March 15, 1977 - Maritime Reporter and Engineering News

Ogden Marine Officials Optimistic About Future

"The climate is the best I have seen in 17 years for U.S.-flag ship operations," stated Michael Klebanoff, president, Ogden Marine Inc. (OMI), in a talk given at a recent meeting with New York securities analysts. Mr.

Klebanoff reinforced this statement by saying that the imbalance between supply and demand for tankers should level off in two or three years. He also predicted increased oil imports by the United States.

The Ogden Corporation's transportation group includes Avondale Shipyards, OMI, and marine terminals. M. Lee Rice, president of Ogden Transportation Inc., and Mr. Klebanoff both spoke at length on the transportation of LNG. They stated that Avondale Shipyards is building three LNG carriers for charter to Pacific Lighting and Pacific Gas companies, for delivery of LNG from Indonesia to the West Coast.

They are hopeful of receiving a similar contract from Zapata Corporation, which has a charter agreement with these firms. The existing 20-year charter of the three ships under construction is valued at approximately a half billion dollars. Construction of the other three would double this figure.

However, the firm's officers stressed that the necessary approvals from the Federal Power Commission and Federal and California environmental authorities are delaying both the initial ships and the ships Zapata may order.

Mr. Klebanoff stated the government- imposed delays have set back the program from nine months to a year, and have thus aggravated the shortage of natural gas in the United States.

Both Mr. Rice and Mr. Klebanoff gave optimistic reports about their company. Ogden Transportation showed a record profit of more than $35 million last year, and expects to set another record this year.

Other stories from March 15, 1977 issue


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