Frontline, Teekay to Expand Suezmax Pool
Hamilton, Bermuda, December 15, 2008 – Teekay Corporation (TK) and Frontline Ltd. (FRO) announced an agreement to commercially combine their Suezmax vessels within the Gemini Pool, a Suezmax tanker pool serving customers around the globe.
Frontline will place its spot Suezmax vessels within the Gemini Pool, bringing the total number of vessels in the pool to 36. To manage the larger fleet and establish a chartering presence in Europe to supplement its existing Stamford, Connecticut operations, Gemini has opened an office in Oslo and four commercial personnel from Frontline have joined the new office.
“Frontline has always been a frontrunner in consolidating the tanker industry and entering the Gemini Pool is an important element in such. For Frontline, we expect to improve the utilization on our fleet and to reduce the cost basis by entering a large pool. We believe this action will be an advantage both for the Gemini Pool, Frontline’s customers and shareholders,” commented Jens Martin Jensen, Acting CEO of Frontline Management.
“Teekay and the other members of the Gemini Pool are pleased to welcome Frontline as a new partner,” said Bjorn Moller, President & CEO of Teekay Corporation. “Combining our respective Suezmax fleets will enable us to better meet the needs of customers through a large, homogeneous modern fleet, and be more responsive to customer requirements with the addition of a European office.”
In addition to Frontline and Teekay, König & Cie and Hyundai Merchant Marine are also Gemini Pool partners.
The expanded Pool will commence January 1, 2009.