completed by MAN Energy Solutions SE. This comprehensive modernization of each of the four engines onboard will improve performance and fuel efficiency and also prepare the engines for possible methanol fuel in the future. It is expected that the fuel efficiency gain will result in 15-20% fuel savings as compared to the vessel’s current consumption, leading to a meaningful reduction in carbon output. The significant capital investment being made will permit the Company to operate the vessel for a longer period of time and with fewer maintenance costs for its remaining life.

The Alaskan Frontier was built in 2004 by General Dynamics NASSCO and was part of the active fleet of the Alaska Tanker Company until 2019 when the vessel was placed in cold lay-up in Labuan, Malaysia.

About Overseas Shipholding Group, Inc

Overseas Shipholding Group, Inc. (NYSE: OSG) is a publicly traded company providing liquid bulk transportation services in the U.S. Flag markets. OSG’s U.S. Flag fleet consists of Suezmax crude oil tankers doing business in Alaska, conventional and lightering ATBs, shuttle and conventional MR tankers, and non-Jones Act MR tankers that participate in the U.S. Tanker Security Program.

Headquartered in Tampa, Florida, OSG is committed to setting high standards of excellence for its quality, safety, and environmental programs and is recognized as one of the world’s most customer-focused marine transportation companies.

Investor Relations & Media Contact:

Susan Allan, Overseas Shipholding Group, Inc.

(813) 209-0620