Jones Act Tankers


#1

I recieved this in an email today:

Houston & San Antonio — AHL Shipping Company (AHL) today announced plans to build three, shallowdraft,

49,000 deadweight ton (DWT) Jones Act- and OPA90 (Oil Pollution Act of 1990)-compliant tankers in

connection with a charter agreement with Shell Trading (US) Company (Shell Trading).

The vessels will be the first Jones Act tankers to be constructed under the common structural rules adopted by

the International Association of Classification Societies, which came into effect in April 2006. They also will

be the first vessels of this size to be built in the U.S. using the modular construction concept. The vessels will

go on long-term time charter to Shell Trading in 2009/2010.

According to AHL President Richard Horner, the modular construction concept allows different facets of

construction to be conducted by the most qualified shipyard, based on expertise levels. The common

structural rules are designed to increase the structural integrity and long-term serviceability of vessels.

“Today’s announcement is a milestone for AHL, Shell and the U.S. shipping industry,” said Horner. “The

tankers will be fully compliant with Jones Act requirements including being U.S. built, flagged and manned.

Shell Trading’s commitment to this endeavor through a long-term time charter agreement has helped to make

this important project a reality. We look forward to working with Shell to help ensure the availability of oil

and chemical products throughout the U.S.”

This vessel construction project supports Shell’s position with its controlled tonnage as the phase out of single

hull vessels approaches due to OPA90, said Bob Salmon, general manager, Shell Shipping.

“Shell is committed to being a leader across its businesses. Through our agreement with AHL, we are fulfilling

this commitment on several fronts,” explained Salmon. “These vessels complement our commitment to

update and diversify our fleet of double-hull Jones Act-compliant product carriers, while providing additional

jobs for U.S. shipbuilders. From a preferred partner standpoint, AHL’s reputation as an experienced marine

petroleum transportation specialist complements Shell’s high standards for safety and integrity. Perhaps most

importantly, the capability of these shallow-draft vessels to operate while fully laden will offer greater flexibility

for port delivery across the U.S., than other vessels of the same size, while meeting strict environmental

requirements.”

FINAL DRAFT

7.2.07

10:43 AM

< FOR RELEASE: _____________

AHL SHIPPING TO BUILD FIRST

JONES ACT TANKERS USING INNOVATIVE CONSTRUCTION

PROCESS FOR SHELL CHARTER

AHL Builds First Jones Act Tankers for Shell Charter/Page 2