Page 12: of Maritime Reporter Magazine (June 1974)

Zapata To Acquire

Four Product Tankers—

Plan Big Ship Fleet

Zapata Corporation, 2000 South- west Tower, Houston, Texas 77002, has announced that it has signed a preliminary agreement for the ac- quisition of four products tankers now being built by the Los Angeles

Division of Todd Shipyards Corpora- tion for Sea Service Tankers, Inc.

The vessels, each of 35,000 dead- weight tons capacity, were ordered from the shipyard in 1972 and are scheduled for delivery in late 1975 and early 1976. Total consideration in the transaction will be approximately $59 million, including the assumption by Zapata of Government-guaranteed debt.

Zapata said that the agreement is subject to definitive documentation, and that consent of the U.S. Mari- time Administration (MarAd) must be obtained for transfer of the con- struction contract and related Gov- ernment subsidy agreements to Za- pata. Total delivered cost of the four vessels under the construction con- tract, after subsidies, is estimated at approximately $50.6 million. In addi- tion, Zapata has agreed to pay, in cash and notes of varying maturities, a premium of about $8.4 million which largely reflects the increase in current replacement costs for such vessels. The premium is payable to parties presently holding interests in the Sea Service tankers, which in- clude Colt Industries, Inc. (supplier of engines for the vessels); Massa- chusetts Tankers, Inc., a subsidiary of First National Boston Corpora- tion ; and two private individuals.

Zapata said that the agreement rep- resents the first formal commitment to date under its previously announced plans to reenter the bulk shipping business under the U.S. flag. In July 1973, - Zapata sold its foreign-flag shipping operation to British and

Norwegian interests for $208 million.

The company said that it was also conducting negotiations with various

U.S. shipyards for construction con- tracts involving tankers of 400,000 and 120,000 dwt, ore/bulk/oil car- riers of 80,000 dwt, and liquefied petroleum gas carriers of 75,000 cu- bic meters.

Zapata Corporation (NYSE) pro- vides diversified natural resource services and products around the world. Its present businesses include contract drilling and supply vessel services, for offshore operators, petro- leum exploration, copper and coal mining, menhaden and tuna fishing, agricultural development, and build- ing, general and marine construction.

Shaw Company

Div. Of Luckenbach

Appoints M J. Sepe

Michael J. Sepe

Donald T. Quinn, general mana- ger of Shaw Company, a division of Luckenbach Steamship Co., Inc., has announced ithe appointment of

Michael J. Sepe as manager of

Shaw's Port Everglades, Fla., of- fice.

Before joining' Shaw last year,

Mr. Sepe managed marketing and customer services for Maher Ter- minals, Inc., New York.

Mr. Sepe was graduated from

Pace College, where he studied management, transportation and physical distribution management, and accounting.

In 1956, he joined Kerr Steam- ship Co. as line manager for Scan- dinavian & Mediterranean Lines and served in that job until 1963, when he joined Maher.

Matson Navigation

Promotes Tsuneyoshi

Matson Navigation Company has promoted Ray T. Tsuneyoshi to as- sistant regional sales manager for southern California, it was an- nounced by C.B. Mulholland, re- gional sales manager.

Mr. Tsuneyoshi was formerly a sales representative for Matson in

Honolulu.

Ship builders, ship owners and operators, we want your insurance business.

R.B. JONES _f

INSURANCE Vi

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