Aker Philadelphia Shipyard Starts Construction of First Product Tanker for Joint Venture with Crowley

PHILADELPHIA--(BUSINESS WIRE)--January 06, 2014--

Aker Philadelphia Shipyard, Inc. (APSI), the wholly-owned U.S. subsidiary of Aker Philadelphia Shipyard ASA (Oslo: AKPS), began production activities today on the first product tanker that it is building for its joint venture with Crowley. Crowley and APSI have signed contracts for the first four tankers, with a total contract value of approximately $500 million.

A small ceremony with representatives from Crowley and APSI was held in the shipyard's Fabrication Shop to commence cutting on the ship's first steel plate. That plate will become part of the double hull of the tanker that protects the cargo tanks. When completed in 2015, the vessel will be 600 feet long and be capable of carrying 50,000 tons of crude oil or refined petroleum products.

APSI President and CEO, Kristian Rokke, remarked, "We are excited to partner with Crowley to provide safe and reliable long term transportation options for the growing U.S. petroleum market. APSI has a strong history of building similar product tankers that are each playing a fundamental role in moving our nation's energy today." Mr. Rokke continued, "The cutting of this plate today is a tangible sign of the work that has been done to deliver on our commitments to customers and shareholders as we leverage our unique position to build these valuable assets."

The new 50,000 dwt product tankers are based on a proven Hyundai Mipo Dockyards (HMD) design which incorporates numerous fuel efficiency features, flexible cargo capability, and the latest regulatory requirements. The vessels will be constructed with consideration for the use of LNG for propulsion in the future.

APSI is currently constructing two 115,000 dwt crude oil tankers for SeaRiver Maritime, Inc., ExxonMobil Corporation's U.S. marine affiliate. Both of these tankers are scheduled for delivery in 2014. APSI also has contracts for two 3,600 TEU containerships for Matson Navigation which will be delivered in 2018. For more information on the shipyard, please visit www.akerphiladelphia.com.

Aker Philadelphia Shipyard is a leading U.S. commercial shipyard constructing vessels for operation in the Jones Act market. It possesses a state-of-the-art shipbuilding facility and has earned a reputation as the preferred provider of oceangoing merchant vessels with a track record of delivering quality ships. Aker Philadelphia Shipyard is listed on the Oslo Stock Exchange and is 71.2 percent owned by Converto Capital Fund, which in turn is majority-owned by Aker ASA. Aker is a Norwegian industrial investment company that creates value through active ownership. Aker's investment portfolio is concentrated on key Norwegian industries that are international in scope: oil and gas, fisheries and biotechnology, and marine assets.

Source: WSJ.com