Philly Shipyard Celebrates Keel Laying Milestone for Third Product Tanker for Kinder Morgan

PHILADELPHIA--(BUSINESS WIRE)--

Philly Shipyard, Inc. (PSI), the wholly-owned U.S. subsidiary of Philly Shipyard ASA PHLY, held a ceremonial Keel Laying today for the third product tanker in a four vessel order for American Petroleum Tankers (APT), a Kinder Morgan, Inc. subsidiary.

Keeping with long held shipbuilding tradition, coins were placed on one of the keel blocks before the 650 ton unit was lowered into place in the dry dock. Representatives from Philly Shipyard and Kinder Morgan were in attendance to place the coins as a sign of good fortune and safe travels. Philly Shipyard representatives included the most recent graduates of the company's Apprentice Program.

Initiated in 2004, the three-year apprenticeship program develops the next generation of Philly Shipyard employees. The recent graduation class added 15 skilled shipbuilders to the workforce, bringing the shipyard's apprentices to 23% of its current workforce. Since the program's inception, 21 apprentices have moved into management positions and many have obtained additional manufacturing qualifications. The shipyard expanded the program this year and has hired 50 apprentices with intent to hire another 50 apprentices in 2017.

Steinar Nerbovik, Philly Shipyard's President and CEO, remarked, "Today we celebrate our fifteen new shipbuilders and the twenty-seventh keel laid in our seventeen year history. Both will set the standard for shipbuilding activities well into our future. Congratulations to our graduates and to the men and women of Philly Shipyard for another milestone progressing toward our ongoing goal of being the premier U.S. commercial shipyard."

When completed in 2017, the product tanker celebrated today will be 600 feet long and capable of carrying 50,000 tons of crude oil or refined petroleum products. The Tier II 50,000 dead weight ton (dwt) product tankers are based on a proven Hyundai Mipo Dockyards (HMD) design which incorporates numerous fuel efficiency features, flexible cargo capability and the latest regulatory requirements. The vessels will be constructed with consideration for the use of LNG for propulsion in the future.

Philly Shipyard has delivered 24 ships in its 17 year history. The four product tankers for APT are currently under construction and have planned deliveries in 2016 and 2017. Also under construction at the shipyard are two 3,600 TEU containerships for Matson Navigation Company, Inc. with planned deliveries in Q3 2018 and Q1 2019. For more information on the shipyard and its projects, please visit www.phillyshipyard.com.

Kinder Morgan, Inc. KMI is the largest energy infrastructure company in North America. It owns an interest in or operates approximately 84,000 miles of pipelines and approximately 165 terminals. The company's pipelines transport natural gas, gasoline, crude oil, CO₂ and other products, and its terminals store petroleum products and chemicals, and handle bulk materials like coal and petroleum coke. For more information please visit www.kindermorgan.com.

Philly 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. Philly Shipyard is listed on the Oslo Stock Exchange and is majority-owned by Aker Capital II AS, which in turn is 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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