November 27, 2007 / 8:23 AM / 11 years ago

UPDATE 1-Aker American Shipping places up to $1.3 bln order

(Adds details, quotes, share price)

OSLO, Nov 27 (Reuters) - Norway’s Aker American Shipping AKASA.OL has entered an option agreement to build up to 13 product tankers with shipbuilder Aker Philadelphia Shipyard for up to $1.3 billion, the parties to the deal said on Tuesday.

“Each vessel has an agreed-to price of $100 million; however, under the agreement, the final contract value will be adjusted to reflect inflation and cover escalation for materials, equipment and service cost increases from 2011,” the companies said in a statement.

The vessels are for delivery between July 2011 and July 2015, they said.

Aker Philadelphia Shipyard is currently a unit of Aker American Shipping, but will soon be spun off as a separate entity and listed on the Oslo Axess marketplace for small firms.

“The outlook is promising,” Aker Philadelphia’s Chief Executive Dave Meehan said in the statement.

The deal with Aker American Shipping expands the shipyard’s building programme to 25 vessels from 12, they said.

“Under the current newbuilding programme, an additional seven product tankers and two shuttle tankers will be delivered from 2008 to 2011,” they said.

Aker American Shipping shares closed at 127 crowns on Monday and were untraded on Tuesday by 0820 GMT.

Reporting by John Acher; Editing by Quentin Bryar

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