Ship Finance International (SFI) has sold its VLCC Front Vanguard (300,100 dwt, built 1998) to an unnamed counterparty for a net price of $24m.
The Japan-built vessel’s current long-term charter to Frontline will be terminated agreement, for which Frontline will receive a compensation payment of $0.4m.
VesselsValue.com estimates Front Vanguard‘s current market value at $23.25m. The ship will be delivered to its buyer in June.
“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 today.
Following the contract termination, Frontline will have 13 vessels on charter from SFI, comprising 11 VLCCs and two suezmax tankers.
In September, SFI sold its suezmax tanker Front Splendour (149,700 dwt, built 1995), which had also been on long-term charter to Frontline.