BAE Systems to Finish Building Abandoned Tanker

BAE Systems’ Mobile River facility will begin construction in order to complete a Jones Act oil tanker that was abandoned at the shipyard by previous owners.  The 49,000 dwt tanker has now been contracted with BAE Southeast Shipyards in Mobile, Alabama for the remaining work needed to finish the MV American Phoenix.

BAE’s Mobile facility was purchased last year from the Boston-headquartered company, Atlantic Marine.  This tanker is one of 2 others that is the cause for dispute for Atlantic Marine who were in charge of the shipyard, and joint venture company Mid-Ocean Tanker Co. LLC (MOTC) who now own the vessel after original contractor to Atlantic Marine, AHL Shipping, suffered bankruptcy proceedings. 

Mid Ocean had purchased the unfinished tanker from New Orleans-based bankruptcy court at a $12.65 million price tag and at 90% completeion.  MOTC has been working closely with BAE Systems to get the project underway.  According to a MOTC official, the tanker still needs $50 million worth of work, although the amount of the contract between MOTC and BAE was not specified.  The vessel will be ready for launch in October 2011.

Director and General Manager of BAE Systems Southeast Shipyards stated in a news release that this contract allows for them to continue building their workforce, but declined to provide information about hiring at the Mobile River shipyard.  BAE currently employs 600 people in Mobile, Alabama.

As for the other 2 oil tankers AHL signed for with Atlantic with construction, touting to hold over 350,000 barrels of oil, they are to be leased with Shell Trading.