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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 IN NEW YORK: 160 WATER STREET NEW YORK, NEW YORK 10038 212-344-5200 CABLE ADDRESS ARBEJONES Atlanta Chattanooga Brisbane Chicago Dallas Jefferson City Joplin Los Angeles Kansas City New York San Diego St. Louis Sydney Tulsa Waterloo Wichita' 14 Maritime Reporter/Engineerirtg News
