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FRONTLINE TO ACQUIRE SIX ECO-VLCC NEWBUILDS

FRONTLINE TO ACQUIRE SIX ECO-VLCC NEWBUILDS

Monday, May 24, 2021 

Bermuda-based company Frontline has entered into an agreement for the acquisition through resale of six latest generation low emission VLCC newbuilding contracts.

The six VLCCs are currently under construction at Hyundai Heavy Industries (HHI) in South Korea and are being acquired for an aggregate purchase price of US$565.8m, including an estimated US$25.7m in additions and upgrades to the standard specifications.

The vessels are designed to operate on different fuels, including biofuel, have the potential to be converted or retrofitted to consume fuel like LNG or Ammonia and consequently there is an ability to cut CO2 emissions to zero when technology, logistics and the regulatory framework allows for it. The newbuildings will be fitted with Exhaust Gas Scrubber technology, high-end Anti Fouling systems, equipped with Digital Energy Performance solutions as well as compliant with specific Exxon Mobile lightering requirements to allow for maximum trading flexibility.

Five of the vessels are scheduled to be delivered during 2022 with the last vessel in early 2023.

Lars H Barstad, Interim CEO, Frontline Management, said: “This transaction is consistent with our core company goals to increase exposure to the VLCC market without adding to existing vessel supply. It further cements Frontline’s position in respect of owning a modern, high quality, fuel efficient fleet. The delivery schedule for these vessels is particularly attractive, in a timing window regarded closed for new orders. With this acquisition Frontline is tangibly moving on our journey towards lower carbon emissions.”

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