Frontline Buys Two VLCCs
Frontline Ltd. has secured two VLCC newbuildings for delivery in 2006. The newbuildings has been secured through a purchase of two resale contracts for a total price of $158.5 million. Initially only 10 percent of the contract price will have to be paid in cash.CEO of Frontline Management Oscar Spieler said "The Combination of the price, the payment terms and the delivery position makes this a very attractive investment for Frontline. Frontline will prior to delivery of the vessels consider various options to sell the vessels to a third party and take them back on long term charters. One of the most likely options is to agree a long term sale / charter back with our affiliated party Ship Finance International Limited."