TAMPA, Fla. –
Overseas Shipholding Group, Inc. (NYSE: OSG) (the “Company” or “OSG”) a
provider of energy transportation services for crude oil and petroleum
products in the U.S. Flag markets, announced today that it has exercised
an option to construct a second 204,000 barrel Oil and Chemical ATB
Barge at Gunderson Marine LLC’s (“GM”) Portland, Oregon facility. The
barge, scheduled for delivery in the second half of 2020, will be
designed and built to be paired with one of the Company’s existing
modern tugs, replacing a rebuilt barge unit which is expected to be
phased out of service prior to delivery of the new barge. Each of the
two barges contracted with GM will be of identical design, meeting all
of the latest safety and environmental requirements. The Company intends
to finance the construction of the two barges at GM with a combination
of existing cash and future debt financing.

“OSG is pleased to have taken this step to further ensure a continued
leading presence in the US Flag petroleum transportation sector,” said
Sam Norton, OSG’s President and CEO. “The larger barge capacity offered
by OSG’s Gunderson design, as compared to most of the other available
modern units, should give our barges a competitive edge on a dollar per
delivered barrel cost across almost all voyages. With the addition of
these modern, efficient and environmentally responsible vessels to our
existing fleet, we have increased confidence in our ongoing ability to
offer our core customer base both the assets and the quality of service
that they demand.”

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 21 vessel U.S. Flag
fleet consists of five ATBs, two lightering ATBs, three shuttle tankers,
nine MR tankers, and two non-Jones Act MR tankers that participate in
the U.S. MSP. In addition to the currently operating fleet, OSG has on
order two additional non-Jones Act MR tankers and two Jones Act
compliant barges which are scheduled for delivery in 2019 and 2020
respectively. 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; Non-GAAP Financial Measures

This release contains forward-looking statements. In addition, OSG 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 OSG. All statements other
than statements of historical facts should be considered forward-looking
statements. These matters or statements may relate to OSG’s prospects,
OSG’s future results of operations, OSG’s ability to maintain its market
position, OSG’s ability to operate without interruption, OSG’s ability
to pursue growth opportunities, and OSG’s ability to comply with the
terms of its credit facilities and other material contracts.
Forward-looking statements are based OSG’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 OSG’s Annual Report on Form 10-K and in similar sections of
other filings made by OSG with the SEC from time to time. OSG assumes no
obligation to update or revise any forward-looking statements.
Forward-looking statements and written and oral forward-looking
statements attributable to OSG 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 OSG with the SEC. “TCE revenue” and “net annual
vessel operating contribution” are non-GAAP financial measures, which
are defined in OSG’s most recent Quarterly Report on Form 10-Q and the
related earnings release, a copy of which was filed as an Exhibit to
OSG’s Current Report on Form 8-K filed with the SEC on November 9, 2018.
These Non-GAAP measures are used because management makes economic
decisions, and evaluates OSG’s financial performance, based on these
measures.

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Investor Relations & Media Contact:
Susan Allan,
Overseas Shipholding Group, Inc.
(813) 209-0620
sallan@osg.com