Ship Finance International (SFI) has sold its 1998-built suezmax Mindanao to an unnamed buyer for $21.2m. Brokers have reported that the buyer is based in the Far East.
SFI said it had had agreed to the early termination of the tanker’s charter to fellow Fredriksen-led company Frontline. The contract had been expected to expire in the fourth quarter 2015.
Frontline will receive $3.3m in compensation for the charter termination, SFI said, making net cash proceeds from the vessel’s sale approximately $17.9m.
“Divesting of older vessels is a part of the company’s strategy to renew and diversify the fleet, and the proceeds are expected to be reinvested in new assets,” SFI said in a filing today.
Following the sale, the number of vessels on charter to Frontline will be reduced to 14 vessels, comprising 12 VLCCs and two suezmaxes.