The Chilean Navy has officially commissioned a new oiler ship, Almirante Montt, at Atlantic Marine in Mobile Wedneda.

The 677ft-long ship will sail from Mobile Bay at the end of February under control of its new commanding officer Captain Guillermo Gunckel, according to al.com.

The oiler ship was previously commissioned as USS Andrew J Higgins for the US Navy before it was decommissioned and sold to Chile in 2009.

According to an agreement signed between the US and Chile, the vessel will be used to ferry fuel and supplies to other ships, serving both the Chilean and US navies for the next ten years.

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VSE Corporation spokeswoman Darline Kozich said Atlantic Marine had submitted a $29m bid to rebuild the engines and generators and repair all the equipment back to operational status.

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Kozich said the shipyard had been working on the Montt since November 2009. It will be ready to sail in mid March.

The ship has a full load displacement of 40,000t and can carry up to 180,000 barrels of oil and eight 20ft-long refrigerated containers of food.