Frontline and SFL agree charter termination for sold VLCC pair

John Fredriksen’s SFL Corporation and Frontline have agreed to terminate the charter deal for two 2004-built very large crude carriers (VLCCs) that have been sold to an unrelated third party.

The sale proceeds of the VLCCs Front Energy and Front Force have been estimated to be around $70m, including compensation of $4.5m from Frontline for the early termination of the existing charter. 

The charters are expected to terminate in the second quarter of 2022, when delivery of the vessels should take place. A book gain of some $2m is estimated as a result of the sale. SFL said it plans to use the net cash proceeds to reinvest in new assets.

The two ships are the last remaining from the Frontline fleet, acquired in 2004 and 2005. Following the transaction, SFL will not have any vessels on charter to Frontline. 

Adis Ajdin

Adis is an experienced news reporter with a background in finance, media and education. He has written across the spectrum of offshore energy and ocean industries for many years and is a member of International Federation of Journalists. Previously he had written for Navingo media group titles including Offshore Energy, Subsea World News and Marine Energy.
Back to top button