Aker Philadelphia Shipyard Starts Construction on Third and Fourth Product Tankers for Kinder Morgan

Aker Philadelphia Shipyard, Inc. (APSI), the sole operating subsidiary of Aker Philadelphia Shipyard ASA (Oslo: AKPS), began production activities today on the third and fourth 50,000 dwt product tankers in a four vessel order for American Petroleum Tankers, a Kinder Morgan Inc. subsidiary (APT). The two product tankers are scheduled for delivery in 2017 and are the culmination of a series of eight product tankers being built at the shipyard for APSI’s customers.

Construction on the third and fourth 50, 000 dwt product tankers for APT officially began in the shipyard’s fabrication shop when guest of honor Pennsylvania Lieutenant Governor Mike Stack pushed the button on the shipyard’s state of the art plasma cutting machine. The first steel plates that were cut will later become part of the engine room.

At the ceremony, President and CEO of APSI, Steinar Nerbovik, remarked: “With construction underway on these two product tankers, we celebrate the capstone of an exciting eight tanker series that is part of Philadelphia’s contribution to the energy landscape of this country. The 1,100 men and women working at the shipyard will be busy for years to come completing these tankers and the other vessels we have under contract.”

“We are very pleased to be working with the Aker Philadelphia Shipyard on the construction of four, LNG-conversion-ready tankers, and the start of construction of these two vessels marks a milestone for our expanding fleet,” said Robert Kurz, Vice President of Kinder Morgan Terminals and President of APT. “There continues to be a strong demand for domestic marine transportation of petroleum products and crude oil, and these tankers will provide Kinder Morgan with additional new tonnage to better service our customers.”

The next generation 50,000 dwt product tanker is based on a proven Hyundai Mipo Dockyards (HMD) design that incorporates numerous fuel efficiency features, flexible cargo capability, and the latest regulatory requirements. The tankers will also be constructed with consideration for the use of liquefied natural gas (LNG) for propulsion in the future. When completed, each of the 600-foot tankers will have a carrying capacity of 14.5 million gallons to transport crude oil or refined products.

The four 50,000 dwt product tankers for APT are currently under contract with Philly Tankers LLC. In line with the announcement made by AKPS on August 10, 2015, each of these contracts will be assigned by Philly Tankers LLC to APT at vessel delivery.

Also under construction at the shipyard are three 50,000 dwt product tankers for Crowley with planned deliveries through 2016, the first two 50,000 dwt tankers for APT with planned deliveries in 2016 and 2017, and two containerships for Matson Navigation Company, Inc. with planned deliveries in 2018. On July 16, 2015, the company announced that it intends to change its name to Philly Shipyard by the end of the year, pending shareholder approval. For more information on the shipyard, please visit www.akerphiladelphia.com.

About Aker Philadelphia Shipyard:

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 majority-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. Aker's industrial holdings comprise ownership interests in Aker Solutions, Kvaerner, Det norske oljeselskap, Aker BioMarine, Ocean Yield, Havfisk and Akastor.

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