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Exxon signs deal for two new tankers Double-hull ships to replace two aging tankers hauling Alaska oil; construction agreement with Pa. shipyard worth $400 million Wesley Loy For Petroleum News
Exxon Mobil Corp.’s U.S. shipping affiliate, SeaRiver Maritime Inc., on Sept. 29 signed a deal for construction of two double-hull tankers to carry Alaska North Slope crude oil.
The agreement with Aker Philadelphia Shipyard in Pennsylvania is worth $400 million and will create more than 1,000 direct jobs, an ExxonMobil press release said.
The new Liberty Class tankers will replace two existing double-hull tankers now working in the Alaska trade. The ships to be replaced are the Kodiak and the Sierra, a SeaRiver spokesman told Petroleum News in July, when a letter of intent with Aker was announced.
The Kodiak and the Sierra were built in the late 1970s. ExxonMobil in 2005 acquired the tankers, which were hauling oil for BP, and had them refurbished to replace single-hull ships.
Ships will create jobs “This project is a reminder of the importance of America’s energy industry during the current challenging economic times,” Andrew P. Swiger, ExxonMobil senior vice president, said at a ceremony in Philadelphia. Pennsylvania Gov. Tom Corbett attended the event.
Swiger continued: “The jobs and other benefits generated by the construction of these ships will be in addition to the thousands of jobs and millions in government revenues our industry has already created in Pennsylvania through development of Marcellus shale gas, which is also providing new, affordable supplies of energy to fuel our nation’s economy.”
Aker Philadelphia Shipyard will build the U.S.-flag tankers “in partnership with Samsung Heavy Industries, a leader in shipbuilding technologies,” the ExxonMobil press release said.
“Even before the first cut of steel, the project will contribute to the ongoing growth and development of the economy and Aker Philadelphia Shipyard,” said Will Jenkins, president of Houston-based SeaRiver. “It will support jobs for the shipyard workforce, for the steel industry, and for countless material, equipment and service providers across the commonwealth and beyond. Following commissioning, the vessels will join our fleet in supporting our customers and the energy needs along the U.S. West Coast for decades to come.”
Last to build ExxonMobil is the last of Alaska’s three major North Slope oil producers to build double-hull tankers. BP and ConocoPhillips already have built new tankers.
Congress mandated a transition to double-hull tankers following the Exxon Valdez oil spill in Alaska’s Prince William Sound in 1989.
The tanker fleet serving Alaska already has fully converted to double hulls.
Around 15 tankers regularly call on Valdez, the terminus of the 800-mile trans-Alaska pipeline, to pick up oil for delivery to West Coast refineries. BP and ConocoPhillips operate four tankers each, while ExxonMobil has used three ships. Some tankers also call on Valdez for Tesoro.
Project planning work already is under way on the new SeaRiver tankers, the ExxonMobil press release said.
Construction of the 820-foot, 115,000 deadweight ton tankers is expected to begin by mid-2012. The vessels are scheduled for delivery in 2014.
Each will have a carrying capacity of 730,000 barrels of crude.
“All cargo and fuel compartments will be equipped with double hull protection,” the ExxonMobil press release said. “Main engine and auxiliary systems will be energy efficient and generate lower air emissions than what is required by current regulatory standards.”
The tankers also will feature the latest navigation and communications equipment, ExxonMobil said.
Swiger used the Philadelphia ceremony to note that the U.S. oil and gas industry could do more to create jobs and economic growth with access to resources now off-limits due to government policies.
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