Frontline pays $566m for six HHI resale VLCCs

John Fredriksen’s Frontline has acquired six Central Mare VLCC tankers, currently under construction at Hyundai Heavy Industries (HHI).

The company is paying $565.8m for the tankers, including an estimated $25.7m in additions and upgrades to the standard specifications. The vessels will be capable of operating on different fuels, including biofuels, and have the potential to be retrofitted to run on LNG or ammonia. Each vessel will also be fitted with scrubbers.

Deliveries are scheduled to start in the first quarter of 2022, running through to the first quarter of 2023.

Lars Barstad, interim CEO of Frontline Management, commented: “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.”

VesselsValue data shows that Evangelos Pistiolis led Central Mare is the only owner with six or more VLCCs on order at HHI. It has six on order along with an additional two in partnership with sister company Top Ships.

Grant Rowles

Grant spent nine years at Informa Group based in London, Sydney, Hong Kong and Singapore. He gained strong management experience in publishing, conferences and awards schemes in the shipping and legal areas, working on a number of titles including Lloyd's List. In 2009 Grant joined Seatrade responsible for the commercial development of Seatrade’s Asia products. In 2012, with Sam Chambers, he co-founded Asia Shipping Media.
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