Frontline in newbuilding swoop
Frontline Ltd. says it has has secured two VLCC newbuildings for delivery in 2006.
The newbuildings have been secured through a purchase of two resale contracts for a total price of $158,5 million. Initially only 10 % of the contract price will have to be paid in cash.
CEO of Frontline Management Oscar Spieler commented: "ThecCombination of the price, the payment terms and the delivery position makes this a very attractive investment for Frontline. Frontline will, prior to delivery of the vessels, consider various options to sell the vessels to a third party and take them back on long term charters. One of the most likely options is to agree a long term sale / charter back with our affiliated party Ship Finance International Ltd."