Frontline Ltd. (Frontline) announced earlier today that it has agreed with Ship Finance International Limited (Ship Finance) to terminate the long term charter for the 1998 built VLCC Front Century. Ship Finance has simultaneously sold the vessel to an unrelated third party.
Frontline expects the vessel to cease operating as a conventional tanker and the charter with Ship Finance will terminate in the first quarter of 2017.
VLCC Front Century - Image courtesy: Marine Marchande
Frontline has also agreed a compensation payment to Ship Finance of approximately $4 million for the termination of the current charter.
"Fleet renewal is an important part of Frontline's long-term strategy, due to the fact that older vessels are becoming increasingly difficult to trade" said Robert Hvide Macleod, Chief Executive Officer of Frontline Management AS. "
Following this termination, the number of vessels on charter from Ship Finance will be reduced to 12 vessels, including 10 VLCCs and two Suezmax tankers.