TAMPA, Fla. –
Overseas Shipholding Group, Inc. (NYSE:OSG) (the “Company” or “OSG”)
announced today that it has reached an agreement with the U.S.
Securities and Exchange Commission (“SEC”) fully resolving a previously
disclosed SEC investigation into the failure of OSG to record certain
federal income tax liabilities in its financial statements prior to the
second quarter of 2012.

This agreement with the SEC would also resolve the last remaining claim
in the Company’s bankruptcy case. The Company will file a motion
requesting bankruptcy court approval of the resolution with the SEC and
will simultaneously request an order closing the Company’s bankruptcy
case.

“OSG is committed to operating its business with the utmost integrity
and transparency and in compliance with all applicable laws and
regulations,” said Sam Norton, OSG’s president and CEO. “We are pleased
to have reached an agreement to resolve this investigation and to be in
a position to close the bankruptcy case. With this matter behind us, we
can focus our full attention on building value for our shareholders.”

In the resolution, OSG neither admits nor denies the SEC’s allegations
that the Company violated certain provisions of the Securities Act of
1933, the Securities Exchange Act of 1934 and related rules. Subject to
bankruptcy court approval, OSG will pay a $5 million civil penalty
related to the SEC investigation, which was fully reserved for as of
September 30, 2016. The SEC resolution does not require any changes to
the Company’s historical financial statements. OSG previously restated
its annual financial statements for 2000 through 2011 and for the
quarters ended March 31 and June 30, 2012.

The SEC has acknowledged OSG’s cooperation with the SEC staff throughout
the course of its investigation, as well as OSG’s implementation of
remedial measures and improvements to internal accounting controls over
its tax reporting functions and changes to the senior management of OSG
since 2012.

About Overseas Shipholding Group, Inc.

Overseas Shipholding Group, Inc. (NYSE: OSG) is a publicly traded tanker
company providing energy transportation services for crude oil and
petroleum products in the U.S. Flag markets. OSG is a major operator of
tankers and ATBs in the Jones Act industry. OSG’s 24-vessel U.S. Flag
fleet consists of eight ATBs, two lightering ATBs, three shuttle
tankers, nine MR tankers, and two non-Jones Act MR tankers that
participate in the U.S. Maritime Security Program. OSG is committed to
setting high standards of excellence for its quality, safety and
environmental programs. OSG is recognized as one of the world’s most
customer-focused marine transportation companies and is headquartered in
Tampa, FL. More information is available at www.osg.com.

Forward-Looking Statements

This release contains forward-looking statements. In addition, the
Company may make or approve certain statements in future filings with
the Securities and Exchange Commission (SEC), in press releases, or in
oral or written presentations by representatives of the Company. All
statements other than statements of historical facts should be
considered forward-looking statements. These matters or statements may
relate to the Company’s prospects, its ability to retain and effectively
integrate new members of management and the effect of the Company’s
spin-off of International Seaways, Inc. Forward-looking statements are
based the Company’s current plans, estimates and projections, and are
subject to change based on a number of factors. Investors should
carefully consider the risk factors outlined in more detail in the
Annual Report on Form 10-K for OSG and in similar sections of other
filings made by the Company with the SEC from time to time. The Company
assumes no obligation to update or revise any forward-looking
statements. Forward-looking statements and written and oral forward
looking statements attributable to the Company or its representatives
after the date of this release are qualified in their entirety by the
cautionary statements contained in this paragraph and in other reports
previously or hereafter filed by the Company with the SEC.

View source version on businesswire.com: http://www.businesswire.com/news/home/20170123006062/en/

Investor Relations & Media:
Overseas Shipholding Group,
Inc.
Brian Tanner, 212-578-1645
btanner@osg.com