New York City-based Overseas Shipholding Group on Friday said it intends to spin off its international business that includes four ownership interests in four liquefied natural gas carriers.
The company noted in its statement, that the spin-off of OSG International, set for completion in the second half of 2016 would create two standalone publicly traded companies, each of which will be better able to focus on its own business.
OIN owns and operates a fleet of 55 vessels with a combined capacity of approximately 6.5 million deadweight tons and 864,800 cubic meters.
Its operating fleet comprises one ULCC, eight VLCCs, eight Aframaxes/LR2s, 12 Panamaxes/LR1s and 20 MR tankers. Through joint venture partnerships, OIN has ownership interests in four liquefied natural gas carriers and two floating storage and offloading service vessels, the company said in a statement.
After the spin-off, OSG will consist of the currently existing U.S. Flag business, which operates the 24-vessel fleet consisted of eight ATBs, two lightering ATBs, three shuttle tankers, nine MR tankers, and two non-Jones Act MR tankers that participate in the U.S. Maritime Security Program.
The spin-off is subject to the approval of the OSG board of directors and the satisfaction of various other conditions.